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Wix's Q2 Loss Narrower Than Expected, Revenues Increase Y/Y
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Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 14 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate loss of 39 cents per share. The company reported a loss of 28 cents per share in the previous-year quarter.
Total revenues increased 9% year over year to $345.2 million and beat the consensus mark of $343.8 million. On a constant-currency basis, total revenues were $349 million, up 11% year over year. As of Jun 30, 2022, registered users were 234 million.
Creative Subscriptions revenues (74.8% of revenues) increased 9% year over year to $258.2 million. Business Solutions revenues (25.2% of revenues) rose 9% to $87 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $1.05 billion, up 9% year over year.
Bookings were $354.6 million, up 3% year over year. Creative Subscriptions’ bookings increased 3% year over year to $269.9 million. Business Solutions’ bookings rose 6% to $84.7 million.
Region-wise, North America, Europe, Asia and others; and Latin America contributed 58%, 26%, 12% and 4% to second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others; and Latin America increased 12%, 10%, 10% and 2% 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 were 26% and remained flat compared with the previous-year quarter. Non-GAAP selling and marketing expenses were 32%, contracting 400 bps year over year.
Wix reported a non-GAAP operating loss of $12.9 million compared with a non-GAAP operating loss of $17.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Jun 30, 2022, long-term debt was reported at $565 million compared with $924 million as of Mar 31, 2022.
Cash flow used from operations amounted to $2.7 million in the second quarter compared with cash flow from the operation of $13.7 million in the previous quarter.
Capital expenditures totaled $13.2 million in the reported quarter. Free cash outflow was $15.9 million.
Guidance
For third-quarter 2022, revenues are expected between $341 million and $345 million, suggesting 7-8% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $356.58 million.
The company expects 2022 revenues to grow at 8% to 10% year over year.
The company expects free cash flow to be 2% to 3% of revenues in 2022.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 23.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.7% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.1% in the past year.
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Wix's Q2 Loss Narrower Than Expected, Revenues Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported a non-GAAP loss of 14 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate loss of 39 cents per share. The company reported a loss of 28 cents per share in the previous-year quarter.
Total revenues increased 9% year over year to $345.2 million and beat the consensus mark of $343.8 million. On a constant-currency basis, total revenues were $349 million, up 11% year over year. As of Jun 30, 2022, registered users were 234 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 (74.8% of revenues) increased 9% year over year to $258.2 million. Business Solutions revenues (25.2% of revenues) rose 9% to $87 million.
In the second quarter, Creative Subscriptions Annualized Recurring Revenues were $1.05 billion, up 9% year over year.
Bookings were $354.6 million, up 3% year over year. Creative Subscriptions’ bookings increased 3% year over year to $269.9 million. Business Solutions’ bookings rose 6% to $84.7 million.
Region-wise, North America, Europe, Asia and others; and Latin America contributed 58%, 26%, 12% and 4% to second-quarter revenues, respectively. Revenues from North America, Europe, Asia and others; and Latin America increased 12%, 10%, 10% and 2% 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 were 26% and remained flat compared with the previous-year quarter. Non-GAAP selling and marketing expenses were 32%, contracting 400 bps year over year.
Wix reported a non-GAAP operating loss of $12.9 million compared with a non-GAAP operating loss of $17.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Wix's cash and cash equivalents stood at $1.5 billion.
As of Jun 30, 2022, long-term debt was reported at $565 million compared with $924 million as of Mar 31, 2022.
Cash flow used from operations amounted to $2.7 million in the second quarter compared with cash flow from the operation of $13.7 million in the previous quarter.
Capital expenditures totaled $13.2 million in the reported quarter. Free cash outflow was $15.9 million.
Guidance
For third-quarter 2022, revenues are expected between $341 million and $345 million, suggesting 7-8% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the same is pegged at $356.58 million.
The company expects 2022 revenues to grow at 8% to 10% year over year.
The company expects free cash flow to be 2% to 3% of revenues in 2022.
Zacks Rank & Other Stocks to Consider
Currently, Wix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence Design Systems, Badger Meter and Arista Networks (ANET - Free Report) each sport 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 CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 23.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.7% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.1% in the past year.