Commerce.com (CMRC) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue reached $333 million, up 8% year-over-year, with ARR at nearly $350 million, 75% from enterprise accounts, and strong focus on high-value segments and organizational transformation.

• Non-GAAP operating income was $19.5 million, nearly double the original forecast, and adjusted EBITDA improved to $23.5 million from $(1.6) million in 2023.

• Operating cash flow reached $26.3 million, a $50 million swing from the prior year’s $24 million loss, and free cash flow was $22.5 million.

• Major organizational transformation included a 10% headcount reduction, new executive hires, and integration of product teams around B2C, B2B, and small business segments.

• Open SaaS platform strategy and composable commerce approach continue to disrupt legacy enterprise ecommerce.

Financial highlights

• 2024 revenue was $332.9 million, up from $309.4 million in 2023; Q4 revenue was $87 million, up 3% year-over-year.

• Non-GAAP gross margin was 78% for both Q4 and full year 2024; non-GAAP operating margin improved to nearly 6% from -2% in 2023.

• Adjusted EBITDA for 2024 was $23.5 million, up from $(1.6) million in 2023; non-GAAP net income was $22 million, up from $2.1 million in 2023.

• Net loss narrowed to $(27.0) million in 2024 from $(64.7) million in 2023.

• Stock-based compensation as a percentage of revenue reduced by 254 basis points.

Outlook and guidance

• Q1 2025 revenue expected at $81.2–$83.2 million; non-GAAP operating income of $4–$5 million.

• Full-year 2025 revenue guidance is $342.1–$350.1 million, with non-GAAP operating income of $20–$24 million.

• Targeting mid-single-digit growth rates for 2025, with ARR growth expected to gradually accelerate and continued margin expansion.

• Guidance assumes macroeconomic trends remain consistent with 2024.