E-commerce Software Stocks Q3 Teardown: Wix (NASDAQ:WIX) vs. the Rest
As we look back at the third-quarter earnings of e-commerce software stocks, we examine this quarter’s best and worst performers, including Wix (NASDAQ:WIX) and its peers.
Although e-commerce has been around for more than two decades and has seen significant growth, its overall penetration in the retail industry still remains low. Only about $1 of every $5 spent on retail purchases comes from digital orders, leaving more than 80% of the retail market still ripe for online disruption. It is these large parts of the retail industry, where e-commerce has not yet taken hold, that are driving the demand for various e-commerce software solutions.
The five e-commerce software stocks we track reported a satisfying third quarter. As a group, revenues exceeded analyst consensus expectations by 0.7%, while revenue expectations for the next quarter were 4.4% below that.
Fortunately, e-commerce software stocks have done well, with share prices up an average of 15.3% since the last earnings results.
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy-to-use website building platform.
Wix reported revenue of $444.7 million, up 12.9% year over year. This print was in line with analyst expectations, and overall it was a satisfying quarter for the company with a decent improvement in analysts’ EBITDA estimates.
“The continued momentum and performance we achieved this year is a testament to our intense focus on best-in-class innovation,” said Avishai Abrahami, co-founder and CEO of Wix.
Wix total revenue
Wix achieved the highest full-year indication increase of the entire group. Unsurprisingly, the stock is up 18.8% since reporting and is currently trading at $218.39.
Is Now the Time to Buy Wix? See our full analysis of earnings results here. It’s free.
GoDaddy (NYSE:GDDY), founded by Bob Parsons after he sold his first company to Intuit, offers small and medium-sized businesses the ability to purchase a web domain and tools to create and manage a website.
GoDaddy reported revenue of $1.15 billion, up 7.3% year over year, in line with analyst expectations. The company had a strong quarter with an impressive return from analyst EBITDA estimates and a solid gain from analyst booking estimates.
Total revenue from GoDaddy
The market seems pleased with the results, as the stock is up 19.4% since reporting. It is currently trading at $193.01.
Is Now the Time to Buy GoDaddy? See our full analysis of earnings results here. It’s free.
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software that makes it easy for businesses to create online stores.
BigCommerce reported revenue of $83.71 million, up 7.3% year over year, beating analyst expectations by 0.7%. Still, it was a mixed quarter, as analysts’ annual recurring revenue estimates were slightly missed.
BigCommerce delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 21.3% since the results and is currently trading at $6.90.
Read our full analysis of BigCommerce’s results here.
Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) offers a software platform for building and operating e-commerce businesses.
Shopify reported revenue of $2.16 billion, up 26.1% year over year. This result exceeded analyst expectations by 2.2%. It was a strong quarter as it also saw a solid improvement in analyst EBITDA estimates and an impressive improvement in analyst total payment volume estimates.
Shopify delivered the highest analyst estimates and the fastest revenue growth among its peers. The stock is up 18.3% since reporting and is currently trading at $106.50.
Read our full, actionable report on Shopify here, it’s free.
Although the company is not a domain registrar and does not sell domain names directly to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.
VeriSign reported revenue of $390.6 million, up 3.8% year over year. This print met analysts’ expectations. Let’s take a step back: It was a mixed quarter as it failed to impress some other parts of the business.
VeriSign had the weakest performance against analyst estimates and the slowest revenue growth among its peers. The stock is down 1.2% since reporting and is currently trading at $182.94.
Read our full, actionable report on VeriSign here. It’s free.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs and is moving closer to the 2% target. This disinflation has occurred without serious consequences for economic growth, indicating a soft landing success. The stock market boomed in 2024, boosted by recent interest rate cuts (0.5% in September and 0.25% in November), and a notable rally followed Donald Trump’s presidential election victory in November, sending the indices to historic highs were pushed. Nevertheless, the outlook for 2025 remains clouded by possible changes in trade policy and corporate tax discussions, which could impact business confidence and growth. The path forward involves both optimism and caution as new policies take shape.
Do you want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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