Q3 2021 Bigcommerce Holdings Inc Earnings Call

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Ladies and gentlemen, please stand by your conference call will begin momentarily. Once again, please stand behind your conference calls they'll begin momentarily. Thank you for your patience and please continue to hold.

Ladies and gentlemen, thank you for standing by it welcome to Big Congress. This third quarter of 2021 earnings call. At this time, all participants Arnold listen only mode. After the speaker's presentation. There will be a question and answer session. Please be advised that today's conference is being recorded I would now like to turn the conflicts over to your first day Daniel.

Let's head of Investor Relations. Thank you. Please go ahead.

Good afternoon, and welcome to Big Commerce is third quarter of 2021 earnings call. We will be discussing the results announced in a press release issued after today's market close with me are big Commerce, as President and C E O and chairman bread.

Helen.

Addition to feed and Omics and finally, our recent capital raise to conclude today's call. We will give an update on our fourth quarter and 2021 full year guidance.

To begin with a brief recap of our Q3 financial results, we experienced another quarter of accelerating growth across our business revenue increased to $59 million.

Up 49% year over year, including $5 $9 million from feed and Omics that represents the seventh straight quarter of 30% or higher revenue growth. These results reflect the success of our open SaaS strategy and progress across a number of company priorities, including enterprise sales growth International expansion <unk>.

Hello, its use cases, and omni channel advertising and selling enablement.

We finished Q3 with <unk> or annual revenue run rate at $253 5 million up 52% from last year, Our enterprise account <unk> finished at $159 9 million up.

78% year over year, and finally <unk> for accounts greater than $2000 in annual contract value or HCV finished at $222 3 million up 65% year over year. Our strategy remains focused on providing the world's most flexible open SaaS platform to power the growth of business.

As of all sizes omni.

I'm going to serve merchants using any platform, including ones that compete with big Commerce. Similarly that commerce will continue to fully support our many preexisting omnichannel partners, including those who provide alternatives to feed and Omics. This open approach maximize those partner in customer success within our ecosystem.

Yesterday, we announced an exciting integration in partnership with Tech talk that gives matching advertising credits to qualifying merchants encouraging them to test and explore tech talk for business with an estimated 1 billion monthly active users tictoc is a uniquely positioned to add channel for customer acquisition and engagement merchants can directly access the tech talk.

For business App via the Big Commerce channel manager, creating a one click experience to place the tech talk pixel upload products and ultimately begin producing ad campaigns.

In October we announced our new ads and listings on Google Native App, which enables merchants to connect to their stores to the Google Merchant Center and add products for free. They can also take advantage of Google labs campaigns to reach more customers and cover performance insights and trends driving brand awareness and GMB growth. This is yet. Another example, highlighting are growing.

Partner ship with Google.

During the quarter, we also announced our partnership with subtle as a preferred partner to provide small and midmarket merchants the ability to offer interest free buy now pay later plans. This as a viable alternative to traditional credit card payments, particularly among a growing demographic is younger shoppers with limited credit history.

As we cultivate our partner ecosystem, we continue to invest in our core platform capabilities. The commerce began as SaaS e-commerce platform for small businesses, but are disruptive innovation strategy expands our capabilities to serve even the world's largest and most complex businesses, we do so as far lower costs and the legacy ecommerce.

Platforms.

I am excited to announce that in Q3, we released multi storefront to select merchants and partners and we expect this much anticipated product enhancement to be fully available to merchants in early 2022 with this release customers can now use a single bit commerce account to build and launch multiple unique storefront the storefront can be either.

This will enable thousands of new oxalis merchants to build world class digital storefront powered by Big Commerce.

This partnership will equip merchants with online stores that are fully integrated with information systems, ERP and product information management software, along with CRM and marketing tools.

Digital commerce platforms.

Commerce also earned recognition from paradigm as a top rated SaaS platform for beta B e-commerce by scoring 16 total medals, including a gold rating for total cost of ownership for the second year in a row.

Finally, I would like to discuss our recent capital raise and thoughts around M&A Robert will provide more color on the convertible bond offering later, but I would like to thank the investors in various parties that assisted us with the transaction, we saw a strong opportunity to raise additional capital at favourable terms and we experienced robust demand from the investment community.

This additional capital gives us plenty of operating runway for our expansion plans. It also provides capital for smart emanate that enhances our business.

We see two main areas of focus within our M&A strategy first targets that would significantly accelerate our key strategic priorities and second targets that would enhance our core open SaaS offering in terms of enterprise functionality and open architecture. As an example, our acquisition of feeding Omics accomplishes both the cattle.

Holtz us to a leadership position and Omnichannel Commerce enablement, which is one of our top strategic priorities and it makes our platform. The most open optimally connected platform to 100, plus leading global advertising and marketplace channels. We will continue to explore M&A opportunities as part of our growth strategy and pursue candidates that we believe.

<unk> could deliver acceleration against strategic and door open staff platform priorities, while staying true to our open approach to our partner community.

We are in the midst of a multiyear strategy to disrupt the e-commerce platform industry and shaped the next era of e-commerce there was much to be proud of in Q3 and I'd like to thank all of our employees and partners for their contributions we are pleased with our progress but this is just the beginning our goal is to build the best e-commerce platform in the world.

Thereby enabling businesses to thrive at all stages of their ecommerce growth.

We consider Q3, two have been an excellent quarter progress towards the big goals. We have in the years ahead and with that I'll pass it onto alright.

Thanks, Brent and appreciate everyone joining us on the call today I'm pleased to share the details of another strong quarter for big Commerce in Q3 today.

Today I'll walk you through our third quarter financial results provide color on a recent capital race and update you on our fourth quarter guidance.

As of September 30th.

Compared to 54% last year, we're making steady gains in the growth of our enterprise segment and we feel good about the sustained progress, we're making especially as our multi store offering becomes generally available in early 2022.

In the last few years, we have built incredible momentum in our enterprise business, even when you adjust for the strong contribution from feed and Omics organic enterprise still grew over 50% in Q3 and that is on top of 48% growth a year ago.

We're really proud of the fact that we added record incremental enterprise AAR from Q2 to Q3 on an organic basis.

As a matter of fact, the incremental organic enterprise <unk> quarter over quarter was almost three times the incremental enterprise. They are from just seven quarters ago.

Enterprise accounts have grown from roughly half to almost two thirds of our total IRR just in the last couple of years, we're confident that we can drive enterprise <unk> as a percentage of total IRR higher and higher and we now have line of sight to enterprise. They are getting to three quarters of total <unk>.

This will build even stronger unit economics in our business with low churn higher LTV to CAC and better net revenue retention as we shift our revenue mix more and more towards mid market and enterprise accounts.

As Brent mentioned earlier. This is just the beginning for Big Commerce, we are still in the early innings of our goal to become one of the leading e-commerce companies in the world.

We have a strong differentiated product a disruptive strategy that is resonating with merchants and partners and healthy margins and unit economics that we need to scale this business to meet that goal.

We are pleased with our results in Q3, especially as we lap such a strong quarter last year and remain committed to make strategic investments to fuel our continued growth opportunities shift.

Shifting to the newest member of the Big Commerce portfolio I'll walk you through the results of feed and Omics.

I'm impressed by the progress we've made thus far integrating our systems and organizations.

The big Commerce and be genomics teams are partnering closely develop products to boost our offerings and improve the merchants e-commerce experience and we're excited to bring growing omni channel capabilities to our current and future merchants.

We've been pleased with the strong retention trends post acquisition and are encouraged by the early cross sell success and interest from our Tech and agency partner community.

Moving to core accounts with ACB greater than $2000 at the end of Q3, we had 12378 customers over this threshold up 2601 accounts or 27% year over year.

This reflects both our growth and our organic business and the inclusion of <unk> merchant base as well feed genomics customers largely the enterprise profile of our merchants and we believe we will have strong opportunities to expand <unk> into our base over time.

Total accounts with HCV greater than $2000 now make up 88% of our total <unk> a 7% increase over the same time last year.

ARPA or average revenue per account for accounts with ACB greater than $2000 was 17960.

Up 30% year over year.

We saw three primary drivers of this improvement are.

A strong mix of mid market enterprise accounts.

Healthy expansion in <unk>, and the inclusion of feed and Omics mid market and enterprise merchants.

We're making steady progress at the higher end of the market, bringing a new mid market and enterprise customers each quarter, while our pipeline continues to expand across all the markets we serve.

Let's shift our focus to the expense portion of the income statement. Please.

Please note that unless otherwise noted all references to our expenses operating results and per share amounts are on a non-GAAP basis.

Gross margin increased approximately 80 basis points year over year to 80% in Q3 gross profit was $47 2 million.

Up 51% over Q3 2020.

We are focused on building scale and efficiencies to maintain our strong gross margins.

Or a negative 18% operating margin in Q3 2020, adjusted EBITDA was negative $3.1 million or a negative 5% adjusted EBITDA margin on approximately 1100 basis point improvement from negative 17% a year ago non-GAAP net loss for Q3 was negative for $2 million or neg.

They've six cents per share compared to negative 8 million or negative 16 cents per share year ago.

Are improved leverage was a function of both planned efficiency improvements and underspending in a few areas.

Two three spending fell below our initial expectations as we continue to see savings from delays and returned to office minimal business travel and also from our pace of hiring new roles relative to the number of rules we are adding.

We believe some of these savings will be temporary in our building are 2022 plans accordingly.

We ended Q3 with $410 million in cash cash equivalents restricted cash and marketable securities.

For the nine months ended September 30th 2021, operating cash flow was negative $31.5 million down from negative $23.2 million a year ago.

And growth opportunities.

We're well capitalized and committed to deliver durable growth rates as we head towards profitability. This.

The shift towards online commerce as structural and we are confident in our strategic focus areas and ability to grow this business over the long term.

With that Greta and I are happy to take any of your questions operator.

Certainly ladies and gentlemen, if you have a question at this time. Please press Star then one on your Touchtone telephone. If your question has been answered and you'd like to remove yourself from the queue. Please press the pound or first question comes from the line of Terry Tillman from true Securities. Your question. Please.

Yeah, Hey, Brent.

Daniel Thanks for taking my question.

Congratulations on the upside in the quarter two questions. The first one is related to the organic enterprise. There are momentum I think you said it was above 50%.

I'm not necessarily holding you to maintaining a five handle growth, but just generally speaking the enterprise. They are momentum can you.

Is this sustainable and how important is multi store front as we move into 'twenty two around the enterprise. They are and then I had a follow up.

Yeah, Hey, Terry Yes, I mean, if you look at the last four quarters, we've grown our enterprise.

Our north of 15 so.

Thank you.

Our next question comes from the line of Josh Beck from Keybanc capital markets. Your question. Please.

Hey team. Thanks for the question. This is Alex <unk> on for Josh.

I just wanted to check in and around the social commerce opportunity. Obviously, you have been active here with respect to partnerships can you just elaborate on how youre thinking about the evolution of this channel in the coming years and do you think this channel's perhaps inflect it. Thank you.

Yes, social is super important both as an advertising channel first and foremost and secondarily as a selling channel.

Book alone is the second biggest.

Advertising channel after Google in the United States, and then when you add.

Non Facebook properties.

Tech talk which we just announced.

We're super excited about all of these and that frankly is one of the primary motivators of the acquisition of economics, So what economics address.

Is the ability for a brand retailer.

Merchants to optimize their ability to bowl advertise and sell.

Through social networks. In addition to all of the other advertising and marketplace channels, but in particular to get their product catalog optimized for the specific schema and framework of those individual channels and so we're super excited to <unk>.

Through social networks. In addition to all of the other advertising and marketplace channels, but in particular to get their product catalog optimized for the specific schema and framework of those individual channels and so we're super excited to <unk>.

Enable our customers to optimize for Facebook.

Talk which we just announced.

We are in this initial integration with them or offering a bunch of that credit.

Our brands and merchants can get started advertising and selling on tech talk and realizing the benefits of that unique community and ability to reach them.

As far as we can tell globally I've actually seen some third party research that estimate that commerce happening through social networks globally is in the low single digit percentages.

And I think that's a fraction of what the.

Total commerce influences if he will also count advertising and awareness with them. It ends up leading to transactions on merchant website.

I can only imagine that that's going to grow over time and to level set.

I can't predict probably better than anybody else, but it's extremely important 1 billion plus users on tech talk that alone.

Is a really critical channel to try to.

Connecting for merchants.

Thanks for the question.

[noise] into the advertising destination.

And optimized and the format for that they are not in the part of the business.

That is related to either website tracking or ad buying.

Although if you don't optimize your fees than anything you spend on AD buying is going to have a much lower return on AD spend and so it's really a pre requisite there may be a secondary effect, which is that.

Certain types of historic advertising become.

Less viable or less.

Productive the merchants are going to seek out new and additional sources of advertising to make up for that that really plays to feed and omics benefit because.

Once you get your catalog in the feed and Omics. There then connected to 100 or more channels around the world and you can very easily add channels.

Make up through breadth and depth of what you might have lost from.

Other channels based on rules changes so no direct effect I don't think but the potential for a secondary benefit.

Alright.

Yeah, I mean, when we first announced the deal we.

We thought about <unk> just in terms of their ongoing business, but since they support supported and continue to support multiple platforms. We did build in some assumptions just around retention thankfully. The retention just remains strong for feed and omics throughout the quarter the.

The big Callouts for feed and Omics is that it's still early days, but we're seeing great interest from partners. We're seeing those cross sell motion is really starting to take hold the feedback from both partners and merchants have been very very positive. So we're really excited about that we've already started the work on <unk>.

Building out a self serve flow to take all the great capabilities that <unk> has and really offer that across the base.

But in terms of like setting 60, plus percent growth assumptions for <unk> going forward, a little bit premature on that but I'd say its going to grow.

As much at least as as our enterprise accounts. So the vast majority of their accounts or enterprise in the near term, we expect them to grow at least at the same clip is our is our enterprise accounts, but overall super pleased.

Big Kudos to feed and Omics the team.

At the time, which is the most focused b b platform evaluation that happens every year in the United States. This your included Big Commerce, both in their mid market and Enterprise edition, we won 16 levels out of I forgot how many maybe like 20 possible, including gold medals in categories like that's cost.

Of ownership for me to be so very good momentum very good recognition in N. B B a continues to be an important part of our business that we're investing to grow thanks for the question.

Okay, Perfect and then just as a quick follow up I'm jumped.

Jumping back and forth between calls here, but.

Could you repeat the inorganic.

Contribution from fee dynamics that you picked up in the quarter I think it was $32 9 million is that is that correct.

That's right Dan $32 nine.

Got it so if we if we back that out it looks like and we do the math on the monthly recurring revenue it.

It looks like it looks like that ticked down a little bit from 34% MLR to 30% in the quarter.

Is there anything onetime in there that we need to be mindful of or is it just a function of looking at your lapping the really tough comps on MLR from a year ago and that's just.

That's just it.

Yes. Some of it is the tough comps I mean look we highlighted the fact that enterprise and mid market.

Really really strong during the quarter, our gross new bookings was really strong, especially when yet.

The partnership is off to a great start on the personal level.

And we're making good progress on.

<unk> integration capability. So all good on that direction, but you shouldnt anticipate incremental announcements since that partnership is already signed and end market.

Got it. Thanks, that's helpful and then quickly I knew.

We were expecting a little bit of a benefit one time benefit from <unk>. This quarter. So maybe we could just get an update on if that came in in line with plans.

It did right in line with plans.

Got it thank you.

<unk>.

Thank you. Our next question comes from the line of Simona from Jefferies. Your question. Please.

Hi, good evening, thanks for the H J.

My questions maybe.

Maybe just.

Alright, you don't want to get into the habit of kind of guiding to two different line items, but just given the differences in seasonality last year versus normal history. Just can you help us maybe think about how we should think about <unk> seasonality.

Given all the different moving parts for maybe the two different revenue line items.

Yeah, I mean, when you think about subscription in PSM for Big Commerce organic I think that you.

You can pretty much assume kind of at least the mid to high <unk> for both for Q4.

<unk> is how I'd be thinking about that split.

And factoring into that.

From last year as well.

So we find them.

Really really good of the trend we're really if you take a step back and you see the pace of that mix shifts, we're really happy about that and if you actually compare.

Enterprise are ending Q3 to ending queue too.

It was a record quarter for us at $12.5 million on our organic basis, I mean, seven quarters ago. I mean, that's three X. What we did seven quarters ago, just to give you a sense of kind of pace.

Of acceleration and enterprise, which.

Really excited about and all of that is without the native multi story that is going to be.

Generally available early next year.

Craig that's super helpful. Thank you have taken my questions sure.

Q. Our next question comes from the line of Scott Berg from Needham Your question. Please.

Hi, guys. This is John Davina shepherds, thanks for taking my question.

First I was wondering if you could comment.

How conversations with customers and prospects have been evolving over the past quarter, specifically on the international side now that you have cheetah dominates the multistory capability. Additional localization efforts are you really seeing any kind of demand are interested in specific areas there.

Or something along that line on cross border or anything else that would be interesting callout. Thanks.

Yeah, I would say by far the most interesting call out is the attraction that we achieved in our first quarter of all official launch and France, Italy, and the Netherlands.

Recall it was July 1st first day of the quarter, where we did the full launched in those countries, where there is complete localization from marketing website through sign up trial experience.

Payments.

Currency.

Templates and everything else.

And in that first quarter. The most significant announcement, we made was with Newark status in France.

For those who don't follow e-commerce in Europe.

<unk> status has been a leading platform.

In France in Europe, mid market and above focus balto small business.

For a very long time, I recall, there being one of our top partner that pay Pal when I was running Paypal Europe from O 509, and now to have an announcement, where we're working with the owners of Newark status in essence to make the commerce the platform of the future migrating those existing customers.

Co marketing and selling to new customers with them. That's a very very significant splash to have made.

In the French market right out of the gate and at the same time, we're seeing great enthusiasm and initial sales success in Italy, the Netherlands was doing well even before the official launch and there's only gain acceleration so with those first three country.

Sort of full basic localization on the continent.

Off to a strong start and can't wait to add countries in Europe and in other continents in the quarters.

So the question.

Three Q. Our next question comes from the line of Brian Peterson from Raymond James Your question. Please.

Oh, Hi, gentlemen, thanks for taking my question and congrats on a really swell a quarter. So so just one for me, but when you think about the enterprise strength and and we've talked a lot about that today I'd just be curious if anything's changed in who you're displacing in who some of the sheer donors may be and I'd also be interested in how that works for the beta C. <unk>.

It has to be to be side, because it sounds like that would be to be side is really pick it up.

Correct you know it.

There are more than 500 platforms around the world plus all the custom builds which are unique to each merchant.

And the easy thing to say is by John <unk> Magenta is by far the biggest.

Donor platform to us, but in aggregate there probably I mean, I don't have a specific figure if they're probably no more than 20% of the mid market and above migration, an awful lot of custom sites and then a very long tail I mean, we we get sites migrating from every other platform that you can imagine big small.

Old really old it's it's really all of them the point is that.

As you look forward South was clearly the future for most merchants there are three leading SaaS platform you know the three it's all shopify and at the high end of the market Salesforce and on all three of US are taking chair from the rest of them. In addition to competing for net new Bill.

You know the overall trends are not radically different than they have been historically, it's astonishing how many magenta one merchants are still sitting out there on the junta, one even though.

That is officially been sunset in terms of the.

Corporate support from the Junto.

Yeah, So I think that I think that answers questions.

Thanks for it.

Yep.

Thank you. Our next question comes from the line of <unk> from what Bush scared to use your question. Please.

You might have your phone on mute.

Sorry about that thanks for taking the question because [noise].

Alright, you mentioned.

With multi storefront I was one of the things that Ah merchants were asking for Ya. We're asking from you guys. The most I was wondering if you could just talk to some of those things that merchants have been asking about you know some of the pain points that uhm.

I want to be.

<unk> solutions I wanted to see him as false bronze.

Yeah, I'll I'll take that the great news is that we.

We actually kicked off last year I.

I should say I got kicked off this year with.

Partner Advisory Council, one for the Americans one for Europe 148.

APAC.

And the answer we got from our agency partners was consistent.

Across the three the top two requests they had we're both request that we I think sort of knocked out of the park. This year, one is multi store, which we've talked about.

And this call the second would be to be capabilities and at the time. They were asking they did not know that the <unk> to be additional it's coming out it did in that met with widespread enthusiasm from our agency partners.

That doesn't mean, we've done everything they want so we're still working on two additional things that will be needle nerve verse, we hope in the future. One is a full set of API. The support I'll use cases around multilocation inventory.

And then finally, there's very advanced in case of a staging environment.

And you know that's something that we liked the salt four and the year of Moorhead.

Talk to give.

Give a little bit around the but folks have just feel.

What should the the notation there but.

Can you talk a little bit more about about the deal how structured how brings customers on board.

How you share revenue things like that and the other color around a deal works.

Yeah in some ways, it's similar to the wind direct deal that was the biggest one that we announced in queue too.

In both cases.

Have a.

A legacy leader in wind direct taste in the wine industry and I status is K and then the French market.

With a home built.

Platform that they realized was not.

Keeping up with the capabilities and investments of of a market leader like the commerce and when they look around the world and said are we better off continuing to try to compete and keep our retain our customers on the.

Sort of old platform or can we modernize the platform partner parked in partnership with someone and then focus on all the other things that were a leader so and wine direct case. They have all these specialists capabilities for the wine industry, including.

Sort of check out and running the point of sale within the tasting room.

Running mailing lists and subscriptions doing fulfillment in the case of Newark status and their owners and France their world leaders in our national leaders, as well and logistics and fulfillment and so there's a lot of value added services that they are industry leaders down.

But no longer industry leaders for the core platform capability and what thrills US is that you know where the platform. They tech because we're the most open where the most flexible we we really talk about this open south strategy and open South is tailor made for being able to configure and customer.

<unk> so the unique needs of the French market of the wine industry I don't think others have platforms could have met all the requirements of these partner. So we we were naturally great partners for them and we're thrilled that we have a line strategic objectives and can go forward and compete so that's some more background on a status and why we.

Where the winning fifth in France.

Okay does that sounds safe to say that these kinds of partnerships are ones you'll continue to explore.

Absolutely Yeah, and you know open open shameless marketing plug if there are other.

And if he's out there with a legacy platform or in search of they go forward platform partner by all means reach out and talk to us because we're.

We're enthusiastic about these types of relationships.

Great. Thank.

Thanks for taking my questions.

Thank you and ask a reminder, ladies and gentlemen, if you do have a question at this time. Please press star than one. Our next question comes from the line of Ken One from Guggenheim's Securities. Your question. Please.

Fantastic. Thanks for squeezing me and I'll I'll keep it to just the one as you think about the feet and Omics performance. So it looks like a deliberate a fair amount of upside versus the 11 million for your guide can you help us understand what were some of the contributors was it just the run rate of that business was better than expected was there a lot of cross selling and then to the extent.

You can maybe give us a sense for kind of how that that 11 million full year impact might might be revised up down that'd be fantastic.

Yeah. He can you know I think the when we initially disclosed the numbers for this quarter, we did factor in some churn assumptions retention assumptions for their basin, but we're really pleased that we ended the quarter and they continue to retain.

The merchants anytime you by a company you just never know, especially when they support other platforms, but very pleased and that retention cross sell I'd say it started it's still early but it's just beginning but we're really encouraged by that we did you know if you think about Q4.

Or you could probably thinking the candidate low seven range for Phenomics, but we're still just getting started with them in terms of cross sell upsell. We're working on the self serve flow self serve won't pulley affect this until next year, but.

Definitely going after cross sell upsell opportunities, especially with our base.

Great. Thank you for all the color there.

Sure.

[noise]. Thank you. This does conclude the question and answer session of today's program I'd like to hand, the program back to print them President C E O and chairman for any further remarks.

Just wanted to thank everyone again for the interest in following a big Commerce. This was I think on a lot of dimensions are most successful quarter, yet as a public company, we couldn't be more excited about what the future entails in this combination of big Commerce and see dynamics, the world's leading T distribution.

Platform, helping businesses optimized ourselves not just on their branded websites, but through all third party.

Advertising demand generation and marketplace channel, we continue to want to be the leader of global E Commerce and look forward to the next call three months from now with a new set of updates to tell them be well and happy holidays.

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

Uh-huh.

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Ladies and gentlemen, thank you for standing by and welcome to Big Commerce's third quarter 2021 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. Please be advised that today's conference is being recorded I would now like to turn the conference over to your first today Daniel head.

Of Investor Relations. Thank you. Please go ahead.

Good afternoon, and welcome to Big Commerce as third quarter 2021 earnings call, we will be discussing the results announced in our press release issued after today's market close with me are big Commerce, as President CEO and Chairman Brent.

And CFO Robert Alvarez.

Today's call will contain 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, our expected future business and financial performance and financial condition and our guidance for the fourth quarter of 2020.

One and the full year of 2021. These statements can be identified by words, such as expect anticipate intend plan believe seek 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 to differ materially from expectations.

For a 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.

Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures 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 that big Commerce Dot com with that let me turn the call over to Brent.

Thank you Daniel and thanks to everyone for joining us on our third quarter earnings call on today's call Robert and I will review, our third quarter results, we've had an exciting and eventful quarter and I'm pleased to share updates on a number of key initiatives and milestones for our company.

I will provide several updates today, including product development progress strategic partnership win and update on our recent acquisition of feed and Omics and finally, our recent capital raise to conclude today's call. We will give an update on our fourth quarter and 2021 full year guidance, let's begin with a brief recap of our Q3 financial results.

We experienced another quarter of accelerating growth across our business.

Revenue increased to $59 million up 49% year over year, including $5 $9 million from feed and Omics that represents the seventh straight quarter of 30% or higher revenue growth. These results reflect the success of our open SaaS strategy and progress across a number of company priorities, including enterprise sales growth.

<unk> International expansion B to B help us use cases, and omni channel advertising and selling enablement.

We finished Q3 with our annual revenue run rate.

$253 5 million up 52% from last year, our enterprise account <unk> finished at $159 9 million up 78% year over year, and finally RR for accounts greater than $2000 in annual contract value or ACB finished at $222 3 million.

<unk>.

Up 65% year over year, our strategy remains focused on providing the world's most flexible open SaaS platform. The power of the growth of businesses of all sizes omni.

Omnichannel selling and demand generation is central to this our acquisition of feed and Omics provides industry, leading feet integration and optimization capabilities to a 100 plus leading channels around the world. These channels include search engines like Google marketplaces, like Amazon, Walmart wish and Mercado Libre and social networks, such as <unk>.

Facebook and Instagram, we empower each merchant to build their ecommerce in their own way, including accessing the best sales and marketing channels for the unique needs of their businesses and shoppers.

Help investors better understand the size and growth profile and merchant count a few dynamics, we will provide visibility into the impact that <unk> has upon several of our key business metrics for this and our Q4 operating results.

<unk> finished the quarter at $32 9 million up.

Up 61% over the same period last year, while customer accounts with greater than $2000 ACB grew 22% to 1057 during the quarter.

Customers include many household names such as Dell Puma, all birds and Samsung we are already seeing encouraging results in our cross sell efforts with existing big Commerce merchants and our omni channel partners via our acquisition as enhancing fee dynamics, leading position in global feed management.

Note that we remain committed to the open part of our open SaaS strategy with respect to feed and Omics. This means we will invest to enhance their leading omnichannel feed capability, while supporting their ability to serve merchants using any platform, including ones that compete with big Commerce. Similarly, the commerce will continue to fully support our many preexisting omni channel.

<unk>, including those who provide alternatives to feed and Omics. This open approach maximizes partner and customer success within our ecosystem.

Yesterday, we announced an exciting integration and partnership with Tech talk that gives matching advertising credits to qualifying merchants encouraging them to test and explore tech talk for business with an estimated 1 billion monthly active users tictoc is uniquely positioned to add channel for customer acquisition and engagement merchants can directly access the tech talk for <unk>.

This app via the Big Commerce channel manager, creating a one click experience to place the tech talk pixel upload products and ultimately begin producing ad campaigns.

In October we announced our new ads in listings on Google Native App, which enables merchants to connect their stores to the Google Merchant Center and add products for free. They can also take advantage of Google ads campaigns to reach more customers and uncover performance insights and trends driving brand awareness and GMB growth. This is yet. Another example, highlighting our growing parts.

Our ship with Google.

During the quarter, we also announced our partnership with subtle as a preferred partner to provide small and mid market merchants the ability to offer interest free buy now pay later plants. This is a viable alternative to traditional credit card payments, particularly among a growing demographic of younger shoppers with limited credit history.

As we cultivate our partner ecosystem, we continue to invest in our core platform capabilities. The commerce began as a SaaS e-commerce platform for small businesses, but our disruptive innovation strategy expands our capabilities to serve even the world's largest and most complex businesses. We do so at far lower cost than the legacy ecommerce.

Platforms.

I'm excited to announce that in Q3, we released multi storefront to select merchants and partners and we expect this much anticipated product enhancement to be fully available to merchants in early 2022 with this release customers can now use a single big commerce account to build and launch multiple unique storefronts storefronts can be either.

Powered by Big Commerce Native stencil design and theme framework or merchants can use a third party <unk> solutions, such as next JF Continental content stack and Wordpress to name a few merchants managing brand portfolios have already use this functionality to launch unique storefronts for each brand such as Vanity group and Australian company that supply.

<unk> hotel bathroom amenities multi storefront also enables merchants that sell into multiple countries to use unique storefronts for each country merchants to sell into multiple segments like <unk> and <unk> are also using this to build unique storefront for each customer segment.

This marks a significant milestone in our platform's ability to serve the most complex use cases of small and large enterprises alike. We will continue to focus our R&D investments in our core platform in the future building on the successful with additional multi store and enterprise functionality.

<unk> has been a major focus of our product development efforts in recent quarters and I'm thrilled to bring this powerful capability to all merchants on our platform soon.

At the beginning of Q3, we launched full localization of merchant and shopper experiences in support of our formal market entry into Italy, France and another one. This includes the localized trial flow control panel storefront transactional E. Mails that are sent to shoppers and payment solutions. This rollout is a meaningful step for merchants in those countries and others.

Looking to expand our European presence in a seamless fashion merchants appreciate the ease and speed with which they're market expansion stores can come online what used to take upwards of a year can now be built in as little as a few days or weeks, we continue to see strong growth in the number and size of international merchants on our platform in October we entered into an <unk>.

Enterprise partnership with CMA CGM groups, New Oxalis, a leading publisher of ecommerce solutions based in France, and a world leader in logistics with over 20 years of experience. This will enable thousands of new SaaS merchants to build world class digital storefront powered by the commerce.

The partnership will equip merchants with online stores that are fully integrated with information systems, ERP and product information management software, along with CRM and marketing tools.

Our partnership with new Oxalis demonstrates the momentum behind our geographic expansion as it comes quickly after launching in France at the beginning of Q3 <unk>.

Now is the time to increase our investment in geographic expansion and Robert will speak to this in more detail later in his remarks.

We had a number of notable brands launch on Big Commerce in Q3, including Gore, where the producer of innovative functional cycling and running performance apparel U K based luxury shoe brand grimsson.

Royal <unk> family Brewers, a Dutch independent family Brewer of beer since 16 80 black.

Blackberry farm, a top rated hotel and resort situated on 4200 acres and the great Smoky Mountains of Tennessee.

Promise, a scientifically supported eye vitamin company.

And Australia and merchant Adelaide tools, who are specialized in the sales and service of name brand power tool since $19 49. In addition, we have thousands of merchants join us for our annual make a big conference in September which highlighted opportunities for merchants to grow their businesses to the power of the big Commerce platform and partner ecosystem highlighted by Mark Cuban.

Keynote speaker.

Excitement around the Big Commerce brand is increasing and we see that reflected in growing recognition from analysts such as Gartner in their 2021 magic quadrant for digital commerce platforms.

Commerce also earned recognition from paradigm as a top rated SaaS platform for <unk> E Commerce by scoring 16 total metals, including a gold rating for total cost of ownership for the second year in a row.

Finally, I would like to discuss our recent capital raise and thoughts around M&A Rob.

Robert will provide more color on the convertible bond offering later, but I would like to thank the investors and various parties that assisted us with the transaction, we saw a strong opportunity to raise additional capital at favorable terms and we experienced robust demand from the investment community. This additional capital gives us plenty of operating runway for our expansion plans and also for.

<unk> capital for Smart M&A that enhances our business we.

We see two main areas of focus within our M&A strategy first targets that would significantly accelerate our key strategic priorities and targets that would enhance our core open SaaS offering in terms of enterprise functionality and open architecture as.

As an example, our acquisition of feed and Omics accomplishes both.

Catapult us to a leadership position and omni channel Commerce enablement, which is one of our top strategic priorities and it makes our platform. The most open optimally connected platform to a 100, plus leading global advertising and marketplace channels. We will continue to explore M&A opportunities as part of our growth strategy and pursue candidates.

We believe could deliver acceleration against strategic <unk> SaaS platform priority, while staying true to our open approach to our partner community.

We are in the midst of a multi year strategy to disrupt the e-commerce platform industry and shape. The next era of ecommerce.

Was much to be proud of in Q3, and I would like to thank all of our employees and partners for their contributions we are pleased with our progress but this is just the beginning our goal is to build the best ecommerce platform in the world, thereby enabling businesses to thrive at all stages of their ecommerce growth. We consider Q3 to have been an excellent quarter of progress towards the big goals we.

<unk> in the years ahead, and with that I'll pass it onto alright.

Thanks, Brent and I appreciate everyone joining us on the call today I am pleased to share the details of another strong quarter for big Commerce in Q3.

Today I'll walk you through our third quarter financial results provide color on our recent capital raise and update you on our fourth quarter guidance.

Please note that all amounts below include the results and activity is fee dynamics from the date of acquisition through the end of Q3 on a consolidated basis I would like to reiterate my gratitude to the team for another outstanding quarter.

Some line, we're seeing continued strength across our business and now have a strong balance sheet to deploy capital towards accelerating our key strategic priorities setting us up for multiple years of growth ahead.

In Q3 total revenue was $59 3 million up 49% year over year and includes $5 9 million of revenue contributed by <unk>.

Subscription revenue grew 59% year over year, while partner in services revenue or <unk> was up 30% year over year.

Revenue in U S was up 47% compared to 59% across our combined international operations or.

Our global platform is seeing tremendous growth, particularly outside of the U S. International expansion progress has been tremendous thus far EMEA revenue was up 68% in Q3, as we added investment in existing markets and expanded our enterprise selling capability into new countries APAC was up 55%.

In Q3, and we are also evaluating additional expansion opportunities in this region as well moving to our Kpis. We saw continued acceleration across various metrics underlying our core business. For example, annual revenue run rate or <unk> grew to $253 5 million up 52% year over year.

Driven by healthy organic growth and the addition of feed genomics business to the big Commerce portfolio.

Feed genomics posted an <unk> of $32 9 million up 61% year over year.

AAR from accounts with greater than $2000 in HCV grew 65% to $222 3 million.

Enterprise account <unk> grew 78% year over year to $159 9 million in Q3 and enterprise accounts represented 63% of our <unk> as of September 30th.

Compared to 54% last year, we're making steady gains in the growth of our enterprise segment and we feel good about the sustained progress, we're making especially as our multi store offering becomes generally available in early 2022.

In the last few years, we have built incredible momentum in our enterprise business, even when you adjust for the strong contribution from fee dynamics organic enterprise <unk> still grew over 50% in Q3 and that is on top of 48% growth a year ago.

We're really proud of the fact that we added record incremental enterprise from Q2 to Q3 on an organic basis.

As a matter of fact, the incremental organic enterprise.

Quarter over quarter was almost three times, the incremental enterprise AAR from just seven quarters ago.

Enterprise accounts have grown from roughly half to almost two thirds of our total.

Just in the last couple of years, we are confident that we can drive enterprise <unk> as a percentage of total IRR higher and higher.

And we now have line of sight to enterprise or getting to three quarters of total <unk>.

This will build even stronger unit economics in our business with low churn higher LTV to CAC and better net revenue retention as we shift our revenue mix more and more towards mid market and enterprise accounts.

As Brent mentioned earlier. This is just the beginning for Big Commerce, we are still in the early innings of our goal to become one of the leading e-commerce companies in the World. We have a strong differentiated product a disruptive strategy that is resonating with merchants and partners and healthy margins and unit economics that we need to scale this business to meet that goal.

We are pleased with our results in Q3, especially as we lap such a strong quarter last year and remain committed to make strategic investments to fuel our continued growth opportunities shifts.

Shifting to the newest member of the Big Commerce portfolio I'll walk you through the results of fee dynamics.

I'm impressed by the progress we've made thus far integrating our systems and organizations.

The Big Commerce A&P dynamics teams are partnering closely to develop products to boost our offerings and improve the merchants e-commerce experience and we're excited to bring growing omni channel capabilities to our current and future merchants. We've been pleased with the strong retention trends post acquisition.

We are encouraged by the early cross sell success and interest from our Tech and agency partner community.

Moving to core accounts with ACB greater than $2000 at the end of Q3, we had 12378 customers over this threshold of 2000, and 601 accounts or 27% year over year.

This reflects both our growth and our organic business and the inclusion of feed genomics merchant base as well for your dynamics customers largely the enterprise profile of our merchants and we believe we will have strong opportunities to expand <unk> into our base over time.

Total accounts with HCV greater than $2000 now make up 88% of our total <unk> a 7% increase over the same time last year.

ARPA or average revenue per account for accounts with HCV greater than $2000 was 17960.

Up 30% year over year.

We saw three primary drivers of this improvement a strong mix of mid market enterprise accounts healthy.

Healthy expansion in <unk>, and the inclusion of feed and Omics Midmarket and enterprise merchants, we're making steady progress at the higher end of the market, bringing a new mid market and enterprise customers each quarter, while our pipeline continues to expand across all the markets we serve.

Let's shift our focus to the expense portion of the income statement.

Please note that unless otherwise noted all references to our expenses operating results and per share amounts are on a non-GAAP basis.

Gross margin increased approximately 80 basis points year over year to 80% in Q3 gross profit was $47 2 million up 51% over Q3 2020.

We are focused on building scale and efficiencies to maintain our strong gross margins.

<unk> margin profile is lower than big commerce due to higher service costs, but we expect consolidated gross margins to remain in the high <unk> as we expand that portion of our business.

Sales and marketing expenses totaled $24 1 million up 31% over last year amounting to 41% of revenue improving by nearly 600 basis points from last year.

We've made steady progress, bringing on incremental head count and resources to support our teams the labor market demand remains robust and the job market is tight.

Our plan is to ramp up our international segments in the coming quarters and continue to scale, our North America team as well.

We are taking the necessary steps in recruiting and hiring to ensure we can meet those objectives across all geographies.

In Q3 research and development expenses were $14 9 million or 25% of revenue.

<unk> to $11 5 million and 29% a year ago.

While we aimed to build increasing leverage in our business. We remain focused on building out the disruptive product innovations necessary to continue our above market growth and expansion.

As such we expect to build operating leverage in R&D over time, while we continue to prioritize investment in this area as a strategic focus.

General and administrative expenses were $12 million or 20% of revenue compared to $8 5 million or 21% of revenue a year ago. In Q3, we posted a non-GAAP operating loss of negative $3 8 million or a negative 6% operating margin.

Compared to a negative $7 2 million or a negative 18% operating margin in Q3 2020, adjusted EBITDA was negative $3 1 million or a negative 5% adjusted EBITDA margin on approximately 1100 basis point improvement from negative 17% a year ago non-GAAP net loss for Q3.

He was negative $4 2 million or negative <unk> <unk> per share.

Compared to a negative $8 million or negative <unk> 16 per share a year ago.

Our improved leverage was a function of both planned efficiency improvements and under spending in a few areas.

Q3 spending fell below our initial expectations as we continue to see savings from delays and returned to office minimal business travel and also from our pace of hiring new rules relative to the number of roles we are adding.

We believe some of these savings will be temporary and are building our 2022 plans accordingly.

We ended Q3 with $410 million in cash cash equivalents restricted cash and marketable securities.

For the nine months ended September 32021, operating cash flow was negative $31 5 million down from negative $23 2 million a year ago free.

Free cash flow was negative $34 million or a negative 57% free cash flow margin compared to a negative $25 million and a negative 62% free cash flow margin over the same period a year ago.

During the quarter, we issued convertible senior notes for $345 million at a coupon of 0.25%.

And a conversion premium of 37, 5% or effectively a conversion price of $73 and <unk> 11 per share.

Net proceeds from the offering totaled $335 million and we plan to use these proceeds for general corporate purposes.

We used $36 million of the net proceeds from the notes to enter into privately negotiated capped call instruments or cap calls with certain financial institutions.

GAAP calls have the economic effect of increasing the conversion price from $73 11 to $106 34 per share.

And these instruments are generally expected to reduce potential dilution to the holders of our common stock or offset cash payments, we could otherwise be required to make an excess of the principal amount of the notes upon conversion.

Upon conversion, we have the flexibility to settle in cash shares or any mix of cash and shares at our election.

Finally, let's close with guidance for Q4 for the fourth quarter of fiscal 2021, we expect total revenue in the range of $61 3 million to $61 7 million translating into a year over year growth rate of 42% to 43%, including an expected seven one to $7 3 million in revenue from fee dynamics.

For Q4, our non-GAAP operating loss is expected to be 8 million to $9 2 million as we ramp up our hiring and make planned investments to close 2021 and build momentum into 2022.

For the full year of 2021, we currently expect total revenue between $216 2 million to $216 6 million translating into a year over year growth rate of approximately 42%.

Our non-GAAP operating loss is expected to be between $19 2 million and $20 4 million.

Since the IPO, we've accelerated revenue growth in the low 20% range to the high 40% range this quarter, while materially improving operating leverage as Brent mentioned earlier. We believe now is the time to make the investments needed to capitalize on our momentum and growth opportunities.

We are well capitalized and committed to deliver durable growth rates as we head towards profitability. This.

The shift towards online commerce as structural and we are confident in our strategic focus areas and.

The ability to grow this business over the long term.

With that Brett and I are happy to take any of your questions operator.

Certainly ladies and gentlemen, if you have a question at this time. Please press Star then one on your Touchtone telephone. If your question has been answered and you'd like to remove yourself from the queue. Please press the pound or first question comes from the line of Terry Tillman from true Securities. Your question. Please.

Yeah, Hey, Brent.

Daniel Thanks for taking my question congratulations on the upside in the quarter two questions. The first one is related to the organic enterprise. There are momentum I think you said it was above 50%.

Not necessarily holding you to maintaining a five handle growth, but just generally speaking the enterprise. They are momentum can you.

Is this sustainable and how important is multi store front as we move into 'twenty two around the enterprise. They are and then I had a follow up.

Yeah, Hey, Terry Yes, I mean, if you look at the last four quarters, we have grown our enterprise.

Our north of 15 so.

Really excited about that.

We are thrilled with the <unk>.

<unk> is the kind of needed multi store, becoming generally available early next year I mean as you know we've.

We've been working on that for quite some time, we think it's going to be a big needle mover for us.

Think we're going to get more opportunities more at bats with that capability in it.

The merchants and partners have been asking us for.

We couldnt be more excited about the impact that that could have for us next year. So just look at the last four quarters north of 50.

Can't promise that it will always be north of 50, but.

Yeah, I mean, we're we'll definitely see an uptick.

On multi store as that plays out throughout next year.

That sounds good.

Follow up question relates to the exciting recent news with Amazon Mercado Libre, maybe we could just get an update on that in terms of when that is generally available and what kind of feedback youre seeing and as we move into 'twenty two.

Where do you see this impacting the model, whether it's direct or indirectly on either software or PFS. Thank you.

Both of those are available Hey, Cary Brown here.

Amazon integration is notable because they integrated directly in to us and Thats equipping merchants, who are selling on their own websites, but wanting to use amazon or fulfillment the ability to do that in the Mercado Libre.

It's also live and available and we've seen a lot of interest.

Initial uptake from merchants in the United States looking to expand their sales into Latin America.

Thank you.

Our next question comes from the line of Josh Beck from Keybanc capital markets. Your question. Please.

Hey team. Thanks for the question. This is Alex <unk> on for Josh.

I just wanted to check in and around the social commerce opportunity. Obviously, you have been active here with respect to partnerships can you just elaborate on how youre thinking about the evolution of this channel in the coming years and do you think this channel's perhaps inflicted thank you.

Yes, social is super important both as an advertising channel first and foremost and secondarily as a selling channel.

Facebook alone is the second biggest.

Advertising channel after Google in the United States, and then when you add.

Non Facebook properties.

Hi Tech talk which we just announced.

We're super excited about all of these.

That frankly is one of the primary motivators of the acquisition of economics, So what the dynamics of the drop is.

Is the ability for a brand retailer.

Merchants to optimize their ability to bowl advertise and sell.

Through social networks. In addition to all of the other advertising in marketplace channel, but in particular to get their product catalog optimized for the specific EMA and framework of those individual accounts and so we're super excited too.

Enable our customers to optimize for Facebook Tech.

<unk> talked with we just announced.

We are in this initial integration with them or offering a bunch of that credit so that brands and merchants can get started advertising and selling on tech talk and realizing the benefits of that unique community and ability to reach them.

As far as we can tell globally I've actually seen from third party research that estimate that commerce happening through social networks globally is in the low single digit percentages.

And I think that's a fraction of what.

The total commerce influences. If he will also count advertising and awareness of that ends up leading to transactions on merchant website.

I can only imagine that that's going to grow over time at levels that.

I can't predict probably better than anybody else, but extremely important 1 billion plus users on tech talk that alone.

A really critical channel to try to.

Connecting for merchants.

Thanks for the question.

Thank you. Our next question comes from the line of Brent <unk> from Piper Sandler Your question. Please.

Hi, This is Clarke Jeffries on for Brent.

Just two questions on fee dynamics. The first one how should we be thinking about changes in the online advertising tracking and I'd space affecting the <unk> business is that actually a increase in value from the solution or sort of no change there and then the second one is as compared to the $11 million.

Just two questions on fee dynamics. The first one how should we be thinking about changes in the online advertising tracking and I'd space affecting the <unk> business is that actually a increase in value from the solution or sort of no change there and then the second one is as compared to the $11 million.

Our expected contribution for the year. It sounds like there were some early outperformance anything you could point to as driving that and should we think about 60% growth rate is a relative acceleration or where the company was that.

This is Brent I'll take the first one second one I I don't believe Theres a direct impact.

On feed and Omics business from changes in.

Tracking and.

Sort of pixel rules on web site because.

On the not only the part of the business of feed Anomic again.

I mean part of it meaning getting the product catalog.

The source of truth of our brand our merchant.

Into the advertising destination and.

<unk> optimized and the format for that they are not in the part of the business.

That is related to either website tracking or ad buying.

Although if you don't optimize your feet than anything you spend on AD buying is going to have a much lower return on AD spend and so it's really a pre requisite there may be a secondary effect, which is that.

Certain types of historic advertising become.

Less viable or less.

Productive the merchants are going to seek out new and additional sources of advertising to make up for that that really plays to economics benefit because.

Once you get your catalog in the feed anomic there've been connected to 100 or more channels around the world and you can very easily add channels sort of make up through breadth and depth of what you might have lost from.

Other channels based on rules changes so no direct effect I don't think but the potential for a secondary benefit.

Alright.

Yes, I mean, when we first announced the deal.

We thought about fee dynamics, just in terms of their ongoing business, but since they support supported and continue to support multiple platforms. We did build in some assumptions just around retention thankfully. The retention just remains strong for feed and omics throughout the quarter.

The big Callouts for feed and Omics is that it's still early days, but we're seeing great interest from partners. We're seeing those cross sell motions really starting to take hold the feedback from both partners and merchants have been very very positive. So we're really excited about that we've already started the work on <unk>.

<unk> out of self serve flow to take all of the great capabilities that <unk> has in and really offer that up across the base.

But in terms of like setting 60, plus percent growth assumptions for fee dynamics going forward, a little bit premature on that but I would say it's going to grow.

As much at least as our enterprise accounts. So the vast majority of their accounts or enterprise in the near term, we expect them to grow at least at the same clip is our is our enterprise accounts, but overall super pleased.

Big Kudos to feed and Omics the team.

The cultural alignment has been awesome.

Product alignment has been great and we're really just getting started in terms of what we can do with that business for the benefit of our merchants and our partners.

So very encouraging here.

Thank you. Our next question comes from the line of Parker Lane from Stifel. Your question. Please.

Yeah, Hi, Thanks for taking my questions. Brent I was wondering if you could comment on the reception to and progress of the <unk> business. It ended up that earlier this year, maybe give us a sense of the level of urgency youre seeing for <unk> organization to up level their own ecommerce efforts relative to <unk>. Thanks.

BW is going great continues to be more than 20%.

<unk>.

New customer sales in particular in sort of the mid market and above where it's more easily track I'd remind folks listening in.

Three big accelerator.

Our <unk> positioning was the launch of our <unk> addition.

Back in May or June.

And that basically bundles, a half dozen of the most popular product extensions for <unk> to be selling into a single big commerce contract and.

Basically deployment, that's been selling extremely well and has been selling well around the world. We also continued to gain a lot of recognition for our <unk> capability. Most recently.

Paradigm, which is the most focused <unk> platform evaluation that happens every year in the United States. This year included Big Commerce, both in their mid market and enterprise editions. We won 16 metals out of I forgot how many maybe like 20 possible, including gold medals in categories like that.

Cost of ownership for <unk>, so very good momentum very good recognition and b to B a continues to be an important part of our business that we're in.

That's going to grow thanks for the question.

Thank you. Our next question comes from the line understands Lusky from Morgan Stanley. Your question. Please.

Perfect. Thank you so much guys.

Couple of questions from my end Brent.

Brent maybe for you.

With the holiday shopping season.

Coming up and obviously everybody is hearing a lot about supply chain issues.

How are you how are your merchants thinking about GMB growth and by extension how.

Are you guys thinking about your PSS growth into into the holiday season, and then I have a quick follow up.

I'll, let <unk> talk about <unk> growth in terms of the merchant.

It's not like I've talked to.

Enough of them to be able to speak definitively across the board, but with more than 50000 customers. A representative sample. So anything I tell you would be.

Sort of the same on average as the entire.

You asked if not global economy, what we're seeing in terms of.

G M. B, though is it is continuing to increase off of its growth rate off the highs of.

Last year, meaning.

Growth rates sort of hit.

Bottom back in July and has been increasing in August September October.

Supply chain issues may be worsening, but we're seeing at least a year on year GMB as we measure it improving.

Will that come to a screeching halt in the coming weeks or months.

I can't predict that any better them.

Most people and economists are probably the best one for consoles.

Is this impacting our our sort of our projections.

Yes, I mean, it's definitely something that we're factoring in and paying attention to but to <unk> point, we haven't heard.

Too much from our merchants on this GMB.

In July kind of.

Just a little but then bounce back in August and then really bounced back in September so as we think about Q4 near term we're factoring in gist.

Just a continuation of those trends, but also factoring in its our big holiday season.

Just.

Caution just around potential issues, but we feel really good about the guide.

Factoring all of those things in but we.

We ended the quarter.

Much stronger than we started the quarter.

Which is great and early signs.

For October were good.

Okay, Perfect and then just as a quick follow up I'm jumping back and forth between calls here, but could you repeat the inorganic.

Contribution from Putinomics that you picked up in the quarter I said I think it was $32 9 million is that is that correct.

That's right stand at $32 nine.

Got it so if we if we back that out it looks like and we do the math on the monthly recurring revenue it.

It looks like it looks like that ticked down a little bit from 34% MLR to 30% in the quarter.

Is there anything one time in there that we need to be mindful of or is it just a function of looking at you you are lapping the really tough comps on MLR from a year ago and that's just.

That's just it.

Yes. Some of it is the tough comps I mean look we highlighted the fact that enterprise and mid market was.

Really really strong during the quarter, our gross new bookings was really strong, especially when yet.

<unk>.

Initial MLR from our Oak status, New York status deal.

We did have some.

Legacy.

Cohort of the <unk>.

<unk> on our legacy plans.

That we put onto our standard plans and current plans we saw some of the benefit in Q2, we saw some of the effects of the of the downgrades and upgrades in Q3 all of that is behind US now so it's not going to affect the go forward, but really strong gross new really strong mid market.

Apprised.

<unk> had to get through some of that last pricing action. We don't have any other pricing actions plan. So Q4 is looking good looking clean.

All of that is behind us.

Got it perfect. Thank you.

Thanks.

Thank you. Our next question comes from the line of Raimo <unk> from Barclays. Your question. Please.

Hey, this is Ravi on for Raimo, Thanks for taking my question.

Just wanted to first start with the wind direct partnership and CMA as well, maybe you could give an update on each of those specifically one direct because we haven't heard about it a little while and also how we can kind of think about the two in terms of near and long term impact. Thank you.

Sure I'll take that.

I mean wind direct.

It's not it's not the sort of partnership that you make incremental.

Incremental announcements about now that we're working together.

We are doing all of the structural integration that facilitate migration of merchants from their platform over to us as well as.

Net new co selling two wineries that were not previously using wind direct the partnership is off to a great start on the personal level and we're making good progress on the integration capabilities. So all good on that direction, but you shouldnt anticipate incremental.

Announcements since that partnership already signed end market.

Got it. Thanks, that's helpful. And then quickly I knew we were expecting a little bit of a benefit one time benefit from <unk>. This quarter. So maybe we could just get an update on if that came in in line with plans.

It did right in line with plans.

Got it thank you.

Thank you. Our next question comes from line of Sumatra, Mona from Jefferies. Your question. Please.

Hi, good evening, thanks for taking my questions.

Maybe just I know you don't want to get into the habit of kind of.

Guiding to two different line items, but just given the differences in seasonality last year versus normal history. Just can you help us maybe think about how we should think about for Q seasonality.

Given all the different moving parts for maybe the two different revenue line items.

Yes, I mean, when you think about that.

Description in <unk> for Big Commerce organic.

Thank you.

You could pretty much assume kind of.

At least the mid to high <unk> for both for Q4.

Is how I'd be thinking about that split.

And factoring in the comps from last year as well.

Great Great. That's helpful. And then maybe as I think about that.

It's very strong enterprise account are our growth I know that a couple of others have asked about it but.

I'm curious how should we think about that in terms of.

The net retention side versus.

New units contributing to that and then maybe on the new or are your are your average starting lands getting larger or kind of consistent with history.

You mean, the average size for mud.

Yeah, Yeah exactly.

Yes, I mean look I think.

ARPA continues to increase nicely we're seeing.

Seeing more and more <unk>.

<unk> opportunities in the pipe as well as close one.

We are seeing larger and larger accounts.

We're signing as we talked about in the beginning of the quarter and when you look at the net revenue retention.

That tends.

<unk> tends to tick up as that mix continues to shift to Midmarket and enterprise are highlighted in the earnings release, the pace of the mix shift is happening.

Really really fast I mean just to.

Really really fast I mean just to.

A few years ago, we were 50% now we're at 63% we've got line of sight to 75%.

And with those enterprise accounts comes stronger net revenue retention better LTV to CAC better payback better unit economics.

So I would say that the.

The pace of that shift is happening faster a lot of the beat and Omics merchants are enterprise.

Merchants with even higher ARPA.

So we are feeling.

Really really good of the trend we're really if you take a step back and you see the pace of that mix shift, we're really happy about that and if you actually compare.

Enterprise <unk>, ending Q3, ending Q2.

It was a record quarter for us at $12 5 million on an organic basis, I mean, seven quarters ago. I mean, that's <unk>, what we did seven quarters ago, just to give you a sense of kind of the pace.

Of acceleration and enterprise, which.

Really excited about and all of that is without the native multi story that is going to be.

Really excited about and all of that is without the native multi story that is going to be.

Generally available early next year.

Great. That's super helpful. Thanks, again for taking my questions sure.

Thank you. Our next question comes from the line of Scott Berg from Needham Your question. Please.

Hi, guys. This is John Godin on for Scott Berg. Thanks for taking my question.

First just wondering if you could comment.

On how conversations with customers and prospects have been evolving over the past quarter, specifically on the international side now that you have so your denominator multi store capability. Additional localization effort are you really seeing any kind of demand or interest in specific areas. There.

Or something along lined up on cross border or anything else that would be interesting to call out.

Yes, I would say by far the most interesting callout is the traction that we achieved in our first quarter of full official launch in France, Italy, and the Netherlands.

Recall it was July one first day of the quarter, where we did the full launch in those countries, where theres complete localization from marketing website through sign up trial experience.

Payments.

Currency.

Templates and everything else.

In that first quarter. The most significant announcement, we made was with new ox out in France.

For those who don't follow ecommerce in Europe.

<unk> has been a leading platform.

In France in Europe mid market and above focus also small business for a very long time I recall, there being one of our top partners at Paypal when I was running Paypal Europe <unk> nine.

And now to have an announcement, where we're working with the owners of new ox out it's in essence make the commerce the platform of the future migrating those existing customers.

Marketing and selling to new customers with them, that's a very very significant.

Slash two have made in the French market right out of the gate and at the same time, we're seeing great enthusiasm and initial sales success in Italy.

Other ones, we're doing well even before the official launch and has only gained acceleration so with those first three country.

<unk>.

Sort of full basic localization on the continent.

Off to a strong start and can't wait to add countries in Europe and other continents in the quarters ahead.

Thanks for the question.

Yeah.

Thank you. Our next question comes from the line of Brian Peterson from Raymond James Your question. Please.

Hi, gentlemen, thanks for taking my question and congrats on a really strong quarter. So just one for me Brian when you think about the enterprise strength.

We've talked a lot about that today I'd just be curious if anything's changed in who you're displacing some of the shared owners may be I'd also be interested in how that looks for the BDC versus the <unk> side, because it sounds like the <unk> side is really picking up.

Correct.

There are more than 500 platforms around the world plus all the custom builds which are unique to each merchant and the easy thing to say is my magenta is by far the biggest donor.

Stoner platform to us, but in aggregate, they're probably I don't have the specific figures, but there's probably no more than 20% of the mid market and above migration, an awful lot of custom sites and done a very long tail.

Stoner platform to us, but in aggregate, they're probably I don't have the specific figures, but there's probably no more than 20% of the mid market and above migration, an awful lot of custom sites and done a very long tail.

Got sites migrating from every other platform that you can imagine big small.

Old really all it's really all of them the point is that.

As you look forward South was clearly the future for most merchants.

There are three leading SaaS platform.

Three it's our shopify.

At the high end of the market sales force.

On all three of US are taking share from the rest of them. In addition to competing for net new builds but the overall trends are not radically different than they have been historically, it's astonishing how many magenta one merchants are still sitting out there on the gentle one even though.

That has officially been sunset in terms of the.

Corporate support from the Genco.

Yes, so I think that I think that answers question.

Thanks Brent.

Yep.

Thank you. Our next question comes from the line of Michael Rooney from Wedbush Securities. Your question. Please.

You might have your phone on mute.

Oh, sorry.

Sorry about that.

Thanks for taking the questions guys.

Alright, you mentioned.

With multi storefront I was one of the things that merchants were asking for you were asking from you guys. The most.

I was wondering if you could just talk to those things that merchants have been asking about.

Some of the pain points that.

They want to be.

Solutions I wanted to see is false.

Yeah I'll take that.

The great news is that we.

We actually kicked off last year.

I got kicked off this year with.

Partner Advisory Council.

One part of the Americas, one for Europe, one for <unk>.

Pat.

The answer we got from our agency partners was consistent.

Across the three the top two requests they had were both requests that we I think sort of knocked out of the park. This year, one is multi store, which we've talked about.

In this call.

Second with <unk> capabilities and at the time they were asking they did not know that the B to B addition was coming out it did.

And that not with widespread enthusiasm from our agency partner.

That doesn't mean, we've done everything they want so we're still working on two additional things that we'll be needle movers, we hope in the future one is.

Full set of API to support all use cases around multi location inventory.

And then finally, there's very advanced in case of a staging environment.

And that's.

That's something that we like to solve for in the year or more.

Thanks.

Talks.

Give a little bit around the.

Folks after this deal.

All right.

Imitation there but.

Can you talk a little bit more about about the deal how it's structured.

How it brings.

Customers onboard.

Customers onboard.

How you share revenue things like that any other color around how the deal works.

Yeah in some ways, it's similar to the one direct deal that was the biggest one that we announced in Q2.

In both cases.

Half.

A.

Our legacy leader and wine direct case in the wind industry and our status is.

In the French market.

With a homebuilder.

Platform that they realized was not.

Keeping up with the capabilities and investments are a market leader like commerce and when they look around the world.

Are we better off continuing to try to compete and keep our retain our customers on the.

Sort of old platform or can we modernize the platform partner Park in partnership with someone and then focus on all the other things that we're a leader so in <unk> case. They have all these specialist capabilities for the wind industry, including.

Sort of checkout and running the point of sale with them the tasting room.

Running mailing lists and subscriptions doing fulfillment in the case of new walks out isn't their owners and France. They are world leaders and national leaders, as well and logistics and fulfillment and so there's a lot of value added services that they are industry leaders.

But no longer industry leaders for the core platform capability and.

Thrills us as that where the platform they tacked because we're the most open where the most flexible we really talk about this open south strategy and opened south is tailor made for being able to configure and customized to the unique needs of the French market.

The wine industry I don't think other SaaS platform could have met all the requirements of these partner. So we were naturally great partners for them.

We're thrilled that we have aligned strategic objectives and can go forward and compete so that some.

More background on it and why we were the winning Chris in France.

Okay, so as that sounds.

Safe to say that these kinds of partnerships were ones Youll continue to explore.

Absolutely yeah.

<unk>.

Open open shameless marketing plug if there are other.

And if he's out there with a legacy platform or in search of the go forward platform partner by all means.

Reach out and talk to us because.

We're enthusiastic about these types of relationships.

Great. Thanks.

Thanks for taking the questions.

Thank you and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press Star then one our next question comes from the line of Ken Wong from Guggenheim Securities. Your question. Please.

Fantastic. Thanks for squeezing me in I'll keep it to just the one.

As we think about the feed and Omics performance. So it looks like a deliberate a fair amount of upside versus the $11 million full year guide can you help us understand what were some of the contributors was it just the run rate of that business was better than expected was there are a lot of cross selling and then to the extent that you can maybe give us a sense for kind of how that 11 million.

Full year impact might might be revised up down that'd be fantastic.

Yeah, Hey, Ken I think.

When we initially.

Disclose the numbers for this quarter.

We did factor in some churn assumptions retention assumptions for their basin.

Really pleased that we ended the quarter and they continue to retain.

The merchants anytime you buy a company you just never know, especially when they support other platforms, but very pleased on that retention cross sell I would say it started it's still early but it's.

It's just the beginning but we're really encouraged by that.

If you think about.

Q4, you could probably thinking.

Kind of that low seven range for feed and Omics, but we're still just getting started with them in terms of cross sell up sell.

Looking on the self serve flow self serve will probably affect us until next year, but we're definitely going after cross sell up sell.

Opportunities, especially with our base.

Great. Thank you for all the color there.

Sure.

Thank you. This does conclude the question and answer session of today's program I'd like to hand, the program back to Brent thumb, President CEO and chairman for any further remarks.

Just wanted to thank everyone again for the interest and following of the Commerce. This was I think on a lot of dimensions, our most successful quarter, yet as a public company.

We couldnt be more excited about what the future entails and this combination of big Commerce and see genomics, the world's leading seed distribution platform, helping businesses optimize ourselves not just on their branded websites, but through all third party <unk>.

Advertising.

Demand generation and marketplace channels, we continue to want to be the leader in global E Commerce and look forward to the next call three months from now with a new set of updates until then be well and happy holidays.

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.