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E-commerce Software Stocks Q1 Recap: Benchmarking GoDaddy (NYSE:GDDY)


Jabin Bastian /
2022/06/23 4:58 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today we are looking at the e-commerce software stocks, starting with GoDaddy (NYSE:GDDY).

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 slower Q1; on average, revenues beat analyst consensus estimates by 1.66%, while on average next quarter revenue guidance was 1.05% under consensus. There has been a stampede out of high valuation technology stocks, but e-commerce software stocks held their ground better than others, with the share price up 0.32% since earnings, on average.

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 billion, up 11.2% year on year, beating analyst expectations by 1.36%. It was a weaker quarter for the company, with a slow revenue growth and guidance for the next quarter roughly in-line with analysts' estimates.

"GoDaddy's value proposition for helping small businesses succeed by simplifying their needs is resonating in the market, as evidenced by our strong first quarter financial results," said GoDaddy CEO Aman Bhutani, "We continue to execute well against our strategic priorities, including building a one-stop shop for connected commerce, ubiquitous presence and digital identity, wrapped in our world-class customer service."

GoDaddy Total Revenue

GoDaddy delivered the slowest revenue growth and weakest full year guidance update of the whole group. The stock is down 19.4% since the results and currently trades at $66.19.

Read our full report on GoDaddy 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 $66 million, up 41.5% year on year, beating analyst expectations by 3.46%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating growth in large customers.

BigCommerce Total Revenue

BigCommerce achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 218 enterprise customers paying more than $2,000 annually to a total of 12,972. The stock is down 12.7% since the results and currently trades at $16.40.

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

Weakest 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 $341.5 million, up 12.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

Wix had the weakest performance against analyst estimates in the group. The stock is down 15.2% since the results and currently trades at $60.35.

Read our full analysis of Wix'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 $207.7 million, up 15.6% year on year, beating analyst expectations by 1.48%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

The stock is up 48.7% since the results and currently trades at $21.47.

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

The author has no position in any of the stocks mentioned