Wrapping up Q3 earnings, we look at the numbers and key takeaways for the e-commerce software stocks, including BigCommerce (NASDAQ:BIGC) 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 5 e-commerce software stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.
Luckily, e-commerce software stocks have performed well with share prices up 19.3% on average since the latest earnings results.
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 $83.71 million, up 7.3% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.
“BigCommerce has been significantly underrepresented in the marketplace relative to the strength of our products,” said Travis Hess, CEO of BigCommerce.
BigCommerce delivered the weakest full-year guidance update of the whole group. The stock is up 1.2% since reporting and currently trades at $5.76.
Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $2.16 billion, up 26.1% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and total payment volume estimates.
Shopify pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 22.7% since reporting. It currently trades at $110.43.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $390.6 million, up 3.8% year on year, in line with analysts’ expectations. It was a mixed quarter due to its lackluster performance in other areas of the business.
VeriSign delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 13.8% since the results and currently trades at $210.75.
Read our full analysis of VeriSign’s results here.
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 $1.15 billion, up 7.3% year on year. This print met analysts’ expectations. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ bookings estimates.
The stock is up 31.1% since reporting and currently trades at $212.
Read our full, actionable report on GoDaddy 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 $444.7 million, up 12.9% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it failed to impress in some other areas of the business.
Wix scored the highest full-year guidance raise among its peers. The stock is up 27.8% since reporting and currently trades at $235.
Read our full, actionable report on Wix here, it’s free.
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