Commerce.com (CMRC) investor relations material

Industry trends and technology shifts

• Rapid adoption of emerging technologies, especially LLMs, is outpacing e-commerce industry adaptation, impacting discoverability and traffic visibility for merchants.

• Brands are struggling to track traffic sources due to changes in pixel tracking and agentic commerce, leading to operational challenges.

• Demand environment has been less affected by tariffs than expected; focus has shifted to technology-driven traffic changes.

• The industry is experiencing a shift in competitive dynamics, with new technology affecting barriers to entry and requiring brands to adapt quickly.

• Companies are splitting marketing teams into SEO and generative engine optimization (GEO) to address new traffic patterns.

Transformation strategy and operational changes

• Transformation efforts include integrating past acquisitions, launching self-serve versions of products, and reducing over-reliance on sales-led growth.

• Leadership overhaul and rebranding aim to clarify product offerings and reduce customer confusion, especially around Feedonomics.

• Shift toward product-led growth with new modules, freemium models, and tighter partner integrations to expand and monetize the customer base more efficiently.

• Focus on improving net revenue retention (NRR) and expanding existing customer usage, rather than solely acquiring new accounts.

• Organizational changes include proactive renewal management and ensuring customers maximize product value.

Product innovation and go-to-market evolution

• Introduction of a branded payments product to capture incremental economics and simplify customer experience, while maintaining flexibility for larger clients.

• Launch of Feedonomics Surface, a freemium model enabling data transformation for multiple channels, with plans to expand paid features.

• Emphasis on building core products and forming deep partnerships rather than pursuing further M&A, focusing on speed and integration.

• AI and agentic commerce are driving new platform features, with partnerships (e.g., Accenture, Perplexity) enabling advanced discoverability and checkout experiences.

• Capital allocation is directed toward features merchants expect natively, with a partner-first approach for additional capabilities.