Q2 Earnings Roundup: Wix (NASDAQ:WIX) And The Rest Of The E-commerce Software Segment
Wrapping up Q2 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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3% below.
Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results.
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 $563.1 million, up 14.9% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and a narrow beat of analysts’ billings estimates.
“We are continuing to invest in Wix Harmony as well as Base44,” said Avishai Abrahami, Co-Founder and CEO of Wix.
Interestingly, the stock is up 23.8% since reporting and currently trades at $70.39.
Is now the time to buy Wix? Access our full analysis of the earnings results 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 pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 20.5% since reporting. It currently trades at $148.52.
