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E-commerce Software Stocks Q1 In Review: Wix (NASDAQ:WIX) Vs Peers


Adam Hejl /
2024/07/08 3:51 am EDT

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 take a look at how e-commerce software stocks fared in Q1, starting with Wix (NASDAQ:WIX).

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 an ok Q1; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but e-commerce software stocks have shown resilience, with share prices up 9.6% on average since the previous earnings results.

Slowest Q1: 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 $419.8 million, up 12.2% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with a decent beat of analysts' billings estimates but a decline in its gross margin.

"Building on the milestones achieved in 2023, we carried that momentum into the first quarter and delivered a strong start to 2024 with results demonstrating the efficacy of our product strategy, solid execution of our growth initiatives, and steadfast commitment to balanced profitable growth. As a result, Q1 results outperformed expectations across the board," said Avishai Abrahami, Wix Co-founder and CEO.

Wix Total Revenue

Wix delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is up 14.8% since the results and currently trades at $156.03.

Read our full report on Wix here, it's free.

Best Q1: 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 $80.36 million, up 12% year on year, outperforming analysts' expectations by 4.1%. It was a solid quarter for the company, with an impressive beat of analysts' billings estimates and full-year revenue guidance topping analysts' expectations.

BigCommerce Total Revenue

BigCommerce delivered the biggest analyst estimates beat among its peers. The stock is up 15.3% since the results and currently trades at $7.72.

Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it's free.

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 $1.86 billion, up 23.4% year on year, in line with analysts' expectations. It was an ok quarter for the company, with a significant improvement in its gross margin but a miss of analysts' billings estimates.

Shopify scored the fastest revenue growth in the group. The stock is down 12.4% since the results and currently trades at $67.52.

Read our full analysis of Shopify's results here.

Squarespace (NYSE:SQSP)

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 $281.1 million, up 18.6% year on year, surpassing analysts' expectations by 1.7%. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates but a decline in its gross margin.

Squarespace scored the highest full-year guidance raise among its peers. The stock is up 23.5% since the results and currently trades at $43.78.

Read our full, actionable report on Squarespace 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 $1.11 billion, up 7% year on year, surpassing analysts' expectations by 1.1%. It was an ok quarter for the company, with a solid beat of analysts' bookings estimates but a decline in its gross margin.

The stock is up 15.9% since the results and currently trades at $143.99.

Read our full, actionable report on GoDaddy here, it's free.

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