Spotting Winners: GoDaddy (NYSE:GDDY) And E-commerce Software Stocks In Q3

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at GoDaddy (NYSE:GDDY) and the best and worst performers in the e-commerce software industry.

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 5 e-commerce software stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Luckily, e-commerce software stocks have performed well with share prices up 25.1% on average since the latest earnings results.

GoDaddy (NYSE:GDDY)

GoDaddy reported revenues of $1.15 billion, up 7.3% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ bookings estimates.

Interestingly, the stock is up 33.2% since reporting and currently trades at $215.40.

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Best Q3: Shopify (NYSE:SHOP)

Shopify reported revenues of $2.16 billion, up 26.1% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with an impressive beat of analysts’ EBITDA and total payment volume estimates.

Shopify delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 32.7% since reporting. It currently trades at $119.47.

Weakest Q3: VeriSign (NASDAQ:VRSN)

VeriSign reported revenues of $390.6 million, up 3.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it struggled in other parts of the business.

VeriSign delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 15.6% since the results and currently trades at $214.01.

BigCommerce (NASDAQ:BIGC)

BigCommerce reported revenues of $83.71 million, up 7.3% year on year. This result surpassed analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.

BigCommerce had the weakest full-year guidance update among its peers. The stock is up 13.4% since reporting and currently trades at $6.45.

Wix (NASDAQ:WIX)

Wix reported revenues of $444.7 million, up 12.9% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it underperformed in some other aspects of the business.

Wix achieved the highest full-year guidance raise among its peers. The stock is up 30.8% since reporting and currently trades at $240.51.

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This content was originally published on Stock Story