All right, we ready to go? Okay, great. On behalf of everybody from the BigCommerce leadership t eam, I'd like to just thank everybody for being here today, both for the folks that are here live in person in Austin, and also everybody that's logged in online. My name is Daniel Lentz. I'm responsible for finance and investor relations here at the company. Today you're gonna hear from a number of folks on our executive team, Brent Bellm, who you all know, as well as our CEO, as well as Robert Alvarez, our CFO. In addition, you're gonna also hear from a couple of other folks that I'm really excited for you to meet, Brian Dhatt, our Chief Technology Officer, Marc Ostryniec, our Chief Sales Officer, and also Sharon Gee, who is our VP and Head of Omnichannel. Let me start off just by talking about some of the logistics for the day. This event is going to be both live here in person and broadcast over Zoom. The way that we're gonna handle Q&A today, we're gonna have a few different sections that are probably 10-15 minutes each. We're gonna leave time for one or two questions from the folks that are live in each section. You're also welcome to log in on Zoom and submit questions there, for those of you that are logged in online. Please submit your questions. Our team is going to be kinda tabulating and compiling those questions throughout the time, kinda grouping them into major themes. At the end, I'm going to come up and facilitate a longer Q&A session of maybe 20-30 minutes, where I will kind of call up different folks from the executive leadership team and walk through those major questions. We're really, really excited about today. When we spent some time thinking through what we wanted to really focus on today, we've kinda done some research and thought about a lot of the common questions that we get. It's been about two years since our IPO. It's hard to believe that it's been that long. We've made a ton of progress as a business since that, during the course of that time. We really wanted to spend some time focusing on who we are as a company. Fundamentally, we are an enterprise e-commerce company, and we are focused on bringing that high-end technology to merchants that are small and medium and large. We really wanted to spend some time today talking through a lot of details about that part of our business, a lot of information that we haven't shared before about enterprise especially, that can help you understand why we are so bullish and excited about that part of the business and why we are investing in it the way that we are. Let me just walk through agenda for the day. We're gonna go through first an overview of where we are from a strategy and competitive advantage point of view. Brent's gonna talk through some of the history of the company and how we've gotten where we are today, and then how we're positioned specifically in enterprise. We're then gonna pivot and spend some time talking about the technology itself. Brian is gonna spend quite a bit of time talking about the platform. I'm really excited, Marc is gonna facilitate a discussion with a couple of leaders from some of our best agency partners as well. Whenever RA and I have conversations with prospective investors, we always encourage investors to have calls with agencies to hear from them, where are we doing well, where are we differentiated, where do we need to get better. We thought, what could be a better way to help kinda give a perspective on where we are as a company than letting you hear directly from a couple of our agency partners as well. After that, we're gonna transition specifically to talk about where we are investing right now, specifically in B2B and headless, Omnichannel and international expansion. We wanna help everybody understand kinda what is the economic profile of those investments, why are we so excited, and how are they reinforcing the things that we're doing in enterprise. Finally, RA's gonna come up at the end and spend time talking about where. How the performance is looking, some more information about underlying unit economics, and then fundamentally, where do we think the enterprise can grow, both from a revenue perspective, and how do we believe we can operate profitably at scale as well. Then, like I said, I'll come up at the end to wrap us up with Q&A. All right? When I pass the mic to you guys when we get to end of sessions, if you don't mind, to the folks that are live, just ask directly into the mic so the folks that are on Zoom can hear you as well. All right? All right. With With that, I'll pass it over to Brent. Thank you, Daniel, and thank you to everybody who has joined us virtually or here in person in Austin, Texas. This morning, my wife and I got to watch the fifth grade elementary school graduation of our daughter and youngest child. Think back in your own life to that transition moment between elementary school and its nurturing cocoon of safety, and if you were like me, transitioning into a far larger middle school, far more chaos and responsibility. For many people, it is a transition point in both how they view themselves and how the outside world views them. In this, our first ever public company analyst day, we're hoping to accomplish a similar transformation in how you view us and, to some degree, how we view ourselves, because the story of BigCommerce is the story of a company that began as a small business SaaS platform, rose to be second largest in the world at serving small business, and then expanded its ambition, embarking starting in 2015 on a mission to become the world's best open SaaS platform for all stages of merchant growth, all sizes of companies. One can't just click their fingers and overnight accomplish an ambitious goal like that. It takes time, one feature at a time, one API at a time, one capability at a time. The transformational moment we are at as a company is that journey is complete. With the launch of multi-store functionality in Q1 and recent APIs and GraphQL capabilities, not only have we accomplished this complete transformation as an enterprise e-commerce platform, but more importantly, the world is recognizing that we've graduated with honors at the top of our class of enterprise competition. In short succession, we've been named within our competitive set, the top enterprise B2C platform on three continents. We were Australian Technology of the Year. We were named top e-commerce platform by Emerce out of Europe. Forrester recently, depending on how you look at the Wave report, positioned us ahead of all of our relevant competition for B2C and third best for B2B. What we're asking for, and we're going to fuel, is an enhancement of perception of who BigCommerce as a company is, not just as an enterprise-capable company, but as the world's best enterprise e-commerce platform. Our ambition is nothing short of powering the next generation of global digital transformation, and we're gonna talk about how we are set up to do that in the rest of this presentation. Just to highlight what I will go through. In that statement of how we do it, the two most important things that differentiate us from all of our competition are the words Open SaaS, which we will explain in more details, and all stages of merchant growth, which is a different way of talking about disruptive technology and disruptive innovation, which I'll go into detail on. We truly do believe that we're the best in the world at things like Open SaaS, enabling both B2C and B2B from the same platform, enterprise e-commerce, and that increasingly we're taking that leadership to every major market around the world. A simple way to think about how we're positioned is this 2-by-2 matrix. We began in the bottom right as a SaaS platform with all the inherent benefits of SaaS, high performance, ease of use out of the box, built-in security, bug fixing, continuous versioning and upgrading, high value, but without the enterprise capabilities, the enterprise functionality and the enterprise flexibility, which historically one could only get from the on-premise leaders. Go back in time seven years, Magento was the 800-pound gorilla with more than 20% share of enterprise e-commerce around the world. With other legacy leaders like Oracle ATG, IBM WebSphere, now HCL, SAP Hybris. We said, we're going to combine the best of both. We're going to add enterprise functionality, and we're going to add enterprise flexibility through APIs and microservices across the platform and do what SaaS had never done before, which is offer the combination and benefits of both. That list of things you see on the right are all the things that we believe we do better than our competition and are reasons why someone might choose BigCommerce. Starting with open SaaS. We coined this term as both a marketing and strategic concept because remember, back in 2015, the leader was Magento. It was open source, and the world's developers were able to add the functionality and utilize the openness and only licensed or on-premise software could deliver. At that point in time, SaaS was closed. The functionality was limited to what was exposed over the web or maybe hard-coded in the back end. We proceeded on a journey to open up SaaS, to take our own monolith, decompose it into microservices, each with its own APIs, and bring the benefits of flexibility to the market in a way that SaaS had never done before. This is what that looks like diagrammatically. When a merchant buys an e-commerce platform, they're buying it to accomplish those things at the top of the page. Create a wonderful and high-converting beautiful shopping experience with products for sale that you can promote and market, process orders, analyze, remarket, and grow. However, e-commerce is super complex. All the functionality you see at the bottom of this page has to work in orchestration, not just with the platform itself, but oftentimes with third-party processors of payments, tax calculation, shipping, accounting and ERP, marketing automation. What differentiates BigCommerce from other SaaS platforms is we've turned every single one of those pieces of functionality into its own microservice. Microservice, meaning it has its own APIs, its own software development kits, and that is what allows a merchant or an agency that serves them or a tech partner of ours to modify, extend, replace functionality that's in the platform when that isn't optimal for whatever a merchant's unique needs are. Examples of how this works in action. Take Checkout. We have the most flexible checkout of any SaaS platform. One of our competitors doesn't even allow you to replace their checkout. You can't substitute it with a competing purpose-built checkout like Bolt, and you can't significantly modify their checkout. In contrast, with BigCommerce, you can replace our checkout, and you might want to. If you're a B2B company with a bunch of very custom purchase experiences within your checkout flow, what we have out of the box, you may wanna scratch. You can also download the source code that powers each pixel and modify the user experience, add fields, add functionality, add payment methods, re-upload, and have a modified checkout unique to your business. Many other versions of that. It's the most flexible checkout in all of SaaS e-commerce. Take another example, tax. Once upon a time, we were hard-coded into a single world-class tax provider for automated tax calculation, and your only alternative to that was manual entry of tax codes. The problem is that there are lots of other tax providers who serve other geographies, who serve specific industries, and we opened up tax as a service, and a major competitor of ours has not done that. In came other competitors into tax. We were soon partnering with all the world's best, Avalara, TaxJar, Vertex, Thomson Reuters, industry-specific solutions like ShipCompliant for the wine and liquor category, players that really specialize in cross-border, like Digital River. Even very large enterprises who had their own company-specific tax calculation resident in their ERPs, they could integrate with us and use that. The power of these APIs across all of these areas enable businesses to get the benefit of best of breed and adaptation to their unique needs. That's open SaaS in action. Open SaaS also extends to our view of the ecosystem. This page is rather provocative because you'll note that, our competitor up in Canada competes in each of these areas. Shopify has its own payments solution, and if you don't use it, they surcharge 2%, which is very prohibitive to use somebody else. Oftentimes, the one you may wanna use, the alternative payments provider, isn't even integrated, so it's impossible. They have their own shipping and fulfillment solution, and they don't have a tax service, so you can't use these alternatives. You can't substitute with them for a third-party checkout. They have a proprietary buy now, pay later that is built in. They have their own marketing and email capabilities, and they have a proprietary point of sale. They're competing as a suite, and that works really, really well for a business with simple needs met by their proprietary solutions because it's a pre-integrated stack or suite that can be a playbook that's worth hundreds of thousands of times. The problem is that the majority of the world's businesses have complexity, where they are not well suited to a one-size-fits-all suite. They need to specialize in various capabilities across this, both as a requirement for doing business or a way to optimize it. With BigCommerce, what you get. See all those names and payments. They all view Shopify as a competitor. They view BigCommerce as their best partner, as the best e-com platform in the world, and one that helps them integrate their very best capabilities so that they are out-of-the-box available. There are many other names that we could add here. Same goes down to point of sale, right? Take an example like Clover, which we announced in Q1. They of course compete with an out-of-the-box point of sale platform, and they're integrating and doing a Commerce as a Service partnership with us, where they'll pre-provision their own store-based retailers with an e-commerce store that's preloaded with Clover point of sale and integrated into BigCommerce, Clover payments integrated into BigCommerce. Out of the box, you get the pre-integrated capabilities that a business would want to be able to, you know, in essence, combine its online selling and offline selling together. What we're doing is we are competing as a best of breed stack against the conglomerates, against the suites. All of our major competitors, just about, are conglomerates or competing as suites. That's true of Salesforce, Adobe Magento, SAP Hybris, Oracle, and Shopify. We're the one platform who is competing as a best of breed, open, flexible, way to approach a stack. There's not one model that's better than the others. I would remind everybody that in the on-premise era, Magento became number one by being that open, flexible platform, and then they were bought by Adobe. It's our goal for this next era of global e-commerce to be the winning platform for all the businesses that want best of breed, specificity, adaptation for their needs. We're doing pretty well so far. Here's a list of great logos across every category that will let us share their logos. You can see even more on our website. Health and beauty, you know, you'll see we serve very many of the single biggest consumer packaged good brands in the world. There are many more on our website, the ones you see in Walmart, the ones you see in every convenience store, incredible apparel brands, the biggest names in electronics and home and garden, food and bev. Sports is a lot of fun. Not only do we serve sports manufacturer brands, we serve NFL teams, NBA teams, you know, Premier League football teams in the U.K., the top two football teams down in Mexico, all the way to the most complex automotive and B2B and industrial sites, with more B2B to be discussed a bit later. The second part of our strategy is disruptive innovation, all stages of growth. I wanna anchor everybody on that first left side of the graph, 2015. That was the year I came in and took over for our terrific founders. At the time, we were an SMB. I'm not gonna say only, but primarily solution. Second largest in SaaS in the world to Shopify, who had just IPO'd, had a five-year head start, and was, you know, depending on how you counted it, 3x-5x ou r size. I knew there was no version of our moving back down. The advantage we had is more functionality and more capability, but we were behind them, and we couldn't move back down and expect to keep doing the same thing we had been and they were doing and come from behind and win. What do you do in that situation? Well, we looked at the rest of the universe. In 2015, Magento was, again, the 800-pound gorilla. They had north of 20% share for mid-market, for large enterprise, even small business. They were quite a bit bigger than Shopify on merchant count at that point in time. It was my perception that their offering was fatally flawed on two dimensions. The first is that they were not SaaS, and in my opinion, it was kind of a crime against business humanity that the only enterprise open platform available for the mid-market at the time was on-premise software, where you have to, as a business, hire up and manage your own software and its security, its versioning, its bug fixing. Way too hard and expensive for most companies to get right. On top of that, they were already overbuilt. The open source community had already put so much functionality and complexity into Magento that it was too hard and expensive to use for most businesses. They had overshot the needs of the mainstream of the market in terms of cost to deploy, cost to manage. Then at the high end of the market, you had the fat, dumb, and happy big software conglomerates. That's where SAP was with their Hybris acquisition, Oracle with ATG, IBM with WebSphere. Here's a Salesforce Commerce Cloud. At the time, it was still Demandware independently. Super expensive, typically, you know, $500,000 and above, licensing or implementation costs. We weren't interested in the high end of the market at that point in time. We wanted to do classic disruptive innovation. This is taken right out of Clay Christensen's playbook. He was my professor in business school. I'd already done this at PayPal and HomeAway. I knew what to do. I said, "Team, we're extending up market. We're going after the mainstream. We're going after Magento, and we can beat them because we're SaaS, which is what the market needs, and nobody else is doing this. Nobody else is trying to be a SaaS open platform for the mid-market and above. In essence, there's no difference in this chart from what comes straight out of the textbook. We started adding the functionality, the performance, and the openness. Today, in 2022, you see us not just hitting the bull's eye of the mainstream, but again, you see Forrester and Emerce and the Technology Council in Australia all saying, "You guys have delivered on this, and you're arguably the best in the world." We, you know, view Shopify still as on a performance curve down there for SMBs and Shopify Plus as not having a lot more functionality. Don't just take our word for it. Go ask Gartner and Forrester where they rate Shopify, not enterprise capable. That's where we think we are. Meanwhile, Adobe bought Magento, rebranded it Adobe Commerce Cloud, clearly moved it up to the large end of enterprise, and they're losing share. Salesforce bought Demandware, right? What little business they had in the mid-market, they're now exclusively large enterprise. We're not gonna stop. We'll keep adding functionality, and we're increasingly winning the world's largest businesses too. This is coming from a place and a mindset where we're still extraordinarily good at SMB too. Type in best e-commerce platform into Google, and you're gonna see a whole bunch of places that say we're the best SMB platform in the world too. That's how you keep yourself from being disrupted once you've moved up, is you stay really competitive at the low end where you began. That's textbook on how you defend yourself. This is where we are in the world today. What we'll talk about now is in more detail. I've gone through two components of our strategy on the bottom row, which are open SaaS and disruptive innovation. Brian's gonna cover commerce as a service, which is a new and third strategic plank that we announced in Q1. Then we will go through each of the top priorities in more detail. Up next is enterprise, which I will continue with. Okay, so let's talk first about the addressable market. This is IDC's forecast for the industry and what businesses spend specifically on their digital commerce platforms. Growing to $10 billion in 2025 with a 20% CAGR for the SaaS component of it, while the on-premise component actually declines in absolute terms. The question then is for enterprise, how much of that spend, how much of the market is done by enterprise purchasers? People purchasing our enterprise plan or enterprise software, it's typically the mid-market and large enterprise. Mid-market are, you know, in this historical definition, which matches ours, businesses who are selling $1 million-$50 million online. Could be far larger than that in aggregate. That's the online sales. Then larger enterprise are businesses selling more than $50 million. The data's a bit old. Nobody's updated it since then. They're basically saying that two-thirds of the spend in B2C is on, is by mid-market and large enterprise customers, the ones who buy our enterprise plan. What we're talking about here is the two-thirds of the market done by the mid-market and large enterprise spenders. Here are new breakouts, and we're gonna have a lot of new breakouts on enterprise as part of this analyst day. Most will be in our A section. This is the part I got to do. What you see on the left is our mix of enterprise going all the way back to 2017. You'll see that as a percentage of ARR, it has grown from 40% in 2017, a couple years into selling those plans, all the way to 67% in the most recent quarter. Our growth rate now in our sixth year on this page of tracking it has consistently been above 40%. On the right-hand side, you'll see net new bookings. These are gross new bookings minus churn and how that has grown to be 85% revenue for us too. What we're trying to provocatively say here is, if all you do is look at the enterprise part of our business, it's booming, it has incredible momentum, and it's the significant majority now of where we are and the new business that is coming in. We're really succeeding and thriving with our enterprise plans. This is the Forrester Research. Again, this came out just a couple weeks ago, and we were delighted by what they said. They rated us just below the leader quadrant. You know, why did we miss the leader quadrant? I can tell you straightforward. Multi-storefront was not in general availability yet. You know, they did this evaluation based on GA functionality had at the beginning of 2022, and our multi-storefront went into GA at the end of Q1, right? We didn't get credit for multi-storefront, and I'm speculating, but I think we probably would have been leader quadrant had that change. Ignore Kibo in the upper right. They've got about 20 platform customers, and we really don't view them as a viable competitor. How cool was it that if up and to the right is the benchmark of success, you see us for the first time ever ahead of Adobe, significantly ahead of Salesforce, c ommercetools for headless deals is a viable competitor, and we're well ahead of them. We're far ahead of Shopify Plus, which again, they don't view as a full-featured enterprise solution, and far ahead of others that you've heard of, like VTEX and SAP. We view this as being rated the best of B2C enterprise competition, and, you know, I hope the world stands up and takes notice. It's one thing for us to try to compete and be viewed as the best. It's another for somebody as respected as Forrester to come out and say it. You know, IDC had rated us a leader in B2C a couple years ago, but this is a really big deal, and it's only a couple weeks old. Marc will show you the Emerce out of Europe, similar rating a little bit later in the international presentation. This is a super big deal. You can read in particular what they like about us. We're SaaS, which is a huge deal against Adobe. Most importantly is that point at the bottom. Reference customers are enthusiastic about BigCommerce as a trusted partner, and it garnered the highest marks from references in this evaluation. I wanna go deeper on this. This is what our customers are saying to third parties about us. On this page, we got permission to use this from a major public market investor with more than $50 billion in assets under management. They did their own channel checks, just like Forrester did. They went out to 200 of our enterprise customers and asked them the traditional net promoter score question, how likely on a 1-10 scale are you to recommend BigCommerce? You know, look at those results. Overwhelmingly 8s and 9s, which is exceptionally good for the very demanding, complex needs of this enterprise population. We were thrilled to see these results. It's not just Forrester, it's not just this independent survey. Two years ago, when Gartner did its Customer Choice Awards, only talking to north of $50 million businesses, we won that two years ago for enterprise. We were just again named top-ranked by TrustRadius, which is all customers' wisdom of the crowds. Go into G2, you'll see us by far top-ranked for B2B. I'll show that later. Customers increasingly are saying for BigCommerce, we like it better than our competitors are saying. A lot of our partners, a couple that you'll hear from today, are also saying, "Wow, you guys actually have pulled it off. You've built something that is bigger and working better for us and our clients than your competition." That's basically the end of the enterprise part of the conversation. In sum, we're showing you a business that is now the majority of what we do, growing at exceptionally fast rates. What is really different today versus even two months ago is that that transformation to being a full-featured and complete enterprise platform is now complete as of today. To our surprise, pleasantly, we're increasingly being viewed as the best in the world in enterprise B2C e-commerce. It's our hope that looking forward, that's the foundation we need to go grab a lot more share than we have today, serve an ever-increasing diversity of the world's best businesses, small, medium, and large. In essence, drive that next generation of global digital transformation. With that, I think, do we have time for a question or two? Time for a couple questions, if there are any that are here. One sec. Here's Scott. Thanks. Hi, Scott Berg with Needham. You had the chart up there talking about the TAM, and the SaaS growth of that TAM is 20%+ through 2025. Look at your guidance at the end of the year, in the second half, it implies right now you're gonna grow, we'll call it low 20s, 20.2, 20.3%. Market share takers usually take, you know, a level of market above the growth rate. How should we think about your guidance relative to the growth of the market expectations, maybe next three to four years? I might be jumping on RA's. You are jumping. I'd generally prefer Daniel or RA to respond to guidance. We're actually gonna talk in that more detail in RA's section. Do you mind if we address it at the end? Sounds good. All right. Sounds good. Any others? Next. Just ask if we can repeat it. Mark Williams, Citi. You know, Brent, you were talking a lot about defending yourself from downstream vendors. Plenty of businesses are in the enterprise. You know, that's where the money is. Your customers are larger there. They have more of a say, probably. How do you make sure y're listening to those customers? Okay. The question is, how do we make sure we're listening to smaller customers, the bulk who are using the platform, and not get disrupted at the low end because we started ignoring them? They call us each and every day if they're blocked. Our tech partners call us each and every day. We've got lots of partners who are focused on small businesses. They tell us each and every day. I think most importantly, we very closely pay attention to our competition. We've got our own competitive intelligence team staffed by people who are veterans with a lot of experience in competitive platforms, and they look at everything Shopify, Wix, Squarespace does. We're constantly thinking about, like, how do we keep innovating? The good news is that the overwhelming majority of things we do are relevant to both, but for different reasons, right? An API that is created in a particular part of our platform might be used directly by a mid-market or large enterprise. It'll get used by a tech partner for extensions or apps for the small businesses, right? Or it may be the foundation on which we add more usability or functionality behind. Among the things that we think are most valuable for small businesses, I'll tell you, I mean, multi-storefront, which our SMB competitors for the most part can't do. Small businesses love that because we're the first platform to make it really easy to add another brand, add another geography, add another B2B use case to a B2C use case without having to redo and replicate all your backend infrastructure and integrations in a separate account, right? Super valuable. Page builder, which we dramatically improved, releasing, you know, in the last couple of years, drag and drop functionality with super turbocharged widget capabilities that then our tech ecosystem, right, can create very powerful widgets in the apps marketplace and power capabilities that are great for small businesses. There's lots of areas of innovation that are going on that help large business, small business simultaneously. I think most importantly, just the short answer to your question, we're cognizant that as a disruptor, we began at the low end of the market. That's what enabled us to do that. We have to stay the best platform in the world for small businesses that value adaptability and best-of-breed, and we will keep innovating there and paying close attention to the competition. Do we have time for more? All right. We are now gonna switch to Brian. Let me introduce Brian Dhatt, our Chief Technology Officer. Thanks, Brent. Thank you. Excited to be here talking to all of you today, and I'm sure you're also excited to hear, you know, 10, 15 pages of architectural diagrams and slides about. I kid. What I'm really here to do today is talk a little bit more about the journey that Brent outlined, some of the product investments that we're making, and also give you a sense of why this is defensible, why this is not just a feature or two, but really a fundamental shift in the way we think about building for e-commerce. If you take a look at this slide, that journey that our Brent mentioned, starting back in 2015, we really started there. Our first foray into open SaaS came 2015, 2016. I recall we had a company that had locomotive engines, and they came to us and they said, "Look, we have a really unique application. We need to be able to sell parts for locomotive engines." But the number of parts that go into a locomotive engine is limitless. It's just an endless giant list of parts. They had developed a really custom application to essentially 3D render a locomotive engine. Allow you to kind of go layer by layer and pick out, you know, even if it was a washer or a screw that you needed, you could go get that specific part and find that as a B2B buyer, somebody who owned one of these, you know, multimillion-dollar locomotive engines. What they didn't have was a strong transactional engine for that to lay on top of. What they came to us and said was, "Hey, we really, really love the rails that you provide, payments, security, performance and so on, but we really need this custom experience." That's where we launched what you see up there, cart and checkout APIs, where we allowed, you know, what I call early headless, somebody to build an experience that would essentially inject, products, carts, even, you know, facilitate a checkout without actually having to use our front end, which would allow for much more creative applications. If you then carry that over year-o ver- year, you see things on the list like price lists. You can imagine in the B2B segment, this is extraordinarily important. Price lists would be where you might have a different price for each of your companies that you're selling to. An account, let's say a bank, you have preferred a negotiated pricing across your entire book. For universities, we have a university user who has folks buying publications from them, and each university that they work with has a different negotiated price list. We essentially built the functionality to allow merchants to express pricing via APIs in our system however they wish to, and attach those to customers however they wish to as well. One other that I'll point out on here, which is very unique to BigCommerce as a platform, especially in the SaaS space, big open data. One big question that enterprise merchants have today is, do I really own my data? Is this mine? Is this shared with somebody else? How do I really kind of connect this with all the data sources that I have at my enterprise? Big Open Data for us is a strategy around making sure any kind of points of merchant integration for data, their data warehouses, their streaming data systems, are all able to interoperate with what we have at BigCommerce. This allows us to do things like publish their data to BigQuery, so Google's engine for doing big data warehousing operations. We can publish data there today, all the merchant data, let them combine that with their store data, traffic, whatever it may be outside the e-commerce space, and get insights, improve their business, improve their outcomes overall. This is just one of the ways which we're connecting in a data system for them or allowing them to use existing investments to say, you know, optimize their business and improve their outcomes. The most important thing I'd say, though, to take away from this slide is these have all been multi-year investments for us. Brent mentioned, you know, really Q1 this year is where we kind of planted a flag and said, "We're done." You know, we really feel like we can address the broad base of needs that enterprises have in e-commerce. All of those things that you'll see us deliver, each of them really took multiple years to develop. There is a lot of technology behind the scenes which makes this easy for merchants, which also meant that we could bring every single merchant on the platform along for that journey. To Parker's question earlier, how do we make sure that we're, you know, keeping our small customers engaged or our large customers engaged? It's really that none of this required any migration from customers. We brought them all along on one platform, upgraded everything in place without any work required from the merchants. That's just in general our philosophy about how we like to build BigCommerce: make sure if you started with us five years ago, 10 years ago, and we release multi-store tomorrow, you can just take advantage of that like anybody new on the platform would as well. Here are a couple big changes that we've made on the platform. Three that Brent mentioned earlier, multi-storefront, which we'll talk more in depth in a moment. Multi-location inventory. This is the ability for an enterprise to say, "I have inventory in warehouses around the world where I'm representing store inventory." They get to use that in a lot of different ways. You can imagine a simple use case. You go on a website, and you see what's available in my store, or I wanna buy online and pick up in that store. More complex use cases are about where do I wanna route this order so that I can fulfill it faster and cheaper than I would be able to otherwise. Essentially, we built a lot of building blocks for multi-location inventory that allow a huge number of creative applications to be built to better serve customers. Customer segmentation is another where I think we kind of had a leapfrog maneuver. We released this in beta in Q1. What that is for us is again, an ability for a merchant to slice and dice their customers any way they want. Most valuable customers, lapsed customers who haven't shopped with us in a while or, you know, big B2B customers. What we did is instead of producing a simple set of capabilities within the platform, we allow a merchant to do really anything and API drive this capability. They may have a view on segmentation at their enterprise today that they share with their stores or they share with other segments of their business. They can connect those existing systems or marketing partners to our APIs and use those same set of segments across all systems. We essentially allow them to not have a siloed view of e-commerce, but rather something that really looks at the way they do all of their enterprise business. The rest of what you see on this slide is really for us, what we consider foundational for enterprise. Headless, which we'll talk a lot more in depth later. That's been something that we've had a broad set of partnerships there. Now 13 pre-integrated platforms where folks can just say, "I wanna get started on headless," download a kit or just say go, and just start on their headless journey. Uptime and API coverage, we, you know, again, consider this foundational. We've been best in class across many years here. Overall, the, you know, the takeaway for us is we believe we've covered all those segments. When you go back to Open SaaS and you said, have we completed API coverage? Yes. Have we completed the list of things that enterprises come to us and say, "Hey, we'd really like to use you, but you need this capability." We think we're there now as of Q1 this year. Wanna dive into multi-storefront, because multi-storefront was probably the enterprise capability that gave us the most heartburn over years past. This was the one where Marc and team would have merchants come and say, "Hey, we would absolutely, positively love to use your platform. In our world, where we operate stores in many geographies, or we operate many brands and wanna have a single pane of glass to manage our e-commerce experience, it's just too hard." A few years ago, we both started building teams and building the functionality to really overhaul the platform and the way the platform operates. Multi-storefront has several different use cases. Multi-geo, so Ted Baker is a great example for us, where they launched, I think, 14 countries simultaneously, again, off of a single backend with BigCommerce. They only had to build one set of integrations with us. They only have to operate the store in one way, but they can customize the experience across each of the countries where they operate. Hybrid B2C, B2B, this is both a growth story for many of our merchants and also a big simplifier for many of our merchants. When you think about some of our merchants who might have an existing great consumer business, and they think about getting into wholesale, they need a way to be able to do that, where they can offer preferred pricing, bulk pricing, promotions, and again, getting back into things like price lists for their B2B audience or their wholesale audience. Without producing a second site or second platform, they essentially can just bifurcate their inventory or their experiences and offer a B2B experience off of the same backend that they offer their B2C experience. It's a better B2B experience because of the whole consumerization of B2B that's been happening over the last few years, where they can offer things like promotions, where they can merchandise more effectively on the BigCommerce backend. The last big example on the list there is multi-brand. Again, both growth and for new customers for us as well. This is where we have customers who say, "I might wanna launch a brand-new brand with the same merchandise or same inventory that I have today for SEO benefit to attack a new market." But it might also be, I already own multiple brands, and I just want, again, simplified operations behind the scenes to manage those. This for us is, you know, one we think of the big unlocks for that enterprise segment. While we say we just launched this in Q1, we've been working with customers in beta since last year. We have a robust set of customers already live. Something I'll say, which is really unique for us and on our platform is you can combine headless sites and native sites. If you wanna start simple with us and run really out of the box with BC with multiple brands, and in the future, you wanna launch a few headless stores, you can absolutely do that on the platform. We kind of offer what I call limitless potential there within multi-storefront. Then lastly, Commerce as a Service Brent alluded to earlier. This was another of these opportunities where we had large vertical solution providers, and I'll use WineDirect as a really good example there. They have a specialized business that works with the best wineries around the world, enterprise, small, mid, a huge mix. What they found as a business was the things that we might do for winery experience, wine shipping, compliance, those are big, important, defensible aspects of our business which need to be specialized and really need to be in-house for us. In order to provide the best website experience, ecommerce experience for wineries, we need to either invest really heavily in building or partner with somebody like BigCommerce. They chose to work with us so that they could offer the same set of capabilities that we had, the same robust roadmap that we have for ecommerce to all the wineries that they work with. All this gets driven behind the scenes, you know, completely invisible to merchants. All their products show up here. Their orders show up in all systems in a synchronized fashion. Provisioning happens in an automated fashion. Essentially for WineDirect, this was a back-end integration which allows their merchants to operate in-store and winery experiences and e-commerce experiences, again, from one simplified stack. The other types of opportunities we see there are cross-sell. I'll just start the video there in the background. Avasam is providing experiences where from Avasam's website, you might say, "Hey, I wanna drop ship some type of product or inventory." What you can see in the video there is a merchant on Avasam's website saying, "Here's what I'm interested in selling." Clicking that type of product and getting a BigCommerce store provisioned without having to do sign up for BigCommerce separately, create a website on their own or load products, do any of the kinda heavy lifting on their side. This allows vertical providers or cross-sell providers the opportunity to just say, "Let's get going easily in e-commerce without having to do all the traditional complex e-commerce work." Lastly, Clover, I'll add in there as well. Brent mentioned anybody who has a Clover point-of-sale unit today who says, "Hey, I wanna branch out into e-commerce," can just add a store. Their payments come pre-configured, their products show up in both systems, their inventory is synchronized, again, with no work to do. We're making it as easy as possible for somebody like Clover to say, "Hey, have the best-in-class e-commerce solution for your customers. All right. All right, we have time before the panel discussion for one or two questions. Got the mic to work again. Here, Koji. Hi, Koji Ikeda from Bank of America. Thanks for taking the question. I wanted to ask a question on that slide where you were talking about the gaps. Yes. Wanted to ask if you could dig in a little bit more on what the gaps mean. You know, are those features that customers were asking for that maybe were unavailable in the market, or were they gaps to get the BigCommerce platform to compete more against the other enterprise applications out there? Yeah, that's a great question. Thanks, Koji. Those were deals that we typically would lose if we did not have those capabilities in the platform. They were deals where an enterprise merchant might say, "I need a hosted platform," or, "I need something which I can completely modify the code for unless this capability exists in a system like BigCommerce." For each of those were market unlocks, where we previously were not able to, I'd call it, elegantly handle those use cases. Time for one more. Clarke Jeffries with Piper Sandler. Just following up on that, in terms of understanding how acutely you'll be able to address new opportunities with these kind of closed feature gaps, were a lot of those lost deals to non-decisions, and especially with maybe some of the use cases in multi-geo? When these customers are evaluating multi-storefront as an option, is this closing out several different vendors in terms of consolidating different vendors in different geos, or is this closing individual instances? You know, just any color on how they were evaluating that purchase decision. Yeah. Absolutely. It was typically, especially in the enterprise software space, when they were using a hosted platform, if you talk to any of them, they don't love that investment. It's expensive to operate. We talk to their marketing teams, and they say, "Hey, I don't get features as aggressively as I want. When I wanna have Apple Pay on the day it launches, that's just not happening in the hosted platforms." What we saw a lot were merchants who were staying in place because they had a huge sunk investment in something like a hosted platform running in a data center somewhere, and they didn't have a place they could move in a SaaS ecosystem. I would say that was probably one of the top scenarios we saw out there. The second would be where they were just not able to launch new businesses. Many times we would see merchants come along and say, "Well, it's expensive for me to launch another brand," and so they just waited. They just saw it as too much of an investment for them to launch a new line of business. All right. Thanks, Brian. We're gonna take a break, maybe five minutes or so, and just get set up for the panel discussion. If you guys could, if you need to multitask, whatever you need to do, I'll start us back up in about five, and we'll keep going from there. The video is still live during that time, by the way. Talk amongst yourselves accordingly. All right, we're back. I'm Marc Ostryniec, Chief Sales Officer for BigCommerce. Glad to be part of it today. Have two friends and partners with us today, Keval Baxi, CEO of Codal, and Jared Shaner from Trellis. The point of this panel is to share a perspective beyond ourselves about what we're seeing in the market, how we're perceived, what's actually happening with the e-commerce platform ecosystem. I think it'd be interesting to hear your views, right? We've shared some about our technology and our strategy, but Keval, what are you seeing and what are you hearing from merchants in the landscape? What are some of the priorities? What are the things they're spending time and effort and money and year cycles on? Yeah, absolutely. It's been an interesting last couple of years around enterprise merchants looking for a few different areas that we see. One being around automating their current life cycle into a digital cycle. They typically are used to having a distributor network, a sales cycle that's offline, and a big ask has been, how can we automate this? How can we touch the customer quicker? The other area of what we've seen a lot has been around kind of multi-storefront was mentioned earlier, is how can I consolidate my brands? I have three or four brands acquired through private equity or just built over time, a lot of back-end systems, and I'd like to just kind of have one system to manage and kind of operationally be more efficient. Those are kind of a few areas that we've seen really be coming our way. Yeah, that's really interesting. You know, we're often interested in what levers we have with our product that can affect the merchants financially. That may be TCO or that may be in their go-to-market and growth. Jared, what are you seeing in terms of changes? We just came out of kind of an unprecedented couple of years in e-commerce, and here we are in 2022. No one really knows where we are, other than we're not in person and we don't have masks, and we're feeling pretty good about it. But tell us what are you hearing? What are you seeing? Any pains and priorities that you're hearing from merchants? Yeah. I mean, I think one of the things which I think should be intuitive is that technology should be empowering them to optimize their business and to grow their business. Keval has sort of talked about the fact that a lot of these private equity firms or large enterprises are trying to find ways to consolidate their tech, which is sort of, I think, for the first movers or the greenfield, you know, people that were the guinea pigs went out there and realized that these one size fits all platforms where the ego of the platform said, "Well, we can do fulfillment, we can do ERP, we can manage your products and your sales and your checkout," all of a sudden isn't sort of fitting the overall needs. So, now they're looking for platforms that have the flexibility to allow them to leverage best in class technologies, but unify the experience so that on the day to day, they can manage that themselves versus fully relying upon, you know, highly technical talent like Codal or Trellis really to manage things, which doesn't allow them to be nimble. Yeah. Yeah, that makes a lot of sense. Now when we talk about partnership, part of what we're building is an ecosystem, right? Meaning we want you building a business around BigCommerce and having that sustain and grow and build success for the long term. Can you talk about building an e-commerce practice with BigCommerce and how that fits into your business strategy as a partner, as a digital SI, as an integrator? How does that business case work for you, meaning in building a business in this ecosystem around our product? Yeah, absolutely. At Codal, we kind of approach it with a three-step process. We have the partner network that BigCommerce provides, the training, and then the co-selling. The partner program is incredibly efficient. We have dedicated touch points. We're really kind of working together to really figure out what problems we can solve. From there, we go into co-selling, co-marketing. We'll do a number of events, a number of webinars just to really kind of pitch together. It looks like a unified experience. Lastly, BigCommerce has an incredible program to get the agency up to speed. There's certifications around engineers, developers to really understand how eCommerce can be implemented. We've seen that kind of really scale, and just recently, we've kind of expanded internationally with the same model, along with BigCommerce kind of supporting us through that journey. Yeah. That's awesome. What about you, Jared? Tell us about your journey with us to date and where you're headed. Yeah. I think that, you know, Codal's, you know, I guess, business plan is somewhat similar to ours. The most important thing that I think that we've invested in is the fact that we are truly pitching as one unified team, with all the merchants or distributors' best interests in mind. That's where we've realized, and we're a platform-agnostic agency. We don't like to come in with bias. Having, you know, versus some of the other platforms we've worked with, BigCommerce is really invested and, you know, I guess props to you, Marc, on the build-out of sort of the solutions team that comes in, and even when BigCommerce cannot accomplish all the functionality, they are proactively working with their retailers, either current merchants and/or prospects, to solve their problems versus just pretending like they can cover it all and then tossing it over to Codal and Trellis to pick up the mess afterwards. So I think that's been the most important thing. Has been sort of the co-selling and the fact that we're truly joint solutioning and solving problems for merchants together. That's great to hear. For sure that's an area we invest in, obviously in the sales cycle, but even in building out the skills and capability so that we can support you all in making that successful. We've shared some context with this group about our product, and Brian had taken us through some of the development and the evolution of our product and platform, some of the areas that we think are differentiated. But you have an interesting perspective. You work with multiple platforms. You've been in the industry for a long time. As you look at BigCommerce, how do you look at us in terms of potential differentiation relative to other solutions and solution providers? Like, what are the lines that you draw when you're looking at the right fit for enterprise merchants as they're either looking to re-platform or as part of their strategy leads them to, re-platform? I guess I already have the mic. Yeah. It's right behind us, actually. Flexibility has been the number one thing that I think a lot of the folks that we've worked with. As we talk about, you know, BigCommerce, it once again is the Open SaaS platform. You know, I had a very large Adobe practice, which, you know, was mostly successful, as Brent alluded to the fact that they could, you know, interconnect. There is flexibility. You can do whatever you want. With BigCommerce, what we've been able to pitch to the market is that you can stabilize the core pieces that BigCommerce does really well, and those things are really continuing to grow, you know, as we heard just a moment ago. Meanwhile, the open APIs allow us to integrate other third-party systems or systems that are already sort of really ingrained in the way that a lot of the merchants are running their business. This flexibility, I think has been the biggest thing. I don't know for you. Yeah. I agree with flexibility. In addition to the engineering end, there's design flexibility. The experience teams can really modify a realistic workflow and put it into production online without any limitations. If we need to adjust the checkout process or adjust the workflow of the customer, we're not limited. As we kind of all know, a well-experienced website is a lot easier to convert, better customer service, and that's where we see a really big impact there. Yeah, that's great. What about some of the investments we've made? Like, multi-storefront or multi-location inventory, in some ways, those have historically felt a bit like a glass ceiling for us, meaning there are merchants where those are fundamental requirements, right? You either can do it native in the platform or you can't, right? Or there may be needs that they have that fit in those categories. How do you see those as big unlocks as we look forward in terms of the use of the platform and some of the ability to bring that to merchants who may or may not have been a good fit in the past? Absolutely. When multi-storefront came out, we had an intake of kind of leads that maybe we passed on because the capability wasn't there or there was a lot of custom engineering. We've seen a lot of merchants that have maybe four or five systems running, either through various acquisitions or various kind of life cycles. They've all entered this process of let's consolidate into one. Their ERP is already one or their, the rules engine of the business is one, and now they wanna see how can we do the same for the front end. It's easier on my customer service training for them, all the way to kind of managing licenses for apps and services. Everything becomes consolidated into one backend. Awesome. I would agree with everything that you're saying. Multi-storefront is something for mid-market growing to enterprise or enterprise businesses that wanna get rid of their highly complex technical debt ridden monolith tech stacks that is a must-have. One of the things that we've also been leveraging, which I don't know if has gotten quite enough coverage 'cause it is quite impactful, is the pure power of as well the B2B side and the functionality on BigCommerce, which allows for that unified, you know, experience. Yeah. We're seeing out in the market, and that's one of the things, is that the B2B consumer today is expecting almost what I refer to as the DTC experience. They don't want a clunky, you know, put in five gauges, 10, you know, O-rings type setup. They wanna be merchandised, and they want that experience to be personalized. And that's very difficult within, let's say, the SaaS community until you move up market to really complex technical debt-ridden, you know, platforms. So that's really unlocked a whole nother market, for us alongside the team at BigCommerce, in my opinion. Yeah, that's a great maybe a great transition, a great topic. As we think about the competitive landscape, obviously that runs the gamut, right? There are kind of full stack monoliths. There are new emerging platforms that are API frameworks. They get a lot of attention in the market for the idea of flexibility, but then some interesting kind of burdens with development. How do you look at that competitive set going forward? Meaning the kind of the classic monoliths, the Adobe, the Demandware versus the new frameworks, say the commercetools, Fabric, right? Some of these new investments that are raising interesting money. But I'm curious on how you look at them and what capabilities you see between the platforms. Yeah. It's definitely been an interesting landscape of kind of the new headless platforms and things coming in. One big differentiation we see with BigCommerce is that we have the ability to build everything natively and then customize what we need. On a lot of these other kind of platforms, you have to build everything. You have to manage the source code. You have to. You can't just use out-of-the-box promotions or out-of-the-box order management. There's a lot of engineering that needs to be done. It's kinda one big area where we see, okay, as you're growing your enterprise, you can kind of look at, all right, I'll use the promotion engine that currently exists, but 24 months down the road, I'll try to rip that out and build my own with more logic. Kind of that journey is really interesting. Interesting. Yep. What I'll comment there is the fact that, you know, I think it's saving a lot of enterprise brands from themselves. You know, with the growth over the last three or four years even, you know, going pre-COVID, e-commerce was already booming, obviously accelerated quickly. As such, a lot of retailers, brands ended up building internal teams that let their ego get in the way and/or were limited by the rest of sort of the ecosystem, the e-commerce platform ecosystem, and therefore decided to build things themselves. The open APIs of BigCommerce, you know, one example, ton of NDAs, I can't mention it, has built everything from their front end to their site to a custom back office system all in-house. What BigCommerce is allowing them to do is decouple one piece, catalog, which is quite honestly going to save them millions of dollars a year and allow them to stabilize it because of out-of-the-box functionality and the lack of ego on BigCommerce's side to say, "Yes, use what's best, but we can take over what we are best in class in," which I think will be a continuing sort of, I guess, theme of my opinion. Great. Definitely, it definitely matches our strategy and where we're spending our time. Looking forward, right, you know, what are you seeing as you're growing your business looking forward? Obviously, there's platforms like us. There's new technologies, right? We spend a lot of time, and we're gonna hear it later this afternoon about Omnichannel, about unlocking additional use cases for commerce that let us focus on selling not just in branded sites, but outside of those sites. What are you seeing as you're building your business over the next three to five years? What's the forecast for you? What are you seeing? Kind of how does that fit into a long-term investment strategy? For both who you wanna partner with, technologies you think are interesting, what do you think you're setting the stage for new merchant growth? I think the biggest kind of thing that comes to mind is around merchant accessibility. Using the platform, we're able to kind of expand solutions that merchants have never been able to introduce directly to distributors or customers, really allows kind of the partner ecosystem continues to grow, which is what we're really excited about is there are more and more pre-built apps really decreases the time to market. A lot of enterprises are used to 24 months, 36 months to launch an e-commerce. We're able to take that down to 10 weeks, 15 weeks, which really makes a huge business impact. Yeah, that's excellent. Excellent. What about you, Jared? One of the things I think that, you know, we always have to keep in mind, putting platform aside or agency, is ultimately we're building these experiences for consumers. That is what I'm seeing the most in today's market. You know, there's conversations around, is brick-and-mortar dead? The answer is, of course, brick-and-mortar is not dead. Maybe there was a bit of a pullback, but what today's consumers want is brands and merchants that resonate with them, and through every step of their daily journey is speaking to them in the way that they want and being very accessible. Whether that's, you know, integrations to, you know, third-party platforms like Clover that allow a consumer that's used to being home during COVID to be able to order something online and then drive two miles down the block, pick up that sweatshirt, and then, you know, meet a friendly sales associate who says, "Hey, you might also like these sweatpants." I think that's really important, and I think it's important for the ecosystem to continue to grow so that all these platforms at every step of the consumer journey are communicating with each other and making sure that that story is through the line. Yeah, I like that comment a lot 'cause it comes down to the consumer. At the end of the day, consumer has to take an action for these platforms and technologies to be useful. I think that's a great North Star. Well, great. Well, that's the questions we had prepared for the fireside chat here. We're happy to take questions from the group. When they ask the question, would you mind repeating them? Sure. Yeah, I can repeat the questions for the folks on broadcast. Great. Thank you so much. A question about willingness to invest. What does that really mean to merchants? Merchants Merchants are comparing apples to apples functionally, but what's the difference between functional capabilities and true functionality? What's the hero in that for the merchant? What is that? I'm trying to get to that all the increased functionality piece. Why not the biggest? I think it's important. Great. Let me repeat the question, we can let you all feel that, the question was willingness to invest. How willing are the potential merchants or the merchants to invest in new technology given they've just come through what may have been a big investment cycle? While there's been great advancements even as of late in the BigCommerce platform with new capabilities that have rolled even in the last few months, how does that correlate to the merchants actually willing to spend money, put project time toward taking some of these new technologies? Yeah. I think that falls a little bit on Codal and Trellis and, you know, the other sort of, you know, trusted suite of consulting partners. What is really important is now we have empirical data in order to allow, whether it's an analyst or an analyst at a CPG company, to be able to give them empirical data that says, "This kind of investment historically returns this kind of return, and therefore you should do this and/or this should be backtracked." I mean, you're totally correct with sort of some pullbacks in investments. Some folks, especially at large enterprises, sort of just got these buckets of cash and threw it in without thinking about the long-term roadmap. Which, you know, I won't beat a dead horse, but that's sort of what's nice with BigCommerce, is the flexibility that we're able to sort of be nimble, as well as the fact that, you know, all of the merchants that we work with can be nimble in their strategy. I always call it, you know, tinker. We don't let the egos get in the way. We're always tinkering, trying to find sort of the best route to return on investment. In some monolithic platforms, a tinkering exercise could quite literally cost you $1 million versus being able to sort of try it at an MVP level and then prove out your thesis and scale it. Pretty much echo that. I would add one more area is a lot of merchants that we work with are comparing a ROI return cycle against a traditional platform that may take 24 months to build. With BigCommerce, we're able to show a quicker path to market, where that's kind of taking away those barriers to make quick investments and then continue to scale the platform. Great. Thanks. Any other questions from the group? There's one that we got online that I wanted to ask. Since you guys have a mixed practice between BigCommerce and Magento's a good product. Just curious, how has the mix in your practice changed over time between Magento and BigCommerce? What's the difference in time that it takes to kind of stand up a robust experience between BigCommerce and Magento in particular? You want me to repeat that? Great. The question was, comparing and contrasting the growth or expansion of your business across platforms, right? What it takes to do a development cycle on some of the legacy platforms, think like an Adobe Commerce, Magento versus a BigCommerce, and what some of the differences are there, given that you likely have a mixed business within your own practice, right? I mean, you've worked with both platforms, you've worked with merchants on both platforms. What does that look like? Yeah. I think that's one of the nice features is with BigCommerce. I know Codal invested ton in sort of product learning, certifications, training. It sort of enables us as a solutions partner to put these people in. In many cases, I'll be open and honest, we're actually cross-training or retraining these staff, whether it's developers, front-end developers, designers, whatever it may be, on the platform. That's made it a little bit easier. You know, it's perfect timing. We just did sort of a diagnosis. About 70% of our revenue, our services revenue was attributed to Adobe in 2016. It was sort of the, as Brent said, the 800-pound gorilla. We were able to very uniquely place ourselves as the boutique firm. You know, you want the quality of an Accenture, but without the costs and the overhead. We were that Northeast partner. However, what we've noticed in the market is post-Adobe acquisition, we've become the little SMB agency. We are not David versus Goliath. You know, Adobe's focus today is on those partners solely that will actually sell the entire suite and stay on basically a Adobe tech stack without the flexibility, which in my opinion is not the best. We've seen a huge sort of movement from Adobe mid-market specifically, where these retailers are feeling the same thing as we felt as solutions providers, that they used to get the care and the love, the strategy, the insight into the product roadmap. Today, you know, they don't matter unless they're, you know, Walmart or someone that is transactionally putting, you know, $1 billion or above. I think, you know, you guys will know better than me, but the way in which a lot of these platforms designate enterprise is very different and is very telling as to the folks that they actually care about. I would bet my bottom dollar on the emerging enterprise as the future, 'cause they're more nimble, they have, you know, more connection with their consumers. They're focused on building a brand, and therefore I think that's where we're going. Excellent. Great perspective. Anything else to share, Keval Baxi? At Codal, we pretty much sunset our Adobe practice, as we kind of started on our BigCommerce journey. We pretty much cross-trained all of our engineers, and then also have kind of ported over a lot of the enterprise clients. Yep. Excellent. Well, thank you. Well, thank you for your time today, gentlemen. It was a pleasure having you on, and thank you. Brent? All right, we're gonna keep going. Anybody needs a break, just get up and take it. No worries. We're gonna go on to now the second strategic priority that's on our agenda, and that's B2B, companies who are selling to other businesses. You may traditionally think of B2B as industrial companies, manufacturers, but it can also be consumer goods companies simply selling to a third-party retailer, wholesaler or distributor. We earlier said that platform spend in e-commerce is gonna grow to $10 billion in 2025. That same number split between business-to-business sellers versus business-to-consumer sellers, it's moving towards 50/50, and by 2025, roughly 42% will be B2B sellers. It's growing at almost double the rate in terms of spend as B2C sellers. For our business, here's a new disclosure. In 2021, we grew B2B sales 32% year-over-year, and they accounted for 27% of new sales MRR. Here we're giving credit to pure B2B deals as well as companies that are hybrid. You know, maybe they're gonna do both B2C and B2B, in this we're giving full credit to B2B. It's a big part of our business. Now, what's exciting, going back to my daughter's graduation earlier, again, in an inflection point in mindset. As of a couple weeks ago, when we completed and announced our second major B2B acquisition, Bundle B2B, we are now what you would consider, with native or own functionality, a complete B2B platform. Go back in time only one year, and we were selling a fair amount of B2B, but it was with a lot of third-party extensions. The native functionality for B2B included price lists, customer groups, customer segmentation. For much of the B2B specific functionality, we did what Magento also did in its early days. We relied on third-party extensions in our apps marketplace, two of the biggest of which were B2B Ninja and Bundle B2B. A year ago this time, we were only just announcing what we called our B2B edition, which was a white labeling under a single BigCommerce contract, the functionality of Bundle B2B. With Bundle B2B, it was purpose-built for BigCommerce, six of the most popular additional B2B functionalities, things like sales rep enablement, payment visibility, especially account hierarchy, where you control the user, permissions, what each person within a company is allowed to buy, limits, things like that, shared shopping lists. We white-labeled that starting a year ago, and when we did that, it flew off the shelves. Hundreds of sales of B2B Edition, super popular, and it was kind of strategically a no-brainer and an inevitability that we would want to buy that functionality and bring it in-house. Now, we could have instead built it, would have taken us far longer and, you know, quite honestly, we weren't B2B experts the way that we are B2C experts. I've been in retail since 1994, but I've never been truly in B2B. With these acquisitions come not just the functionality and the code built by actual B2B experts, the people came in too, right? That's also true for the acquisition of B2B Ninja, which was a universally five-star review, most popular quoting application in our marketplace. What was pretty darn cool is that Forrester, in their B2B Enterprise Platform Evaluation, which came out at the same day a couple weeks ago that B2C came out, you can see where they rated us among B2B platforms. This was before they even knew we were buying Bundle B2B and giving us full credit for the functionality that we were now bringing in-house. What you'll note on this is that this is enterprise B2B. We're pretty darn close to being a leader, and two of the companies that are up ahead of us, Oracle and Salesforce, for the most part, wouldn't overlap what we do in a sales situation. Why? Because I don't even know what part of the market Oracle's selling into for B2B, but we're never in those same deals. Probably just radically different price points and complexities. I bet it's built around Oracle ERP customers and a whole bunch of extensions off of that. The same thing is true with Salesforce. Demandware, Salesforce Commerce Cloud, isn't really a B2B platform. What they're mostly evaluating here is CloudCraze, which is a Salesforce.com native set of extensions. Again, we're not gonna solve that same set of use cases. We solve a whole bunch of different use cases. I'm delighted that we're ahead of Adobe, at least on capabilities on that dimension. It's rather astonishing for us. This is, again, all before they even knew we were buying Bundle B2B. Being at this stage of our development, when a year ago we hadn't even launched B2B Edition, let alone brought the functionality of it and quoting in-house, we now have that. We're as full-featured as a platform needs to be. There will always be extensions for individual customer use cases and segments of the market. Put simply, we think we are in a really great situation for being the SaaS winner in B2B, that 42% of the market in the years ahead, and it is a dramatic advancement in our functionality relative to where we were even a 1.5 year a go. If I go back in time, and I like sharing this, when we had our top partner advisory meetings at the beginning of last year, and we asked our partners, our most trusted partners, "What's the top of your wish list? What do you most want BigCommerce to do to help you win in the market?" Number one, they said multi-storefront. We said, "Great, we're gonna launch that within a year." Number two, they said B2B. We think you can take the B2B market as a SaaS platform, but you need more functionality. And we said, "Great, we're gonna surprise you and launch B2B Edition," and now we own it a year later. Where do we go from here? We're gonna take that functionality from Ninja, from Bundle, make it ever more seamless and native within the BigCommerce experience, introduce the same open philosophy to it, meaning putting APIs on the other side of their product so that agency partners like Trellis and Codal can extend, customize, modify off of those other products. You know, and eventually, our hope is to do in the SaaS era what Magento did in the on-prem era, which has become number one in B2B sales. Final thing here is a bit more third-party validation. If one goes into G2, which again, wisdom of the crowd, this is companies rating the technology that they use, you can go in and click a box or two to say, tell me only for B2B sellers, how they rate their e-commerce platform. Look where we are on this, upper right box, which means most popular, best reviewed, and nobody's even close to us. Of course, Shopify won't be anywhere close 'cause they don't do B2B. On the B2C side, you know, they're number one, we're number two. We're far and away wisdom of the crowd, that platform that democratizes B2B at an approachable price point, ease of implementation, and then delights customers far better than the competition. Paradigm is the most notable B2B-specific, what I call this combine. You know, it's all the B2B platforms competing against each other. They have a mid-market division and an enterprise division. We won a ton of awards a year ago, and now they get to evaluate us this year, factoring in Ninja and Bundle as acquisitions, so we're excited how that will go. IDC, that's a couple years old, but we've been a strong player there for a while. Third-party validation, our hope is that these various tech analyst authorities do a lot of the work for us in getting us into the consideration set of any business-to-business seller so that we can compete and win on the merits when we're the best for them. Actually, final page here is then a nice list of different use cases and categories that we serve. I won't go through names. You'll see many up there that you recognize and some you won't. Always excited about Harvard Business 'cause it was our second headless customer and a great B2B use case. Publishing and education, lots of B2B use cases there. Industrial and ag supply, food, bev, healthcare, apparel, sports, and outdoors. You'll see a bunch of B2C brands. Started with us on B2C in almost every case and then added B2B stores to sell to their retailers and wholesalers. Hardcore manufacturing, home goods and building supplies, et cetera. It's every category, just about. We can't handle every single use case. There are times when you want Oracle Commerce for your Oracle ERP or SAP Hybris for your SAP ERP. But as a generalizable, well-priced, extensible, implementable B2B platform, it's pretty darn hard to beat what BigCommerce is today. Any questions on B2B? Do we have time for that, Daniel? Yeah. Hey, thanks. Matthew Pfau with William Blair. On the B2B side, you feel good about where you are from a technology perspective. What about on the sales side? Anything that you need to change there? Then why do you think it seems like there's been less investment and activity from competitors on B2B. Given the size of the market, why do you think that is? B2B is hard, and there's a lot less commonality in B2B than there is in B2C. Much of the use cases and functionality is common across B2C sites. In B2B, I mean, just look at the examples up on this page. The functionality that a publisher like Harvard Business needs relative to an agricultural supply company, a raw goods manufacturer, there are so many different use cases here, and you have to kind of rely on an open ecosystem. This is where our open ecosystem advantages us because a lot of technology app producers and agencies came in and filled the gaps. Actually, it's interesting because Bundle B2B was not built by a tech partner. It was built by an agency partner, Silk Software, who said, "We think you can become in SaaS what Magento did in on-premise, and we'll build that functionality for you." Fundamentally, they're still an agency. So they've come in, and they've filled those holes on our behalf. Could a competitor come in and do this? Let's say provocatively. Well, I've heard from people who have left a competitor like Shopify and said, "I don't think they can ever do it. The way they are architected and sort of the technology stack that they have doesn't allow them to do the basics like price lists and customer groups the way you can, and I don't see them ever getting to those fundamentals." And there are certain things you can't solve with an app, right? If you don't have the price list functionality embedded in there in the customer groups, there are certain things you just can't do with an app. That's really hard. In the same way that multi-store, a lot of these B2B sellers have multi-store for different regions, different groups that they wanna sell to. If you're a B2C platform, you don't have multi-store. God forbid, you're like us, you're multi-tenant SaaS. I can tell you from experience how hard and the many years it takes to transform every product in your suite, every line of code, from being single-store aware to multi-store aware. Took us years, right? To do that without breaking the stores already running on you, it's incredibly hard. You know, how many other B2C platforms will ever choose to try to, you know, bite off that animal? Not many, right? It's pretty darn tough to do what we've done. If you're SaaS, you don't have the luxury of doing what Magento did, which is just scrap your old platform and re-release a new version of it and say, "Upgrade, migrate to use this functionality." We didn't have that luxury. It's hard. I think it's defensible. It's a deep moat. We probably have time for one more question before we can move on. One sec. Thanks, Brian. Brian Peterson from Raymond James. Just on B2B, it's interesting to see the growth this year. In terms of the different verticals out there, is there more functionality that needs to be developed to catalyze this for B2B, for the merchants? You know, at what point do you think that will really inflect across some of these use cases? I mean, there's certainly more functionality, but the question is, does any of it need to be native? The answer is probably not. Like, you know, punch out functionality. Doesn't need to be native. There are great apps for that. There are a lot of apps for other things. Back in the day, Magento got to be number one in the world in B2B with very little functionality. It was almost all extensions. They got into the leader quadrant, Forrester and Gartner back in, I don't know, 2014, simply off of five extensions plus Magento being pitched to Forrester and Gartner. Now, over time, they have then chosen to build natively a bunch of functionality that displaced, or was a substitute for apps in their apps marketplace, in the same way that we, instead of building it, bought BundleB2B and bought B2B Ninja. How much more should we bring native versus keep in the apps marketplace? That's a decision that is, you know, one that we'll make only after focusing on fully integrating, securing, and enhancing with openness the two apps we've already bought. There's no urgency to do it. Like, you already see where we're rated by everybody. They're looking at us and saying, "You're already full-featured enough to be a leader in B2B." Okay, headless. All right. The unfortunate name, a really big part of e-commerce. Headless is any time a business decides, in doing e-commerce, to use a different front-end technology for the consumer experience than the platform that is used in the back end to power things like the catalog, the checkout, payments, tax, ERP, shipping, integration, as opposed to getting it all in one platform. I would say BigCommerce, of course, started not doing headless. We started as a platform that you had to use our built-in, now called Stencil, theming and design framework. We were one of the first generalizable platforms, if not the first, back in 2016 to say, "We also want to be open, and we want to address companies like Brian's locomotive train example, who can't create a 3D rendering of a 1954 locomotive train engine that you can interact with. You can't do that in the BigCommerce theme. How do we let them create that in their own design environment and yet power all the parts and the checkout and the sales and the integrations on the back end, right? That is headless. How big is headless? You can scour the internet trying to find people who have quantified this, and it's not easy. My best estimate is that somewhere between a quarter and a third of all e-commerce stores in the world are headless, and you get to a quarter alone just by WordPress sites. WordPress is a front-end content management system that has no e-commerce module. In order to make something sellable on WordPress, you need a back-end commerce platform like BigCommerce or like WooCommerce to make that happen. That's a quarter of all the e-commerce sites in the world right there, right? How many more are out there? Maybe up to a third. On the enterprise side of things, in the most recent Digital Commerce 360, they went out and surveyed the top 1,000 B2C sites in the U.S. and asked those who are planning or expecting to re-platform in the next year, what is your platform of choice? 12% said they thought they would go headless. Five years ago, they wouldn't even had headless as an option there. It's growing. For us, it's grew 34% year-over-year. It's roughly 9% of our new MRR last year, but something with giant upside potential. Remember, if you think about the metaverse, and different devices that might have things sold through them, those are all gonna be headless use cases. In terms of the third-party analysts, the only one that we've seen that reviewed headless application platforms was IDC. This is two years old. They had us as a leader. It's notable that our only competitors in the leader quadrant are purpose-built, headless-only microservices platforms, c ommercetools, Elastic Path, Skava doesn't even exist anymore. All they can do is headless. We are the only generalizable platform who is so flexible and open that we do it too, and that is the core of our competitive advantage. In headless enterprise competitions, it's usually us against commercetools. The giant advantage that we have is we come with functionality. You don't have to have a third-party point solution and integration for everything, your catalog, your content, your payments, all that kind of stuff. We have a lot of this functionality and all the integrations with 1,000 apps in our apps marketplace already there. It makes it far easier to implement BigCommerce for headless than any other platform. Here is an illustration of giant competitive advantage in that the boxes on this page show all of the various front ends, from digital experience platforms, full-featured on the left, like Bloomreach, which is what Ted Baker used, to pure content management systems. I was at Contentstack's annual conference yesterday. We're the out-of-the-box demo store that's on BigCommerce, and we are tightly integrated, pre-integrated with Contentful. You know, WordPress. We're WordPress VIP, their enterprise hosting component of WordPress. They send those merchants over to BC because WooCommerce isn't strong enough for them. Giant hosts like Vercel and Netlify, deep partners of ours, Vue Storefront. You see how much of the industry already, Box, is gravitating to BigCommerce as the best platform for doing headless. You know, it's notable that Shopify used to pooh-pooh headless, and they finally got into the game, but they're trying to do the hosting themselves, and they don't play nice with these general CMSs and DXPs based on the approach that they've taken, where they're trying to kind of own most of it. It's not the so-called MACH approach, which is open and configurable and composable. It's a do it our way or the highway approach to headless. I think that is again, they're so invested in their concept of hydrogen and oxygen that it leaves us with a giant moat, 'cause they built a moat around themselves. Their own thing is like, we only wanna do it our way, and most of the world wants to use these other tools and frameworks. Final page for headless. These are some of the great examples on various front-end frameworks from Next and Gatsby, Nuxt, WordPress, Contentstack, you know, K2's using them, Solo Stove. Notably, some of these brands started on Stencil with us, and then in time they wanted the freedom to do crazy things or multi-store in a headless environment. They would move off of Stencil, you know, like Solo Stove did, and onto Contentstack or as mentioned, Bloomreach with Ted Baker. Let me finish there and see if there are any questions on headless. We've probably got time for one question if there's one in the room. Could you talk about the economics of headless? You know, how pricing might change if they were headless versus non-headless customer. Trying to think through what would happen if 91% of new MR is still non-headless. Some of those customers may want to move to headless over time. How does their contract change? How will they kind of view their, the pricing structure? Well, I mean, it's interesting. You would think that the price might go down because we don't do the front-end hosting any longer, so there's a big piece of cost that goes away. However, the API usage and the functionality usage is much more proprietary and hard to replicate because the only alternative to us, you go to commercetools, and it will end up costing you radically more to implement and manage. And so what we have found is that outside of the WordPress community, we have even more competitive advantage in our pricing. And even though a lot of the costs can be lower, we can maintain a similar price point for the enterprise use cases. Of course, if you're SMB, you're doing a WordPress site, it's the same $30, $80, $300 a month price points. Largely the same. Largely the same plus or minus for us, but we find less intense competition in headless 'cause really commercetools is our one strong competitor. Sharon? Agree with all that, Marco? I agree. All right. Next up is our VP of Omnichannel, the dynamic and fantastic Sharon Gee. I wish we could get her to sing some opera for us 'cause one of the many things she's gifted and able to do. Sharon. Turns out singing and sales are very similar. Spent 10 years of my career on the agency side, selling digital transformation projects to very large global brands. I've had thousands of conversations with what does your technology stack need to look like in order to support an omni-channel business. That's what we're gonna talk a lot about today and how BigCommerce is focusing on this in order to be able to unlock growth for mid-market and enterprise merchants. What's happening right now that I think is really fascinating. The role that I sit in, I have an opportunity to manage the partnerships and the omni-channel consulting team that manages our relationships with Google, Facebook, Amazon, eBay, Walmart, Pinterest, TikTok, Snapchat, Mercado Libre, and every channel that a merchant wants to take their products and sell on now. In the past two years, we've seen more growth, which means that Omnichannel is not an opportunity anymore. They used to be able to spend $1 on Facebook and get $5 back, and that's changed. It's an imperative. They have to figure out how to get growth in this privacy ecosystem. We know that shoppers are discovering and buying products across an entirely diverse set of channels. We know that $7.3 trillion Is essentially gonna be the value of commerce, where 67% of it is gonna happen on marketplaces, it's already over 60%, and those marketplace channels are going to include the social commerce channels, where the conversion happens not on their own direct to consumer or B2B site, but on the marketplace channel, where the conversion happens on Instagram or on Google or on those various different channels. We know that over 50% of the conversions that are happening on the e-commerce site, that traffic came to them from a channel, like an ads channel, like Google or various different social channels. We have this concept of on-site checkout on their own direct to consumer, and then off-site checkout that might have happened on a third-party channel, right? That's what we're gonna talk about here, which is that in our privacy-focused world, that is, that in post-COVID, the global channels. I'm talking about channels. Channels are ads channels. That's Google, that's Facebook, that's Microsoft, that's social commerce channels, and the marketplace's channels are merging. You have advertising channels that are launching buy on Google, that are launching new checkout experiences. You have marketplaces that are posting amazing results on their ads businesses because they have the product data to be able to surface search queries where search is originating on those marketplaces in some cases. And then you have the social commerce channels right in the middle. What this means is they're all warring over who can deliver a seamless, integrated, omni-channel shopping experience on the third party channel, in addition to driving traffic to the direct to consumer channel, which they used to do and will continue to do. What does that mean? It means that our vision is that we have to be the best commerce platform for omni-channel commerce. That means that we have to be able to take data that lives within our system, because we're the system of record for the products, and we have to be able to send it to those channels and drive conversion on third party because that's where the shoppers are. What that means we actually have to do is we're all shoppers. We know what we want. When you're on a channel, whether it's a discovery channel like Instagram and you're flicking through things, or whether you're on Twitter or searching for something on Google or Amazon, we need to know, is it the product I want? Is it available near me? How much will it cost, and when will it be delivered? All of us need to know this. This is simply four questions. The problem is that it takes merchants, particularly mid-market and enterprise merchants, all of these things to be able to support that on these various third-party channels. That box that Brent talked about in the first round, we now have API coverage around every single thing that it takes to deliver commerce. Guess what? All of the world's largest commerce platforms that have traffic and eyeballs that are warring to keep that traffic inside their walled gardens want this functionality, and we have it. That's why you'll see our name next to one or two other API-based e-commerce platforms that enable the ability to send catalog to those channels, to be able to give the signal back to the ads channel that says, "Hey, this person came to this site," and, you know, there's a Conversions API server-to-server handshake going on here that allows you to know that that conversion happened here. They need to be able to support an ads strategy, which means they need the agency ecosystem that we have. They need the technology solutions that we have. They need creative creators, repricing inventory, order management. All of the solutions that provide a good commerce experience on D2C is now required to be able to support a commerce experience on channels that used to be ads channels. We are very important to technology partners. We have dedicated engineering teams at Google, at Meta, at TikTok who are building to us, who are supporting us. I was at Google Marketing Live with these teams yesterday in San Francisco, specifically because they need to be able to do this in order to continue to deliver ROAS on their channels when they are also losing signal in this privacy focused world. We know that our merchants have different levels of Omnichannel maturity. Brent's talked about this. When you're going from selling on one channel, whether that channel is in store with a Clover POS and you wanna launch a new direct-to-consumer, or whether your first channel is, "I'm a digitally native vertical brand, and I want to start advertising my products on a different additional channels to drive traffic back to my D2C," you all of a sudden start to expand. It's not linear. When you launch a second storefront like you can with multi-storefront with us, let's say a second or third one, where you're now having a storefront and your catalog is in English and Spanish and German, it's nonlinear in terms of its complexity. You now have to send three feeds to Google, Facebook, Microsoft, Amazon, eBay, Walmart. That complexity gets really quick, really fast, and it doesn't necessarily, the complexity and the maturity aren't the same. That's why we acquired Feedonomics. Feedonomics is the market-leading platform-agnostic solution that allows merchants to take the data that sits in any platform and syndicate it to those channels where the eyeballs are now and then bring back the resulting traffic conversions or the resulting orders from the third-party channels. Now with Feedonomics, with BigCommerce, we actually can help control and influence driving more unit volume GMV for our merchants across channels, not just the D2C site, which is really exciting because it means every merchant consult we get onto is, "What do you wanna do?" They say, "I wanna grow." And you say, "Great. What channels are you on, and how do you fulfill off those channels?" It's the same conversation every time, and what they need is the ability to do so. If we know that every merchant and every agency that's based on helping a merchant grow and every channel needs quality catalog, inventory, and order data in order to be able to support the real-time experience that Instagram wants you to be able to have on Instagram checkout or otherwise, it means that no matter what system a merchant is using as their system of record, they need to be able to take that data, those products, and send them to the channels and then sync back the resulting orders, and that's what Feedonomics allows us to do here. We can help our enterprise merchants on any platform. I'm gonna say it again, on any platform, not just BigCommerce. Feedonomics can help merchants on Magento, on Salesforce, on Shopify Plus, take their data, optimize it for channel performance, and then sync those orders back to whatever system they're using for fulfilling their orders. This is huge for us. It means that our agency partners don't have to re-platform merchants in order to help them grow with their enterprise product syndication platform. This is really, really big unlock, which is why WPP was so excited to talk with us about it at IRCE. This is an example of how we can help drive return on ad spend, which is the traffic conversion channels, as well as performance across hundreds of new growth channels, whether it's advertising channels or marketplaces. We also know that with a channel strategy where you're taking whatever it is you're selling and putting it across all the channels wherever your shoppers are, you have to then be able to harmonize all of the resulting orders and then measure them in order to be able to know which channels should you continue to invest in. Enterprise merchants aren't gonna use native analytics tools to do so. They already have best-of-breed analytics tools. They're already using a data warehouse. They're already using a CDP. They're already using a business intelligence tool. With our free native integration into Google BigQuery or all of our partner-powered solutions that are part of what Brian mentioned, which is our big open data strategy, it's like two sides of a black and white cookie. You can have a channel strategy that lists your products, but then you can have a data measurement strategy that uses the enterprise technologies that you already have in order to be able to drive better conversion on these channels. That's kind of an overview around how we see being able to grow Omnichannel business for our mid-market and enterprise merchants coming together because BigCommerce invested years ago in the, in the flexibility that is required to be able to accommodate the various different tools and technologies that merchants need in order to succeed in a world that is privacy-focused to drive omni-channel growth. We actually invested in that technology years ago, which is why the platforms, the agencies, and the partners want to work with us for enterprise merchants right now. Are there any questions? Yeah, we probably have time for one or two questions live, if there are. Yeah. Let me call on Gabriela, one sec. Great. Thank you so much for the detail. Would love to hear a little bit about some of the work that you're doing with the partners like Google and Meta. You mentioned working closely with the teams and how you help them get better analytics on their end as well. Just a little bit more about how you work together. Yeah. An example of that would be the re-integration we did with Conversions API with Facebook and the Meta teams. There has to be a data handshake that exists for catalog, inventory, and orders at minimum, as well as pixel and signal for any actions that both a merchant and a shopper have elected to share, right? As long as everyone's opted in, then that data is what allows these channels to provide good return on ad spend. If we can invest in joint relationships, we can make sure that our merchants can retain as much of that conversion on their return on ad spend as possible in a world where privacy is making that conversion harder than ever. We believe that we can absolutely deliver on, in a privacy-focused world, the consent that both merchants and shoppers need to opt into to then also deliver a personalized experience that delivers them a good ROAS on those ads channels. Does that answer the question? Hey, there we go. Scott Berg with Needham. Nice to see you again, Sharon. Kind of a question on the Omnichannel theme. We were at the Shoptalk conference in March, and probably the number two theme there was social commerce. Yep. Metaverse was easily number one. On the social commerce theme, one of our takeaways was it's coming, it's gonna be big, sales are gonna double in the next couple of years, obviously. Most U.S. merchants don't really understand how to get there today. How much is education part of your process from, you know, from the technology stack, you know, and as they, you know, start this journey down to those new channels? Yeah, it's a huge part. That's why maturity and complexity don't go hand in hand. You can actually have really mature social influencers who sell across multiple channels because they understand the channels. It's a really large part. That's why we launched Channel Manager within BigCommerce that allows a merchant to, number one, discover the channel, and then it literally steps them through. Step one, connect your account. Step two, place your pixel. Step three, sync your catalog. Step four, start advertising. Then each one of those steps has a best practices guide that includes things like, here's how you do you know that on Meta, you need to tag a product, you know, five times over the course of a week in order to make sure that you're taking advantage of product tag posts. The answer is, we have to develop the content, and we do that in partnership with the channels because they're the ones who know what best practices drive conversion. Awesome. Thanks, Sharon. All right, we're gonna move now to Marc. He's gonna walk you through what we're doing in international expansion. Great. Thanks, Sharon. Thank you, Daniel. International expansion for us is one of our biggest investment areas for this fiscal year. Of our investment dollars, this is a significant portion where we're entering new markets, new countries, new regions to take our platform and our capabilities to market. As we look at these new markets, one of the interesting things is why are we a good fit and why are we a good fit right now for those markets? As we go into new markets and new regions, we've been prioritizing countries that are high addressable TAM and lowest possible barrier to entry. Barrier to entry for us also involves our partners. Meaning, do we have a partner network? Do we have agencies and digital SIs that we already have a relationship with that wanna take us into that market? Do we have relationships with payment, shipping, and tax partners so that we can be a viable domestic e-commerce provider, not just cross-border, but domestic e-commerce provider in that market? What we have found is that in these markets, in the markets that we're choosing to go into, the value of our product to enterprise merchants is the fundamental reason why we're doing well and we're accelerating. For us, international expansion is not about pride of planting new flags for BigCommerce. It's about growing the business and scaling the business in ways that have a lot of acceleration. For us, flexibility and openness and speed to market are core tenets for why we're doing well internationally. It's as simple as this. If you're a merchant in Europe and you operate out of the Netherlands, you sell cross-border. You're instantly more complex than most merchants are that are just domestic e-commerce merchants in North America, right? You instantly have to deal with tax shipping, fulfillment. You have to deal with payments. You have to deal with unique alternative payment methods that may be in those locations in those regions. Instantly, you're more complex. For us, this notion of enterprise capability is fundamental to our ability to do well in these markets. We've been running a playbook as we've been entering these markets to be able to launch first with sales and channel teams. Our first entry into these markets is with sales, with channel team to build our agency and SI relationships and then focus on product marketing, solution engineering and client success and client customer service. We launched in the back half of last year in Italy, Netherlands and France. We're launching now in Mexico, in Germany and in Spain. We are then focused on the back half of this year, expanding further into Latin America with Chile and Peru, and expanding further in Continental Europe with Nordics. You're gonna see us continue to add countries and capabilities as we continue to expand. There's no secret, right? Western Europe, great fit for BigCommerce, right? Latin America, great fit for BigCommerce. We're also doing some interesting things in Asia-Pacific that we'll talk about as well. In EMEA, the chart shows you a color coding that correlates to where we have sold BigCommerce plans, so where we have live merchants. The reality is we have live merchants, I think the count's like 152 countries or something like that, in terms of where we actually have merchants live. The dark blue is where we're investing in what we call CEV, country entry viability. What that means is our ability to be a viable domestic e-commerce merchant. Right? Think not cross-border, domestic e-commerce merchant. We've done very well in Europe because of those same themes, flexibility, openness, the right partnerships, and our, the ability for our platform to scale with those type of merchants. We started in Europe, actually in 2018, launching a team out of the U.K. to build a business headquartered out of London to start expanding into Europe. That team has done extremely well. I think that team is now from an original team of four to a team of 60, covering Europe. It's a significant area of growth for us. It also is heavily focused on enterprise. If you look at the merchants that sit in that category for us, it's heavily tilted toward the enterprise side of our business. Let's talk about some of the other countries that we've launched in, because there's some interesting anecdotes here as well. We launched in Italy in the back half of last year. This is Irene Rossetto. She is our country lead for Italy. She joined the company on July 6, of 2021. By November of that year, we had a write-up in Forbes highlighting the market entry for BigCommerce as the domestic e-commerce provider in Italy. By December of that year, we had sold a EUR 1 billion merchant. Really interesting example of market entry, product fit, but also relative competition. A lot of these markets are underserved in the e-commerce platform market, and they're specifically underserved in SaaS. BigCommerce, choose your own adventure, open source, on-prem, you can always build in software, whatever you want. It's just expensive and hard to maintain. The catch for SaaS has been that SaaS has always been the lowest common denominator. If your business is simple, SaaS was great. Well, we get to come to market in these regions with SaaS, with openness, flexibility and the ability to support complex use cases. Similar resonance in the Danish market. The Dutch market for us, Emerce ranked us the number one e-commerce provider in that market against a who's who list of who you would otherwise expect them to look at and evaluate. That's a really telling sign, right? Of our ability to enter market, and within one year, we're the number one provider ranked in that, in that region. Asia-Pacific is our origin. The company was founded in Sydney. We have a great strength and base in the ANZ market, and we're continuing to expand beyond that. In Australia, we were just awarded from the vendors in partnership. This is an industry voted on award, meaning from our peer group, from our competitors, from our partners. They voted us the number one e-commerce platform for that market for ANZ. We're proud of the awards, but it's also interesting how the platform starts to unlock new use cases and new markets for us. The example here is with PayU in India. We don't have a native team in India doing a rollout, but we have a partner, PayU, who has built an app that fits into BigCommerce, that does a checkout overlay that allows us to take COD, personal delivery, unique APMs, right? Fulfillment directly in BigCommerce. This is how we can then accelerate and start testing and learning our way into markets that we may not be ready to take the full investment of a full sales marketing go-to-market customer success team, but it allows us to go and enter a market with a partner and start turning on new sources of revenue and new types of partners and merchants. Latin America, it will be our next. We've launched in Mexico as of the start of this year. We've sent a team, including Brent, all down to Mexico to do our kickoff. We have a great set of partners in terms of that market. Our fit is again very interesting because it isn't just about Mexico, it's about Mexico for domestic e-commerce and the ability for merchants to unlock cross-border sales throughout Latin America and back to the U.S. That market entry is going very strong. We already have built out a strong partner network, 40-plus partners already active with us in that region, meaning getting trained on BigCommerce, starting to refer business and bring them into our ecosystem, but also our ability to have our own team on the ground. We have our own sales and go-to-market team based out of Mexico, selling and bringing BigCommerce solution to market. Great. I think we have time maybe for a question or two before we wrap. Yep. Thank you. Yeah. Hi, Koji Ikeda from B of A. Wanted to ask you a question. When you're international, you know, whether it's APAC or EMEA, curious to hear where are customers coming from? You know, domestically, it sure sounds like a lot of Magento, you know, Demandware, ATG, whatever it may be. But what does it look like internationally? Is it the same type of vendors or different vendors? I mean, on that slide that you showed up there, I saw a bunch of names that maybe I should be familiar with that I haven't seen before, so just curious to hear where they're coming from. Yeah, Koji, good question. The reality is there's two views to that. One is the usual suspects, so meaning Magento as an international business, right? There's plenty of existing business on those platforms. Same thing with Salesforce, in some markets Shopify. But then in each market, there are local incumbents, and those are the ones that are often built to suit, meaning they're built for that market. They have the right integrations, but what they don't have is the right functionality. Those are the perfect picking ground for us in that we can come into market with a capable platform that can eclipse right out of the box the functionality that they currently have with what is a legacy small production, unique market platform. That's exactly the case in Italy, it's the same in Germany, it's the same in Spain. There are local market products that fit into those. Even in Latin America for us, right? VTEX is built out of Brazil, right? Has a big focus in Latin America, but yet their execution across Mexico and most of LatAm leaves a huge void in terms of the ability for us to come in and take advantage of that. The other piece of that is B2B. So much as we spoke about B2B as an overall strategy for BigCommerce, and obviously a lot of the wins are centered around the U.S., B2B is a huge part of our strategy as we're entering new markets. Take Nordics, take Germany. These are huge B2B hubs in terms of the businesses that we can bring a platform to. So that's another piece of the puzzle where their only option was simply to have an extension on top of their ERP, right? Think about the basic ordering form bolted onto SAP, Oracle. That's what we're able to change. Great. Thank you. I wanted to ask on multi-storefront and how that kinda relates to the international expansion. Like, given that many of the international customers are probably managing different stores in different languages, are you finding that that's like a big selling point for those customers? And maybe even if, like, you're seeing any kinda different traction in terms of some of the markets that you're now entering. Yeah, it's a great question. Multi-storefront's extremely important when we talk about cross-border and multi-geo selling. Europe for sure, Latin America for sure in terms of merchandising, even how they're pricing, what currencies they're settling in. For sure it's a big topic. When we look at our success in Europe in particular, it has been heavily in multi-storefront deployment opportunities, and a lot of those have been headless. It's because they're using a CMS because they need to do unique merchandising by location. Like, the value of having a modern CMS gives them the control to say, "Great, I need different content, different merchandising, different promotions, different content that's going into the front end. But what I really want is one backend system. It's really one catalog. I might merchandise it differently or price it differently. I have one set of orders, I have one set of fulfillment tied to the back end of that system." It's paramount to that market. Great. All right. Thank you. Great job, Marc. I'm really excited because a lot of you with the growth in our enterprise business have asked a lot of questions about enterprise. Up until today, we've only been able to share, like, two metrics. I'm gonna do a deep dive in our enterprise business. I'll also cover kinda the growth factors behind the investments. We get questions around why now? Like, why make these investments now? I think you heard from a lot of the team the initiatives that we've made so much progress on, why we have so much conviction around it, and I'm gonna share some numbers to help support why we decided to make these investments this year. I've got a lot of questions around kinda what is the outlook beyond 2022. How do these investments play out in our long-term financial model? I'm gonna start kind of in a macro view. We get a ton of questions around e-commerce trends, you know, what we see, what we continue to see. At a macro level, I mean, look, even before COVID, e-commerce was predicted to be 20% of retail by 2022. We're there. We're probably over 20% by now. It took 20-plus years to get to 10, and that was in 2017. I mean, the iPhone was released in 2007. We doubled that percentage in less than five years. The questions around, well, e-commerce is gonna flatten or decrease because of COVID, I mean, the reality of the situation is we see the innovation that we've driven the last five years. We also see the innovation that our partners have driven. You match that up with consumer behavior and expectations. I don't think there's any question that e-commerce is gonna continue to grow. We believe it's gonna get to 30, 40, maybe even 50% over time. What surprises us still today in the enterprise is how many merchants are still on old, outdated, expensive legacy systems. It's amazing, especially the bigger the merchant is. We believe that with the differentiation of Open SaaS, everything that we've invested in. The time is now. We know what the market is now. We know what the competitive landscape is now. We don't know what it's gonna be three to five years from now. Forest through the trees, we do believe it's still early innings in terms of this digital transformation. We believe we're purpose-built to go after it. I'm gonna dive in. We spent a lot of time on our earnings calls covering the snapshot. I'm gonna spend the rest of this session really diving deep into that enterprise business. Last quarter, we grew 68%. It's now making up 67% of our ARR. I wanted to kinda just level set where we were at IPO. Seven quarters ago, we went public. We actually wanted to start out at a gate with our enterprise metrics, but it was only 52% of our ARR. The SEC wanted our KPIs to represent at least 70 or majority of our revenue. We're there. You know, I got the question a lot, "Well, how big can your enterprise be in terms of mix?" I said at the time, I think, Brian, you asked me. I said, "Probably 70%." Well, we're there a lot faster than we thought we could get to. If I were to answer that question today, I think it's north of 80, maybe 90, based on what we're seeing in the business. Okay, so if I were to give you a snapshot on our enterprise business, this is what it would look like. It's funny, I had a conversation with an investor two weeks ago. This is an investor who's been with us since the IPO, knows the story well, knows our business well. I asked him, "Hey, if you could invest in an enterprise e-commerce business that just hit $189 million of ARR, that just grew 68%, that grew north of 40% organically for 14 quarters in a row, that had strong gross margins, really good unit economics, and that was competing with old, outdated, slow, expensive, cumbersome platforms, what value would you place on that business?" He had to pause. He said, "Huh, I actually never thought about that. Thank you for making me go through that thought exercise. He said, "Well, six months ago, I would have valued it X, and even today, I'd probably value it at Y." My chief legal officer told me not to share the X and the Y, but let's just say it was a best-in-class multiple that he would have put on that business. Let's expand on our enterprise business today. If you think about our net revenue retention, we're getting close to really strong enterprise-level net revenue retention. 118% last year. If you think about the GMV flowing through the platform, north of 80% of our GMV is coming from our enterprise accounts. What do we see in these enterprise merchants? These enterprise merchants on a GMV per account are. Let's see, 50. Well, I was gonna say 50. 51% the GMV per account than a non-enterprise merchant, right? We've got 5,300, almost 5,400 enterprise accounts. The ARPA for our enterprise accounts is north of $35,000. We got questions around this metric around ACV over $2,000. A lot of investors say, "Well, that's not really enterprise." Right? That enterprise number that you're seeing here is for our enterprise accounts. There are accounts greater than $2,000 includes some of the non-enterprise plans. Okay, we get questions around what is an enterprise account. I know all of you follow a lot of SaaS companies with different measurements around enterprise. Enterprise for us means that they're on one, at least one enterprise plan. These merchants typically do at least $1 million of GMV, but they scale up to hundreds of millions. Over the last 12 or 18 months, we're signing larger and larger merchants, especially when you factor in B2B. One thing that's kinda misunderstood is how do you sell to these merchants? These enterprise merchants are making a multi-year bet, right? If COVID taught us anything, it taught us the importance of e-commerce. These merchants that are now going through their refresh cycle, they're looking at three years, five years. When you try to get a deal done with them, they're not gonna accept the standard T's and C's on your website, right? It's just not. That's not the selling motion. They're signing multi-year agreements, custom negotiated. They want protection, liability limits, data privacy, infosec, SLAs, right? If you're a large enterprise merchant. They also love our dedicated professional services and the technical support that we give them at implementation, post-implementation, and then oftentimes they come with an RFP. Our agencies, we work together with our agencies to address the custom requirements across those RFPs. Okay, here is kind of a quarterly view of how it's played out for our enterprise business. Since Q1 2018, you can see it's consistently grown pretty nicely. We went public in Q3 2020. We hit $90 million of ARR in enterprise. Six quarters later, we more than doubled it to $189 million. When you think about it on a CAGR perspective, it's grown at 55% CAGR over the last three years. Zooming out a bit, Brent covered this on an annual basis. You can see how it's accelerated since 2018. Last quarter, it hit 68%. When you look at the net new bookings, Q1 this year was the highest gross bo okings for BigCommerce in our history. 85% of that net new came from enterprise accounts. When you look at 2020, it's not like enterprise had a bad year. We grew 51%. We just had a lot of sign-ups for not enterprise when merchants were responding to COVID. Overall, that mix has continued to shift. It's the reason why we're at 67% far faster than we thought we could be. All right. I think this is the money slide. Every year we give LTV to CAC for the business, blended. This is LTV to CAC broken out between enterprise and non-enterprise. Let me share some of the unit economics that we see in our enterprise business. Average LTV to CAC over the last four years for enterprise is 8- 1. 8 - 1. When you look at the subscription revenue per enterprise versus non-enterprise, it's 5x lifetime. When you look at the PSR associated with enterprise versus non-enterprise, it's 25x. 25x. You think about our land and expand model, right? We sign a merchant. Over time, they're adding stores, they're driving GMV. We monetize that GMV through PSR. A lot of that's coming from our enterprise accounts. If you look at the non-enterprise, if you look back to 2016 and 2017, we've done a good job maintaining them, but all the growth in our business is coming from the enterprise accounts. ARPA. Over the last 12 or 18 months, we've definitely signed up larger and larger merchants, especially around B2B. You can see that ARPA climbing. I think that this ARPA number is going to move up. I mean, keep in mind, we've done all of this without native multi-store. We've done all of this without multi-location inventory. I get really excited because I know the opportunities that we can now go after with our partners where that's a requirement. These are larger and larger merchants doing hundreds and hundreds of millions dollars. As we get better about, you know, winning these deals, this GMV that's flowing through the platform, we're also looking for ways to continue to monetize it in more ways than we have historically. Okay, we get a lot of questions around this year and why invest this year. I think you heard from the sessions earlier why we're so excited about the initiatives that we're focused on. You know, at our IPO, Brent and I kind of painted a picture on our strategy and our growth framework, and that growth framework was sign a new merchant over time, like Procter & Gamble. They're gonna add a lot of sites onto the platform, and they're gonna drive a lot of GMV through the platform where we monetize with rev share from our partners. When you think about acquiring new merchants, we said we were gonna focus on B2C, B2B, and headless, and I'm really, really proud of our team's ability to over deliver on all the expectations that we set at IPO. We also said that when it made sense, we would look at M&A and make smart strategic bets. Obviously, you heard from Sharon on why Feedonomics was a smart strategic bet for us. We did the same thing with Bundle B2B and B2B Ninja. This year, we're focused on that column in the middle. If you guys remember Brent's NPS survey, it's amazing that our merchants trust us. There's a high degree of trust. They wanna reference us, they wanna promote us. But if you dig into that survey, they were also asked, how much do you think you're gonna buy from BigCommerce for the next year? They didn't expect to because they paid for the subscription, and we didn't have anything else for them to buy, right? Well, we do now. Our own products like Multi-Store, Analytics, Feedonomics, B2B Ninja, Bundle B2B, we can now bundle that in. We wanna be able to basically automate the billing for it to where our merchants, if they need it, we can add it to the bill. We can bill for it. We can control the flow of money and make it really seamless. We can also do that with licensed products like we do with the Google Workspace line of products. The apps in our app marketplace, we've talked a lot about this. The majority of them owe us rev share for any time they monetize our merchant. The problem is we don't control the flow of money, and we don't have the visibility. We wanna make it really easy for our merchants to take on an app if it helps them control that flow of money, add it to a bill, keep our rev share, remit back the rev share to our partners. We're working on this year. We'll keep giving you guys updates as the quarters go by. All right, B2B and headless. Why are we so excited about it? B2B and headless, 5x the GMV per account that we see for B2B and headless. When you look at our new sales, 4x B2B and 3x are headless. Again, a lot of this is driven by larger enterprise accounts. When you look at the sites, Ted Baker is a great site. I always refer investors to look at Ted Baker. If you wanna see what BigCommerce is capable of now, Ted Baker is a super cool headless site, really slick front end, very customizable. They're selling into multiple geographies, multiple languages and multiple currencies, and they're managing that on one control panel with BigCommerce. Black Diamond, great, very well-renowned climbing company. If you're a climber, you know them. Beautiful headless front end. They were able to customize the back end and seamlessly integrate with their systems. USCutter, massive product catalog. They have 100,000 SKUs in their product catalog. They're known for it. They wanted a cool buying experience. They're a wholesaler of vinyl cutters. They wanted a really cool front-end user experience, but they also wanted to integrate a lot of their back-end systems using BigCommerce. United Aqua Group, same thing, wholesaler. Pool equipment for commercial and residential properties using BigCommerce the same way. Interestingly enough, United Aqua Group, USCutter, Black Diamond, hybrid B2B and B2C, because they can do that all on one platform. Marc talked about international expansion. We carved up $10-$12 million this year to really lean in on international expansion. Here's probably the biggest reason why. We set up a team in the U.K., in London, back in 2018. This team out of the gate, enterprise-focused. GM is enterprise-focused. They know the landscape, they know the partner ecosystem, and they've done incredibly well. Two years later, we break even. Last year, our U.K. team made up 50% of the EMEA revenue in 2021. You can see the growth in EMEA. In 2020 grew 68%, and then we followed that up with another 68% in 2021. If you were meeting with our partners and merchants in Europe, they would tell you that BigCommerce is an enterprise e-commerce platform. The awareness that we've gotten is because we have this team in place. When we think about expansion further, we're looking at about an 18- to 30-month payback, depending upon the level of investment. This is a reason why we think Latin America is gonna be just as successful. Feedonomics. You know, when we bought Feedonomics, we were super excited. Today, we're even more excited. We knew Feedonomics could really help our merchants, but as Sharon mentioned, our tech partners, our agency partners are as equally excited about the Omnichannel capabilities of Feedonomics. That business grew north of 50% last year. 70% of that was enterprise. We believe our ability to cross-sell Feedonomics and upsell Feedonomics onto BigCommerce merchants likely could do it, provide an uplift of about 20%-40%. We decided to invest about $5 million-$6 million this year to further scale Feedonomics, as well as build a self-serve flow so that all of our merchants can benefit from those capabilities. We get questions around PSR and why does PSR not correlate exactly with GMV and what's GMV-based, what's non-GMV based. This slide really is to kinda paint a picture on all the different components around PSR. You can see payments, obviously, as a percentage of GMV, but you see other categories like shipping as a percentage of label fees or per label fee. Omnichannel could be a percentage of ad dollars versus GMV. Professional services is obviously not tied to GMV. MarTech is based on rev share that we get from tech partner program fees. Not all of our rev share that we get in PSR is tied to GMV. I have two more slides. This view is a big per BigCommerce merchant view. Historically, a BigCommerce merchant would sign up for a subscription, we would monetize the PSR and likely attach some professional services. In the future, we believe we can add the subscriptions that merchants will continue to buy with BigCommerce. We obviously are gonna sign bigger merchants, but now we have the ability to add multi-store. We now have the ability to add Bundle B2B Ninja, cross-sell other products. Feedonomics, the same way. We've seen great receptivity of Feedonomics with our merchants. Those motions are in place today. Feedback's gone extremely well, so we're super excited about being able to offer Feedonomics to the base of BigCommerce. How does this all play out? We've only given guidance through 2022. We're not going to guide or commit to these growth rates, but given the market opportunity that we see, given the progress we're making across the initiatives that we've talked a lot about, there's no reason, in our opinion, that we cannot go after this market in ways to drive 25%-30% CAGR, or at least over the next five years. Margins today are in the mid-70s%. We're making some front-end investments in international. We believe over the long term, we'll get to 80%. Keep in mind, a lot of the deals that we're winning in enterprise are really working with our agency partners. We still source a lot of deals from our agency partners, 30%-40%. We're also starting to source deals from our tech partners. A lot of the marketing that's driving enterprise leads is coming from inbound marketing, content marketing, thought leadership. We continue to expect efficiencies for sales and marketing, but we are gonna continue to expand internationally. As Brian pointed out, we believe we've transformed this product already. We've delivered a fully featured enterprise platform. We have a great dev team here, as well as in other countries. We can now make sure that we can focus those resources and start to get leverage in R&D over time. G&A, obviously we've incurred some public company G&A costs in the front end. We're seven quarters in. We expect to scale in the company and get leverage out of G&A. Long-term, we believe that this business will easily generate operating margins north of 20%. We know there's a real focus on Rule of 40. You can see the last two years we've proven that we can drive leverage in this business. Our Rule of 40 in 2021 was almost there. This is an investment year for us. We were on track to hit break-even by the end of 2022. With these investments, we're essentially pushing that timing out roughly by about 18 months. We get questions a lot around cash and working capital. We feel like we've got plenty of cash in the books to get to that break-even point, and not having to go out and, you know, get additional capital from the markets. We'll be well beyond break even and profitable, kinda by mid-2024. Time's up. Yeah. Just one thing real quick. I wanted to just clarify a couple of numbers just to make sure these are clear. RA had mentioned a couple of data points on enterprise accounts versus non-enterprise accounts. I just wanna make sure we have covered these off. Enterprise accounts for us do roughly 51 times more GMV per account than non-enterprise accounts. Just wanna clarify some of these metrics. On PSR, enterprise accounts are doing 25 times more PSR than non-enterprise accounts, and 19 times more subscription revenue. A lot of this you would imagine is based on size and scale, but you can understand based on those types of numbers, they represent just a massive opportunity for us and largely why we are investing so much in this area. Okay? We'll take a couple of questions here with Robert Alvarez, then we're gonna switch to Q&A that I'll kind of facilitate. We can just take questions from the room and then some that we've gotten online. We can take a couple in the room, and then I'm gonna set up stools behind you for the larger session. Cool. Hey, RA. Koji Ikeda from Bank of America. I wanted to ask you a question on the slide that showed the new bookings. Yeah. Kind of by year. You know, 2020 showed a pretty big SMB new bookings year. Yeah. 35%. Oops, sorry. I think, you know, from our perspective, totally get the upmarket motion here, you know, all the success there. Wanted to kind of understand, hey, you had a lot of SMBs come on in 2020. We did. Yeah. Right. How are you thinking about retention of those? You know, what are maybe some retention metrics you could share? Because I think one of the fears out there is, hey, it was a big year for SMBs, but heading into a recession, maybe there's, you know, retention or churn might increase. A churn might increase from those customers. How do we think about that? Yeah. You know, 89% of our revenue is tied to accounts greater than $2,000. That's enterprise accounts as well as kind of the higher end SMB. I think what we saw in 2020 was a mad rush for folks to get online, SMB and mid-market and enterprise. I think we've kind of gone through that retention curve. I think what we see in enterprise is our unit retention is in the mid-90s%, and it's consistently getting better. In terms of our higher end retail plans or non-enterprise accounts, the retention profiles for those merchants have been great. Where we get churn is really the standard and plus plans, the lower end non-enterprise plans. As our mix continues to shift to enterprise, as our mix continues to shift to even the pro plans, you know, we feel really good about that retention profile. Anybody else in the room? Scott. Someone has to ask the obvious financial question, at least. Your growth goal is 25%-30% through, you know, roughly- Yeah. through 2026 up there. Is that all organic or how should we think about M&A kind of being sprinkled in over the next couple of years? Yeah. Look, I mean, Feedonomics, I shared that metric with you. You know, we decided that, you know, Feedonomics is gonna grow roughly in line with our enterprise growth. As I think about kinda going forward, enterprise, you know, given the consistency of the growth rates, we feel like it's gonna continue to grow. You know, we're not gonna be too aggressive on that front. We still have, you know, a mix of non-enterprise businesses that, you know, we'll have to factor that in. You know, that's a number that as we take a step back. Look, I mean, at the end of the day, if you're talking to an enterprise merchant today, they wanna, they wanna move fast, they wanna launch fast. You heard it from our partners. They want a scalable platform that's customizable, and they all want it at a lower cost. We actually feel like we're purpose-built to really serve those needs in that way. Yeah, we see tremendous opportunity to continue to grow enterprise. You know, we're also making sure that, you know, we don't get too aggressive in putting a number in front of you that you're gonna say, "You know, RA, you gave me this number six months ago." You know, we're factoring that in. In terms of like a five-year CAGR, that's definitely the opportunity that we see. Maybe riffing off of Koji's question again. How has your view of the non-enterprise business changed maybe from when you were going public to now? Had it always been something that you maybe were going to revisit in a few years and reinvest to reaccelerate after the enterprise functionality was built? Has that changed, and now it's going to be that 80%-90% enterprise model? Really, you know, what are the main strengths and advantages of still being involved in that lower end of the market? Do you find merchants enter at that portion and then maybe graduate to enterprise, and so it's maybe a still good lead engine for enterprise merchants? Oh, for sure. I mean, Solo Stove is a great example. They started out on a retail plan, non-enterprise plan, and they've done tremendously well on the platform, and now they're one of our largest enterprise accounts. You know, we talked about at the beginning, we don't wanna be. We wanna be the disruptor. We don't wanna be disrupted. You know, SMB merchants that can grow on us that over time can become enterprise merchants, we're always going to want those. I mean, our view with SMBs is that if you're an SMB and you do have complex needs and you wanna build your e-commerce platform that's unique to your business, we're a fantastic fit for you. We're great for what you wanna do, and we're gonna continue to bring on those SMBs, and we believe that with how we've built the platform, they'll be able to scale on BigCommerce far faster than they could with anybody else. All right, let me switch to some of the questions that are coming in online. Brent, if you could join us up here. I think some of the questions are best for me to direct towards you and RA, at least. One of the questions that has come in. I think this is a good one. Brent, if you don't mind taking lead on this one. You're investing in multiple initiatives with multi-year paths to payback, while there's a lot of elevated focus right now on profitability given some of the macroeconomic issues that are going on. Can you talk us through your decision to make these investments at this time? Why are you so confident this is the right time to do this, even amidst all the elevated focus on profitability? Point number one is our strategy preexisted the whipsaw in the stock market from growth preference to profit preference. Our strategy and long-term vision isn't a function of that. We had the capital on our balance sheet. We saw all of our initiatives working. To us, we didn't see a reason not to continue on the strategic path that we were on 'cause it was working. You know, ultimately, if you're a long-term employee of the company, partner of the company, customer of the company or investor in the company, would you rather see us get to a 20% bottom line profit margin at $500 billion in revenue or a few billion in revenue? We wanna do it at a few billion in revenue. We're not gonna get to that if we suddenly yank international expansion, some combo of international expansion, omni-channel, Commerce as a Service, B2B headless, just because the market has whipsawed on its preferences. We're playing for the long term. We're playing to win big. I think most importantly, we're a company with a purpose, and that purpose is to drive the next generation of global digital transformation. We don't accomplish that purpose if we slam on the brakes to the things that the world needs our platform to do for it. We just have conviction, and the board has conviction. We asked the board the same thing. Our board said to us at a board meeting last week, they're like, "It sure is nice to show up at a meeting unlike all of our other public and private companies where you haven't been whipsawed in your strategy and priorities by the change in the market." We said, "Right back at ya. It sure is nice to have a board that supported us staying consistent with our strategy." They said, "Yeah, because we see it working and we see you executing it well." You know, that's really where we're coming from. We've got a long-term purpose. We're staying true to it. We think that it's gonna really pay off for both our customers, our investors, our employees, and the world of e-commerce in the long run. A follow-up question to that for you, RA. The question came in, I'm gonna paraphrase it here a little bit. Your intermediate-term targets imply about 30% of operating leverage between now and 2026, roughly. That's a tall order to do in a four-year time period. What do you think the shape of that margin improvement's gonna look like? Where is that gonna come from? How do you have confidence that you can get there? Yeah. Look, I think with the investments we're making, gross margin's now in the mid-70s, but I think in the near term, mid-term, that can get back to the high 70s, maybe even 80%. Sales and marketing, again, it's very efficient in terms of CAC, where the leads come from matter a lot. We're investing our sales team and sales resources on our enterprise plans, or higher-end retail plans. With R&D, look, we've just finished a journey with R&D. I mean, native multi-store was a three-year labor of love, climbing a mountain to deliver that. But this team that we have is exceptional, both in the U.S., in Ukraine, in Latin America. We can now have this team focused on other things to where we don't have to continue to drive higher and higher R&D costs. G&A, you know, we're gonna get a lot of leverage when we don't have to spend so much in D&O insurance and other things as a new public company. I see improved gross margins. I see efficiency, continued efficiency in cost to acquire, as we shift more and more to enterprise. I see leverage in R&D, now that we're fully featured enterprise platform. One other thing I would build on that as well, if you think specifically about the payback curve on international expansion, part of the reason why we talk specifically about the case study with the UK is because right now the P&L is kinda carrying the upfront investment of several different things that have kind of a, you know, 18- to 30-month payback cycle. So we kinda have to balance what we're doing from a cash return basis with how it hits the P&L to make sure that we get the timing of that right. Part of what we're seeing in 2022 is a lot of the money that we're putting in place now is really gonna drive revenue in next year and the year following, and we just need to make sure that we get through that and manage it well. Yeah. I mean, one thing that's also gonna help margins is launching some of our bigger sites. Ted Baker is a great example. As we sign up large merchants and they launch on BigCommerce, that's a lot of GMV that we'll be able to monetize, which will drive the margins even further up. As we kinda get to a point where, you know, we're supporting merchants doing $500 million, $700 million, $1 billion, that obviously is gonna help our gross margin profile. All right, next one, Brent. I'm gonna paraphrase this one, but this is a question we get a lot, so I think it'd be good for you to address this one. Without getting into any specifics of contracts and stuff with partners, but can you walk us through your thinking with respect to whether or not to launch a BigCommerce payments product? How different would the economics be if you did this? What keeps you from taking that step? Why is BigCommerce not doing that? Yeah. I welcome this question, which we get a lot. First of all, my own personal experience in internet payments goes back to the 1990s. I was at PayPal for eight years, head of strategy, head of Europe, head of product in various time periods. I know payments, I know the economics of payments, I know what it takes to build a payments product, and I've had this choice before whether or not to do payments myself at HomeAway, and we chose not to do it. Our reason for not doing it here is very, very simple. Doing payments on a proprietary basis is completely inconsistent with the notion of open SaaS and best of breed. Payments is complex. There's no one size fits all. There's no one version of a proprietary solution that you can take to market and optimally fit businesses in all categories, all sizes, all geographies, B to B and B to C. There's no one size fits all. If you're out in market trying to push your one proprietary version of payments, you make an enemy of all the specialists who are better than you at it, if not better than you on all dimensions, at least at serving large parts of the market. Prior to Shopify doing what it did and offering a proprietary payment solution, and it gets more than 60% of its revenue from it, none of the e-com platforms had done that 'cause they didn't think it was in their best interest of their merchants or of their partners or of their own ability to sell their core e-com platform. Shopify has shown a very successful model of building payments in, and it's been replicated by some other firms from the point-of-sale world like Square and Lightspeed. Again, if they're selling a suite and we're selling a best of breed stack, it's totally inconsistent for us to do that. I would note that one of our giant areas of competitive advantage, you know, behind the scenes, which platform has the best integration in the world out of the box with PayPal and Braintree's products, with Stripe's products, with Adyen's products? I could go on down the line. Barclays and Chase and all of these, Checkout.com, Mollie, all these extraordinarily good payment providers who view us as a strategic partner, and that one, and Shopify is a core competitor of theirs. I could make more money at very low margin, probably not much more net profit because we're capturing a high percentage of the net with the rev share model that we have. We're having our cake and eat it too. We're getting probably on balance, almost the same net profit, and we're getting competitive advantage, strategic advantage for our customers and our partners. That's the only version that's, you know, compatible with our best of breed strategy. All right, another follow-up question, and this may be one actually that I think maybe Brent for you and then also Sharon, if you wouldn't mind jumping in on this one. Obviously there's a lot of wonderful things that are happening with Omnichannel. Can you help translate that into what it means from, if you don't mind taking Robert, RA here. What does that mean from a business opportunity perspective? How does Omnichannel unlock the P&L in a way that delivers better ROI and financial returns to investors? Start at the beginning. There will be some merchants who sign up for BigCommerce from the beginning because they see our unique omni-channel capabilities as better than anyone else's. They say, "Hey, look, I wanna be able to sell through TikTok, Facebook, Snapchat, Google Search, Amazon, eBay seamlessly," and they sign up for us. Second, the merchants, whether they signed up for that reason or signed up for other reasons, as their sales grow, either on their own website or via marketplaces on the other websites, that means their GMV and their order counts go up, and that can either increase their plan if they're on an SMB plan, or it can increase the tiers that they have if they are on Enterprise. You know, third, we're able to oftentimes negotiate strategic partnership deals with partners and maybe, depending on their interests, in some cases, we might get a cut of ad spend or we might get a cut of GMV process from marketplace partners, all of which is very attractive to us. You know, fourth, you get the specific model of Feedonomics, which is one where they make money typically off of the catalog size and the number of points to which that catalog is pushed, meaning how many distribution points. You know, Feedonomics, unlike BigCommerce, is in a less competitive industry. I mean, we have a lot of competitors, and that drags down what we're able to charge given the quality of our product. They have fewer competitors, and they, you know, they can charge more for what they do. They also help directly grow top-line sales. Merchants love to be able to pay for that when it's good, positive return on ad spend. When we can add Feedonomics capabilities on top of a BigCommerce subscription, there's a big increase in revenue for us on that merchant. What have I missed, Sharon? I think Feedonomics being able to help merchants on any e-commerce platform to be able to do that's a TAM that has not existed before for BigCommerce. You have a merchant on Magento, on Salesforce who needs this connectivity, but their old either proprietary or custom stack can't launch the next channel because the channels aren't investing in that technology. That's volume they never would have had if you can't have an integration on the stack that you're already on. The volume that comes from that is monetized by both MRR with adjustments to the plan as well as PSR for any of the rev share on merchants that are not BigCommerce merchants is a really significant opportunity for us with Feedonomics. Great, thanks. Another follow-up question maybe for Brian, if you wouldn't mind coming up with this one. I think for Brent and for Brian. One question that has come through, and we get this question a lot also, is BigCommerce is small compared to competition. We're in a highly competitive space, especially in enterprise. What gives us a sustainable, defensible, competitive advantage in a place where we are up against competitors with larger balance sheets? What's different from our market position technically? What allows us to have confidence that we can continue to compete and grow share as a smaller competitor relative to the legacy folks that we're competing with? All right, I'll start with 2 points, pass it to Brian. Let's first talk about share. I've been monitoring share of e-commerce platforms, in particular mid-market and enterprise on Internet Retailer/Digital Commerce 360 for the last 10 years, built with the last 10 years. Today, you know, depending on how you look at it, BigCommerce's share in various mid-market and large enterprise segments is somewhere between 1% and 2%, maybe 3%. Okay. What are the competitive benchmarks? The other platforms who have historically risen to top-rated status, like what we just achieved for the first time last month, have been in the 8%-20% share. Magento was the peak at roughly 20% share of both mid-market and large enterprise at its height back in 2015. Other historic leaders like Oracle ATG, IBM WebSphere, and Demandware got to the 8%-12% share range. Like I said, we're humbly down in the 1%-2% or 3% share range, but our aspiration is 10%-20%. Can we get there? Well, you can't get there if you're not widely recognized as the best in your industry, and we weren't before last month. Now we are starting to be recognized as the best, and our aspiration is to get to those types of share counts. Okay? So that's the opportunity. Second point on the defensibility of what we're doing against these other competitors, it really comes down to one very simple thing. All of our big competitors that I have named, Adobe, Salesforce, Shopify, SAP, Oracle, they're software conglomerates. They're trying to sell a suite. In all cases, at most, their e-com platform represents 30% of their revenue. In many cases, as a company, it represents under, like, 2% or 3% of the company revenue. Their core platforms are a total afterthought. They make their money in other places. They therefore, they are not investing in the core platforms and innovation there at anywhere near the same pace that we are. Many of you cover Shopify. How much of the conversation at Shopify is about their platform functionality? It's not. All they talk about, all you talk about is point-of-sale adoption, fulfillment adoption, buy now, pay later adoption, payments adoption. You know, you're not talking about their core platform functionality because they haven't fundamentally been investing in it the same way we are. Why do we have such a better rated enterprise platform than they do when they had a five-year head start and they're much larger? Because this is all we do. Will they ever get with our program? The answer is no. They're not trying to sell a best of breed open platform. They're trying to sell a suite and all those other product categories they get into, ERP, CRM, payments, point of sale, fulfillment. Those are all hard. Those are very competitive industries, and they're trying to, in some cases, succeed in those when they're not even a specialist, when that's not even their background. Whereas we're sticking to our knitting, we're sticking to what we do best. It worked for Magento in the on-premise era. We think it can work for us in the SaaS era. Yeah, my last point on this is I'm surprised when we started doing this seven years ago, we said we're gonna be the first ever SaaS platform to be open in enterprise. You know, am I surprised that seven years later, nobody else has adopted our strategy and say, "Oh, yeah, we're trying to do the same thing as BigCommerce"? I am surprised. Must mean it's hard. I think it's hard, right? Go try to build multi-store on a multi-tenant SaaS platform not originally built that way. I don't know how we pulled it off, let alone how somebody else does it. Guys, what do you think, Brian? Yeah, you've captured it well. I think honestly, the big thing for us is we aligned our platform strategy and our company strategy many years ago. You hear a lot about microservices nowadays. You hear a lot about the how of how people are building nowadays, and that wasn't a bolt-on for us. We have been kinda, you know, as a technologist, I'll say dramatically, you know, rethinking the way we build our underlying platform and re-implementing piece by piece by piece over the year, which makes us more agile as we go. As folks try to enter the market, as a late entrant, they tend to bolt these capabilities on, and they tend to have drag because they're either maintaining two platforms or two implementations. They're not allowing old merchants to do the same thing that new merchants are doing. I would just say we actually made a really strong realization, you know, back in 2015, 2016, that we had to rethink how we built BigCommerce from a platform perspective in order to actually execute on that strategy over years. I think we've got great leverage when you look at our team size as an example on the R&D side. You might say, "Well, why are we continuously at the front of the line when it comes to new functionality that merchants are asking for?" It's because we don't have all the debt, because we rethought those components within the platform, so it'd be easier for us to implement new things in the future. All right, I think we have time for one last question. I think I'll put this one towards RA, if you don't mind joining us back up here. Thanks, Brian. I'm gonna paraphrase this one too, but another question that we get all the time is, clearly we had tailwind in the business when the pandemic hit that led to more transactions online. Mm-hmm. What are we seeing in terms of the cohort behavior and the folks that we acquired during the pandemic versus after, to the investor who might say, "Well, they're a quote unquote COVID beneficiary, and we don't expect this benefit to continue," how would you respond to that type of question or skepticism? Yeah. Again, when you apply the enterprise lens, you know, I think what we're seeing in our business is we're actually bringing on larger and larger merchants with larger and larger GMV. Look, I think 2020 definitely had a spike in GMV for merchants of all sizes. I think we're kinda coming towards the tail end of that. I don't know. You know, based on what we're seeing, we're seeing pretty strong same store sales for our larger accounts. Then when you factor in, you know, B2B, these are much larger accounts for BigCommerce. Yeah, I mean, I think the SMB exposure that we have now is probably less than some of the other platforms that you all are covering, so we're feeling pretty good about it. Brian, anything you'd wanna add and wrap us up? Sincere thanks to those who have joined us virtually and here in person. Our first Analyst Day as a public company. We're eager for feedback on what we've done well and can do better next time we do one of these. For those of you here in person, we really look forward to sharing a little Texas hospitality with you later today. I'll just kinda conclude where I started. We're hoping that if there's a takeaway from this Analyst Day, it is departing here with a new perspective on BigCommerce as our transformation into being a full-featured enterprise platform with an incredible set of metrics, many of which were newly disclosed today that are attractive to investors. Most importantly, an increasing recognition in the world that we're not just a capable and good enterprise platform, but remarkably, this Open SaaS strategy is now, for so many of the world's businesses, actually the best. The best in terms of value functionality, built-in performance, security, scalability. We're really excited about this as a launching point for the next era in our growth, and then what we can do for the world's best businesses, small, medium, and large, to help them thrive online. Thanks for following along, and look forward to all the future conversations with each of you. Cheers.