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.
Wix's Q1 Loss Wider Than Expected, Revenues Increase Y/Y
Read MoreHide Full Article
Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 72 cents per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 64 cents per share. However, the figure was wider than the year-ago quarter's 56 cents per share loss.
Total revenues increased 14% year over year to $342 million and beat the consensus mark of $340.1 million. On a constant currency basis, total revenues were $343.2 million, up 14% year over year. As of Mar 31, 2022, registered users were 228 million.
Quarter in Detail
Creative Subscriptions revenues (74.6% of revenues) increased 13% year over year to $255 million. Business Solutions revenues (25.4% of revenues) rose 17% to $86.6 million.
In the first quarter, Creative Subscriptions Annualized Recurring Revenues were $1.04 billion, up 12% year over year.
Bookings were $393.2 million, up 12% year over year. Creative Subscriptions increased 12% year over year to $299.8 million. Business Solutions rose 13% to $93.5 million.
Region-wise, North America, Europe, Asia and others and Latin America contributed 58%, 26%, 12% and 4% to first-quarter revenues, respectively. Revenues from North America, Europe, Asia and others and Latin America increased 15%, 14%, 14% and 3% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 100 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 43%, contracting 200 bps year over year.
Wix reported a non-GAAP operating loss of $51 million compared with a non-GAAP operating loss of $37.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Mar 31, 2022, long-term debt was reported at $924 million compared with $923 million as of Dec 31, 2021.
Cash flow used from operations amounted to $13.7 million in the first quarter compared with cash flow from the operation of $21 million in the previous quarter.
Capital expenditures totaled $19.9 million in the reported quarter. Free cash outflow was $33.6 million.
Guidance
For second-quarter 2022, revenues are expected between $342 million and $346 million, suggesting 8-10% growth from the prior-year quarter's reported figure. The guidance includes the negative impact of the cessation of operations in Ukraine ($0.6 million) and foreign exchange headwinds ($4 million). Excluding these factors, guidance for revenue growth for the quarter would likely have been 10-11% year over year, noted WIX.
The Zacks Consensus Estimate for the same is pegged at $356.53 million.
The Zacks Consensus Estimate for Flex’s fiscal 2023 earnings is pegged at $2.16 per share, up 6.9% in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.
Flex’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 21.1%. Shares of FLEX have declined 7.1% in the past year.
The Zacks Consensus Estimate for Jabil fiscal 2022 earnings is pegged at $7.25 per share, up 10.4% in the past 60 days. The long-term earnings growth rate is 12%.
Jabil’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 13.5%. Shares of JBL have gained 7.7% in the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 0.5% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 15.6%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 33.7% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wix's Q1 Loss Wider Than Expected, Revenues Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 72 cents per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 64 cents per share. However, the figure was wider than the year-ago quarter's 56 cents per share loss.
Total revenues increased 14% year over year to $342 million and beat the consensus mark of $340.1 million. On a constant currency basis, total revenues were $343.2 million, up 14% year over year. As of Mar 31, 2022, registered users were 228 million.
Quarter in Detail
Creative Subscriptions revenues (74.6% of revenues) increased 13% year over year to $255 million. Business Solutions revenues (25.4% of revenues) rose 17% to $86.6 million.
In the first quarter, Creative Subscriptions Annualized Recurring Revenues were $1.04 billion, up 12% year over year.
Bookings were $393.2 million, up 12% year over year. Creative Subscriptions increased 12% year over year to $299.8 million. Business Solutions rose 13% to $93.5 million.
Wix.com Ltd. Price
Wix.com Ltd. price | Wix.com Ltd. Quote
Region-wise, North America, Europe, Asia and others and Latin America contributed 58%, 26%, 12% and 4% to first-quarter revenues, respectively. Revenues from North America, Europe, Asia and others and Latin America increased 15%, 14%, 14% and 3% year over year, respectively.
Operating Details
Non-GAAP gross margin contracted 100 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 43%, contracting 200 bps year over year.
Wix reported a non-GAAP operating loss of $51 million compared with a non-GAAP operating loss of $37.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Mar 31, 2022, long-term debt was reported at $924 million compared with $923 million as of Dec 31, 2021.
Cash flow used from operations amounted to $13.7 million in the first quarter compared with cash flow from the operation of $21 million in the previous quarter.
Capital expenditures totaled $19.9 million in the reported quarter. Free cash outflow was $33.6 million.
Guidance
For second-quarter 2022, revenues are expected between $342 million and $346 million, suggesting 8-10% growth from the prior-year quarter's reported figure. The guidance includes the negative impact of the cessation of operations in Ukraine ($0.6 million) and foreign exchange headwinds ($4 million). Excluding these factors, guidance for revenue growth for the quarter would likely have been 10-11% year over year, noted WIX.
The Zacks Consensus Estimate for the same is pegged at $356.53 million.
Zacks Rank & Other Stocks to Consider
Currently, Wix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are Flex (FLEX - Free Report) , Jabil (JBL - Free Report) and Broadcom (AVGO - Free Report) . While Flex and Jabil sport a Zacks Rank #1 (Strong Buy), Broadcom carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Flex’s fiscal 2023 earnings is pegged at $2.16 per share, up 6.9% in the past 60 days. The long-term earnings growth rate is pegged at 14.9%.
Flex’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 21.1%. Shares of FLEX have declined 7.1% in the past year.
The Zacks Consensus Estimate for Jabil fiscal 2022 earnings is pegged at $7.25 per share, up 10.4% in the past 60 days. The long-term earnings growth rate is 12%.
Jabil’s earnings beat the Zacks Consensus Estimate all last four quarters, with the average being 13.5%. Shares of JBL have gained 7.7% in the past year.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 0.5% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 15.6%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 33.7% in the past year.