BIGC - BigCommerce Holdings Inc. (BIGC) Q1 2024 Earnings Call Transcript

2024-05-09 14:12:08 ET

BigCommerce Holdings, Inc. (BIGC)

Q1 2024 Earnings Conference Call

May 9, 2024 8:00 AM ET

Company Participants

Tyler Duncan - Senior Director, Finance and Investor Relations

Brent Bellm - Chairman, Chief Executive Officer

Daniel Lentz - Chief Financial Officer

Conference Call Participants

Ken Wong - Oppenheimer

Koji Ikeda - Bank of America

DJ Hynes - Canaccord Genuity

Raimo Lenschow - Barclays

Parker Lane - Stifel

Maddie Schrage - KeyBanc

Josh Baer - Morgan Stanley

Santa Clara - JP Morgan

Rob Morelli - Needham & Company

Connor Passarella - Truist

Jeremy Sahler - Jefferies

Kevin Kumar - Goldman Sachs

Presentation

Operator

Ladies and gentlemen, thank you for standing by. And welcome to the BigCommerce First Quarter 2024 Earnings Call.

At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded.

I would now like to turn the conference over to your first speaker today, Tyler Duncan, Senior Director of Finance and Investor Relations. You may begin.

Tyler Duncan

Good morning, and welcome to BigCommerce's first quarter 2024 earnings call. We will be discussing the results announced in our press release issued today before market open. With me are BigCommerce's Chief Executive Officer and Chairman, Brent Bellm; and Chief Financial Officer, Daniel Lentz. Today's call will contain certain forward-looking statements, which are made pursuant to the Safe Harbor’s provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include statements concerning financial and business trends, our expected future business and financial performance and financial conditions and our guidance for the second quarter of 2024 and the full-year 2024. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, committed, will or similar words. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements.

Forward-looking statements, by their nature, address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks and other disclosures contained in our filings with the Securities and Exchange Commission. During the call, we will also discuss certain non-GAAP financial measures, which are not prepared in accordance with Generally Accepted Accounting Principles.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as how we define these metrics and other metrics is included in our earnings press release, which has been furnished to the SEC and is also available on our website at investors.bigcommerce.com.

With that, let me turn the call over to Brent.

Brent Bellm

Thanks Tyler, and thanks everyone for joining us. Over the last two years, our business has dramatically improved its ability to deliver profitability and positive operating cash flow. As of 2024, our focus shifts to efficient revenue growth, and that imperative is front and center across every team in the company. We have yet to achieve the full growth potential of this business, but we pursue it with urgency and confidence.

I will focus my remarks today on improvements underway in how we go to market, key success metrics we’re monitoring and improving, and an exciting leadership addition. I will also touch on product innovation that unlocks growth potential. Let me start by briefly summarizing key financial results on the quarter.

Q1 results reflected a good start to the year relative to our top and bottom line plans. Revenue finished just above $80 million, up 12% year-over-year. Adjusted EBITDA came in just over $4 million, or approximately 5% of revenue. We also had a solid start to the year from a cash flow perspective, improving free cash flow by more than 25 points as a percentage of revenue year-over-year....

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