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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.
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.
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 Q2 Earnings & Revenues Beat Estimates, Increase Y/Y
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.
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 (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.