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.com Ltd (WIX - Free Report) reported non-GAAP earnings of 61 cents per share for fourth-quarter 2022, exceeding the Zacks Consensus Estimate of 8 cents. The company had incurred a loss of 34 cents per share in the previous-year quarter.
Total revenues increased 6% year over year to $355 million and beat the Zacks Consensus Estimate of $351.7 million. On a constant-currency basis, total revenues were $361.4 million, up 8% year over year.
At the end of 2022, registered users were 243 million, up 10% year over year.
Creative Subscriptions’ revenues (74.7% of total revenues) increased 8% year over year to $265.3 million. Business Solutions’ revenues (25.3% of total revenues) rose 3% to $89.8 million.
In fourth-quarter 2022, Creative Subscriptions’ annualized recurring revenues were $1.08 billion, up 7% year over year.
Bookings were $371.8 million, up 6% year over year. Creative Subscriptions’ bookings increased 7% year over year to $281.8 million. Business Solutions’ bookings rose 3% to $90 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 59%, 26%, 11% and 4% to fourth-quarter 2022 revenues, up 10%, 8%, 2% and 2% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 330 basis points to 65%, driven by cost reduction plans.
Non-GAAP research and development expenses, as a percentage of revenues, were 25% compared with 26% reported in the previous-year quarter. Non-GAAP selling and marketing expenses were 25% compared with 35% reported in the previous-year quarter. This was driven by lowering acquisition-marketing investment.
Wix reported a non-GAAP operating income of $30.7 million against a non-GAAP operating loss of $22.2 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Wix had cash and cash equivalents of $1.3 billion. Long-term debt was $567 million compared with $566 million as of Sep 30, 2022.
Cash flow provided from operations amounted to $53.2 million compared with $21 million in the year-ago quarter.
Capital expenditures totaled $14.6 million. Free cash outflow was $38.6 million.
Guidance
For first-quarter 2023, revenues are expected to be between $367 million and $371 million, suggesting 7-9% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $362.9 million.
The company now expects 2023 revenues to grow 9-11% and be in the range of $1,510-$1,535 million. Wix expects new cost cutting measures to generate an additional $50 million of savings in 2023.
For 2023, Wix expects free cash flow (excluding HQ capital expenditure) to be in the range of $152-$162 million, representing 10-11% of revenues.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.76 per share, rising 11% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 10.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 54.7% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings is pegged at $1.31 per share, rising 56% in the past 60 days.
Pegasystems’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
WIX Q4 Earnings & Revenues Beat Estimates, Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported non-GAAP earnings of 61 cents per share for fourth-quarter 2022, exceeding the Zacks Consensus Estimate of 8 cents. The company had incurred a loss of 34 cents per share in the previous-year quarter.
Total revenues increased 6% year over year to $355 million and beat the Zacks Consensus Estimate of $351.7 million. On a constant-currency basis, total revenues were $361.4 million, up 8% year over year.
At the end of 2022, registered users were 243 million, up 10% year over year.
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 (74.7% of total revenues) increased 8% year over year to $265.3 million. Business Solutions’ revenues (25.3% of total revenues) rose 3% to $89.8 million.
In fourth-quarter 2022, Creative Subscriptions’ annualized recurring revenues were $1.08 billion, up 7% year over year.
Bookings were $371.8 million, up 6% year over year. Creative Subscriptions’ bookings increased 7% year over year to $281.8 million. Business Solutions’ bookings rose 3% to $90 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 59%, 26%, 11% and 4% to fourth-quarter 2022 revenues, up 10%, 8%, 2% and 2% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 330 basis points to 65%, driven by cost reduction plans.
Non-GAAP research and development expenses, as a percentage of revenues, were 25% compared with 26% reported in the previous-year quarter. Non-GAAP selling and marketing expenses were 25% compared with 35% reported in the previous-year quarter. This was driven by lowering acquisition-marketing investment.
Wix reported a non-GAAP operating income of $30.7 million against a non-GAAP operating loss of $22.2 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Wix had cash and cash equivalents of $1.3 billion. Long-term debt was $567 million compared with $566 million as of Sep 30, 2022.
Cash flow provided from operations amounted to $53.2 million compared with $21 million in the year-ago quarter.
Capital expenditures totaled $14.6 million. Free cash outflow was $38.6 million.
Guidance
For first-quarter 2023, revenues are expected to be between $367 million and $371 million, suggesting 7-9% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $362.9 million.
The company now expects 2023 revenues to grow 9-11% and be in the range of $1,510-$1,535 million. Wix expects new cost cutting measures to generate an additional $50 million of savings in 2023.
For 2023, Wix expects free cash flow (excluding HQ capital expenditure) to be in the range of $152-$162 million, representing 10-11% of revenues.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.76 per share, rising 11% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 10.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 54.7% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings is pegged at $1.31 per share, rising 56% in the past 60 days.
Pegasystems’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41% in the past year.