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Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.10 for third-quarter 2023, exceeding the Zacks Consensus Estimate of 77 cents. The company had reported EPS of 6 cents in the year-ago quarter.
Total revenues increased 14% year over year to $393.8 million and beat the Zacks Consensus Estimate of $389.5 million.
At the end of Sep 30, 2023, registered users were 258 million.
Creative Subscriptions’ revenues (73.8% of total revenues) increased 11% year over year to $290.6 million. Business Solutions’ revenues (26.2% of total revenues) rose 22% to $103.2 million.
In third-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.18 billion, up 10% year over year.
Bookings of $389.1 million improved 10% year over year. Creative Subscriptions’ bookings increased 5% year over year to $283.9 million. Business Solutions’ bookings rose 27% to $105.2 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 61%, 24%, 12% and 4% to third-quarter 2023 revenues, up 16%, 11%,11% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 300 basis points to 68%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported a non-GAAP operating income of $57.9 million against the non-GAAP operating loss of $3.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Wix had cash and cash equivalents of $504.7 million. Long-term debt was $568.9 million compared with $568.1 million as of Jun 30.
Cash flow provided from operations amounted to $64.1 million compared with $0.3 million in the year-ago quarter.
Capital expenditures totaled $19.4 million. Free cash flow was $44.8 million.
Outlook
For fourth-quarter 2023, revenues are expected to be between $400 million and $405 million, suggesting 13-14% 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 12-13% and in the range of $1,558-$1,563 million (earlier view: growth of 11-12% and in the range of $1,543-$1,558 million).
Non-GAAP operating expenses are expected to decline 53%-54% of revenues compared with the earlier guided range of 56%-57%
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $235-$240 million, representing 15% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) between $200 and $210 million, representing 13% of revenues.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have soared 24.5% in the past year.
The Zacks Consensus Estimate for Flex’s 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 35.4% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has improved 7.3% in the past 60 days to $3.07.
Badger Meter’s earnings outpaced the Zacks Consensus Estimate in all the last four quarters, the average surprise being 10.3%. Shares of BMI have surged 30.9% in the past year.
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WIX Q3 Earnings & Revenues Beat Estimates, Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.10 for third-quarter 2023, exceeding the Zacks Consensus Estimate of 77 cents. The company had reported EPS of 6 cents in the year-ago quarter.
Total revenues increased 14% year over year to $393.8 million and beat the Zacks Consensus Estimate of $389.5 million.
At the end of Sep 30, 2023, registered users were 258 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 (73.8% of total revenues) increased 11% year over year to $290.6 million. Business Solutions’ revenues (26.2% of total revenues) rose 22% to $103.2 million.
In third-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.18 billion, up 10% year over year.
Bookings of $389.1 million improved 10% year over year. Creative Subscriptions’ bookings increased 5% year over year to $283.9 million. Business Solutions’ bookings rose 27% to $105.2 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 61%, 24%, 12% and 4% to third-quarter 2023 revenues, up 16%, 11%,11% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 300 basis points to 68%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported a non-GAAP operating income of $57.9 million against the non-GAAP operating loss of $3.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Wix had cash and cash equivalents of $504.7 million. Long-term debt was $568.9 million compared with $568.1 million as of Jun 30.
Cash flow provided from operations amounted to $64.1 million compared with $0.3 million in the year-ago quarter.
Capital expenditures totaled $19.4 million. Free cash flow was $44.8 million.
Outlook
For fourth-quarter 2023, revenues are expected to be between $400 million and $405 million, suggesting 13-14% 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 12-13% and in the range of $1,558-$1,563 million (earlier view: growth of 11-12% and in the range of $1,543-$1,558 million).
Non-GAAP operating expenses are expected to decline 53%-54% of revenues compared with the earlier guided range of 56%-57%
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $235-$240 million, representing 15% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) between $200 and $210 million, representing 13% 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 Asure Software (ASUR - Free Report) , Flex (FLEX - Free Report) and Badger Meter (BMI - Free Report) . Each stock 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 Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have soared 24.5% in the past year.
The Zacks Consensus Estimate for Flex’s 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 35.4% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has improved 7.3% in the past 60 days to $3.07.
Badger Meter’s earnings outpaced the Zacks Consensus Estimate in all the last four quarters, the average surprise being 10.3%. Shares of BMI have surged 30.9% in the past year.