Q2 Earnings Highlights: GoDaddy (NYSE:GDDY) Vs The Rest Of The E-commerce Software Stocks
Looking back on e-commerce software stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including GoDaddy (NYSE:GDDY) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3% below.
Luckily, e-commerce software stocks have performed well with share prices up 10.8% on average since the latest earnings results.
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 $1.30 billion, up 6.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year revenue guidance meeting analysts’ expectations and annual recurring revenue in line with analysts’ estimates.
GoDaddy achieved the highest guidance raise and highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 3% since reporting and currently trades at $96.40.
Read our full report on GoDaddy here, it’s free.
Best Q2: Shopify (NASDAQ:SHOP)
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ: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 $3.58 billion, up 33.7% year on year, outperforming analysts’ expectations by 3.7%. The business had a very strong quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ gross merchandise volume estimates.
Shopify scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14.8% since reporting. It currently trades at $141.57.
