Looking back on e-commerce software stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Commerce (NASDAQ: CMRC) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 24.3% since the latest earnings results.

Commerce (NASDAQ: CMRC)

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Commerce reported revenues of $86.03 million, up 2.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.

“The third quarter marked another strong step forward in our transformation, with revenue in line with guidance and profitability and cash flow exceeding expectations,” said Travis Hess, CEO of Commerce.

Commerce achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 19.5% since reporting and currently trades at $3.17.

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

Best Q3: Shopify (NASDAQ: SHOP)

Starting with just three people selling snowboards online in 2004, Shopify (NYSE: 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 $2.84 billion, up 31.5% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with a solid beat of analysts’ total payment volume estimates and an impressive beat of analysts’ EBITDA estimates.

Shopify delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $139.14.

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

Weakest Q3: 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 $505.2 million, up 13.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and revenue guidance for next quarter meeting analysts’ expectations.

As expected, the stock is down 27% since the results and currently trades at $92.69.

Read our full analysis of Wix’s results here.

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 $1.27 billion, up 10.3% year on year. This number topped analysts’ expectations by 2.7%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

GoDaddy had the weakest full-year guidance update among its peers. The company added 4,000 customers to reach a total of 20.41 million. The stock is down 18.5% since reporting and currently trades at $103.35.

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

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