Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 14 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate loss of 39 cents per share. The company reported a loss of 28 cents per share in the previous-year quarter.
Total revenues increased 9% year over year to $345.2 million and beat the consensus mark of $343.8 million. On a constant-currency basis, total revenues were $349 million, up 11% year over year. As of Jun 30, 2022, registered users were 234 million.
Quarter in Detail
Creative Subscriptions revenues (74.8% of revenues) increased 9% year over year to $258.2 million. Business Solutions revenues (25.2% of revenues) rose 9% to $87 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $1.05 billion, up 9% year over year.
Bookings were $354.6 million, up 3% year over year. Creative Subscriptions’ bookings increased 3% year over year to $269.9 million. Business Solutions’ bookings rose 6% to $84.7 million.
Region-wise, North America, Europe, Asia and others; and Latin America contributed 58%, 26%, 12% and 4% to second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others; and Latin America increased 12%, 10%, 10% and 2% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 100 basis points (bps) to 62%
Non-GAAP research and development expenses, as a percentage of revenues were 26% and remained flat compared with the previous-year quarter. Non-GAAP selling and marketing expenses were 32%, contracting 400 bps year over year.
Wix reported a non-GAAP operating loss of $12.9 million compared with a non-GAAP operating loss of $17.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Jun 30, 2022, long-term debt was reported at $565 million compared with $924 million as of Mar 31, 2022.
Cash flow used from operations amounted to $2.7 million in the second quarter compared with cash flow from the operation of $13.7 million in the previous quarter.
Capital expenditures totaled $13.2 million in the reported quarter. Free cash outflow was $15.9 million.
Guidance
For third-quarter 2022, revenues are expected between $341 million and $345 million, suggesting 7-8% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $356.58 million.
The company expects 2022 revenues to grow at 8% to 10% year over year.
The company expects free cash flow to be 2% to 3% of revenues in 2022.
Zacks Rank & Other Stocks to Consider
Currently, Wix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence Design Systems, Badger Meter and Arista Networks (ANET - Free Report) each sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 23.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.7% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.1% in the past year.
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Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
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Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 14 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate loss of 39 cents per share. The company reported a loss of 28 cents per share in the previous-year quarter.
Total revenues increased 9% year over year to $345.2 million and beat the consensus mark of $343.8 million. On a constant-currency basis, total revenues were $349 million, up 11% year over year. As of Jun 30, 2022, registered users were 234 million.
Quarter in Detail
Creative Subscriptions revenues (74.8% of revenues) increased 9% year over year to $258.2 million. Business Solutions revenues (25.2% of revenues) rose 9% to $87 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $1.05 billion, up 9% year over year.
Bookings were $354.6 million, up 3% year over year. Creative Subscriptions’ bookings increased 3% year over year to $269.9 million. Business Solutions’ bookings rose 6% to $84.7 million.
Region-wise, North America, Europe, Asia and others; and Latin America contributed 58%, 26%, 12% and 4% to second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others; and Latin America increased 12%, 10%, 10% and 2% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 100 basis points (bps) to 62%
Non-GAAP research and development expenses, as a percentage of revenues were 26% and remained flat compared with the previous-year quarter. Non-GAAP selling and marketing expenses were 32%, contracting 400 bps year over year.
Wix reported a non-GAAP operating loss of $12.9 million compared with a non-GAAP operating loss of $17.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Jun 30, 2022, long-term debt was reported at $565 million compared with $924 million as of Mar 31, 2022.
Cash flow used from operations amounted to $2.7 million in the second quarter compared with cash flow from the operation of $13.7 million in the previous quarter.
Capital expenditures totaled $13.2 million in the reported quarter. Free cash outflow was $15.9 million.
Guidance
For third-quarter 2022, revenues are expected between $341 million and $345 million, suggesting 7-8% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $356.58 million.
The company expects 2022 revenues to grow at 8% to 10% year over year.
The company expects free cash flow to be 2% to 3% of revenues in 2022.
Zacks Rank & Other Stocks to Consider
Currently, Wix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence Design Systems, Badger Meter and Arista Networks (ANET - Free Report) each sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 23.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.7% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.1% in the past year.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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