As Q4 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the e-commerce software stocks, including GoDaddy (NYSE:GDDY) 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. 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 1.03% since earnings, on average.
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 weak quarter for the company, with the guidance for both the next quarter and the full year missing analyst estimates.
"GoDaddy accelerated its pace of execution across the business in 2021 and delivered another great year of results," said GoDaddy CEO Aman Bhutani.
The stock is up 13.2% since the results and currently trades at $84.
Read our full report on GoDaddy here, it's free.
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.
BigCommerce delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 376 enterprise customers paying more than $2,000 annually to a total of 12,754. The stock is down 15.8% since the results and currently trades at $21.80.
Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it's free.
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 10.1% since the results and currently trades at $104.
Read our full analysis of Wix's results here.
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 weak quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates.
Squarespace had the weakest full year guidance update among the peers. The stock is up 16.9% since the results and currently trades at $26.54.
Read our full, actionable report on Squarespace here, it's free.
The author has no position in any of the stocks mentioned