Ladies and gentlemen, thank you for standing by, and welcome to BigCommerce's third quarter 2021 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Daniel Lentz, Head of Investor Relations. Thank you. Please go ahead.
Good afternoon, and welcome to BigCommerce's third quarter 2021 earnings call. We will be discussing the results announced in our press release issued after today's market close. With me are 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 fourth quarter of 2021 and the full year 2021. These statements can be identified by words such as expect, anticipate, intend, planned, 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.
Thank you, Daniel, and thanks to everyone for joining us on our third quarter earnings call. On today's call, Robert and I will review our third quarter results. We've had an exciting and eventful quarter, and I'm pleased to share updates in a number of key initiatives and milestones for our company. I will provide several updates today, including product development progress, strategic partnership wins, an update on our recent acquisition of Feedonomics, and finally, our recent capital raise. To conclude today's call, we will give an update on our fourth quarter and 2021 full year guidance. Let's begin with a brief recap of our Q3 financial results. We experienced another quarter of accelerating growth across our business. Revenue increased to $59 million, up 49% year-over-year, including $5.9 million from Feedonomics.
That represents the seventh straight quarter of 30% or higher revenue growth. These results reflect the success of our Open SaaS strategy and progress across a number of company priorities, including enterprise sales growth, international expansion, B2B, headless use cases, and omni-channel advertising and selling enablement. We finished Q3 with ARR, or annual revenue run rate, at $253.5 million, up 52% from last year. Our enterprise account ARR finished at $159.9 million, up 78% year-over-year. ARR for accounts greater than $2,000 in annual contract value, or ACV, finished at $222.3 million, up 65% year-over-year. Our strategy remains focused on providing the world's most flexible Open SaaS platform to power the growth of businesses of all sizes.
Omni-channel selling and demand generation is central to this. Our acquisition of Feedonomics provides industry-leading feed integration and optimization capabilities to 100 plus leading channels around the world. These channels include search engines like Google, marketplaces like Amazon, Walmart, Wish, and Mercado Libre, and social networks such as TikTok, Facebook, and Instagram. We empower each merchant to build their e-commerce in their own way, including accessing the best sales and marketing channels for the unique needs of their businesses and shoppers. To help investors better understand the size, growth profile, and merchant count of Feedonomics, we will provide visibility into the impact that Feedonomics has upon several of our key business metrics for this and our Q4 operating results.
Feedonomics ARR finished the quarter at $32.9 million, up 61% over the same period last year, while customer accounts with greater than $2,000 in ACV grew 22% to 1,057 during the quarter. Customers include many household names such as Dell, Puma, Allbirds, and Samsung. We are already seeing encouraging results in our cross-sell efforts with existing BigCommerce merchants, and our omni-channel partners view our acquisition as enhancing Feedonomics' leading position in global feed management. Note that we remain committed to the open part of our open SaaS strategy. With respect to Feedonomics, this means we'll invest to enhance their leading omni-channel feed capabilities while supporting their ability to serve merchants using any platform, including ones that compete with BigCommerce. Similarly, BigCommerce will continue to fully support our many pre-existing omni-channel partners, including those who provide alternatives to Feedonomics.
This open approach maximizes partner and customer success within our ecosystem. Yesterday, we announced an exciting integration and partnership with TikTok that gives matching advertising credits to qualifying merchants, encouraging them to test and explore TikTok for Business. With an estimated 1 billion monthly active users, TikTok is a uniquely positioned ad channel for customer acquisition and engagement. Merchants can directly access the TikTok for Business app via the BigCommerce Channel Manager, creating a one-click experience to place the TikTok pixel, upload products, and ultimately begin producing ad campaigns. In October, we announced our new ads and listings on Google Native App, which enables merchants to connect their stores to the Google Merchant Center and add products for free. They can also take advantage of Google Ads campaigns to reach more customers and uncover performance insights and trends, driving brand awareness and GMV growth.
This is yet another example highlighting our growing partnership with Google. During the quarter, we also announced our partnership with Sezzle as a preferred partner to provide small and mid-market merchants the ability to offer interest-free buy now, pay later plans. This is a viable alternative to traditional credit card payments, particularly among a growing demographic of younger shoppers with limited credit history. As we cultivate our partner ecosystem, we continue to invest in our core platform capabilities. BigCommerce began as a SaaS e-commerce platform for small businesses, but our disruptive innovation strategy expands our capabilities to serve even the world's largest and most complex businesses. We do so at far lower cost than the legacy e-commerce platforms. I'm excited to announce that in Q3, we released Multi-Storefront to select merchants and partners, and we expect this much-anticipated product enhancement to be fully available to merchants in early 2022.
With this release, customers can now use a single BigCommerce account to build and launch multiple unique storefronts. These storefronts can be either powered by BigCommerce's native Stencil design and theme framework, or merchants can use a third-party headless solution such as Next.js, Contentful, Contentstack, and WordPress, to name a few. Merchants managing brand portfolios have already used this functionality to launch unique storefronts for each brand, such as Vanity Group, an Australian company that supplies hotel bathroom amenities. Multi-Storefront also enables merchants that sell into multiple countries to use unique storefronts for each country. Merchants that sell into multiple segments like B2B and B2C are also using this to build unique storefronts for each customer segment. This marks a significant milestone in our platform's ability to serve the most complex use cases of small and large enterprises alike.
We will continue to focus our R&D investments in our core platform in the future, building on this success with additional Multi-Storefront and enterprise functionality. Multi-Storefront has been a major focus of our product development efforts in recent quarters, and I'm thrilled to bring this powerful capability to all merchants on our platform soon. At the beginning of Q3, we launched full localization of merchant and shopper experiences in support of our formal market entry into Italy, France, and the Netherlands. This includes localized trial flow, control panel, storefront, transactional emails that are sent to shoppers, and payment solutions. This rollout is a meaningful step for merchants in those countries and others looking to expand their European presence in a seamless fashion. Merchants appreciate the ease and speed with which their market expansion stores can come online.
What used to take upwards of a year can now be built in as little as a few days or weeks. We continue to see strong growth in the number and size of international merchants on our platform. In October, we entered into an enterprise partnership with CMA CGM Group's New Oxatis, a leading publisher of e-commerce solutions based in France and a world leader in logistics with over 20 years of experience. This will enable thousands of New Oxatis merchants to build world-class digital storefronts powered by BigCommerce. This partnership will equip merchants with online stores that are fully integrated with information systems, ERP, and product information management software, along with CRM and marketing tools. Our partnership with New Oxatis demonstrates the momentum behind our geographic expansion as it comes quickly after launching in France at the beginning of Q3.
Now is the time to increase our investment in geographic expansion, and Robert will speak to this in more detail later in his remarks. We had a number of notable brands launch on BigCommerce in Q3, including GOREWEAR, the producer of innovative functional cycling and running performance apparel, U.K.-based luxury shoe brand Grenson, Royal Swinkels Family Brewers, a Dutch independent family brewer of beer since 1680, Blackberry Farm, a top-rated hotel and resort situated on 4,200 acres in the Great Smoky Mountains of Tennessee, EyePromise, a scientifically supported eye vitamin company, and Australian merchant Adelaide Tools, who has specialized in the sales and service of name brand power tools since 1949.
In addition, we had thousands of merchants join us for our annual Make It Big conference in September, which highlighted opportunities for merchants to grow their businesses through the power of the BigCommerce platform and partner ecosystem, highlighted by Mark Cuban as keynote speaker. Excitement around the BigCommerce brand is increasing, and we see that reflected in growing recognition from analysts such as Gartner in their 2021 Magic Quadrant for digital commerce platforms. BigCommerce also earned recognition from Paradigm as a top-rated SaaS platform for B2B e-commerce by scoring 16 total medals, including a gold rating for total cost of ownership for the second year in a row. Finally, I would like to discuss our recent capital raise and thoughts around M&A.
Robert, will provide more color on the convertible bond offering later, but I would like to thank the investors and various parties that assisted us with the transaction. We saw a strong opportunity to raise additional capital at favorable terms, and we experienced robust demand from the investment community. This additional capital gives us plenty of operating runway for our expansion plans. It also provides capital for smart M&A that enhances our business. We see two main areas of focus within our M&A strategy. First, targets that would significantly accelerate our key strategic priorities, and second, targets that would enhance our core open SaaS offering in terms of enterprise functionality and open architecture. As an example, our acquisition of Feedonomics accomplishes both.
It catapults us to a leadership position in omni-channel commerce enablement, which is one of our top strategic priorities, and it makes our platform the most open, optimally connected platform to 100+ leading global advertising and marketplace channels. We will continue to explore M&A opportunities as part of our growth strategy and pursue candidates that we believe could deliver acceleration against strategic and/or Open SaaS platform priorities while staying true to our open approach to our partner community. We are in the midst of a multi-year strategy to disrupt the e-commerce platform industry and shape the next era of e-commerce. There was much to be proud of in Q3, and I'd like to thank all of our employees and partners for their contributions. We are pleased with our progress, but this is just the beginning.
Our goal is to build the best e-commerce platform in the world, thereby enabling businesses to thrive at all stages of their e-commerce growth. We consider Q3 to have been an excellent quarter of progress toward the big goals we have in the years ahead. With that, I'll pass it on to RA.
Thanks, Brent, and appreciate everyone joining us on the call today. I'm pleased to share the details of another strong quarter for BigCommerce in Q3. Today, I'll walk you through our third quarter financial results, provide color on our recent capital raise, and update you on our fourth quarter guidance. Please note that all amounts below include the results and activity of Feedonomics from the date of acquisition through the end of Q3 on a consolidated basis. I would like to reiterate my gratitude to the team for another outstanding quarter. Bottom line, we're seeing continued strength across our business and now have a strong balance sheet to deploy capital towards accelerating our key strategic priorities, setting us up for multiple years of growth ahead.
In Q3, total revenue was $59.3 million, up 49% year-over-year, and includes $5.9 million of revenue contributed by Feedonomics. Subscription revenue grew 59% year-over-year, while partner and services revenue, or PSR, was up 30% year-over-year. Revenue in U.S. was up 47% compared to 59% across our combined international operations. Our global platform is seeing tremendous growth, particularly outside of the U.S. International expansion progress has been tremendous thus far. EMEA revenue was up 68% in Q3 as we added investment in existing markets and expanded our enterprise selling capability into new countries. APAC was up 55% in Q3, and we are also evaluating additional expansion opportunities in this region as well. Moving to our KPIs, we saw continued acceleration across various metrics underlying our core business.
For example, annual revenue run rate, or ARR, grew to $253.5 million, up 52% year-over-year, driven by healthy organic growth and the addition of Feedonomics business to the BigCommerce portfolio. Feedonomics posted an ARR of $32.9 million, up 61% year-over-year. ARR from accounts with greater than $2,000 in ACV grew 65% to $222.3 million. Enterprise account ARR grew 78% year-over-year to $159.9 million in Q3, and enterprise accounts represented 63% of our ARR as of September 30th, compared to 54% last year. We're making steady gains in the growth of our enterprise segment, and we feel good about the sustained progress we're making, especially as our multi-store offering becomes generally available in early 2022.
In the last few years, we have built incredible momentum in our enterprise business. Even when you adjust for the strong contribution from Feedonomics, organic enterprise ARR still grew over 50% in Q3, and that is on top of 48% growth a year ago. We're really proud of the fact that we added record incremental enterprise ARR from Q2 to Q3 on an organic basis. As a matter of fact, the incremental organic enterprise ARR quarter- over- quarter was almost three times the incremental enterprise ARR from just seven quarters ago. Enterprise accounts have grown from roughly half to almost 2/3 of our total ARR just in the last couple of years. We're confident that we can drive enterprise ARR as a percentage of total ARR higher and higher, and we now have line of sight to enterprise ARR getting to three quarters of total ARR.
This will build even stronger unit economics in our business with low churn, higher LTV to CAC, and better net revenue retention as we shift our revenue mix more and more towards mid-market and enterprise accounts. As Brent, mentioned earlier, this is just the beginning for BigCommerce. We are still in the early innings of our goal to become one of the leading e-commerce companies in the world. We have a strong, differentiated product, a disruptive strategy that is resonating with merchants and partners, and healthy margins and unit economics that we need to scale this business to meet that goal. We are pleased with our results in Q3, especially as we lap such a strong quarter last year, and remain committed to make strategic investments to fuel our continued growth opportunities. Shifting to the newest member of the BigCommerce portfolio, I'll walk you through the results of Feedonomics.
I'm impressed by the progress we've made thus far integrating our systems and organizations. The BigCommerce and Feedonomics teams are partnering closely to develop products to boost our offerings and improve the merchant's e-commerce experience, and we are excited to bring growing omni-channel capabilities to our current and future merchants. We've been pleased with the strong retention trends post-acquisition and are encouraged by the early cross-sell success and interest from our tech and agency partner community. Moving to core accounts with ACV greater than $2,000 at the end of Q3, we had 12,378 customers over this threshold, up 2,601 accounts or 27% year-over-year. This reflects both our growth in our organic business and the inclusion of Feedonomics merchant base as well.
Feedonomics customers largely fit the enterprise profile of our merchants, and we believe we will have strong opportunities to expand Feedonomics into our base over time. Total accounts with ACV greater than $2,000 now make up 88% of our total ARR, a 7% increase over the same time last year. ARPA, or Average Revenue Per Account for accounts with ACV greater than $2,000, was $17,960, up 30% year-over-year. We saw three primary drivers of this improvement, a strong mix of mid-market enterprise accounts, healthy expansion in PSR, and the inclusion of Feedonomics mid-market and enterprise merchants. We're making steady progress at the higher end of the market, bringing on new mid-market enterprise customers each quarter, while our pipeline continues to expand across all the markets we serve.
Let's shift our focus to the expense portion of the income statement. Please note that unless otherwise noted, all references to our expenses, operating results, and per share amounts are on a non-GAAP basis. Gross margin increased approximately 80 basis points year-over-year to 80%. In Q3, gross profit was $47.2 million, up 51% over Q3 2020. We are focused on building scale and efficiencies to maintain our strong gross margins. Feedonomics' margin profile is lower than BigCommerce due to higher service costs, but we expect consolidated gross margins to remain in the high 70s% as we expand that portion of our business. Our sales and marketing expenses totaled $24.1 million, up 31% over last year, amounting to 41% of revenue, improving by nearly 600 basis points from last year.
We've made steady progress bringing on incremental headcount and resources to support our teams. The labor market demand remains robust and the job market is tight. Our plan is to ramp up our international segments in the coming quarters and continue to scale our North America team as well. We are taking the necessary steps in recruiting and hiring to ensure we can meet those objectives across all geographies. In Q3, research and development expenses were $14.9 million or 25% of revenue, compared to $11.5 million and 29% a year ago. While we aim to build increasing leverage in the business, we remain focused on building out the disruptive product innovations necessary to continue our upmarket growth and expansion. As such, we expect to build operating leverage in R&D over time while we continue to prioritize investment in this area as a strategic focus.
General and administrative expenses were $12 million or 20% of revenue, compared to $8.5 million or 21% of revenue a year ago. In Q3, we posted a non-GAAP operating loss of -$3.8 million or a -6% operating margin, compared to -$7.2 million or a -18% operating margin in Q3 2020. Adjusted EBITDA was -$3.1 million or a -5% adjusted EBITDA margin, an approximately 1,100 basis point improvement from -17% a year ago. Non-GAAP net loss for Q3 was -$4.2 million or -$0.06 per share, compared to -$8 million or -$0.16 per share a year ago. Our improved leverage was a function of both planned efficiency improvements and underspending in a few areas.
Q3 spending fell below our initial expectations as we continue to see savings from delays in return to office, minimal business travel, and also from our pace of hiring new roles relative to the number of roles we are adding. We believe some of these savings will be temporary and are building our 2022 plans accordingly. We ended Q3 with $410 million in cash equivalents, restricted cash, and marketable securities. For the nine months ended September 30, 2021, operating cash flow was -$31.5 million, down from -$23.2 million a year ago. Free cash flow was -$34 million or a -57% free cash flow margin compared to -$25 million and a -62% free cash flow margin over the same period a year ago.
During the quarter, we issued convertible senior notes for $345 million at a coupon of 0.25% and a conversion premium of 37.5%, or effectively a conversion price of $73.11 per share. Net proceeds from the offering totaled $335 million, and we plan to use these proceeds for general corporate purposes. We used $36 million of the net proceeds from the notes to enter into privately negotiated capped call instruments or cap calls with certain financial institutions. The cap calls have the economic effect of increasing the conversion price from $73.11-$106.34 per share.
These instruments are generally expected to reduce potential dilution to the holders of our common stock or offset cash payments we could otherwise be required to make in excess of the principal amount of the notes upon conversion. Upon conversion, we have the flexibility to settle in cash, shares, or any mix of cash and shares at our election. Finally, let's close with guidance for Q4. For the fourth quarter of fiscal 2021, we expect total revenue in the range of $61.3 million-$61.7 million. Translating into a year-over-year growth rate of 42%-43%, including an expected $7.1 million-$7.3 million in revenue from Feedonomics.
For Q4, our non-GAAP operating loss is expected to be $8 million-$9.2 million as we ramp up our hiring and make planned investments to close 2021 and build momentum into 2022. For the full year of 2021, we currently expect total revenue between $216.2 million to $216.6 million, translating into a year-over-year growth rate of approximately 42%. Our non-GAAP operating loss is expected to be between $19.2 million and $20.4 million. Since the IPO, we've accelerated revenue growth from the low 20% range to the high 40% range this quarter, while materially improving operating leverage. As Brent, mentioned earlier, we believe now is the time to make the investments needed to capitalize on our momentum and growth opportunities.
We're well capitalized and committed to deliver durable growth rates as we head towards profitability. The shift towards online commerce is structural, and we are confident in our strategic focus areas and ability to grow this business over the long term. With that, Brent and I are happy to take any of your questions. Operator?
Certainly. Ladies and gentlemen, if you have a question at this time, please press star then one on your touch tone telephone. If your question has been answered and you'd like to remove yourself from the queue, please press the pound key. Our first question comes from the line of Terry Tillman from Truist Securities. Your question please.
Hey, Brent, RA, and Daniel. Thanks for taking my question. Congratulations on the upside in the quarter. Two questions. The first one is related to the organic enterprise ARR momentum. I think you said it was above 50%. I'm not necessarily holding you to maintaining a five-handle growth, but just generally speaking, the enterprise ARR momentum, can you know, is this sustainable, and how important is Multi-Storefront as we move into 2022 around this enterprise ARR? Then I had a follow-up.
Yeah, I mean, Hey, Terry. Yeah, I mean, if you look at the last four quarters, we've grown our enterprise ARR north of 50. So, really excited about that. We're thrilled with the announcement of kinda native Multi-Storefront becoming generally available early next year. I mean, as you know, we've been working on that for quite some time. We think it's gonna be a big needle mover for us. We think we're gonna get more opportunities, more at bats with that capability, and it's, you know, something merchants and partners have been asking us for. You know, we couldn't be more excited about the impact that could have for us next year. So just look at the last four quarters, north of 50. You know, can't promise that it'll always be north of 50.
Yeah, I mean, we'll definitely see an uptick on multi-store as that plays out throughout next year.
That sounds good, RA. I guess my follow-up question relates to the exciting recent news with Amazon and Mercado Libre. Maybe we could just get an update on that in terms of, you know, when that is generally available and what kind of feedback you're seeing. As we move into 2022, you know, where do you see this impacting the model, whether it's direct or indirectly on either software or PSR? Thank you.
Both of those are available. Hey, Terry, Brent here. The Amazon integration is notable because they integrated directly into us, and it's equipping merchants who are selling on their own websites but wanting to use Amazon for fulfillment, the ability to do that. The Mercado Libre, is also live and available, and we've seen a lot of interest and initial uptake from merchants in the United States looking to expand their sales into Latin America.
Thank you. Our next question comes from the line of Josh Beck from KeyBanc Capital Markets. Your question, please.
Hey, team. Thanks for the question. This is Alex Markgraff on for Josh. I just wanted to check in around the social commerce opportunity. Obviously, you have been active here with respect to partnerships. Can you just elaborate on how you're thinking about the evolution of this channel in the coming years, and do you think this channel is perhaps inflecting? Thank you.
Yeah. Social is super important, both as an advertising channel, first and foremost, and secondarily, as a selling channel. Facebook alone is the second biggest advertising channel after Google in the United States. Then when you add non-Facebook properties like TikTok, which we just announced, we're super excited about all of these. That, frankly, is one of the primary motivators of the acquisition of Feedonomics. What Feedonomics addresses is the ability for a brand, retailer, merchant to optimize their ability to both advertise and sell through social networks, in addition to all of the other advertising and marketplace channels. In particular, to get their product catalog optimized for the specific schema and framework of those individual channels. We're super excited to enable our customers to optimize for Facebook.
TikTok, which we just announced, we are in this initial integration with them, we're offering a bunch of ad credits so that brands and merchants can get started advertising and selling on TikTok and realizing, you know, sort of the benefits of that unique community and ability to reach them. As far as we can tell globally, I've actually seen some third-party research that estimates that commerce happening through social networks globally is in the low single-digit percentages. I, you know, I think that's a fraction of what the total commerce influence is if you also count advertising and awareness that then ends up leading to transactions on merchant websites. I can only imagine that that's gonna grow over time into levels that I can't predict probably any better than anybody else. It's extremely important, you know.
1 billion plus users on TikTok, that alone is a really critical channel to try to connect to for merchants. Thanks for the question.
Thank you. Our next question comes from the line of Brent Bracelin from Piper Sandler. Your question please.
Hi, this is Clarke Jeffries on for Brent. Just, you know, two questions on Feedonomics. You know, the first one, how should we be thinking about changes in the online advertising, you know, tracking and ID space affecting the Feedonomics business? Is that actually an increase in value for the solution or sort of no change there? And then the second one is, you know, compared to the $11 million expected contribution for the year, it sounds like there was some early outperformance. Anything you could point to as driving that? And should we think of that 60% growth rate as a relative acceleration or where the company was at?
This is Brent. I'll take the first one, RA, the second one. I don't believe there's a direct impact on Feedonomics business from changes in tracking and, you know, sort of pixel rules on websites. Because fundamentally, the part of the business that Feedonomics is in is in the feed part of it, meaning getting the product catalog from the source of truth of a brand or merchant and into the advertising destination and optimized in the format for that. They are not in the part of the business that is related to either website tracking or ad buying. Although, you know, if you don't optimize your feed, then anything you spend on ad buying is gonna have a much lower return on ad spend. It's really a prerequisite.
There may be a secondary effect, which is that as certain types of historic advertising become less viable or less productive, then merchants are going to seek out new and additional sources of advertising to make up for that. That really plays to Feedonomics benefits because, you know, once you get your catalog into Feedonomics, they're then connected to 100 or more channels around the world, and you can very easily add channels and sort of make up through breadth and depth what you might have lost from other channels based on rules changes. So no direct effect, I don't think, but the potential for secondary benefits. RA?
Yeah, I mean, when we first announced the deal, you know, we thought about Feedonomics just in terms of their ongoing business, but since they supported and continue to support multiple platforms, you know, we did build in some assumptions just around retention. Thankfully, retention just remained strong for Feedonomics throughout the quarter. The big call-outs for Feedonomics is that it's still early days, but we're seeing great interest from partners. We're seeing those cross-sell motions really starting to take hold. The feedback from both partners and merchants have been very, very positive, so we're really excited about that. We've already started the work on building out a self-serve flow to take all the great capabilities that Feedonomics has and really offer that up across the base.
In terms of like setting 60%+ growth assumptions for Feedonomics going forward, a little bit premature on that. You know, I'd say it's gonna grow as much at least as our enterprise accounts. The vast majority of their accounts are enterprise in the near term. We expect them to grow at least at the same clip as our enterprise accounts. Overall, super pleased. Big kudos to Feedonomics, the team. The culture alignment has been awesome. Product alignment has been great. We're really just getting started in terms of what we can do with that business for the benefit of our merchants and our partners.
Super encouraging to hear. Thank you.
Thank you. Our next question comes from the line of Parker Lane from Stifel. Your question please.
Yeah. Hi. Thanks for taking my questions. Brent, I was wondering if you could comment on the reception to and progress of the B2B business. I know you announced that earlier this year. Maybe give us a sense of, you know, the level of urgency you're seeing from B2B organizations to uplevel their own e-commerce efforts relative to B2C. Thanks.
B2B is going great. It continues to be more than 20% of new customer sales, in particular in sort of the mid-market and above where it's more easily tracked. I'd remind folks listening in that a very big accelerator to our B2B positioning was the launch of our B2B Edition back in May or June. That basically bundles a half dozen of the most popular product extensions for B2B selling into a single BigCommerce contract and, you know, basically deployment. That's been selling extremely well and has been selling well around the world. We also continue to gain a lot of recognition for our B2B capabilities. Most recently, Paradigm, which is the most focused B2B platform evaluation that happens every year in the United States. This year included BigCommerce, both in their mid-market and enterprise editions.
We won 16 medals out of, I forget how many, maybe like 20 possible, including gold medals in categories like Best Cost of Ownership for B2B. Very good momentum, very good recognition in B2B. It continues to be an important part of our business that we're investing to grow. Thanks for the question.
Thank you. Our next question comes to the line of Stan Zlotsky from Morgan Stanley. Your question please.
Perfect. Thank you so much, guys. A couple of questions from my end. Brent, maybe for you. With the holiday shopping season coming up, and you know, obviously everybody's hearing a lot about supply chain issues, how are your merchants thinking about GMV growth? And by extension, you know, how are you guys thinking about your PSR growth into the holiday season? And then I have a quick follow-up.
I'll let RA, talk about PSR growth. In terms of the merchants, it's not like I've talked to enough of them to be able to speak definitively across the board. With, you know, more than 50,000 customers, it's a representative sample. Anything I tell you would be sort of the same on average as the entire U.S., if not global economy. What we're seeing in terms of GMV, though, is continuing to increase off of its growth rate off the highs of last year, meaning growth rate sort of hit its bottom back in July and has been increasing in August, September, October. Supply chain issues may be worsening, but we're seeing at least the year-on-year GMV as we measure it improving.
You know, will that come to a screeching halt in the coming weeks or months? You know, I can't predict that any better than most people, and economists are probably the best ones to consult. RA, how is this impacting our sort of PSR projections?
Yeah, I mean, it's definitely something we're factoring in and paying attention to. To Brent's point, you know, we haven't heard too much from our merchants on this. You know, GMV in July kinda dipped a little, but then bounced back in August and then really bounced back in September. You know, as we think about Q4 near term, you know, we're factoring in just the continuation of those trends, but also factoring in it's our big holiday season with just some, you know, caution just around potential issues. We feel really good about the guide, factoring all those things in. You know, we ended the quarter much stronger than we started the quarter, which is great. You know, early signs in October were good.
Okay, perfect. Just as a quick follow-up, I'm jumping back and forth between calls here, but could you repeat the inorganic ARR contribution from Feedonomics that you picked up in the quarter? I think it was $32.9 million. Is that correct?
That's right, Stan, 32.9.
Got it. If we back that out, looks like and we do the math on the monthly recurring revenue, looks like that ticked down a little bit from 34% MRR to 30% in the quarter. Is there anything one-time in there that we need to be mindful of, or is it just a function of looking at you're lapping the really tough comps on MRR from a year ago, and that's just it?
Yeah, some of it is the tough comps. I mean, look, we highlighted the fact that enterprise and mid-market was really strong during the quarter. Our gross new bookings was really strong, especially when you include the initial MRR from our Oxatis, New Oxatis deal. We did have some legacy cohort of merchants on our legacy plans that we put onto our standard plans and current plans. We saw some of the benefit in Q2. We saw some of the effects of the downgrades and upgrades in Q3. All of that is behind us now, so it's not gonna affect the go forward. But really strong gross new, really strong mid-market enterprise. Had to get through some of that last pricing action.
We don't have any other pricing actions planned, so Q4 is looking good, looking clean, and all of that is behind us.
Got it. Perfect, guys. Thank you.
Thanks.
Thank you. Our next question comes from the line of Raimo Lenschow from Barclays. Your question please.
Hey, this is Robbie on for Raimo. Thanks for taking my question. Just wanna first start with the WineDirect partnership and CMA as well. Maybe you could give an update on each of those, specifically WineDirect, because we haven't heard about it in a little while, and also how we could kinda think about the two in terms of near and long-term impact. Thank you.
Sure. I'll take that. I mean, WineDirect is not the sort of partnership that you make incremental announcements about. Now that we're working together, we are doing all of the both structural integrations that facilitate migration of merchants from their platform over to us, as well as net new co-selling to wineries that were not previously using WineDirect. The partnership is off to a great start on the interpersonal level, and we're making good progress on the integration capability. All's good on that direction, but you know, you shouldn't anticipate incremental announcements since that partnership's already signed and in market.
Got it. Thanks, and t hat's helpful. Quickly, I knew we were expecting a little bit of a one-time benefit from PSR this quarter, so maybe we could just get an update on if that came in in line with plans.
It did, right in line with plans.
Got it. Thank you.
Mm-hmm.
Thank you. Our next question comes from the line of Samad Samana from Jefferies. Your question please.
Hi, good evening. Thanks for taking my questions. Maybe just I know already that you don't wanna get into the habit of kinda guiding the two different revenue line items, but just given the differences in seasonality last year versus normal history, just can you help us maybe think about how we should think about 4Q seasonality, given all the different moving parts for maybe the two different revenue line items?
Yeah. I mean, when you think about subscription and PSR for BigCommerce, organic, you know, I think that you could pretty much assume kind of at least the mid to high 20s for both for Q4, is how I'd be thinking about that split. You know, factoring in.
Okay
The comps from last year as well.
Great. Great, that's helpful. Then maybe as I think about that really strong enterprise account ARR growth, I know that a couple of others have asked about it, but you know, I'm curious. How should we think about that in terms of the net retention side versus new units contributing to that? Then maybe on the new, are your average starting lands getting larger or kinda consistent with history?
You mean average size, Samad?
Yeah. Yeah, exactly.
Yeah. I mean, look, I think ARPA continues to increase nicely. You know, we're seeing more and more B2B opportunities in the pipe as well as closed one. We are seeing larger and larger accounts that we're signing as we talked about in the beginning of the quarter. When you look at the net revenue retention, you know, that tends to tick up as that mix continues to shift to mid-market and enterprise. I highlighted in the earnings release, the pace of the mix shift is happening really, really fast. I mean, just a few years ago, we were 50%, now we're at 63%. We've got line of sight to 75%, you know.
With those enterprise accounts comes, you know, stronger net revenue retention, better LTV to CAC, better payback, better unit economics. I'd say that the pace of that shift is happening faster. A lot of the Feedonomics merchants are enterprise merchants with even higher ARPA. We're feeling really, really good about the trend. You know, if you take a step back and you see the pace of that mix shift, we're really happy about that. If you actually compare enterprise ARR ending Q3 to ending Q2, it was a record quarter for us at $12.5 million on an organic basis.
I mean, seven quarters ago, that's 3x what we did seven quarters ago, just to give you a sense of kind of the pace of acceleration in enterprise, which you know, really excited about. All of that is without the native Multi-Storefront that is gonna be generally available early next year.
Great. That's super helpful. Thank you for taking my questions.
Sure.
Thank you. Our next question comes from the line of Scott Berg from Needham. Your question please.
Hi, guys. This is John Godin. I'm for Scott Berg. Thanks for taking my question. First, just wondering if you could comment on how conversations with customers and prospects have been evolving over the past quarter, specifically on the international side now that you have Feedonomics, the multi-store capability, some additional localization efforts. Are you really seeing any kind of demand or interest in any specific areas there, or something along those lines of online cross-border or anything else that would be interesting to call out? Thanks.
Yeah. I would say by far the most interesting call-out is the traction that we achieved in our first quarter of full official launch in France, Italy, and the Netherlands. Recall it was July first day of the quarter, where we did the full launch in those countries, where there's complete localization from marketing websites through sign-up trial experience, payments, currency templates, and everything else. In that first quarter, the most significant announcement we made was with New Oxatis in France. For those who don't follow e-commerce in Europe, NewOxatis has been a leading platform in France, in Europe, mid-market and above focus, but also small business for a very long time. I recall there being one of our top partners at PayPal when I was running PayPal Europe from 2005 to 2009.
Now to have an announcement where we're working with the owners of New Oxatis, in essence, to make BigCommerce the platform of the future, migrating those existing customers, co-marketing and selling to new customers with them, that's a very, very significant splash to have made in the French market, right out of the gate. At the same time, we're seeing great enthusiasm and initial sales success in Italy. The Netherlands was doing well even before the official launch and has only gained acceleration. With those first three countries of sort of full basic localization on the continent. Off to a strong start and can't wait to add countries in Europe and other continents in the quarters ahead. Thanks for the question.
Thank you. Our next question comes from the line of Brian Peterson from Raymond James. Your question please.
Hi, gentlemen. Thanks for taking the question, and congrats on a really strong quarter. Just one for me. Brent, when you think about the enterprise strength, and we've talked a lot about that today, I'd just be curious if anything's changed in who you're displacing and who some of the shared owners may be. I'd also be interested in how that looks from the B2C versus the B2B side, 'cause it sounds like that B2B side is really picking up.
Correct. You know, there are more than 500 platforms around the world, plus all the custom builds, which are unique to each merchant. The easy thing to say is Magento is by far the biggest donor platform to us. In aggregate, they're probably, I mean, I don't have the specific figure, but they're probably no more than 20% of the mid-market and above migrations. An awful lot of custom sites, and then a very long tail. I mean, we get sites migrating from every other platform that you can imagine, big, small, old, really old. It's really all of them. The point is that as you look forward, SaaS is clearly the future for most merchants. There are three leading SaaS platforms. You know those three. It's us, Shopify, and at the high end of the market, Salesforce.
All three of us are taking share from the rest of them, in addition to competing for net new builds. You know, the overall trends are not radically different than they have been historically. It's astonishing how many Magento 1 merchants are still sitting out there on Magento 1, even though that has officially been sunset in terms of its corporate support from Magento. I think that answers the question.
Thanks, Brent.
Yep.
Thank you. Our next question comes from the line of Ygal Arounian from Wedbush Securities. Your question, please. You might have your phone on mute.
Sorry about that. Thanks for taking the questions, guys. All right, you mentioned with Multi-Storefront was one of the things that merchants were asking from you guys the most. I was wondering if you could just talk to some of the other things that merchants have been asking about, you know, some of the pain points that, you know, they wanna be solutions they wanna see kind of solved around.
I'll take that. The great news is that we actually kicked off this year with partner advisory councils, one for the Americas, one for Europe, one for APAC. The answer we got from our agency partners was consistent across the three. The top two requests they had were both requests that we, I think, sort of knocked out of the park this year. One is Multi-Storefront, which we talked about in this call. The second was B2B capabilities, and at the time they were asking, they did not know that the B2B Edition was coming out. It did, and that met with widespread enthusiasm from our agency partners. That doesn't mean we've done everything they want.
We're still working on two additional things that will be needle movers, we hope, in the future. One is a full set of APIs that support all use cases around multi-location inventory. Finally, there's a very advanced use case of a staging environment. You know, that's something that we'd like to solve for in the year or more ahead.
Thanks. You talked, gave a little bit around the [old] status deal, probably butchered that, the annotation there, but can you talk a little bit more about the deal, how it's structured, you know, how it brings you know, customers on board, how you share revenue, things like that? Any other color around how the deal works?
Yeah. In some ways, it's similar to the WineDirect deal that was the biggest one that we announced in Q2. In both cases, you have a legacy leader, in WineDirect's case, in the wine industry, in NewOxatis' case, in the French market, with a home-built platform that they realized was not keeping up with the capabilities and investments of a market leader like BigCommerce.
When they looked around the world and said, are we better off continuing to try to compete and retain our customers on this sort of old platform, or can we modernize the platform partner, part in partnership with someone, and then focus on all the other things that we're a leader. In WineDirect's case, they have all these specialist capabilities for the wine industry, including sort of checkout and running the point of sale within the tasting room, running mailing lists and subscriptions, doing fulfillment. In the case of New Oxatis and their owners in France, they're world leaders and national leaders as well in logistics and fulfillment. There's a lot of value-added services that they are industry leaders in. No longer industry leaders for the core platform capabilities.
What thrills us is that, you know, we're the platform they text because we're the most open, we're the most flexible. We really talk about this Open SaaS strategy. Open SaaS is tailor-made for being able to configure and customize to the unique needs of the French market, of the wine industry. I don't think other SaaS platforms could have met all the requirements of these partners. We were naturally great partners for them, and we're thrilled that we have aligned strategic objectives and can go forward and compete. That's some more background on its status and why we were the winning fit in France.
Sounds safe to say that these kinds of partnerships are ones you'll continue to explore?
Absolutely. Yeah. And y ou know, open shameless marketing plug, if there are other entities out there with a legacy platform or in search of a go-forward platform partner, by all means, reach out and talk to us because we're enthusiastic about these types of relationships.
Great. Thanks for taking the questions.
Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star then one. Our next question comes in the line of Ken Wong from Guggenheim Securities. Your question please.
Great. Fantastic. Thanks for squeezing me in. I'll keep it to just the one. As we think about the Feedonomics performance, looks like it delivered a fair amount of upside versus the $11 million full year guide. Can you help us understand what were some of the contributors? Was it just the run rate of that business was better than expected? Was there a lot of cross-selling? And then to the extent that you can maybe give us a sense for kinda how that $11 million full year impact might be, you know, revised up, down, that'd be fantastic.
Hey, Ken. You know, I think when we initially disclosed the numbers for this quarter, you know, we did factor in some churn assumptions, retention assumptions for their base. We're really pleased that we ended the quarter and they continue to retain the merchants. Anytime, you know, you buy a company, you just never know, especially when they support other platforms. Very pleased on that retention. Cross-sell, I'd say it started. It's still early, but you know, it's just beginning, but we're really encouraged by that. We did, you know, if you think about Q4, you know, you could probably think in the kinda that low seven range for Feedonomics. You know, we're still just getting started with them in terms of cross-sell, up-sell. You know, we're working on the self-serve flow.
Self-serve won't probably affect us until next year. You know, we're definitely going after cross-sell, up-sell, opportunities, especially with our base.
Great. Thank you for all the color there.
Sure.
Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Brent Bellm, President, CEO, and Chairman, for any further remarks.
Just wanna thank everyone again for the interest in following of BigCommerce. This was, I think on a lot of dimensions, our most successful quarter yet as a public company. We couldn't be more excited about what the future entails in this combination of BigCommerce and Feedonomics, the world's leading key distribution platform, helping businesses optimize their sales, not just on their branded websites, but through all third-party advertising, demand generation and marketplace channels. We continue to wanna be the leader in global e-commerce and look forward to the next call three months from now with a new set of updates. Until then, be well and happy holidays.
Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.