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Q2 Earnings Roundup: BigCommerce (NASDAQ:BIGC) And The Rest Of The E-commerce Software Segment

StockStory - Mon Oct 2, 2023

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the e-commerce software stocks have fared in Q2, starting with BigCommerce (NASDAQ:BIGC).

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 a mixed Q2; on average, revenues beat analyst consensus estimates by 1.64%, while on average next quarter revenue guidance was 0.06% above consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but e-commerce software stocks held their ground better than others, with share prices down 3.1% since the previous earnings results, on average.

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 $75.4 million, up 10.6% year on year, beating analyst expectations by 2.84%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.

“We hit two big milestones in the second quarter. We reached profitability on an adjusted EBITDA basis in June, and we delivered full-quarter positive free cash flow for the first time,” said Brent Bellm, CEO at BigCommerce.

BigCommerce Total Revenue

BigCommerce delivered the weakest full year guidance update of the whole group. The stock is up 3.57% since the results and currently trades at $9.87.

Read our full report on BigCommerce here, it's free.

Best Q2: Shopify (NYSE:SHOP)

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

Shopify reported revenues of $1.69 billion, up 30.8% year on year, beating analyst expectations by 4.27%. It was a very strong quarter for the company, with a significant improvement in its gross margin compared to the previous quarter and a decent beat of analysts' revenue estimates.

Shopify Total Revenue

Shopify scored the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is down 11.9% since the results and currently trades at $54.97.

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

Weakest Q2: 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 $1.05 billion, up 3.21% year on year, missing analyst expectations by 0.61%. EPS also missed. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

GoDaddy had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 1.64% since the results and currently trades at $74.48.

Read our full analysis of GoDaddy's results here.

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 $372 million, up 5.71% year on year, missing analyst expectations by 0.29%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates. On the other hand, free cash flow was still strong and in line with last year.

The stock is down 3.27% since the results and currently trades at $202.53.

Read our full, actionable report on VeriSign 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 $390 million, up 13% year on year, beating analyst expectations by 1.92%. It was a good quarter for the company, with an improvement in gross margin. In addition, full year revenue guidance was lifted and came in ahead of analysts' expectations.

Wix scored the highest full year guidance raise among the peers. The stock is up 4.28% since the results and currently trades at $92.29.

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

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The author has no position in any of the stocks mentioned

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