Let's dig into the relative performance of Squarespace (NYSE:SQSP) and its peers as we unravel the now-completed Q4 e-commerce software earnings season.

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 Q4; on average, revenues beat analyst consensus estimates by 1.7% while next quarter's revenue guidance was 0.9% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but e-commerce software stocks held their ground better than others, with share prices down 2% on average since the previous earnings results.

Best Q4: 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 $270.7 million, up 18.3% year on year, topping analyst expectations by 2.9%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and a solid beat of analysts' ARR (annual recurring revenue) estimates.

"Squarespace surpassed $1 billion in revenue for the first time in its 20-year history in 2023, driven by new customer growth across markets and strong retention, which speaks to our robust product offering," said Anthony Casalena, Founder & CEO of Squarespace.

Squarespace pulled off the highest full-year guidance raise of the whole group. The stock is up 7.9% since the results and currently trades at $36.4.

We think Squarespace is a good business, but is it a buy today? Read our full report here, it's free.

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 $2.14 billion, up 23.6% year on year, outperforming analyst expectations by 3.4%. It was a strong quarter for the company, with a decent beat of analysts' revenue and free cash flow estimates.

Shopify pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 13.5% since the results and currently trades at $77.1.

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

Slowest Q4: 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 $403.8 million, up 13.7% year on year, in line with analyst expectations. It was an ok quarter for the company, with full-year revenue guidance in line with analysts' expectations.

The stock is up 9.9% since the results and currently trades at $137.67.

Read our full analysis of Wix's results here.

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 $84.15 million, up 16.2% year on year, surpassing analyst expectations by 3.2%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations.

BigCommerce had the weakest full-year guidance update among its peers. The stock is down 17.2% since the results and currently trades at $6.84.

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

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 $1.1 billion, up 5.8% year on year, falling short of analyst expectations by 0.1%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

GoDaddy had the weakest performance against analyst estimates among its peers. The stock is up 5% since the results and currently trades at $118.68.

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

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