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Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.22 for fourth-quarter 2023, exceeding the Zacks Consensus Estimate of 98 cents. The company had reported EPS of 61 cents in the year-ago quarter.
Total revenues increased 14% year over year to $403.8 million and beat the Zacks Consensus Estimate of $402.6 million.
At the end of Dec 31, 2023, registered users were 263 million.
Creative Subscriptions’ revenues (73.3% of total revenues) increased 12% year over year to $296.2 million. Business Solutions’ revenues (26.7% of total revenues) rose 20% to $107.6 million.
In fourth-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.19 billion, up 10% year over year.
Bookings of $395 million improved 6% year over year. Creative Subscriptions’ bookings increased 1% year over year to $283.5 million. Business Solutions’ bookings rose 24% to $111.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to fourth-quarter 2023 revenues, up 13%, 14%,9% and 21% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 500 basis points to 70%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported a non-GAAP operating income of $64.7 million compared with $30.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Wix had cash and cash equivalents of $609.6 million. Long-term debt was $569.7 million compared with $568.9 million as of Sep 30.
Cash flow provided from operations amounted to $90.4 million compared with $53.2 million in the year-ago quarter.
Capital expenditures totaled $10 million. Free cash flow was $80.4 million.
Outlook
For first-quarter 2024, revenues are expected to be between $415 million and $419 million, suggesting 11-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $417.3 million.
The company anticipates 2024 revenues to grow 11-13% and in the range of $1.73-$1.76 billion.
Non-GAAP operating expenses are expected to be 51%-52% of revenues for 2024.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $370-$400 million, representing 21%-23%% of revenues.
The Zacks Consensus Estimate for Cadence’s 2024 EPS has improved 1.9% in the past 60 days to $5.87. CDNS’s long-term earnings growth rate is 17.1%.
Cadence’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.4%. Shares of CDNS have gained 51% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 29.7% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies fiscal 2024 EPS has improved 0.4% in the past 60 days to $8.35. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 13.5%. Shares of WTS have soared 9.1% in the past year.
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WIX Q4 Earnings & Revenues Beat Estimates, Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.22 for fourth-quarter 2023, exceeding the Zacks Consensus Estimate of 98 cents. The company had reported EPS of 61 cents in the year-ago quarter.
Total revenues increased 14% year over year to $403.8 million and beat the Zacks Consensus Estimate of $402.6 million.
At the end of Dec 31, 2023, registered users were 263 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 (73.3% of total revenues) increased 12% year over year to $296.2 million. Business Solutions’ revenues (26.7% of total revenues) rose 20% to $107.6 million.
In fourth-quarter 2023, Creative Subscriptions annualized recurring revenues were $1.19 billion, up 10% year over year.
Bookings of $395 million improved 6% year over year. Creative Subscriptions’ bookings increased 1% year over year to $283.5 million. Business Solutions’ bookings rose 24% to $111.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to fourth-quarter 2023 revenues, up 13%, 14%,9% and 21% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 500 basis points to 70%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported a non-GAAP operating income of $64.7 million compared with $30.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Wix had cash and cash equivalents of $609.6 million. Long-term debt was $569.7 million compared with $568.9 million as of Sep 30.
Cash flow provided from operations amounted to $90.4 million compared with $53.2 million in the year-ago quarter.
Capital expenditures totaled $10 million. Free cash flow was $80.4 million.
Outlook
For first-quarter 2024, revenues are expected to be between $415 million and $419 million, suggesting 11-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $417.3 million.
The company anticipates 2024 revenues to grow 11-13% and in the range of $1.73-$1.76 billion.
Non-GAAP operating expenses are expected to be 51%-52% of revenues for 2024.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $370-$400 million, representing 21%-23%% of revenues.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Cadence Design Systems (CDNS - Free Report) , Woodward (WWD - Free Report) and Watts Water Technologies (WTS - Free Report) . Cadence sports a Zacks Rank #1 (Strong Buy), while Watts Water Technologies and Woodward carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cadence’s 2024 EPS has improved 1.9% in the past 60 days to $5.87. CDNS’s long-term earnings growth rate is 17.1%.
Cadence’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.4%. Shares of CDNS have gained 51% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 29.7% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies fiscal 2024 EPS has improved 0.4% in the past 60 days to $8.35. WTS’s long-term earnings growth rate is 7.8%.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 13.5%. Shares of WTS have soared 9.1% in the past year.