The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the e-commerce software stocks have fared in Q4, starting with BigCommerce (NASDAQ:BIGC).
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 6 e-commerce software stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 1.38%, while on average next quarter revenue guidance was 0.52% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but e-commerce software stocks held their ground better than others, with the share prices up 0.98% since the previous earnings results, on average.
Weakest 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 $72.4 million, up 11.6% year on year, missing analyst expectations by 1.24%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“In a challenging year for global ecommerce, BigCommerce grew faster than the broader ecommerce industry, and our Q4 results showed strong progress in both profitability and operating cash flow. Our full-year revenue grew to $279.1 million, up 27% year-over-year,” said Brent Bellm, CEO at BigCommerce.
BigCommerce delivered the weakest performance against analyst estimates and weakest full year guidance update of the whole group. The stock is down 27.8% since the results and currently trades at $8.19.
Read our full report on BigCommerce here, it's free.
Best Q4: Shopify (NYSE:SHOP)
Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) provides a software platform for building and operating e-commerce businesses.
Shopify reported revenues of $1.73 billion, up 25.7% year on year, beating analyst expectations by 5.11%. It was a strong quarter for the company, with a decent beat of analyst estimates and solid revenue growth.
Shopify achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is down 13.1% since the results and currently trades at $46.37.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it's free.
GoDaddy (NYSE:GDDY)
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 $1.04 billion, up 2.02% year on year, missing analyst expectations by 0.31%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
GoDaddy had the slowest revenue growth in the group. The stock is down 5.26% since the results and currently trades at $76.78.
Read our full analysis of GoDaddy's results here.
VeriSign (NASDAQ:VRSN)
While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.
VeriSign reported revenues of $369.2 million, up 8.49% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth.
The stock is up 5.45% since the results and currently trades at $219.36.
Read our full, actionable report on VeriSign here, it's free.
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 $355 million, up 8.13% year on year, in line with analyst expectations. It was a decent quarter for the company, with very strong guidance for the next year but slow revenue growth.
The stock is up 11.4% since the results and currently trades at $90.
Read our full, actionable report on Wix here, it's free.
The author has no position in any of the stocks mentioned