Q4 Earnings Highlights: Wix (NASDAQ:WIX) Vs The Rest Of The E-commerce Software Stocks
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 the e-commerce software stocks have fared in Q4, 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 a mixed Q4; on average, revenues beat analyst consensus estimates by 1.7% while next quarter's revenue guidance was 0.9% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but e-commerce software stocks held their ground better than others, with share prices down 1.9% on average since the previous earnings results.
Slowest 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 $403.8 million, up 13.7% year on year, in line with analyst expectations. It was a decent quarter for the company, with revenue guidance for the full year inline with analysts' expectations.
"We wrapped up an outstanding year of accelerating growth and record profitability with a strong fourth quarter underpinned by robust business fundamentals and anchored by incredible momentum in our Partners business," said Avishai Abrahami, Wix Co-founder and CEO.
The stock is up 9.2% since the results and currently trades at $136.75.
Read our full report on Wix here, it's free.
Best Q4: 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 $270.7 million, up 18.3% year on year, outperforming analyst expectations by 2.9%. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates. However, profitability missed, leading to EPS below expectations.
Squarespace delivered the highest full-year guidance raise among its peers. The stock is up 8.3% since the results and currently trades at $36.53.
Is now the time to buy Squarespace? Access our full analysis of the earnings results here, it's free.
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 $84.15 million, up 16.2% year on year, exceeding analyst expectations by 3.2%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations.
BigCommerce had the weakest full-year guidance update in the group. The stock is down 19.1% since the results and currently trades at $6.68.
Read our full analysis of BigCommerce's results here.
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 $380.4 million, up 3% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue estimates.
VeriSign had the slowest revenue growth among its peers. The stock is down 5.3% since the results and currently trades at $190.5.
Read our full, actionable report on VeriSign 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 $2.14 billion, up 23.6% year on year, surpassing analyst expectations by 3.4%. It was a strong quarter for the company, with and a decent beat of analysts' revenue estimates. Looking ahead at Q1 2024, Shopify's revenue outlook topped Wall Street's forecasts.
Shopify scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 14.7% since the results and currently trades at $76.04.
Read our full, actionable report on Shopify here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
