Wix.com Ltd. (WIX - Free Report) reported second-quarter 2021 non-GAAP loss of 28 cents per share, which was in line with the Zacks Consensus Estimate and wider than year-ago quarter’s 26 cents.
Total revenues increased 34% year over year to $316.4 million and beat the consensus estimate by 1.58%.
Region wise, North America, Europe, Asia and others, and Latin America contributed 58%, 25%, 12% and 5% of second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others, and Latin America increased 35%, 33%, 23% and 15% year over year, respectively.
Quarter in Detail
Creative Subscriptions revenues (80.6% of revenues) increased 24% year over year to $236 million. Business Solutions revenues (19.4% of revenues) surged 75.5% to $45.9 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $967.3 million, up 22% year over year.
Collections were $343 million, up 29% year over year. Creative Subscriptions increased 21% year over year to $263 million. Business Solutions surged 66% to $79.8 million.
Online commerce accounted for 35% of total collections, up 33% year over year. Business Solutions Revenue and Collections were up 75% and 66%, year over year, respectively.
Non-GAAP gross margin contracted 810 basis points (bps) to 71.1%.
Non-GAAP research and development expenses, as a percentage of revenues, grew 100 bps year over year to 32%. Non-GAAP selling and marketing expenses were 38.9% compared with year-ago quarter’s 50.6%.
Wix reported non-GAAP operating loss of $17.5 million compared with non-GAAP operating loss of $17 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2021, Wix had $927.5 million in cash compared with $1.6 billion as of Mar 31, 2021. As of Jun 30, 2021, long-term debt was reported at $834.4 million compared with $919 million as of Mar 31, 2021.
Cash flow from operations amounted to $21.8 million during the second quarter compared with $18.5 million in the previous quarter.
Free cash flow was $14.7 million compared with $14.6 million in the prior quarter.
Guidance
For third-quarter 2021, Collections are projected to be $355-$365 million, indicating an improvement of 26-30% from the year-ago quarter’s reported figure.
Revenues are expected between $311 million and $317 million, suggesting growth of 26-30% from the prior-year quarter’s reported figure.
Wix.com raised its full-year 2021 outlook. Collections are now projected in the range of $1.40-$1.44 billion, indicating an improvement of 27-30% from the prior-year quarter’s level. Earlier, the company guided Collections in the range of $1.44-$1.46 billion.
Revenues are now expected between $1.255 billion and $1.27 billion, indicating growth of 27-28% from the prior-year quarter’s reported figure. Earlier, the company guided revenues in the range of $1.280-$1.29 billion.
The company now anticipates free cash flow in the range of $60-$65 million.
Zacks Rank & Stocks to Consider
Wix.com currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include CyberArk Software (CYBR - Free Report) , Immersion (IMMR - Free Report) and Agilent Technologies (A - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
CyberArk, Immersion and Agilent are set to report their earnings release on Aug 12, 16 and 17, respectively.
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Wix.com Ltd. (WIX - Free Report) reported second-quarter 2021 non-GAAP loss of 28 cents per share, which was in line with the Zacks Consensus Estimate and wider than year-ago quarter’s 26 cents.
Total revenues increased 34% year over year to $316.4 million and beat the consensus estimate by 1.58%.
Region wise, North America, Europe, Asia and others, and Latin America contributed 58%, 25%, 12% and 5% of second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others, and Latin America increased 35%, 33%, 23% and 15% year over year, respectively.
Quarter in Detail
Creative Subscriptions revenues (80.6% of revenues) increased 24% year over year to $236 million. Business Solutions revenues (19.4% of revenues) surged 75.5% to $45.9 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $967.3 million, up 22% year over year.
Collections were $343 million, up 29% year over year. Creative Subscriptions increased 21% year over year to $263 million. Business Solutions surged 66% to $79.8 million.
Online commerce accounted for 35% of total collections, up 33% year over year. Business Solutions Revenue and Collections were up 75% and 66%, year over year, respectively.
Non-GAAP gross margin contracted 810 basis points (bps) to 71.1%.
Non-GAAP research and development expenses, as a percentage of revenues, grew 100 bps year over year to 32%. Non-GAAP selling and marketing expenses were 38.9% compared with year-ago quarter’s 50.6%.
Wix reported non-GAAP operating loss of $17.5 million compared with non-GAAP operating loss of $17 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2021, Wix had $927.5 million in cash compared with $1.6 billion as of Mar 31, 2021. As of Jun 30, 2021, long-term debt was reported at $834.4 million compared with $919 million as of Mar 31, 2021.
Cash flow from operations amounted to $21.8 million during the second quarter compared with $18.5 million in the previous quarter.
Free cash flow was $14.7 million compared with $14.6 million in the prior quarter.
Guidance
For third-quarter 2021, Collections are projected to be $355-$365 million, indicating an improvement of 26-30% from the year-ago quarter’s reported figure.
Revenues are expected between $311 million and $317 million, suggesting growth of 26-30% from the prior-year quarter’s reported figure.
Wix.com raised its full-year 2021 outlook. Collections are now projected in the range of $1.40-$1.44 billion, indicating an improvement of 27-30% from the prior-year quarter’s level. Earlier, the company guided Collections in the range of $1.44-$1.46 billion.
Revenues are now expected between $1.255 billion and $1.27 billion, indicating growth of 27-28% from the prior-year quarter’s reported figure. Earlier, the company guided revenues in the range of $1.280-$1.29 billion.
The company now anticipates free cash flow in the range of $60-$65 million.
Zacks Rank & Stocks to Consider
Wix.com currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include CyberArk Software (CYBR - Free Report) , Immersion (IMMR - Free Report) and Agilent Technologies (A - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
CyberArk, Immersion and Agilent are set to report their earnings release on Aug 12, 16 and 17, respectively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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