Wrapping up Q4 earnings, we look at the numbers and key takeaways for the e-commerce software stocks, including BigCommerce (NASDAQ:BIGC) and its peers.
While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.
The 4 e-commerce software stocks we track reported a weak Q4; on average, revenues beat analyst consensus estimates by 2.27%, while on average next quarter revenue guidance was 2.41% under consensus. The technology sell-off has been putting pressure on stocks since November, but e-commerce software stocks held their ground better than others, with the share price up 2.03% since earnings, on average.
Best Q4: BigCommerce (NASDAQ:BIGC)
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores.
BigCommerce reported revenues of $64.8 million, up 50.4% year on year, beating analyst expectations by 4.96%. It was a weaker quarter for the company, with an underwhelming guidance for the next year and decelerating growth in large customers.
“Q4 was another outstanding quarter for BigCommerce as our revenue grew to $64.9 million, up 50% year-over-year. Our full-year revenue grew to $219.9 million, up 44% year-over-year, marking our fourth consecutive year of accelerating revenue and subscription growth,” said Brent Bellm, chief executive officer at BigCommerce.
BigCommerce scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 376 enterprise customers paying more than $2,000 annually to a total of 12,754. The stock is down 14% since the results and currently trades at $22.25.
Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.
GoDaddy reported revenues of $1.01 billion, up 16.6% year on year, beating analyst expectations by 4.74%. It was a weaker quarter for the company, with revenue guidance missing analysts' expectations for both the full year and the next quarter.
The stock is up 14.1% since the results and currently trades at $84.70.
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Weakest Q4: Wix (NASDAQ:WIX)
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.
Wix reported revenues of $328.3 million, up 16.2% year on year, missing analyst expectations by 1.34%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Wix had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 8.92% since the results and currently trades at $105.43.
Founded in New York City in 2003, Squarespace (NYSE:SQSP) is a platform for small businesses and creators to build their digital presences online.
Squarespace reported revenues of $207.4 million, up 20.3% year on year, in line with analyst expectations. It was a weaker quarter for the company, with revenue guidance missing analysts' expectations for both the full year and the next quarter.
Squarespace had the weakest full year guidance update among the peers. The stock is up 17% since the results and currently trades at $26.56.
The author has no position in any of the stocks mentioned