The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how BigCommerce (NASDAQ: BIGC) and the rest of the e-commerce software stocks fared in Q1.
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 mixed Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $82.37 million, up 2.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.
“Our transformation efforts are leading to encouraging signs of progress, including positive increases in pipeline and leads in the three months ended March 31, 2025,” said Travis Hess, CEO of BigCommerce.
BigCommerce delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 3.7% since reporting and currently trades at $5.01.
Read our full report on BigCommerce here, it’s free.
Best Q1: Shopify (NASDAQ: 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 $2.36 billion, up 26.8% year on year, outperforming analysts’ expectations by 1.1%. The business performed better than its peers, but it was unfortunately a mixed quarter with a narrow beat of analysts’ billings estimates but gross merchandise volume in line with analysts’ estimates.
Shopify scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $104.70.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.19 billion, up 7.7% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a mixed quarter as it posted a miss of analysts’ annual recurring revenue estimates.
As expected, the stock is down 6.3% since the results and currently trades at $180.39.
Read our full analysis of GoDaddy’s results here.
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 $473.7 million, up 12.8% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a narrow beat of analysts’ billings estimates.
The stock is down 16.1% since reporting and currently trades at $152.70.
Read our full, actionable report on Wix 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 $402.3 million, up 4.7% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 12.1% since reporting and currently trades at $283.
Read our full, actionable report on VeriSign here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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