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Wix.com (WIX) to Report Q3 Earnings: What's in the Offing?
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Wix.com Ltd.’s (WIX - Free Report) is slated to release third-quarter 2020 results on Nov 12.
For the third quarter, the company expects revenues to be $247-$250 million. The Zacks Consensus Estimate for revenues is pegged at $249.9 million, suggesting growth of 27% from the prior-year quarter.
The Zacks Consensus Estimate for third-quarter bottom line stands at loss of 11 cents, unchanged over the last 30 days. The company had reported earnings of 41 cents per share in the third quarter of 2019.
Factors Likely to Have Influenced Q3 Results
Strong momentum in online selling activity courtesy of coronavirus crisis-induced e-commerce boom is expected to have driven collection. Consequently, this might get reflected in the company’s to-be-reported quarter’s results.
For third-quarter 2020, Collections are projected in the range of $270 million to $275 million. The Zacks Consensus Estimate for Collections is pegged at $274 million, suggesting growth of 32.4% from the year-ago reported figure.
In the backdrop of coronavirus crisis triggered digitalization, Wix has been undertaking measures to expand subscriber base with product roll outs and enhancement of existing portfolio of services. These user-friendly applications might have witnessed robust adoption due to their easy-to-use and creative features. This, in turn, may have contributed to the to-be-reported quarter’s performance.
Likewise, incremental adoption of innovative digital services including Editor X, Wix ADI, Wix Logo Maker, Wix Answers, Ascend by Wix, Wix Turbo and Wix Payments is expected to have aided the third-quarter performance.
Moreover, growing clout of latest eCommerce solution is likely to have acted as a tailwind. Markedly, the eCommerce solution is aimed at enabling merchants to boost business with customizable storefronts and carts, and enable them to offer products across multiple channel with easy drop-shipping and integrated payment processing capabilities.
Further, growth in stay-at-home trends due to COVID-19 induced shelter-in-place guidelines is expected to have increased the number of new registered users, premium subscriptions and cohort collections across many of its geographies.
In the last reported quarter, the company witnessed better-than-expected conversion and retention in user cohorts. The company added a total of 346K net premium subscriptions (up 17% year over year) in the last reported quarter, which came in at 5 million as of Jun 30, 2020. This trend is likely to have continued in the third quarter, sustained by the aforementioned increase in traffic due to COVID-19.
The Zacks Consensus Estimate for number of net premium subscriptions is pegged at approximately 5.25 million for the quarter under review.
Meanwhile, the consensus mark for registered users stands at 189.7 million. In the second quarter, Wix had added 9.3 million new registered users. Registered users as of Jun 30, 2020 were 182 million, up 18% year over year.
However, increasing investments on business expansion and strategic deals including product roll outs and partnerships is anticipated to have weighed on the company’s performance in the quarter to be reported.
Also, intensifying competition from Shopify and cloud-based software and payments platform like Mindbody and BookingSuite, may have impeded business prospects.
Further, focus on small-and-medium sized (SMB) businesses, which are bearing the brunt of macroeconomic headwinds amid coronavirus crisis led slowdown, is likely to have hurt margins and bottom-line performance in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But, that’s not the case here.
Wix has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks worth keeping a tab on, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Deere & Company (DE - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #3.
Rockwell Automation, Inc. (ROK - Free Report) has an Earnings ESP of +3.67% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Wix.com (WIX) to Report Q3 Earnings: What's in the Offing?
Wix.com Ltd.’s (WIX - Free Report) is slated to release third-quarter 2020 results on Nov 12.
For the third quarter, the company expects revenues to be $247-$250 million. The Zacks Consensus Estimate for revenues is pegged at $249.9 million, suggesting growth of 27% from the prior-year quarter.
The Zacks Consensus Estimate for third-quarter bottom line stands at loss of 11 cents, unchanged over the last 30 days. The company had reported earnings of 41 cents per share in the third quarter of 2019.
Factors Likely to Have Influenced Q3 Results
Strong momentum in online selling activity courtesy of coronavirus crisis-induced e-commerce boom is expected to have driven collection. Consequently, this might get reflected in the company’s to-be-reported quarter’s results.
For third-quarter 2020, Collections are projected in the range of $270 million to $275 million. The Zacks Consensus Estimate for Collections is pegged at $274 million, suggesting growth of 32.4% from the year-ago reported figure.
In the backdrop of coronavirus crisis triggered digitalization, Wix has been undertaking measures to expand subscriber base with product roll outs and enhancement of existing portfolio of services. These user-friendly applications might have witnessed robust adoption due to their easy-to-use and creative features. This, in turn, may have contributed to the to-be-reported quarter’s performance.
Likewise, incremental adoption of innovative digital services including Editor X, Wix ADI, Wix Logo Maker, Wix Answers, Ascend by Wix, Wix Turbo and Wix Payments is expected to have aided the third-quarter performance.
Moreover, growing clout of latest eCommerce solution is likely to have acted as a tailwind. Markedly, the eCommerce solution is aimed at enabling merchants to boost business with customizable storefronts and carts, and enable them to offer products across multiple channel with easy drop-shipping and integrated payment processing capabilities.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Further, growth in stay-at-home trends due to COVID-19 induced shelter-in-place guidelines is expected to have increased the number of new registered users, premium subscriptions and cohort collections across many of its geographies.
In the last reported quarter, the company witnessed better-than-expected conversion and retention in user cohorts. The company added a total of 346K net premium subscriptions (up 17% year over year) in the last reported quarter, which came in at 5 million as of Jun 30, 2020. This trend is likely to have continued in the third quarter, sustained by the aforementioned increase in traffic due to COVID-19.
The Zacks Consensus Estimate for number of net premium subscriptions is pegged at approximately 5.25 million for the quarter under review.
Meanwhile, the consensus mark for registered users stands at 189.7 million. In the second quarter, Wix had added 9.3 million new registered users. Registered users as of Jun 30, 2020 were 182 million, up 18% year over year.
However, increasing investments on business expansion and strategic deals including product roll outs and partnerships is anticipated to have weighed on the company’s performance in the quarter to be reported.
Also, intensifying competition from Shopify and cloud-based software and payments platform like Mindbody and BookingSuite, may have impeded business prospects.
Further, focus on small-and-medium sized (SMB) businesses, which are bearing the brunt of macroeconomic headwinds amid coronavirus crisis led slowdown, is likely to have hurt margins and bottom-line performance in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But, that’s not the case here.
Wix has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are some stocks worth keeping a tab on, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere & Company (DE - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #3.
Rockwell Automation, Inc. (ROK - Free Report) has an Earnings ESP of +3.67% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>