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Q3 Rundown: Wix (NASDAQ:WIX) Vs Other E-commerce Software Stocks

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

WIX Cover Image

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the e-commerce software stocks, including Wix (NASDAQ: WIX) 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 4 e-commerce software stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.6% since the latest earnings results.

Weakest Q3: Wix (NASDAQ: WIX)

Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.

Wix reported revenues of $505.2 million, up 13.6% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and revenue guidance for next quarter meeting analysts’ expectations.

“Our goal has always been to give people the power to access advanced technology without the barriers of complexity,” said Avishai Abrahami, Co-founder and CEO of Wix.

Wix Total Revenue

Unsurprisingly, the stock is down 27.3% since reporting and currently trades at $92.25.

Read our full report on Wix here, it’s free.

Best Q3: Shopify (NASDAQ: SHOP)

Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.

Shopify reported revenues of $2.84 billion, up 31.5% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with an impressive beat of analysts’ total payment volume estimates and a solid beat of analysts’ EBITDA estimates.

Shopify Total Revenue

Shopify pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.2% since reporting. It currently trades at $167.49.

Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free.

Commerce (NASDAQ: CMRC)

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Commerce reported revenues of $86.03 million, up 2.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.

Commerce delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 9.2% since the results and currently trades at $4.24.

Read our full analysis of Commerce’s results here.

GoDaddy (NYSE: GDDY)

Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.

GoDaddy reported revenues of $1.27 billion, up 10.3% year on year. This result topped analysts’ expectations by 2.7%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

GoDaddy had the weakest full-year guidance update among its peers. The company added 4,000 customers to reach a total of 20.41 million. The stock is down 11.5% since reporting and currently trades at $112.15.

Read our full, actionable report on GoDaddy here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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