Bigmerce (BIGC)2023-08-04 00:07Financial Data and Key Metrics - Total revenue in Q2 was 56 million, while Partner and Services Revenue (PSR) increased 14% YoY to 331 million, up 12% YoY, with enterprise account ARR at 14 million, compared to negative 3.4 million, a negative 4.5% operating margin, compared to a 100 million, with Day 120 cohort retention rates 80%-85% higher than last year [9] - Mid-market and enterprise growth driven by improved cohort retention and pricing, with sales and marketing resources focused on these segments [6][9] - Non-enterprise ARR grew 6% YoY to $95 million, exceeding expectations [30] Market Data and Key Metrics - Americas revenue grew 9%, EMEA revenue increased 27%, and APAC revenue was up 3% YoY [16] - Expansion into 12 new countries over the past two years, with a focus on EMEA [25] - Enterprise accounts represent 71% of total ARR, with 5,929 accounts, up 9% YoY [17] Strategy and Industry Competition - Five primary growth levers: small business, mid-market, enterprise, B2B, and international expansion [9][23][24][25][37] - Focus on improving profitability and cash flow, with a shift towards mid-market and enterprise segments [22][113] - Feedonomics' AI-driven data feed optimization capabilities drive omnichannel growth, with 75% of customers reporting up to 50% improvements in conversion and ROI [10] Management Commentary on Operating Environment and Future Outlook - Management remains confident in achieving 20% long-term growth, despite elongated sales cycles in the enterprise segment [48] - Adjusted EBITDA breakeven expected in Q4 2023, with positive free cash flow achieved in Q2 [21][29] - Macroeconomic challenges, particularly in the enterprise segment, are impacting sales cycles and spending adjustments [32][115] Other Important Information - Daniel Lentz appointed as new CFO, replacing Robert Alvarez [11] - Steven Chung named President, focusing on mid-market and enterprise growth [28] - Partnership with Google to add AI-powered features to the platform later in 2023 [110] Q&A Session Summary Question: Pricing as a growth lever - Pricing is managed carefully, with recent increases showing minimal impact on retention [5][103] Question: B2B investments - Investments in B2B focus on product development and sales, with no significant difference in LTV to CAC compared to B2C [41][68] Question: Mid-market strength - Mid-market growth is strong across categories, with investments focused on EMEA [43][70] Question: International traction - U.K. remains the strongest market in EMEA, with Italy, Benelux, and Nordics also performing well [45][147] Question: Enterprise ARR growth - Enterprise ARR growth expected to finish the year in the low teens, with elongated sales cycles impacting performance [63][115] Question: Non-enterprise ARR growth - Non-enterprise ARR growth driven by pricing adjustments and improved retention, exceeding expectations [134][153] Question: EBITDA profitability - Adjusted EBITDA breakeven achieved in June, with full-quarter profitability expected in Q4 [158][173] Question: Sales efficiency - Sales efficiency in the enterprise segment is improving, with room for further optimization [164]