Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.26 for second-quarter 2023, exceeding the Zacks Consensus Estimate of 54 cents. The company had incurred a loss of 14 cents in the previous-year quarter.
Total revenues increased 13% year over year to $390 million and beat the Zacks Consensus Estimate of $381.8 million.
At the end of Jun 30, registered users were 254 million.
Quarter in Detail
Creative Subscriptions’ revenues (73.6% of total revenues) increased 11% year over year to $287.1 million. Business Solutions’ revenues (26.4% of total revenues) rose 18% to $102.9 million.
In second-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.16 billion, up 10% year over year.
Bookings of $398.5 million improved 12% year over year. Creative Subscriptions’ bookings increased 9% year over year to $293.9 million. Business Solutions’ bookings rose 23% to $104.6 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 63%, 23%, 11% and 4% to second-quarter 2023 revenues, up 21%, 2%, 3% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 600 basis points to 68%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported non-GAAP operating income of $68.8 million against the non-GAAP operating loss of $12.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, Wix had cash and cash equivalents of $468 million. Long-term debt was $568.1 million compared with $567.4 million as of Mar 31, 2023.
Cash flow provided from operations amounted to $47.8 million against the cash used from operations of $2.7 million in the year-ago quarter.
Capital expenditures totaled $15.8 million. Free cash flow was $32 million.
Outlook
For third-quarter 2023, revenues are expected to be between $386 million and $391 million, suggesting 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $385.2 million.
The company now anticipates 2023 revenues to grow 11-12% and in the range of $1,543-$1,558 million (earlier view: growth of 10-11% and in the range of $1,522-$1,543 million).
Non-GAAP operating expenses are expected to decline 56%-57% of revenues compared with the earlier guided range of 58-59%.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $200-$210 million, representing 13% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) between $172 million and $180 million, representing 11-12% of revenues.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Badger Meter (BMI - Free Report) and Woodward (WWD - Free Report) . Each of these companies presently sports 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 InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.8% in the past 60 days to $3.61.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.
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Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.26 for second-quarter 2023, exceeding the Zacks Consensus Estimate of 54 cents. The company had incurred a loss of 14 cents in the previous-year quarter.
Total revenues increased 13% year over year to $390 million and beat the Zacks Consensus Estimate of $381.8 million.
At the end of Jun 30, registered users were 254 million.
Quarter in Detail
Creative Subscriptions’ revenues (73.6% of total revenues) increased 11% year over year to $287.1 million. Business Solutions’ revenues (26.4% of total revenues) rose 18% to $102.9 million.
In second-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.16 billion, up 10% year over year.
Bookings of $398.5 million improved 12% year over year. Creative Subscriptions’ bookings increased 9% year over year to $293.9 million. Business Solutions’ bookings rose 23% to $104.6 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 63%, 23%, 11% and 4% to second-quarter 2023 revenues, up 21%, 2%, 3% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 600 basis points to 68%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported non-GAAP operating income of $68.8 million against the non-GAAP operating loss of $12.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, Wix had cash and cash equivalents of $468 million. Long-term debt was $568.1 million compared with $567.4 million as of Mar 31, 2023.
Cash flow provided from operations amounted to $47.8 million against the cash used from operations of $2.7 million in the year-ago quarter.
Capital expenditures totaled $15.8 million. Free cash flow was $32 million.
Outlook
For third-quarter 2023, revenues are expected to be between $386 million and $391 million, suggesting 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $385.2 million.
The company now anticipates 2023 revenues to grow 11-12% and in the range of $1,543-$1,558 million (earlier view: growth of 10-11% and in the range of $1,522-$1,543 million).
Non-GAAP operating expenses are expected to decline 56%-57% of revenues compared with the earlier guided range of 58-59%.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $200-$210 million, representing 13% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) between $172 million and $180 million, representing 11-12% of revenues.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Badger Meter (BMI - Free Report) and Woodward (WWD - Free Report) . Each of these companies presently sports 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 InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.8% in the past 60 days to $3.61.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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