VRSN) and other e-commerce software stocks

When looking at first-quarter earnings for e-commerce software companies, we took a look at the best and worst performers for the quarter, including VeriSign (NASDAQ:VRSN) and its peers.

While e-commerce has been around for over two decades and is enjoying significant growth, its overall retail penetration remains low. Only about $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for the online revolution. It is these large areas of retail where e-commerce has yet to take hold that are driving demand for various e-commerce software solutions.

The 6 e-commerce software stocks we track had a strong Q1, with revenue beating analyst estimates by 1.5% on average, while revenue forecasts for the next quarter were in line with consensus. Inflation was trending toward the Fed’s 2% target at the end of 2023, leading to strong stock market performance. The start of 2024 was bumpier, as the market toggled between optimism and pessimism on interest rate cuts amid mixed inflation data, but e-commerce software stocks showed resilience, with stocks up an average of 8.8% since the previous earnings results.

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 that supports domain names such as .com and .net.

VeriSign reported revenue of $384.3 million, up 5.5% year over year, in line with analyst expectations. It was a strong quarter for the company, with revenue and EPS slightly ahead of analyst estimates.

“These results mark another quarter of solid, consistent financial performance as we begin 2024,” said Jim Bidzos, executive chairman, CEO and chief executive officer.

VeriSign delivered the slowest revenue growth of the group. Shares are down 3.6% since the results and are currently trading at $176.06.

Is it time to buy VeriSign? Access our full earnings analysis here, it’s free.

Top Q1: BigCommerce (NASDAQ:BIGC)

BigCommerce (NASDAQ:BIGC) was founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani. It provides software that helps businesses easily create online stores.

BigCommerce reported revenue of $80.36 million, up 12% year over year and topping analyst expectations by 4.1%. It was a solid quarter for the company, which impressively topped analyst estimates for billings and topped full-year revenue guidance.

BigCommerce delivered the biggest beat on analyst estimates among its peers. Shares are up 15.3% since the results and are currently trading at $7.72.

The story continues

Is it time to buy BigCommerce? Get access to our full profit performance analysis here, it’s free.

Wix (NASDAQ: WIX)

Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy-to-use website building platform.

Wix reported revenue of $419.8 million, up 12.2% year over year, in line with analyst expectations. It was a mixed quarter for the company, with a decent beat on analyst estimates for billings but a decline in gross margin.

Wix had the weakest results vs. analyst estimates and the weakest full-year forecast update of the group. Shares are up 14.8% since the results and are currently trading at $156.03.

Read our full analysis of Wix’s performance here.

Squarespace (NYSE:SQSP)

Founded in 2003 in New York City, Squarespace (NYSE:SQSP) is a platform that enables small businesses and creators to build their digital presence online.

Squarespace reported revenue of $281.1 million, up 18.6% year over year and topping analyst expectations by 1.7%. It was a decent quarter for the company, with an impressive beat on analyst estimates for billings but a decline in gross margin.

Squarespace got the biggest full-year estimate increase among its peers. Shares are up 23.5% since the results and are currently trading at $43.78.

Read our full, hands-on report on Squarespace here. It’s free.

GoDaddy (NYSE:GDDY)

GoDaddy (NYSE:GDDY), founded by Bob Parsons after selling his first company to Intuit, offers small and medium-sized businesses the ability to purchase a domain name and the tools to build and manage a website.

GoDaddy reported revenue of $1.11 billion, up 7% year over year and beating analyst expectations by 1.1%. It was a solid quarter for the company, with a solid beat on analyst estimates for bookings but a decline in gross margin.

The stock has risen 15.9% since the results were announced and currently sits at $143.99.

Read our full, hands-on report on GoDaddy here. It’s free.

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