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Wix (WIX) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
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Wix.com Ltd. (WIX - Free Report) reported a fourth-quarter 2021 non-GAAP loss of 37 cents per share, narrower than the Zacks Consensus Estimate for a loss of 38 cents per share. However, the figure was wider than the year-ago quarter's loss of 3 cents per share.
Total revenues increased 16% year over year to $328.3 million, missing the consensus estimate by 0.6%.
For 2021, the company’s total revenues came in at $1.27 billion, up 29% from the prior year’s levels. Non-GAAP loss per share was $1.39 per share compared with non-GAAP loss per share of 48 cents reported in the previous year.
As of Dec 31, 2021, registered users were 222 million, up 13% year over year. The company added 478,000 net premium subscriptions in 2021.
Creative Subscriptions revenues (75.1% of revenues) increased 15% year over year to $246.7 million. Business Solutions revenues (24.9% of revenues) rose 19% to $81.7 million.
In the fourth quarter, Creative Subscriptions Annualized Recurring Revenues were $1.01 billion, up 15% year over year.
Bookings were $351.6 million, up 15% year over year. Creative Subscriptions increased 12% year over year to $264 million. Business Solutions rose 25% to $87.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 56%, 27%, 13% and 4% to fourth-quarter revenues, respectively. Revenues from North America, Europe, Asia and others, and Latin America increased 14%, 20%, 19% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 300 basis points (bps) to 62%.
Non-GAAP research and development expenses, as a percentage of revenues, expanded 300 bps year over year to 26%. Non-GAAP selling and marketing expenses were 35%, contracting 100 bps year over year.
Wix reported a non-GAAP operating loss of $24.2 million compared with a non-GAAP operating loss of $7.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Wix's cash and cash equivalents stood at $1.7 billion.
As of Dec 31, 2021, long-term debt was reported at $923 million compared with $922 million as of Sep 30, 2021.
Cash flow from operations amounted to $21 million in the fourth quarter compared with $4.3 million in the previous quarter.
Capital expenditures totaled $13.7 million in the reported quarter. Free cash flow was $7.3 million.
Guidance
For first-quarter 2022, revenues are expected between $338 million and $343 million, suggesting 11-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $359.4 million.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 28.6% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 32.8% in the past year.
The Zacks Consensus Estimate for Cadence 2021 earnings is pegged at $3.25 per share. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11%. Shares of CDNS have returned 3% in the past year.
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Wix (WIX) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
Wix.com Ltd. (WIX - Free Report) reported a fourth-quarter 2021 non-GAAP loss of 37 cents per share, narrower than the Zacks Consensus Estimate for a loss of 38 cents per share. However, the figure was wider than the year-ago quarter's loss of 3 cents per share.
Total revenues increased 16% year over year to $328.3 million, missing the consensus estimate by 0.6%.
For 2021, the company’s total revenues came in at $1.27 billion, up 29% from the prior year’s levels. Non-GAAP loss per share was $1.39 per share compared with non-GAAP loss per share of 48 cents reported in the previous year.
As of Dec 31, 2021, registered users were 222 million, up 13% year over year. The company added 478,000 net premium subscriptions in 2021.
Wix.com Ltd. Price, Consensus and EPS Surprise
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
Quarter in Detail
Creative Subscriptions revenues (75.1% of revenues) increased 15% year over year to $246.7 million. Business Solutions revenues (24.9% of revenues) rose 19% to $81.7 million.
In the fourth quarter, Creative Subscriptions Annualized Recurring Revenues were $1.01 billion, up 15% year over year.
Bookings were $351.6 million, up 15% year over year. Creative Subscriptions increased 12% year over year to $264 million. Business Solutions rose 25% to $87.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 56%, 27%, 13% and 4% to fourth-quarter revenues, respectively. Revenues from North America, Europe, Asia and others, and Latin America increased 14%, 20%, 19% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 300 basis points (bps) to 62%.
Non-GAAP research and development expenses, as a percentage of revenues, expanded 300 bps year over year to 26%. Non-GAAP selling and marketing expenses were 35%, contracting 100 bps year over year.
Wix reported a non-GAAP operating loss of $24.2 million compared with a non-GAAP operating loss of $7.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Wix's cash and cash equivalents stood at $1.7 billion.
As of Dec 31, 2021, long-term debt was reported at $923 million compared with $922 million as of Sep 30, 2021.
Cash flow from operations amounted to $21 million in the fourth quarter compared with $4.3 million in the previous quarter.
Capital expenditures totaled $13.7 million in the reported quarter. Free cash flow was $7.3 million.
Guidance
For first-quarter 2022, revenues are expected between $338 million and $343 million, suggesting 11-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $359.4 million.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth considering from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Cadence Design Systems (CDNS - Free Report) . All carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 28.6% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 32.8% in the past year.
The Zacks Consensus Estimate for Cadence 2021 earnings is pegged at $3.25 per share. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11%. Shares of CDNS have returned 3% in the past year.