We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Wix.com (WIX) Down 2.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Wix.com (WIX - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Wix.com due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Wix Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
Wix.com 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Wix.com has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Wix.com (WIX) Down 2.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Wix.com (WIX - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Wix.com due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Wix Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
Wix.com 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Wix.com has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.