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WIX Set to Report Q4 Earnings: Here's What You Should Know
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Wix.com Ltd (WIX - Free Report) is slated to report fourth-quarter 2023 results on Feb 21.
The company expects fourth-quarter revenues to be between $400 million and $405 million, suggesting 13-14% growth from the prior-year figure. The Zacks Consensus Estimate is pegged at $402.6 million, indicating an increase of 13.4% from a year ago.
The Zacks Consensus Estimate for earnings is pegged at 98 cents per share. The company reported earnings of 61 cents in the year-ago quarter.
WIX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 283.6%.
Wix stock has gained 48.4% compared with sub-industry’s growth of 37.6% in the past year.
Image Source: Zacks Investment Research
Factors to Consider
Wix’s performance is likely to have been aided by solid momentum in the Creative Subscriptions and Business Solutions segments. The Zacks Consensus estimate for revenues from the Creative Subscriptions and Business Solutions segments is pegged at $296 million and $107 million, respectively.
Growth in the number of registered users and premium subscriptions are key revenue drivers. At the end of third-quarter 2023, registered users were 258 million. The conversion of new users to paid subscriptions, increasing monetization and strong customer retention are driving average revenue per subscriptions.
Increasing revenues from Partners business as well as B2B business bode well. In the last reported quarter, revenues from Partners business grew 38% year over year.
Momentum in WIX studio as well as efforts to tap the growing demand for AI-enabled products through new products like Conversational AI Chat for businesses and AI Meta Tags Creator bodes well. In November 2023, the company announced the launch of a conversational AI chat to help users in building their online business profile and enhancing their website. It also introduced AI Meta Tag Creator to their built-in SEO tools to help users generating customized title tags and meta descriptions.
The company’s cost reduction initiative is expected to have cushioned its margin performance.
Management 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).
WIX estimates free cash flow (excluding HQ capital expenditure) in the range of $235-$240 million, representing 15% of revenues. Earlier, it had projected the metric (excluding HQ capital expenditure) to be between $200 million and $210 million, representing 13% of revenues.
However, volatile macroeconomic environment and unfavorable foreign currency fluctuations could weigh down on the company’s performance.
Recent Developments
On Feb 15, 2024, Wix announced the completion of $300 million in share buybacks, which received court approval in December 2023. This repurchases are part of the company’s authorization by its board of directors’ approval in August 2023.
On Jan 10, 2024, Wix announced a new revenue sharing plan for Partners using Wix Studio. This plan is part of the exclusive Wix Partner Program which is a loyalty-based program. Wix Partner Program boasts benefits like a Partner success manager, priority support, eligibility to join the Wix Marketplace, advanced features and collaboration opportunities within the Wix community. These benefits will aid professionals to drive their business growth.
What Our Model Says
Our proven model does not 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.
Wix has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for CDXS’ to-be-reported quarter’s revenues is pegged at $19.31 million. The consensus estimate is pegged at a loss of 16 cents per share.
Wayfair Inc (W - Free Report) has an Earnings ESP of +13.64% and a Zacks Rank #2. W is set to post fourth-quarter 2023 results on Feb 22.
The Zacks Consensus Estimate for Wayfair’s to-be-reported quarter’s revenues is pegged at $3.11 billion. The consensus estimate is pegged at a loss of 22 cents per share.
Floor & Decor Holdings, Inc (FND - Free Report) has an Earnings ESP of +6.74% and carries a Zacks Rank #2. FND is slated to release fourth-quarter of 2023 numbers on Feb 22.
The Zacks Consensus Estimate for FND’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.01 billion, respectively. Shares of FND have increased 16.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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WIX Set to Report Q4 Earnings: Here's What You Should Know
Wix.com Ltd (WIX - Free Report) is slated to report fourth-quarter 2023 results on Feb 21.
The company expects fourth-quarter revenues to be between $400 million and $405 million, suggesting 13-14% growth from the prior-year figure. The Zacks Consensus Estimate is pegged at $402.6 million, indicating an increase of 13.4% from a year ago.
The Zacks Consensus Estimate for earnings is pegged at 98 cents per share. The company reported earnings of 61 cents in the year-ago quarter.
WIX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 283.6%.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Wix stock has gained 48.4% compared with sub-industry’s growth of 37.6% in the past year.
Image Source: Zacks Investment Research
Factors to Consider
Wix’s performance is likely to have been aided by solid momentum in the Creative Subscriptions and Business Solutions segments. The Zacks Consensus estimate for revenues from the Creative Subscriptions and Business Solutions segments is pegged at $296 million and $107 million, respectively.
Growth in the number of registered users and premium subscriptions are key revenue drivers. At the end of third-quarter 2023, registered users were 258 million. The conversion of new users to paid subscriptions, increasing monetization and strong customer retention are driving average revenue per subscriptions.
Increasing revenues from Partners business as well as B2B business bode well. In the last reported quarter, revenues from Partners business grew 38% year over year.
Momentum in WIX studio as well as efforts to tap the growing demand for AI-enabled products through new products like Conversational AI Chat for businesses and AI Meta Tags Creator bodes well. In November 2023, the company announced the launch of a conversational AI chat to help users in building their online business profile and enhancing their website. It also introduced AI Meta Tag Creator to their built-in SEO tools to help users generating customized title tags and meta descriptions.
The company’s cost reduction initiative is expected to have cushioned its margin performance.
Management 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).
WIX estimates free cash flow (excluding HQ capital expenditure) in the range of $235-$240 million, representing 15% of revenues. Earlier, it had projected the metric (excluding HQ capital expenditure) to be between $200 million and $210 million, representing 13% of revenues.
However, volatile macroeconomic environment and unfavorable foreign currency fluctuations could weigh down on the company’s performance.
Recent Developments
On Feb 15, 2024, Wix announced the completion of $300 million in share buybacks, which received court approval in December 2023. This repurchases are part of the company’s authorization by its board of directors’ approval in August 2023.
On Jan 10, 2024, Wix announced a new revenue sharing plan for Partners using Wix Studio. This plan is part of the exclusive Wix Partner Program which is a loyalty-based program. Wix Partner Program boasts benefits like a Partner success manager, priority support, eligibility to join the Wix Marketplace, advanced features and collaboration opportunities within the Wix community. These benefits will aid professionals to drive their business growth.
What Our Model Says
Our proven model does not 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.
Wix has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Codexis, Inc (CDXS - Free Report) has an Earnings ESP of +81.25% and a Zacks Rank #2. CDXS is scheduled to report fourth-quarter fiscal 2023 earnings on Feb 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDXS’ to-be-reported quarter’s revenues is pegged at $19.31 million. The consensus estimate is pegged at a loss of 16 cents per share.
Wayfair Inc (W - Free Report) has an Earnings ESP of +13.64% and a Zacks Rank #2. W is set to post fourth-quarter 2023 results on Feb 22.
The Zacks Consensus Estimate for Wayfair’s to-be-reported quarter’s revenues is pegged at $3.11 billion. The consensus estimate is pegged at a loss of 22 cents per share.
Floor & Decor Holdings, Inc (FND - Free Report) has an Earnings ESP of +6.74% and carries a Zacks Rank #2. FND is slated to release fourth-quarter of 2023 numbers on Feb 22.
The Zacks Consensus Estimate for FND’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.01 billion, respectively. Shares of FND have increased 16.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.