Ladies and gentlemen, thank you for standing by, and welcome to BigCommerce First Quarter 2022 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, Daniel Lentz, Head of Investor Relations. You may begin.

Good afternoon, and welcome to BigCommerce's first quarter 2022 earnings call. We will be discussing the results announced in our press release issued after today's market close. With me are BigCommerce's President, CEO and Chairman, Brent Bellm; and CFO, Robert Alvarez. Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning financial and business trends, our expected future business and financial performance and financial condition and our guidance for the second quarter of 2022 and the full year 2022. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, will or similar words. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. Forward-looking statements, by their nature, address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks and other disclosures contained in our filings with the Securities and Exchange Commission. During the call, we will also discuss certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. 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.

Thanks, Daniel, and thanks, everyone, for joining us. On today's call, Robert and I will review our first quarter results, and I'm excited to share with everyone that BigCommerce reported an excellent first quarter. Our team continues to deliver on our vision to be the leading e-commerce Open SaaS provider, empowering B2C and B2B merchants around the globe. Today, I will share an update on the status of our business, recap initiatives we announced in the quarter and give a brief review of recent product launches and partnership agreements. We will conclude today's call by updating you on our second quarter and 2022 full year guidance, along with our key priorities for 2022. First, let's take a moment to review our Q1 results. Our growth in Q1 was strong despite some post-pandemic normalization of e-commerce and consumer spending seen across our industry. Total revenue grew to $66.1 million, up 42% year-over-year, which was our ninth consecutive quarter of posting 30% or higher revenue growth. We're pleased with our progress, and we are particularly pleased with the increasing third-party validation from customers, partners and industry analysts who are rating us the world's best platform for businesses that value best-of-breed functionality and the flexibility to address complex business requirements. We concluded Q1 with ARR, or annual revenue run rate, at $280.4 million, up 43% from last year. Enterprise account ARR was $189 million, up 68% year-over-year. ARR from accounts greater than $2,000 in annual contract value, or ACV, totaled $249.5 million, up 52% year-over-year. These results reflect our continued momentum moving up market with ever larger and more complex enterprises, choosing BigCommerce to modernize their e-commerce offerings and accelerate their online growth initiatives. Our non-GAAP operating loss was $12.4 million, which was consistent with the guidance range we initially provided. These operating…

Thanks, Brent, and thank you, everyone, for joining us today. I'll review our first quarter financial results and provide an update to our second quarter and full year 2022 guidance. Please note that all results are on a consolidated basis, which includes activity from Feedonomics. I'd like to start by saying our presence in the enterprise market is stronger today than ever before. We reported another solid quarter, and continued progress moving further up market into the large enterprise segment, which is really best shown through some of our recent launches. Ted Baker is a shiny example of why we are winning more and more enterprise deals and highlights our enterprise capabilities, including native multi-store, multi-geo, multi-language, multi-currency, all with a customized headless front end user experience. Enterprise merchants are now making e-commerce platform decisions based on a multi-year horizon and see BigCommerce is a platform that can scale as fast as they want to grow. We're making similar inroads in our international segments. Our results this quarter demonstrate the resilience of our diverse, growing and established set of B2C and B2B merchants across a wide range of industries in the U.S. and the growing list of countries we can now serve. In Q1, total revenue was $66.1 million, up 42% year-over-year. Subscription revenue grew 50% year-over-year driven by continued net growth in merchants and our continued mix shift into enterprise plans. Partner and services revenue, or PSR, was up 23% year-over-year, while our PSR growth rate slowed compared to last quarter. This was consistent with the expectations we discussed on our last call relative to overall e-commerce transaction volumes in the base period effect of U.S. federal government stimulus payments in March 2021. We have now posted nine consecutive quarters of 30% plus total revenue growth and 14 consecutive…

[Operator Instructions] Our first question comes from the line of Clarke Jeffries with Piper Sandler. Your line is open.

R.A., you mentioned -- considered an outlook and normalization of consumer behavior, a normalization of GMV growth. I'd just be curious, how much of a change have you seen in those trends year-to-date, maybe even thinking about when we last spoke two months ago? Has there been a change in the trend in the last few months that might be changing the outlook here? Or are they relatively consistent, really just those kind of stimulus-based periods that you're considering?

Yes, I'd say very consistent, really no surprises on that front. When we thought about Q1 and Q2, the first half of the year, we factored that into our forecast and guidance. We are very pleased with the new bookings in terms of new -- gross new bookings for the quarter. But in terms of like upgrades and the pricing impact of upgrades, we factored in kind of GMV levels that we were expecting as we ended last year, so no surprises on that front.

All right. And then just a clarification, a slight change to the expense guidance here. It looks like Q2 could be the sort of lower point of profitability for the year. Just really, could you break down maybe one of the biggest cost drivers right now? Should we expect this to be primarily sales and marketing that's maybe pushing profitability down a little bit lower here in Q2 and the other line items are pretty consistent in their growth through the year?

Yes. This would be consistent with how we kind of viewed Q2 going into the year, the investments that we were planning to make, a lot of it is headcount, very much tied to sales and marketing across those investment areas. Some of it is product engineering as we invest in building out capabilities around Feedonomics and omnichannel and B2B. But we always expected Q2 would be kind of the -- kind of biggest expense period for the year. But we feel confident recommitting and reiterating kind of the full year guide to our operating losses for the year.

Thank you. Our next question comes from the line of Terry Tillman with Truist. Your line is open.

I guess, first, congrats on the enterprise ARR. And also, I guess, congrats on crossing the bridge enterprise capabilities-wise. I wanted to get both of those in.

Thank you, Terry. Appreciate it.

Sure. My pleasure. First question is, Brent, for you, on the multi-store. I mean I know its early days, but that was a lot of heavy-lifting in terms of the innovation cycle there. So you've delivered that now. So congrats on that. How quickly do you think that could impact enterprise ARR? And what are you hearing so far? What are the early signals you're seeing from the delivery of multi-store into the market? And then I had a follow-up for R.A.

Well, it's been extremely well received so far in the market. Our agency partners, and really, the market that wants enterprise capabilities from SaaS has been eagerly anticipating this. It's set in beta for quite a few months and was already a mature product by the time we offered it up in general availability. Near term, we'll see the best impact on new sales, and in particular, new enterprise sales looking for and requiring Multi-Storefront functionality. We still have an additional product release to turn this into a self-serve product that our SMB plan and existing merchants can also just click a button and add stores. So that engineering is underway. And once we have that, we'll see a compounding effect of existing stores, clicking a button to upgrade. For now, existing stores have to be on enterprise and have to call us up and request a contract modification. But soon, we'll turn this into self-serve functionality, which will be very, very powerful.

Got it. Got it. And I guess, R.A., just to follow up. Last quarter, you all talked about Commerce-as-a-Service, the opportunity there. Kind of the follow-up -- two-part follow-up, I should say, is when will you release the billings capability? And how quickly could the NRR benefit from the efforts on the Commerce-as-a-Service side?

Yes. We're making great progress on that front. I think that kind of the early releases, we'll definitely see kind of in the mid-part of this year. In terms of NRR, we'll definitely see the impact next year. We do predict a little bit of a lift based on the timing of when we release that. I think the biggest impact is going to be next year, though. But I think I'll give you an update as that progresses. Hopefully, I'll have a good update for you by the end of Q2.

Thank you. Our next question comes from the line of Scott Berg with Needham. Your line is open.

Congrats on the good quarter. I guess let's unpack the sales a little bit in the quarter. And you both talked about kind of a normalization of the environment out there, and I think we certainly all see that on the GMV or PSR side of the impact of your business there. But how should we think about just general bookings? And thinking about that through your lens of ARR and what your definition of it is, are you seeing the pace of bookings for these replacement projects to be any different today than maybe over the last couple of quarters? Or should we view the slowing ARR growth purely just volume-driven versus kind of the infrastructure replacement side of the business?

Yes, Scott. I mean like we mentioned, Q1 was our highest gross bookings quarter, majority enterprise. So again, we saw team performed really well, closing large enterprise accounts across both B2C and B2B. If you look at the components of net new, gross new was great in Q1. Retention for enterprise and accounts greater than $2,000 remains strong. So we were pleased with that. It really comes down to the upgrades and the impact of upgrades that we factored into the forecast into the guide. But in terms of our sales momentum, our go-to-market efforts in the U.S., our sales teams that we're building in the countries that we're entering into, really couldn't be more pleased with their performance and just the interest and awareness that they're building in those markets. In the new countries that we enter into, we're going in with an enterprise focus. And so, we're lining up the best agency partners in the enterprise. We're building awareness in the enterprise. And the folks that we're bringing on to BigCommerce are really kind of enterprise salespeople that are coming out of the gates really strong, so very pleased on that front.

Got it. Helpful. And then for my follow-up question, you all have made two small acquisitions focused on the B2B side of your business today. Now we all know that's a small part of the business, probably single digits, maybe 10% of revenues, plus or minus. But how should we think about the growth of that product kind of going forward in your opportunities there with these capabilities today, knowing that end market is growing faster than the traditional kind of B2C environment that's out there?

Yes, we'll talk more about this in our Analyst Day, but the future couldn't be brighter for us as a SaaS B2B platform. The estimates are that B2B generates about 1/3 but growing over time to north of 40% of total platform spend relative to B2C, and the growth rates are double that of B2C. We are already positioned as one of the world leaders in B2B even before these acquisitions. For example, the Forrester B2B report for enterprise commerce that also went out last week listed us as a strong performer. Only three or so platforms in the world that they rate have better capabilities, and those platforms are far more expensive, far more complex and hard to implement. What's so powerful now is that, in essence, we would compete for B2B historically, a portion of the functionality was native to BigCommerce and then a portion would be gained by clients via apps and extensions. And the two natively meaning -- well, built purposefully for BigCommerce and only BigCommerce that were the best in our ecosystem, B2B Ninja for quoting and BundleB2B for a whole host of other functionality. We now own those, and we'll be able to further integrate them into the user experience, take advantage of sort of inside-the-house functionality rather than external APIs, we'll improve some of the architecting. And we'll also open them up to our agency and tech partner ecosystem just like BigCommerce has been opened up to all of those. In sum, even before these two acquisitions, Forrester, Paradigm and others already rated us one of the top three to five B2B platforms in the world, now with this native functionality, I really think we are poised to become the most successful SaaS B2B platform at scale in the years ahead. We won't necessarily handle the most extreme and complex use cases. There are other platforms for that. But as a broad-based solution that can serve small, medium and the low end of large enterprise B2B, we are in a fabulous position now that we own both BundleB2B and B2B Ninja.

Thank you. Next question comes from the line of DJ Hynes with Canaccord. Your line is open.

I want to follow up actually on both of the topics that Terry hit on. We'll start with multi-store. So I guess based on the conversations you're having in the field, do you think Multi-Store is really kind of a breaking-of-the-dam event at the high end? Or do you get the sense that there may be some holdback still among enterprise buyers until you have that multi-location inventory piece of it as well?

Well, the great news is multi-location inventory was released in closed beta last week. So that product is now live and available to a limited subset of customers. And more news to come on that, but that's not a limiting factor in certain use cases, and we'll unblock that soon. In terms of Multi-Storefront, we have long known that, that of all of the enterprise functionality component was the biggest differentiator between the high end of large enterprise platforms and everybody else. I felt that from the day I came in. It's so complex to re-architect everything in a multi-tenant SaaS platform with so many customers without disrupting them and not doing what Magento did, which has come out with a completely new version and tell the old customers you've got to migrate or replatform. We did it while the trains were all moving on the tracks. And we're so proud that we pulled that off. I think it is the defining breakpoint in -- and frankly, it's also what Magento and Salesforce have been saying against us in recent years. Well, what about Multi-Storefront? Well, we have it now. We've got a great version of it. And I think we're extremely well positioned, offer all of this within such a great performance and value package that, frankly, Adobe and Salesforce I don't think you compete with.

Yes, great. That's super helpful color. And then, the follow-up, maybe more geared towards, you, R.A., is just, is there any way to frame kind of how the unit economics compare on revenue that comes through Commerce-as-a-Service versus your direct business, right? And I get Commerce-as-a-Service is lower CAC, and those partners kind of do the selling for you. But is there more investment that needs to happen upfront to get those partners enabled? Just help me understand kind of how that all works.

Yes. I mean you nailed it. I mean the cost to acquire is going to be lower. There's going to be some upfront costs in those. Think of those as oftentimes larger deals with kind of a minimum commit that our partners will make with us, a multi-year commitment. But yes, the CAC will be lower, and we believe that the lifetime value will be longer and bigger across most of those use cases.

Yes. Okay. It was great to hear about the three deals that I think you called out in the prepared remarks. So good stuff there.

Thank you. This question comes from the line of Josh Beck with KeyBanc. Your line is open.

I wanted to go back to, I think, Clarke's question really about the market. I think we've heard from some of your fintech peers, let's say, that the e-commerce market softened a little bit, and they felt like some of the third-party forecasts were a little bit stale. They have called out and these are obviously more same-store sales types of growth metrics, but headwinds in the U.K. and some of the China supply chain shortages that we're seeing. So just to be clear, did your market forecast not really change much or maybe you had already contemplated some of those? You just had a little bit more upbeat on the market overall. So just curious, if there's anything worth unpacking there.

J.B., yes, we contemplated it for Q1. We're obviously paying close attention to it, monitoring it for the rest of the year. So in terms of like the back half forecast, we're trying to factor that in as well. So yes, just pleased that we were pretty much spot on with our assumptions for Q1. And then for the remaining part of the year, especially the back half of the year, we're using our best guess and kind of discounting it a bit just to make sure we don't get ahead of our skis on that front. But yes, we're definitely seeing some of those trends. But even with that, we were pleased with our PSR numbers for Q1 and feel pretty confident that we can deliver the rest of the year.

Okay. Good to hear. And then on the Feedonomics front, obviously, that's been a very successful acquisition and integration. Has that business continued to outperform your expectations? And while I don't really expect anything quantitative, just qualitatively, how are you thinking about that business for the balance of the year?

Man, I'd say it's outperforming on many fronts, not just the product front, but the go-to-market front, the people front, the culture front. Like it is -- we're very, very excited about Feedonomics, super grateful in terms of how much they've leaned in with us, some of the opportunities that we're uncovering now we didn't even know about when we bought them in terms of how to really offer really robust omnichannel capabilities to our partners, to the ecosystem. Yes. So, we're blown away by what we can do with Feedonomics, and that's an area where look the futures omnichannel. So, we want to be the very best in omnichannel selling for our merchants. We believe Feedonomics is the technology and team that will deliver that. And yes, we're super excited about some of the opportunities that we're working on with them.

Thank you. Next question comes from the line of Koji Ikeda with Bank of America. Your line is open.

Maybe first one for R.A. Just wanted to dig into the full year guide a little bit. So the range, previously, it was about a $12 million spread when you guided -- first guided on the fourth quarter call. Now about a $9 million spread and up a bit from a midpoint perspective versus the prior guide. So I guess how should we be thinking about that guidance methodology, the narrowing of the range there? And any sort of contributions from Feedonomics and BundleB2B?

Yes. So, we obviously had a nice beat in Q1. We did raise a bit the guide for the year. B2B is one where -- we made that acquisition really to really go deep in the product road map and really own it from a native perspective. Revenue contributions there will, I think, are reflected in what we would expect to close in gross new bookings for B2B. As we kind of build that into our platform and product and really expand some of our go-to-market, there's some potential upside for B2B. In omnichannel, we factor that into our forecast. So some of the investments that we're making there, we're kind of timing those investments and planned release dates of those investments to where you likely won't see an uptick in revenue until the back half of the year. So, I would look at our kind of revenue guide is kind of a nice beat for Q1, took it up a bit and holding kind of our op loss consistent, but also adding about roughly $1 million in the midpoint to invest in BundleB2B because we feel like once we can make those investments, we're going to be able to really go to market the way we want with our B2B offering.

Got it. Got it. And then just one follow-up for me. Still, I'm pretty new to this name. So when I was ramping up, I understood there was some maybe some pricing benefits to the model during the pandemic, but just kind of thinking about moderating GMV volumes post-pandemic. Is there any sort of pricing to your downgrades that could happen? Or maybe walk us through does that happen. How does that work? Or is there anything to call out there?

Yes. On the enterprise plans, it is on a trailing 12-month view. So you could get potentially a lower amount. But in terms -- we don't see that very often. It's just the amount of upgrades that we were seeing during the pandemic. It's a bit more normalized now versus the last couple of years. So in retail plans, it's all GMV-based, but enterprise plans are really order-based on a trailing 12-month basis. So not too much on the downgrade side, but definitely less order-based upgrades than we saw in the height of the pandemic.

Thank you. Our next question comes from the line of Ygal Arounian with Wedbush. Your line is open.

Just first follow up on that last comment, R.A. So less order-based upgrades just based on GMV and normalization. Can you talk a little bit more about what you're seeing from your customers in terms of how they view investments and building their e-commerce platforms in light of e-commerce ecosystem that's slowed down or normalized to a certain extent? And maybe talk a little bit about the pipeline, so outside of the GMV swings.

Sure. Yes. I mean keep in mind, who we compete with and who we see in RFPs, there's a lot of value with e-commerce. Our TCO is lower. We're more flexible. They can launch with us faster. But -- so in a situation that a lot of merchants are in now when they're thinking about a multi-year bet around e-commerce, a lot of these enterprise merchants have seen their e-commerce business really grow really nicely over the last two to three years. They want to move faster. They want to grow exponentially further and across a lot of different geographies. And so when they look at BigCommerce, they really see a much more cost-effective solution than some of those legacy systems that they're on or some of the big enterprise companies that maybe we're competing against. So I think our pricing is very competitive. We offer really -- a really strong kind of TCO offer for merchants. But again, I think the reason why merchants are now choosing BigCommerce, it's not just because we're cheaper, but it's because they can move a lot faster. They can launch a lot faster. They really love the flexibility of the platform, being able to customize it. So our value prop today, especially with native Multi-Store being rolled out, I think, is stronger than ever. And I think our pricing is very competitive in the segment of the market that we're competing in and focused on.

Okay. Great. And also a follow-up on Commerce-as-a-Service. Brent mentioned -- I forgot the exact comment, but it was the three of the largest recurring revenue deals from that. Can you talk about why that is and if that's something we should be expecting in general that it's going to drive higher recurring revenue deals or bigger deals in general, just to understand some of the components of that?

Yes. I'll take that. It's really going to be the full range of deal types. As an example, the Commerce-as-a-Service major announcements that we've had to date, including WineDirect, [Newarc Status] and Clover, all come with pretty significant initial minimums that immediately start contributing to ARR and revenue. Whereas some of the other ones that we just announced are very much deals where we only get revenue as new merchants are added. And so, they'll start from a base of zero and hopefully grow to strong levels every time those partnerships are successful. So it will be a whole range. And really, each particular deal and relationship is tailored to the specific needs of the partner. More often than not, if they partner with a large established base of business that they're trying to migrate over, you would expect a significant deal with an upfront commitment. Whereas if a smaller partner and trying to build a new program from the bottom up, there may be very little or no initial commitment, and everything goes up linearly with merchants that are added.

Thank you. Our next question comes from the line of Parker Lane with Stifel. Your line is open.

Max Osnowitz on for Parker Lane. R.A., I know we talked last quarter about the international opportunity and kind of the long-term target being 50-50. He has announced a few exciting expansions going forward this year. I was just wondering what kind of environment you're seeing over there with everything going on and if it's changed your plans at all or if you're just moving forward for the long-term opportunity rather than what's happening potentially in the short term.

Yes. The pipeline that we're seeing remains strong across those markets. I think the feedback that we're getting from our sales teams as well as our partners in the markets that we're in, I'd say, the enterprise kind of demand for e-commerce is fairly robust. Long term, that 50-50 is kind of where we would expect our gross new bookings split to be. In terms of revenue, we're still 81%, 82% revenue in Americas. But in terms of that 50-50 gross new, that's still something that we see kind of in our sites. And so as we expand our go-to-market teams in Latin America, our European teams continue to do extremely well in terms of their ability to close. Quota attainment remains strong. And so, we're as confident as ever that we can continue to drive really great enterprise growth in EMEA, in LATAM, and then ultimately, in APAC down the road.

Got it. And then switching gears, thinking about social commerce is still kind of an emerging category for a lot of businesses. And I know you guys announced a plan for TikTok advertising a little while ago. Is there anything else going on with BigCommerce in their role in social commerce right now? Or is more focus being on Commerce-as-a-Service?

Sure. A couple -- social commerce is super important to us and was one of the contributing factors to our acquisition of Feedonomics last year. I would say the comment about growing importance of social is in the true of the United States. But if you look at Asia, it's enormously big in certain countries already and has always been a giant component of advertising. So advertising on Facebook and Instagram and TikTok is really highly valued right now in some of the other networks. The point about Feedonomics is that it's the leading feed management tool used by the largest retailers online in the United States. And for social commerce specifically, it enables the business to get their product catalog from out of their source of truth, their e-com platform, ERP or TIM. And not just syndicated into efficiently the various social networks they want to use, but optimized for each one with exactly the right formatting, character count, pixel dimensions for images, category, schemas that each one likes to use. And that's just as relevant for advertising on the social network as it is for actual selling. So whether it's Snap or whether it's TikTok or Facebook and Instagram or any other major social networks around the world, with Feedonomics, we've got the best feed management capabilities available. And we're also very actively across both e-commerce and Feedonomics, enhancing the partnerships, some of which we've announced in the past, with those organizations to help them both get ever better inventory out of the BigCommerce merchant base but as well merchants who are using other platforms but taking advantage of Feedonomics. So we're extremely bullish about the potential of social networks for e-commerce. And whether that's selling directly on those platforms or simply advertising effectively, that will all sort of evolve over time. But advertising at a minimum should be an anchor for so many of the online business to consumer brands and retailers.

Thank you. Our next question comes from the line of Samad Samana with Jefferies. Your line is open.

Hope all is well down in Austin, maybe just a first question on the Commerce-as-a-Service side. I just want to make sure I understand. So when someone is using BigCommerce in that situation, is it the end merchant that's making the platform selection? Or is it a partner that's going to be making the selection? And I guess does it change how the actual customer acquisition motion goes beyond that they're actually acquiring them? But did it change who's -- who the decision maker for what e-com platform is being used is?

It always starts with the partner. So the partner is contracting with BigCommerce to use Commerce-as-a-Service and, in essence, market and sell a bundled offering between whatever is their core solution and our commerce platform when we power the commerce platform.

Great. It's very helpful. Sorry.

But let me just complete that. In some cases, the partner is saying, I only work with BigCommerce. You have no choice. And if they're migrating merchants over to BigCommerce, then they might do a big upfront arrangement with us. In other cases, they are launching a new program, and it's really up to each individual merchant to decide whether they're going to use it or not. But typically, the partner will only have one such Commerce-as-a-Service relationship like this because our competitors, for the most part, don't do this. And it will grow over time if the merchant doesn't have a pre-installed base based on individual businesses deciding, hey, I like that combined offering. I want to adopt it.

Thank you. [Operator Instructions] Our next question comes from the line of Raimo Lenschow with Barclays. Your line is open.

Just the one question for me would be like. Can you talk a little bit about what you're seeing on the international side? You obviously have a decent R&D exposure in Ukraine and obviously with the decent amount of European revenue? So what are you seeing there from a macro perspective? Thank you and congrats from me as well.

Raimo, I'm going to start on the Ukraine part of that. So I'm -- after commenting last quarter, I'm delighted to share that all 107 of our employees in Ukraine are accounted for, including the subset serving in the military. They're all safe. And our estimate on blended productivity relative to what it would be across the entire employee base absent the war is about 85%. So for the most part, folks are working, and many of them at 100% from wherever their locations are. Ukraine has fortunately retained key, and some of them are returning to key from other parts of the country where they have relocated. So things are really good there. And the rest of Continental Europe and in the U.K., it's full speed ahead, business as usual, and we're finding interest in us really great. One of the coolest things that happened last week is on the same day that Forrester came out with their new wave reports for B2B and B2C enterprise e-commerce and rated us so well. Another tax rating agency in Europe, Emerce out of the Netherlands, also rated us the best enterprise platform. So same day, two continents, best enterprise e-commerce platform reviews. And so we think we're positioned not just better than ever, but also getting that recognition and that should help propel us. I hop on a plane tomorrow for the Berlin e-commerce conference and can't wait to try to build the same kind of enthusiasm and morale in Germany that we're already seeing in Italy, France, U.K. and Spain and Netherlands.

Thank you. Our question comes from the line of Matt Pfau with William Blair. Your line is open.

Wanted to just follow up on your B2B efforts. So clearly, you've made a lot of investments there from a product perspective. Maybe just give us an update on what you need to do on a go-to-market front there. What investments are you making? And is this an area where the Commerce-as-a-Service strategy can help out?

Commerce-as-a-Service can help out. Imagine -- I mean as an example, trade associations, industry associations, applications purpose built for a specific industry like automotive or a certain manufacturing vertical, an ERP serving a specific industrial vertical, those are all potential areas where either a trade/marketing partner or a technology partner could do Commerce-as-a-Service, though so far, for the most part, our Commerce-as-a-Service sales have gone to companies that serve B2C sellers. So there is potential there. And I'm excited to begin exploring that. In addition, on the go-to-market for B2B, I think the most important thing is simply starting with the recognition in the various tech analysts who evaluate B2B platforms because there's no more scaled way than when experts and authorities evaluate under the hood the various platforms, and we get great ratings. So, we have great ratings from obviously now Forrester in last week's report. We had great ratings from Paradigm last year. They're updating their report right now. And we've had several others that do that. It's also interesting, if you go into trust, TrustRadius or G2 Crowd. I think its G2 Crowd. If you were to do -- click their little boxes and get their grid report on the combination of most popular and highest reviewed B2B platform, we're way up into the right, and nobody is anywhere close to us. It's mostly B2B and sort of mid-market -- sorry, small business and mid-market, lower end merchants who are filling out those G2 reports. But that's the wisdom of the Crowd saying that we're the best in that application, too. So, whether it's enterprise or small business, that speaks volume and it's a much more scaled way to get the great word out about our capabilities that are trying to market and reach every prospective buyer. Agencies also, a lot of these B2B sellers will rely on an agency to help them get started or to replatform their e-commerce, and the agencies really look to these reports, too, to figure out where to bet their money, which have great value out of the box, and I think that's going to help us grow share significantly over time. Thanks for the plan.

Thank you. Our next question comes from the line of Keith Weiss with Morgan Stanley. Your line is open.

Very nice quarter. I hate to beat a dead horse on sort of the macro side of the equation, but it is kind of what we've been getting beaten with by investors over the past months in terms of understanding that macro side of the equation. It looks like the enterprise business is holding in really well. If I look at sort of the inverse of that 89% of ARR, that enterprise, the retail side of the equation -- and correct me if my math is wrong. It looks like that ARR was down a little bit sequentially in the quarter. Is that the kind of the macro impacts that you guys are talking about? And would we see more of that on a go-forward basis? Or do you think that's stabilized? How should we think about that side of the equation?

Yes. So on the enterprise ARR front, I mean, we had a great quarter in terms of the sequential increase. We had some higher end retail plans that actually upgraded to enterprise plans in the quarter in Q1. Where we see some of the kind of macro factors affecting SMBs, especially would be on the standard and plus plan. So those are the accounts less than 2,000. But remember, I mean, our enterprise business -- I mean 80% plus of our GMV is coming from our enterprise accounts. When we look at our net new bookings all of last year, 80% of our net new bookings came from enterprise for 2021. And the way we recognize revenue, too, I mean, we're a majority subscription, right? So where we get impacted by kind of order-based or GMV-based impacts is really kind of on the upgrade side or pricing side. And so, we're -- with our focus on enterprise, with our focus on gross new subscriptions, we don't see the impact of that as much. We do see it in upgrades that we talked about. But definitely, in our standard and plus plans, you'll see some of that. And some of those retention dynamics are quite different on those plans versus the really, really strong retention profiles that we see in our enterprise merchants.

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

So I just want to follow on that question on B2B. I'm curious, what do you view as the gating factor on growth for B2B? There's a lot of functionality that you've added. So I'm curious, is there a market awareness component or some of these businesses may not know what they can get from a B2B perspective. And if we kind of put a longer-term lens on, is there a period or is there a functionality where that really starts to inflect? I'm curious to get your thoughts there.

Well, I think, one, there are some limiting factors. One is that B2B sellers are less homogeneous than B2C sellers. It's a very different thing if you're talking to a supplier of raw materials or intermediate goods versus a final producer. Are you selling to wholesale? Or are you selling to industrial accounts? These are very different use cases. And no one platform is going to serve every single use case. And what we do is we bring all of the great user experiences and functionality originally built for B2C, plus the most common functionality for B2B like account hierarchies and approval processes, invoicing, et cetera, quoting. That gets added into our functionality. And so it's a subset of the B2B market where that will be most appealing. But I would say if you look at history from Magento's evolution -- Magento like us also started as a B2C platform. And it was around about 2013, 2014, when they saw increasing numbers of B2B sellers using them in conjunction with apps in their apps marketplace. And the very short period of time where they went from not even focused on B2B the number one and B2B in the world because they were solving that generalized use case. Of course, the flaw for a lot of businesses with Magento is its owned licensed software that you have to manage and secure yourself. And with BigCommerce now, we're following that same path and in a SaaS model. And we really do hope that given the appeal of SaaS, especially to B2B business. So that same part of the market that Magento did so well in going forward, BigCommerce can, too. Magento didn't market their way to number one share. It's not like they were sending fortunes on marketing, had some gargantuan sales staff all around the world. They were relying on the proposition and capabilities of their software, combined with their apps and extensions marketplace, just like we are, and especially agencies who assist these companies in making their choices, and we will also rely on agencies and developers around the world to help us get the word out scalably.

Thank you. Our next question comes from the line of Suni Rajagopal with Berenberg Capital. Your line is open.

Just have maybe one question on the partner and services revenue. It looks like it is pretty much flat versus the last quarter. Can you just lay out a bit of dynamics? What is going on there? And how should we be thinking about that line going forward?

Yes. Thanks for the question. Yes. Usually, what we see with PSR is Q1 would be sequentially down from Q4, normalized, because Q4 is our holiday season. The last couple of years have been quite different. So Q1 of 2020, we had the impact of the increased volumes with COVID. Q1 of 2021, we had the impact of the U.S. stimulus checks going out, which elevated PSR levels in that quarter. And so, I think what we're seeing is just kind of a more normalized view of PSR post-pandemic and without the impact of the stimulus checks. So I think this is kind of what you would expect and what we saw kind of pre-IPO and pre-pandemic.

Thank you. Our next question comes from the line of Mark Murphy with JPMorgan. Your line is open.

Thanks for squeezing us in. This is [indiscernible] sitting in for Mark. R.A., just one quick question on Feedonomics. Obviously, it seems like you're not giving us the contribution, but there is no reason to think that the ARR for Feedonomics should be down sequentially, right? It sounds like it's doing really good. So, it should be up sequentially, but am I seeing that correctly?

Yes. I would think about it up slightly. I think Feedonomics for Q1 grew nicely, up slightly. So, yes, nothing unusual to report there. Operator?

I'm now showing no further questions in the queue. I would like to turn the call back over to Mr. Brent Bellm, President, CEO and Chairman, for closing remarks.

Well, I just want to thank everybody for dialing in and the questions. And we look forward very much to seeing as many of you as possible when we have our first ever Analyst Day, which I believe is scheduled for May 25 with the possibility of in-person attendance here in Austin. So, it will be a great chance for us to talk more about all the major things that we are doing and get your questions and feedback at that time. Until then, we wish you the very best. Thanks.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may disconnect.