All of that sort of extraordinarily functionality is now being released in the sort of full availability in Europe. And we think that’s going to help us to re-accelerate our growth rates in Europe. So what I would talk about there in terms of the 15% growth rate, that’s left to do with macro and more about the upside potential now that our multi-store front product is reaching completion.
Santa Clara: Understood. That’s very helpful. Then, as a quick follow-up, Daniel, I wanted to ask you how you’re thinking about headcount growth for the business. Are there any plans to ramp hiring to meet some of the goals to accelerate, top line revenue growth? Or do you kind of feel that the sales and R&D teams are right sized? Because of some of the other efficiencies you’re generating in the business. Thank you.
Brent Bellm : At this point, I describe it as right-size. I think if we’re going to have what headcount increases we would have, I think they’re modest. I think that we can get still improvements and better top-line growth out of the dollars that we’re putting in and we don’t anticipate ramping hiring aggressively in the near future.
Santa Clara: Thank you very much.
Operator: Thank you. And our next question today comes from Scott Berg at Needham & Company. Please go ahead.
Robert Morelli: All right, this is Rob Morelli on for Scott. Thanks for taking my questions and congrats on the quarter. A quick product question to start. How should we think about pricing for the instant commerce Feedonomics functionality. Is that a separate SKU? And could a brand purchase it without purchasing the core Feedonomics platform? Thanks.
Brent Bellm : You would have to purchase the core Feedonomics platform and just to remind everybody what instant commerce is. And what Feedonomics, so Feedonomics enables a business to get their product catalog data from whatever their source of truth is into the primary advertising and marketplace channel that they use. The big difference between a marketplace channel and an ad channel is that a marketplace channel like Amazon marketplaces, Walmart target marketplaces 200 of them. The marketplace channels have to know inventory count and they have to know having order synchronization, as well. The further complication around instant commerce, which is when Amazon is taking a marketplace order and then actually picking up and fulfilling locally within the same day or Walmart is doing that, they have to know the location of the inventory relative to the location of the consumer.
And so there’s this added complexity. But fundamentally, this is still a variant on the core Feedonomics marketplaces solution. It’s just serving the particular need of when a marketplace or a delivery service like the Doordash or Uber or a Deliveroo in Europe is going to pick up the inventory from the warehouse or store of the brand or retailer and be able to deliver at that same day to a local consumer. So, it’s a different use case, but you’re using the core Feedonomics solution to enable it.
Robert Morelli : Got it. Helpful. And then, just quickly on the cross-sell efforts, as you say this is no when the metrics are measured by high level where you’d say with these efforts just sell within the base, how much more effective do you think the company can be over the next year or two? And what is that ideal balance between cross-sell and new-sell that you’re trying to achieve? Thanks.
Daniel Lentz : Yeah, so for cross-sell…
Brent Bellm : Well, go ahead, Daniel.
Daniel Lentz : Just to say, sorry about that. I was going to say on the cross-sell side, making good progress there. Ideally, I’d like to get to a point where our revenue growth is more like 50/50 between new logos and expansion of existing logos. In the past, it’s been disproportionately new logo-driven, which I think is a sign of strength in BigCommerce that we’re continuing to add logos in a challenging environment, not every e-commerce platform can say that certainly. It’s just an expensive way to be powering your top line growth. And I think that the more we’re focused on customer success ultimately as our guiding principle, that’s going to lead not just a better expansion of existing customers, but it also leads to better reference ability, which will ultimately lead to better new logo acquisitions, as well.
And so, I think that there’s ways that we need to train and enable our sales teams in order to think that way. Systems investments that we need to make. We’re managing this business for long-term growth and we’re not – we’re really, really focused on making sure that that’s a healthy balance.
Robert Morelli : Got it. Helpful. Thanks for the color.
Operator: Thank you. And our next question today comes from Terry Tillman at Truist. Please go ahead.
Connor Passarella: Great. Good morning, guys. Connor Passarella on for Terry. Thanks for taking the question. Just one for me. I wanted to go back to some of the commentary on B2B package, maybe just speak to any puts and takes around the demand trends with businesses that want to upgrade their ecommerce systems and sell that way as it relates to maybe the commentary around broader ecommerce growth. And I guess, I am curious on how does B2B stack up as a priority for customers that are looking to add additional revenue streams?
Daniel Lentz : Yeah, B2B remains a very strong segment for us. As we said in the past, it’s roughly 40% of our gross new sales and that’s in line with the aggregates total addressable market, which is roughly 40% of platform spend for B2B and 60% for B2C. Now when we calculate that, the note is that any customer that is a hybrid doing both B2C and B2B were then they have to use our B2B product and we’re crediting all of that to the B2B side of things. We see a lot of good upsell and cross-sell from customers who begin with us on B2C and then add the B2B capabilities. That certainly happens a fair amount. But a large portion of our B2B business is coming from true industrial companies, that’s distributors, manufacturers, wholesalers companies that B2C is not even relevant for them.
Because we serve full spectrum B2B, agricultural companies, industrial manufacturers, the transportation companies, right? And so, the real opportunity with companies like that is not to add B2C to what we’re doing on B2B or vice versa just to expand to multiple brands within their maybe if they’re industrial conglomerate, is to add additional geographies, for additional use cases and customer segments that they want to serve. So there’s a lot of expansion opportunity that is not necessarily of the B2B plus B2C variety.
Brent Bellm : One point I would add on that too, Connor, as well as just from the financial point of view, B2B is a very, very healthy segment for us. We have strong wind rates. I mean, a GMV that ran through B2B edition grew 50% year-over-year, north of 50% for us last quarter. So this is an area where we see really, really strong, not only competitive advantage, but it’s an area of product investment, and it’s an area that I get really excited about just from a financial health, as well. The more we continue to mix and grow in that direction, that’s a good thing for us from a market share and from a financial health point of view.
Connor Passarella: Great. Appreciate the color.
Operator: Thank you. And our next question today comes from Jeremy Sahler with Jefferies. Please go ahead.
Jeremy Sahler : Hey guys. I am on for Samad Samana. Thanks for taking my questions. Most of my questions have already been answered. But maybe two quick ones. You called out, probably about a year ago that your expectations for Enterprise accounts shipment price about 80% of ARR by 2024. Is that still kind of in the current for 2024? Or do you think maybe it’ll take a little longer.
Daniel Lentz : I’ll take that one. I think it’s going to take a little bit longer. I think that’s partially because of the fact that we’ve just seen a little bit of the macro-driven pressure on replatforming spend that we’ve talked about over the course of the last year to year and a half. That’s true across all enterprise software as much as it is for us. I think that’s part one. Part two, I think, the go-to-market changes and improvements that we’re making are going to really help get that back on that track. And number three, I’d also add our essentials plans have been healthier in some ways than where we thought they would be maybe a year and a half or so ago. We saw a 5% growth in ARR for that portion of the business on the quarter.
Part of that’s driven by pricing changes, but a lot of that’s also driven by a lot of improvements in fundamental cohort health. And just the gross and net retention that we’re seeing from that part of the business, as well. I think that’s a good outcome, because while I still think that the business is going to shift to 80% and potentially beyond that on Enterprise accounts, that will be I think alongside a healthy essentials plan portion of the business, as well that we feel was stabilizing and we can start to get healthy growth out of out of in the future, as well.
Jeremy Sahler : Got it. That’s useful color. And then here you on competitor pricing and I don’t know someone asked about beaten on this specifically. But can you maybe remind us how you’re thinking about pricing as a growth lever? Whether that’s in that shorter term or it’s part of the broader strategy?
Daniel Lentz : We’re going to continue to look for opportunities to take pricing where we think that makes sense. We’ve taken pricing two or three times probably over the course of the last several years. When we do that, it’s going to be in pockets. It’s going to be how we think about discounting levels with new customers. What we are going to continue to do because this is just the way we operate as a company. We are going to continue to operate a big company in a way that gives customers the freedom to choose the solutions that are best for their business. We are going to be opinionated and offer them good counsel on how we think they can best optimize their stack to help their customer be successful and we offer commerce solutions that can do that.
