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Wix.com (WIX) Q2 Loss In Line With Estimates, Revenues Up Y/Y
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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.
Image: Bigstock
Wix.com (WIX) Q2 Loss In Line With Estimates, Revenues Up Y/Y
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.
Wix.com Ltd. Price, Consensus and EPS Surprise
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
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.