Heading into the new earnings season, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the e-commerce software stocks, starting with Shopify (NYSE:SHOP).
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 5 e-commerce software stocks we track reported a weak Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 2.41% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but e-commerce software stocks held their ground better than others, with share prices down 2.07% since the previous earnings results, on average.
Weakest Q2: 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 $1.29 billion, up 15.6% year on year, missing analyst expectations by 2.67%. It was a weak quarter for the company, with a miss of the top line analyst estimates and slow revenue growth.
"The superpowers Shopify continued to build for our merchants in Q2 serve them well across virtually any channel and in any environment," said Harley Finkelstein, Shopify's President.
Shopify delivered the weakest performance against analyst estimates of the whole group. The stock is down 0.41% since the results and currently trades at $28.14.
Read our full report on Shopify here, it's free.
Best Q2: 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 $68.2 million, up 39.1% year on year, beating analyst expectations by 3.08%. It was a mixed quarter for the company, with exceptional revenue growth but underwhelming revenue guidance for the next quarter.
BigCommerce scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 27.5% since the results and currently trades at $13.32.
Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it's free.
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 $212.7 million, up 8.51% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
Squarespace had the slowest revenue growth and weakest full year guidance update in the group. The stock is up 10.3% since the results and currently trades at $21.99.
Read our full analysis of Squarespace's results here.
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 9.04% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
The stock is down 1.27% since the results and currently trades at $74.61.
Read our full, actionable report on GoDaddy here, it's free.
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.
Wix reported revenues of $345.2 million, up 9.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a slow revenue growth.
The stock is up 8.47% since the results and currently trades at $74.60.
Read our full, actionable report on Wix here, it's free.
The author has no position in any of the stocks mentioned