Q1 E-Commerce Software Stocks in Review: Wix (NASDAQ:WIX) vs. Competitors

The end of earnings season is always a good time to stop and see who shined (and who didn’t so much). Let’s take a look at how e-commerce software stocks performed in Q1, starting with Wix (NASDAQ:WIX).

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 solid Q1; on average, revenue beat analyst estimates by 1.5%, while revenue forecasts for the next quarter were in line with consensus. Valuation multiples for many growth stocks have not yet returned to their early 2021 highs, but the market was bullish on late 2023 due to cooling inflation. The beginning of 2024 was a different story, as mixed signals led to market volatility, but e-commerce software stocks showed resilience, with stocks up an average of 9.6% since their previous earnings results.

Slowest Q1: 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.

“Building on the milestones we achieved in 2023, we carried that momentum into the first quarter and delivered a strong start to 2024 with results that demonstrated the effectiveness of our product strategy, solid execution of our growth initiatives, and continued commitment to sustainable, profitable growth. As a result, first-quarter results exceeded expectations across the board,” said Avishai Abrahami, co-founder and CEO of Wix.

Wix delivered the weakest performance against 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 report on Wix 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.

Is it time to buy BigCommerce? Get access to our full profit performance analysis 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 reported revenue of $1.86 billion, up 23.4% year over year, in line with analyst expectations. It was a strong quarter for the company, with a significant improvement in gross margin but falling short of analyst estimates for billings.

Shopify saw the fastest revenue growth in the group. Shares are down 12.4% since the results and are currently trading at $67.52.

Read our full analysis of Shopify’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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