Q4 Rundown: Wix (NASDAQ:WIX) Vs Other E-commerce Software Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Wix (NASDAQ:WIX) and the best and worst performers in the e-commerce software industry.
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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
While some e-commerce software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.
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 $460.5 million, up 14% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with revenue guidance for next quarter meeting analysts’ expectations.
“Wix sets a high standard for innovation and creativity, and we’re constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,” said Avishai Abrahami, Wix Co-founder and CEO.
Wix Total Revenue
Wix delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 12.4% since reporting and currently trades at $199.51.
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 $2.81 billion, up 31.2% year on year, outperforming analysts’ expectations by 3%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ total payment volume estimates.
Shopify Total Revenue
Shopify scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $111.69.
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 $87.03 million, up 3.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year guidance of slowing revenue growth and a miss of analysts’ billings estimates.
BigCommerce delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.7% since the results and currently trades at $6.88.
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 $395.4 million, up 3.9% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business.
The stock is up 8.8% since reporting and currently trades at $239.49.
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 $1.19 billion, up 8.4% year on year. This result topped analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates.
GoDaddy delivered the highest full-year guidance raise among its peers. The stock is down 16.6% since reporting and currently trades at $177.27.
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