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Wix.com Ltd (WIX - Free Report) reported non-GAAP earnings of 91 cents per share for first-quarter 2023, exceeding the Zacks Consensus Estimate of 23 cents. The company had incurred a loss of 72 cents in the previous-year quarter.
Total revenues increased 10% year over year to $374.1 million and beat the Zacks Consensus Estimate of $368.9 million. On a constant currency basis, total revenues were $376.4 million, up 10% year over year.
At the end of Mar 31, registered users were 248 million.
Creative Subscriptions’ revenues (74.4% of total revenues) increased 9% year over year to $278.1 million. Business Solutions’ revenues (25.6% of total revenues) rose 11% to $95.9 million.
In first-quarter 2023, Creative Subscriptions’ annualized recurring revenues were $1.13 billion, up 9% year over year.
Bookings of $414.9 million improved 6% year over year. Creative Subscriptions’ bookings increased 5% year over year to $313.4 million. Business Solutions’ bookings rose 9% to $101.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to first-quarter 2023 revenues, up 13%, 5%, 7% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 470 basis points to 67%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Non-GAAP research and development expenses, as a percentage of revenues, were 23% compared with 26% reported in the previous-year quarter. Non-GAAP selling and marketing expenses were 24% compared with 43% reported in the previous-year quarter. This was driven by lowering acquisition-marketing investment.
Wix reported non-GAAP operating income of $48.5 million against the non-GAAP operating loss of $51 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, Wix had cash and cash equivalents of $1.3 billion. Long-term debt was $567.4 million compared with $567 million as of Dec 31, 2022.
Cash flow provided from operations amounted to $46 million against the cash used from operations of $13.7 million in the year-ago quarter.
Capital expenditures totaled $20.5 million. Free cash outflow was $25 million.
Outlook
For second-quarter 2023, revenues are expected to be between $380 million and $385 million, suggesting 10-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $376.6 million.
The company now anticipates 2023 revenues to grow 10-11% and in the range of $1,522-$1,543 million (earlier view: growth of 9-11% and in the range of $1,510-$1,535 million).
Non-GAAP operating expenses are expected to decline to 58-59% of revenues compared with the earlier guided range of 59-60% of revenues.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $172-$182 million, representing 11-12% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) to be between $152 million and $162 million, representing 10-11% of revenues.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have surged 77.9% in the past year.
The Zacks Consensus Estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 8% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of BLKB have increased 23.3% in the past year.
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WIX Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported non-GAAP earnings of 91 cents per share for first-quarter 2023, exceeding the Zacks Consensus Estimate of 23 cents. The company had incurred a loss of 72 cents in the previous-year quarter.
Total revenues increased 10% year over year to $374.1 million and beat the Zacks Consensus Estimate of $368.9 million. On a constant currency basis, total revenues were $376.4 million, up 10% year over year.
At the end of Mar 31, registered users were 248 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 (74.4% of total revenues) increased 9% year over year to $278.1 million. Business Solutions’ revenues (25.6% of total revenues) rose 11% to $95.9 million.
In first-quarter 2023, Creative Subscriptions’ annualized recurring revenues were $1.13 billion, up 9% year over year.
Bookings of $414.9 million improved 6% year over year. Creative Subscriptions’ bookings increased 5% year over year to $313.4 million. Business Solutions’ bookings rose 9% to $101.5 million.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to first-quarter 2023 revenues, up 13%, 5%, 7% and 9% year over year, respectively.
Operating Details
Non-GAAP gross margin expanded 470 basis points to 67%, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Non-GAAP research and development expenses, as a percentage of revenues, were 23% compared with 26% reported in the previous-year quarter. Non-GAAP selling and marketing expenses were 24% compared with 43% reported in the previous-year quarter. This was driven by lowering acquisition-marketing investment.
Wix reported non-GAAP operating income of $48.5 million against the non-GAAP operating loss of $51 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, Wix had cash and cash equivalents of $1.3 billion. Long-term debt was $567.4 million compared with $567 million as of Dec 31, 2022.
Cash flow provided from operations amounted to $46 million against the cash used from operations of $13.7 million in the year-ago quarter.
Capital expenditures totaled $20.5 million. Free cash outflow was $25 million.
Outlook
For second-quarter 2023, revenues are expected to be between $380 million and $385 million, suggesting 10-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $376.6 million.
The company now anticipates 2023 revenues to grow 10-11% and in the range of $1,522-$1,543 million (earlier view: growth of 9-11% and in the range of $1,510-$1,535 million).
Non-GAAP operating expenses are expected to decline to 58-59% of revenues compared with the earlier guided range of 59-60% of revenues.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $172-$182 million, representing 11-12% of revenues. Earlier, the company had projected free cash flow (excluding HQ capital expenditure) to be between $152 million and $162 million, representing 10-11% of revenues.
Zacks Rank & Other Stocks to Consider
Currently, Wix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Simulations Plus (SLP - Free Report) and Blackbaud (BLKB - Free Report) . BMI and BLKB sport a Zacks Rank #1 (Strong Buy) whereas SLP currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have surged 77.9% in the past year.
The Zacks Consensus Estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 8% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings is pegged at $3.68 per share, up 7.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of BLKB have increased 23.3% in the past year.