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) Up 10.5% 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 added about 10.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wix.com due for a pullback? 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 Q1 Earnings & Revenues Beat Estimates
Wix.com 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
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.
Guidance
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 48.21% due to these changes.
VGM Scores
At this time, Wix.com has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 looks promising. It comes with little surprise Wix.com has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Wix.com belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, CDW (CDW - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
CDW reported revenues of $5.1 billion in the last reported quarter, representing a year-over-year change of -14.2%. EPS of $2.03 for the same period compares with $2.20 a year ago.
CDW is expected to post earnings of $2.35 per share for the current quarter, representing a year-over-year change of -5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for CDW. Also, the stock has a VGM Score of A.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Wix.com (WIX) Up 10.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Wix.com (WIX - Free Report) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wix.com due for a pullback? 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 Q1 Earnings & Revenues Beat Estimates
Wix.com 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
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.
Guidance
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 48.21% due to these changes.
VGM Scores
At this time, Wix.com has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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 looks promising. It comes with little surprise Wix.com has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Wix.com belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, CDW (CDW - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
CDW reported revenues of $5.1 billion in the last reported quarter, representing a year-over-year change of -14.2%. EPS of $2.03 for the same period compares with $2.20 a year ago.
CDW is expected to post earnings of $2.35 per share for the current quarter, representing a year-over-year change of -5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for CDW. Also, the stock has a VGM Score of A.