Constructor Closes FY22 With Strong Growth in Home Goods and Furnishing Sector

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Feb 28, 2023, 08:07 ET

Product search and discovery leader also expanded its geographic reach in EMEA — helping more ecommerce companies worldwide create revenue-generating, personalized shopping experiences

SAN FRANCISCO, Feb. 28, 2023 /PRNewswire/ -- Constructor, an AI-powered product search and discovery platform for ecommerce companies, today announced key milestones from a successful FY22 (Feb. 1, 2022-Jan. 31, 2023). Over the past year, the company has significantly grown its revenue and client base, particularly in home goods and furnishings, while executing on a commitment to product innovation — helping retailers worldwide deliver personalized, revenue-generating experiences to shoppers across channels.

Retailers today recognize the need to engage shoppers with meaningful and individualized digital experiences, but sometimes find it's easier said than done. According to Forrester Research: "It's a tall order for businesses to showcase the right products at the right time for each customer — but those that do will develop more loyal customers and be able to better manage both inventory and costs such as returns and customer service interactions."^{^[1]}

With Constructor's technology, ecommerce companies are realizing those benefits and more. Constructor's AI-based platform optimizes search results and recommendations for metrics that matter — with clients reporting results including: seeing revenue lift of $40 million, increasing search purchase rates by 14%, increasing revenue per visit by 5%, reducing manual work by 20% and much more.

As more ecommerce companies rely on Constructor to support their strategic growth, Constructor is also reporting the following FY22 milestones:

Doubled annual recurring revenue (ARR) for the second year in a row — with a notable increase in annual contract value (ACV), highlighting the value retailers see in Constructor's technology.
Signed new clients across retail sectors, with especially strong traction in home goods and furnishings. New clients in this area include: home24, The Very Group, Serena & Lily, and more. The company also closed its largest deal ever — helping a large general retailer double down on its digital transformation by incorporating holistic sitewide product discovery.
Expanded its geographic reach, closing significant business in Europe, the Middle East and Africa (EMEA). Across EMEA, Constructor serves retailers in the apparel, home goods and furnishings, toys, grocery, do-it-yourself (DIY) and general categories.
Grew headcount by 79% year over year. Constructor's team works remotely, spread across 24 countries. The company is actively hiring, particularly across engineering, customer success, sales and product departments — seeking problem-solvers excited to help build the future of search and product discovery.
Unveiled a new product, Quizzes, that drives consumer-powered personalization. Quizzes uses zero-party data, provided directly by shoppers online, during their shopping journey — posing brief questions to them, much like an associate would in-store. Based on each individual's responses, Quizzes instantly personalizes the items and recommendations they see next — mapping them to the person's wants and needs.
Was named to CB Insights' Retail Tech 100. According to market intelligence platform company CB Insights, this list recognizes "the top private companies using technology to reshape the shopping experience and make retail operations move faster and sell more." Constructor was honored among the top "ecommerce merchandising and discovery" platforms.

"In retail — as well as other business sectors — the last few years have been marked by rapid change," said Eli Finkelshteyn, co-founder and CEO of Constructor. "One thing that's stayed constant is the need to deliver a great customer experience. We're proud to help our clients do just that. Tapping into our solution, e-commerce companies are creating cohesive omnichannel experiences that are a win-win: optimized for their metrics and personalized to their shoppers. As we helped more retailers increase conversions and meet and surpass their goals, 2022 was a strong year for our business — and we're even more excited about what the future holds, as we maintain a steadfast focus on supporting ecommerce innovation."

About Constructor

Constructor is the only search and product discovery platform tailor-made for enterprise ecommerce where conversions matter. Constructor's cloud-based solutions use natural language processing, machine learning-enhanced results ranking and collaborative personalization to deliver powerful user experiences across all facets of product discovery. Optimizing specifically for ecommerce metrics like revenue, conversion rate and profit, Constructor generates consistent $10M+ lifts for some of the biggest brands in ecommerce, such as Sephora, Backcountry, home24, Maxeda Brands, Birkenstock and Serena & Lily. Constructor is a U.S.-based company that was founded in 2015 by Eli Finkelshteyn and Dan McCormick. For more, visit: constructor.io

^{^[1]} Forrester Research, Drive Shopper Relevance with AI-Driven Commerce Search, June 2, 2021.

SOURCE Constructor