Yahoo Finance Q1 Earnings Highlights: GoDaddy (NYSE:GDDY) Vs The Rest Of The E-commerce Software Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the e-commerce software industry, including GoDaddy (NYSE:GDDY) and its peers.
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 6 e-commerce software stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but e-commerce software stocks have performed well, with the share prices up 10.1% on average since the previous earnings results.
GoDaddy (NYSE:GDDY)
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 $1.11 billion, up 7% year on year, exceeding analysts' expectations by 1.1%. Overall, it was an ok quarter for the company with a solid beat of analysts' bookings estimates but a decline in its gross margin.
"We are off to a great start in 2024, and we are excited to build on this momentum as we execute on our mission of empowering entrepreneurs everywhere and making opportunity more inclusive for all," said GoDaddy CEO Aman Bhutani.
The stock is up 15.9% since reporting and currently trades at $144.04.
Is now the time to buy GoDaddy? Access our full analysis of the earnings results here, it's free.
Best Q1: BigCommerce (NASDAQ:BIGC)
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 $80.36 million, up 12% year on year, outperforming analysts' expectations by 4.1%. It was a solid quarter for the company with an impressive beat of analysts' billings estimates and full-year revenue guidance topping analysts' expectations.
BigCommerce delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 20.7% since reporting. It currently trades at $8.08.
Is now the time to buy BigCommerce? Access our full analysis of the earnings results here, it's free.
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 $419.8 million, up 12.2% year on year, in line with analysts' expectations. It was a mixed quarter for the company with a decent beat of analysts' billings estimates but a decline in its gross margin.
Wix posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 20.3% since the results and currently trades at $163.46.
Read our full analysis of Wix's results here.
Squarespace (NYSE:SQSP)
Founded in New York City in 2003, Squarespace (NYSE:SQSP) is a platform for small businesses and creators to build their digital presences online.
Squarespace reported revenues of $281.1 million, up 18.6% year on year, surpassing analysts' expectations by 1.7%. Overall, it was a decent quarter for the company with an impressive beat of analysts' billings estimates but a decline in its gross margin.
Squarespace pulled off the highest full-year guidance raise among its peers. The stock is up 23.6% since reporting and currently trades at $43.82.
Read our full, actionable report on Squarespace here, it's free.
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 to support domain names such as .com and .net.
VeriSign reported revenues of $384.3 million, up 5.5% year on year, in line with analysts' expectations. More broadly, it was an ok quarter for the company.
VeriSign had the slowest revenue growth among its peers. The stock is down 2.2% since reporting and currently trades at $178.62.
Read our full, actionable report on VeriSign here, it's free.
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