Commerce.com, Inc.

Thank you for standing by. My name is Gail and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Commerce's first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, kindly press star and then one again. It is my pleasure to turn today's call over to Tyler Duncan, Senior Vice President of Finance and Investor Relations. Please go ahead.

Good morning, and welcome to Commerce's first quarter 2026 earnings call. We will be discussing the results announced in our press release issued before today's market open. With me are Commerce's Chief Executive Officer, Travis Hess, and Chief Financial Officer and Chief Operating Officer, Daniel Lentz. Today's call will contain certain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning financial and business trends, as well as our expected future business and financial performance, financial condition, and our guidance for both the second quarter of 2026 and the full year 2026. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, committed, will, or similar words. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. Forward-looking statements, by their nature, address matters that are subject to risks and uncertainties that could cause actual results that differ materially from expectations. For discussion of the material risks and other important factors that could affect our actual results, please refer to the risks and other disclosures contained in our filings with the Securities and Exchange Commission. During the call, we will also discuss certain non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles. The reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, as well as how we define these metrics and other metrics, is included in our earnings press release. which has been furnished to the SEC and is also available on our website at investors.commerce.com. With that, let me turn the call over to Travis.

Thanks, Tyler. Q1 2026 was a strong start to the year. We delivered revenue of 86.8 million, non-GAAP operating income of 12.4 million, and GMV of 8.3 billion, growing 14% year over year. and acceleration of GMV growth from the 12% we reported for full year 2025. We also delivered positive gap net income of 3.7 million, which is a milestone that reflects the sustained operational discipline this team has applied over the past several years. We also generated operating and free cash flow of 18.4 million and 14.1 million, respectively, and ended Q1 with approximately 157 million in cash cash equivalents, and marketable securities with no material debt maturities until 2028. Historically, most investors and operators have described commerce as storefront-centric. Traffic, conversion, checkout. Platform value tied to owning the destination and the transaction. That model isn't wrong. It's just no longer sufficient to explain where value in the commerce ecosystem is actually accruing. Commerce is now better understood as data-centric, distributed, and orchestrated. Product data needs to be structured, enriched, and understood. Discovery and engagement happen across many surfaces, not just via an owned website. And multiple systems need to coordinate customer experience, pricing, inventory management, and transaction optimization. More simply, commerce is shifting from a destination to a system. We have deliberately transformed and rebranded this business to lead this change. By bringing together Feudanomics, MakeSwift, and our core BigCommerce platform, we believe we have built a highly differentiated solution that provides three integrated control planes across product intelligence, experience, and transaction. That flexibility is increasingly valuable as AI reshapes how commerce works. We are not replacing the storefront. We are extending it into every product discovery and shopping surface where commerce is happening, and those surfaces are multiplying fast. Feedonomics is our product intelligence layer. It creates clean, enriched, structured understanding of products. It owns normalization, enrichment, attribute modeling, taxonomy, and syndication across marketplaces, ad channels, and AI search and shopping channels. In an agentic world, AI does not browse. It queries structured data and returns confident answers. If merchants' product data is not clean, correctly categorized, and enriched, those products do not get surfaced. They end up invisible to the customers that merchants seek to reach. Feedonomics makes merchants visible in the places that matter, and that job gets harder and more valuable with every new AI surface and protocol that emerges. MakeSwift is our experience layer. It composes and governs what the customer sees across web, mobile, and emerging AI interfaces. It owns UI composition, content, personalization, and experience orchestration across channels. AI can produce content, but it still needs to be governed to ensure it's on brand and consistent across surfaces at scale. AI does not solve this problem. but MakeSwift does, and its importance only grows as the number of services multiplies. BigCommerce is our transaction layer that executes transactions in commerce logic. It owns cart, checkout, orders, pricing, promotions, and APIs for commerce operations. As agentic commerce matures, the question of which systems can be trusted to execute transactions reliably and at scale becomes more important, not less. This layer is the system of record and the systems of record become more crucial to merchants as commerce complexity grows. What is important and often underappreciated is how this also plays out in B2B. In B2C, agentic search and shopping capabilities are changing how products are discovered and in certain categories, shopped. In B2B, it is currently changing how they're specified, priced, and ordered across systems. That is a more complex problem and one where data, orchestration, and flexibility matter even more than checkout. We also have real momentum here. Manufacturers, distributors, and wholesalers require multi-company hierarchies, complex quoting workflows, and pricing logic that few closed ecosystems can handle cleanly. We can. And critically, in B2B, the cost of bad data or a failed transaction is not a lost sale. It's a broken business relationship. There is a version of this story where some believe that AI threatens commerce infrastructure. We believe the opposite. AI answer engines and agentic workflows do not bypass the need for structured product data, governed experience layers, and reliable transaction systems. They depend on them. What materially changes is that the bar for each of those layers gets higher, and our architecture reflects exactly that. Modular, but integrated. Open, API-first, and channel-agnostic. Our largest competitor built a transaction layer and closed an ecosystem around it. We built across all three layers and did it openly. which means we can be a merchant's full stack or we can be the data and orchestration layer running alongside commerce platforms they are already on. The intention is to work interoperably with a merchant's architecture, not against it. That is not a positioning statement. It's a structural decision we made deliberately, and it aligns to where commerce is going. Now, let me walk through what we accomplished in Q1. At launch, commerce was one of only two platforms to endorse Google's universal commerce protocol. We have fully built to the UCP protocol, connecting big commerce and feedonomics, enabling enhanced discovery, orchestration, and direct buying within Google's AI experiences, with merchants retaining merchant of record status and full ownership of their customer data. Two weeks ago, at Google Cloud Next, we took the stage with Accenture and demonstrated their pre-built agentic operating system, which incorporates commerce's capabilities natively on GCP and GECX, handling discovery, personalization, checkout, and fulfillment, end-to-end. Agentic commerce is not a notional product launch on our roadmap. It is already running. Beyond Google, our agentic checkout is now live on Perplexity, Opilot, and Meta via our PayPal StoreSync integration. When a shopper completes a purchase in this model on an LLM chat surface, the order lands in BigCommerce. Enterprise organizations like Dell are using pseudonomics to make their products discoverable on OpenAI and other LLMs. while our feedonomics enrichment tools are driving agentic engine optimization, or AEO, performance across channels. We also released BigCommerce Model Context Protocol, otherwise known as MCP, to make it easier than ever for agents to securely interact with BigCommerce stores. We advanced AI capabilities directly within the core BigCommerce platform, Commerce Companion, our AI assistant built into the admin experiences, helps merchants analyze business data, automate routine tasks, and accelerate time to value. This is AI that works inside the merchant's daily workflow, not just in discovery channels. We launched BigCommerce Payments, built with PayPal and Q1, an embedded payment solution that gives merchants a unified view of their finances and flexible payment options, including PayPal, Pay Later, Venmo, Apple Pay, Google Pay, and Cards, all from within the BigCommerce control panel. We expanded the number of channels available within Surface, our self-serve version of Feedonomics, to now include Meta, Google Ads, Pinterest Ads, TikTok Ads, and Microsoft Ads. We are laying the groundwork for additional agentic and AI channel integrations, which will roll out in the coming months. On the customer side, H&M, The RealReal, Petco, and Grainger adopted feedonomics to enhance product visibility and performance across digital channels. We also added new industrial, manufacturing, and distribution customers like StatLab, a leading supplier of histology and pathology consumables, and launched brands such as Helix, linear precision motion components manufacturer, servicing industrial automation, robotics, aerospace, and defense. These customers are examples of where our B2B capabilities resonate most strongly and where the depth of our platform is compelling. On the core platform, we shipped 37% faster checkout. We added advanced promotions with coupon stacking, margin protective caps, and bulk coupon code generation, as well as multi-language support with automatic URL subfolders and end-to-end translated storefronts. And we introduced backorder controls and improved catalog management. On storefronts, MakeSwift on Spencil is in beta, and native hosting for Catalyst moves to open beta soon, deploying to Cloudflare at no additional cost to merchants. In B2B, we launched our purchase order agent. The agent extracts, validates, and routes POs to checkout automatically. We also shipped cascading price lists, expanding the complexity of pricing use cases we can handle in B2B. Finally, We recently announced some updates to our pricing and packaging on the BigCommerce platform. Effective June 1st, we've replaced our prior standard, plus, pro, and enterprise plans with core, growth, scale, and performance plans. The vast majority of platform ARR comes from our enterprise plans. Those are sales-assisted plans on defined contract duration and terms. Customers formerly using enterprise plans will see no change whatsoever beyond the name change to performance. We are also introducing a fee that applies to orders processed through payment providers, not on our embedded payment provider list. I want to be clear about what this is and what it is not. Contracted customers on our new performance plan, formerly our enterprise plan, pay no additional fees, no matter what payment partner they select. For the vast majority of our remaining merchants, their fee will also be zero because their orders already run through one of the many providers on our embedded list. We are talking about more than a dozen deeply integrated payment partners. Stripe, PayPal, Braintree, Adyen, Amazon, Klarna, WorldPay, Afterpay, BigCommerce Payments, and more. Not just a single proprietary gateway. Our merchants have real choice, and that choice comes with zero fees. This change is not a broad-based price increase. It is a deliberate decision to go narrower and deeper with our payment partners, investing more meaningfully in fewer relationships to deliver better integrations, better checkout experiences, more local payment methods, and better conversion for our merchants. We have completed the core elements of our transformation, a unified platform and brand, a clear investment thesis. a leadership team aligned around execution and a strong financial profile give us the leverage and flexibility to deliver on the growth potential of this platform. You are starting to see our product velocity increase meaningfully as a result of these changes over the past 18 months. Our product agenda is in motion, the monetization levers are in place, and our focus is squarely on execution for the remainder of 2026. We are delivering healthy GMV growth cash flow, and profitability, and the business is well positioned for growth. With that, I will turn it over to Daniel.