E-commerce Software Q2 Results: Squarespace (NYSE:SQSP) Simply the Best

The end of earnings season is always a good time to pause and see who shined (and who didn’t). Let’s take a look at how e-commerce software stocks performed in Q2, starting with Squarespace (NYSE:SQSP).

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 companies we track had a decent Q2. As a group, revenue beat analyst estimates by 0.9%, while revenue forecasts for the next quarter were in line.

Stocks — especially those trading at higher multiples — had a strong end to 2023, but the year has been volatile. Mixed signals on inflation have led to uncertainty about interest rate cuts. Fortunately, e-commerce software stocks have been resilient, with shares up an average of 5.6% since the last earnings results.

Top Q2: 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 $296.8 million, up 19.9% ​​year over year. That print beat analyst expectations by 1.2%. Overall, it was a strong quarter for the company with an impressive beat on analyst estimates for billings and a decent beat on analyst estimates for ARR (annual recurring revenue).

Interestingly, since the report was published, the company’s shares have increased by 2.9% and are currently valued at $45.34.

We think Squarespace is a good business, but is it worth buying today? Read our full report here, it’s free.

Shopify (NYSE:SHOP)

Originally created as an internal tool for a snowboarding company, Shopify (NYSE:SHOP) is a software platform for building and running an e-commerce business.

Shopify announced revenue of $2.05 billion, up 20.7% year over year and beating analyst expectations by 1.7%. It was a strong quarter for the company, which significantly beat analyst estimates for total payments volume as well as analyst estimates for gross merchandise value (GMV).

Shopify delivered the biggest beat on analyst estimates and the fastest revenue growth among its peers. The market seems pleased with the results, as the stock is up 35.5% since the report. It currently trades at $73.50.

Is it time to buy Shopify? Access our full profit performance analysis here, it’s free.

Slowest Q2: 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 $387.1 million, up 4.1% year over year, in line with analyst expectations. It was a strong quarter for the company, with a slight beat in analyst revenue estimates.

VeriSign had the weakest results vs. analyst estimates and the slowest revenue growth of the group. Interestingly, shares are up 3.1% since the results and are currently trading at $182.

Read our full analysis of VeriSign’s results here.

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 $1.12 billion, up 7.3% year over year, in line with analyst expectations. Taking a step back, it was a strong quarter for the company, with bookings comfortably beating analyst estimates.

GoDaddy posted the largest full-year guidance increase among its peers. Shares are up 16.8% since the report and are currently trading at $164.99.

Read our full, hands-on 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-use website building platform.

Wix reported revenue of $435.7 million, up 11.7% year over year, in line with analyst expectations. More broadly, it was a decent quarter for the company, with a solid beat on analyst estimates for billings, but full-year revenue guidance fell short of analyst expectations.

Since the report was released, the company’s shares are up 3.9% and are currently trading at $163.33.

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

Join Paid Stock Investor Research

Help us make StockStory more useful for investors like you. Join our paid user research session and receive a $50 Amazon gift card for your feedback. Sign up here.