Commerce.com (CMRC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $81.8M, up 8.5% year-over-year, with adjusted EBITDA of $3.0M and operating cash flow of nearly $12M.

• Total ARR reached $346M, up 12% year-over-year, with 73% from enterprise accounts and 5,961 enterprise accounts as of June 30, 2024.

• Net loss narrowed to $11.3M from $19.1M in Q2 2023; non-GAAP net income was $4.1M, and gross margin improved to 76%.

• Major enterprise wins included The RealReal, Quicken, Andertons Music Co., and others, with over 100 new features and integrations launched.

• Product innovation included multi-geographic selling, AI-powered tools, and composable architecture, with top industry recognition.

Financial highlights

• Subscription solutions revenue rose 10% year-over-year to $61.8M; partner/services revenue increased 4% to just over $20M.

• Non-GAAP operating income was $1.9M, a 7-point margin improvement year-over-year to +2%.

• Operating cash flow for Q2 was $11.7M; free cash flow for the first half of 2024 was $6.5M.

• Cash, equivalents, and marketable securities totaled $276.9M as of June 30, 2024.

• Deferred revenue increased 46% year-over-year to $42M.

Outlook and guidance

• Q3 2024 revenue expected between $82M–$84M (5–8% growth); full-year 2024 revenue guidance is $330.2M–$335.2M (7–8% growth).

• Q3 non-GAAP operating income forecasted at $0.5M–$1.5M; full-year non-GAAP operating income expected at $10.7M–$13.7M.

• Management expects ARR growth to improve, driven by enterprise focus and platform innovation.