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Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.67 for second-quarter 2024, which exceeded the Zacks Consensus Estimate of $1.32. The company reported EPS of $1.26 in the year-ago quarter.
Total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million.
At the end of Jun 30, 2024, registered users were 273 million.
Creative Subscriptions’ revenues (71.6% of total revenues) increased 9% year over year to $312.1 million. Business Solutions’ revenues (28.4% of total revenues) rose 20% to $123.6 million.
In the second quarter, Creative Subscriptions annualized recurring revenues were $1.28 billion, up 10% year over year.
Bookings of $458.4 million improved 15% year over year. Creative Subscriptions’ bookings increased 12% year over year to $329 million. Business Solutions’ bookings rose 24% to $129.4 million. Solid uptake of WIX Studio, AI product suite and expanding commerce platform drove the strong bookings performance in the most recent quarter.
The strong growth of Business Solutions bookings and revenues was also aided by the string uptake of business applications, especially Paid Ads and Email Marketing, and an increase in transaction revenues.
Partners revenues in the second quarter were $148.4 million, or 34% of total revenues, up 29% year over year. The increase was driven by market share gains resulting from the onboarding of new agencies and freelancers.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 7%, respectively, to second-quarter 2024 revenues, up 12%, 14%,11% and 7% year over year.
Operating Details
Non-GAAP gross margin was unchanged at 68% year over year. Wix reported a non-GAAP operating income of $90.2 million compared with $68.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Wix had cash and cash equivalents of $802.4 million. Long-term debt was $571.3 million compared with $570.5 million as of Mar 31, 2024.
Cash flow provided from operations amounted to $120 million compared with $47.8 million in the year-ago quarter.
Capital expenditures totaled $7.2 million. Free cash flow was $112.8 million.
Outlook Updated
For third-quarter 2024, revenues are expected to be between $440 million and $445 million, suggesting 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $441.6 million.
The company anticipates 2024 revenues to grow 12-13% and in the range of $1.747-$1.761 billion.
Non-GAAP operating expenses are expected to be 50% of revenues for 2024 compared with the previous expectation of 50-51% due to the expectation of additional operating leverage.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $460-$470 million, representing about 26-27% of revenues, up from $445-$455 million or 26% of revenues. This growth in free cash flow is expected to be primarily driven by continued operating leverage.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 4.0% in the past 60 days to $8.24. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. The company recently reported results for second-quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01. Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
The Zacks Consensus Estimate for ANSS’ 2024 EPS has remained the same for the past 60 days at $9.37. The company recently reported second-quarter 2024 earnings of $2.50 per share, beating the Zacks Consensus Estimate by 28.9%. The bottom line increased 56.3% year over year. Revenues of $594.1 million beat the Zacks Consensus Estimate by 7.9%. The top line rose 20% (up 22% at constant currency or cc) year over year.
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WIX Q2 Earnings & Revenues Beat Estimates, Increase Y/Y
Wix.com Ltd (WIX - Free Report) reported non-GAAP diluted earnings per share (EPS) of $1.67 for second-quarter 2024, which exceeded the Zacks Consensus Estimate of $1.32. The company reported EPS of $1.26 in the year-ago quarter.
Total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million.
At the end of Jun 30, 2024, registered users were 273 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 (71.6% of total revenues) increased 9% year over year to $312.1 million. Business Solutions’ revenues (28.4% of total revenues) rose 20% to $123.6 million.
In the second quarter, Creative Subscriptions annualized recurring revenues were $1.28 billion, up 10% year over year.
Bookings of $458.4 million improved 15% year over year. Creative Subscriptions’ bookings increased 12% year over year to $329 million. Business Solutions’ bookings rose 24% to $129.4 million. Solid uptake of WIX Studio, AI product suite and expanding commerce platform drove the strong bookings performance in the most recent quarter.
The strong growth of Business Solutions bookings and revenues was also aided by the string uptake of business applications, especially Paid Ads and Email Marketing, and an increase in transaction revenues.
Partners revenues in the second quarter were $148.4 million, or 34% of total revenues, up 29% year over year. The increase was driven by market share gains resulting from the onboarding of new agencies and freelancers.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 7%, respectively, to second-quarter 2024 revenues, up 12%, 14%,11% and 7% year over year.
Operating Details
Non-GAAP gross margin was unchanged at 68% year over year.
Wix reported a non-GAAP operating income of $90.2 million compared with $68.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Wix had cash and cash equivalents of $802.4 million. Long-term debt was $571.3 million compared with $570.5 million as of Mar 31, 2024.
Cash flow provided from operations amounted to $120 million compared with $47.8 million in the year-ago quarter.
Capital expenditures totaled $7.2 million. Free cash flow was $112.8 million.
Outlook Updated
For third-quarter 2024, revenues are expected to be between $440 million and $445 million, suggesting 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $441.6 million.
The company anticipates 2024 revenues to grow 12-13% and in the range of $1.747-$1.761 billion.
Non-GAAP operating expenses are expected to be 50% of revenues for 2024 compared with the previous expectation of 50-51% due to the expectation of additional operating leverage.
Wix estimates free cash flow (excluding HQ capital expenditure) in the range of $460-$470 million, representing about 26-27% of revenues, up from $445-$455 million or 26% of revenues. This growth in free cash flow is expected to be primarily driven by continued operating leverage.
Zacks Rank & Stocks to Consider
Currently, Wix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are SAP SE (SAP - Free Report) , Arista Networks (ANET - Free Report) and ANSYS, Inc. (ANSS - Free Report) . ANET presently sports a Zacks Rank #1 (Strong Buy), whereas SAP & ANSS both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 4.0% in the past 60 days to $8.24. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. The company recently reported results for second-quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01. Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
The Zacks Consensus Estimate for ANSS’ 2024 EPS has remained the same for the past 60 days at $9.37. The company recently reported second-quarter 2024 earnings of $2.50 per share, beating the Zacks Consensus Estimate by 28.9%. The bottom line increased 56.3% year over year. Revenues of $594.1 million beat the Zacks Consensus Estimate by 7.9%. The top line rose 20% (up 22% at constant currency or cc) year over year.