Israeli website building tools company Wix (Nasdaq: WIX) has reported financial results for the fourth quarter of 2021 and for the full year but the share price is sliding on disappointing first quarter 2022 guidance and uncertainty about the future.
Revenue in the fourth quarter was $328.3 million, up 16% on the corresponding quarter of 2020.
Total non-GAAP gross margin in the quarter was 62%. The company reports a GAAP net loss in the quarter of $111 million, or $1.94 per share. This includes unrealized losses of approximately $12.5 million on equity investments, primarily because of the decrease in the share price of monday.com (Nasdaq: MNDY). On a non-GAAP basis, the net loss in the fourth quarter of 2021 was $21.1 million, or $0.37 per share.
The fourth quarter revenue figure is slightly behind the average analysts' estimate of $331.16 million, while the non-GAAP loss per share is slightly better than the estimate of $0.38.
Net cash from operating activities in the fourth quarter of 2021 was $21.0 million, while capital expenditures totaled $13.7 million, leading to free cash flow of $7.3 million.
Revenue for the full year 2021 was $1.270 billion, up 29% on 2020.
Total gross margin on a GAAP basis for the full year 2021 was 62%. The GAAP net loss for the year was $117.2 million, or $2.06 per share. On a non-GAAP basis, the net loss for the year was $79 million, or $1.39 per share.
Net cash from operating activities for 2021 was $65.7 million, while capital expenditures totaled $37.7 million, leading to free cash flow of $28 million.
Wix added 478,000 net premium subscriptions in 2021, to reach six million at the end of the year, 9% more than at the end of 2020. At the end of 2021 it had 222 million registered users, 13% more than at the end of 2020.
In its guidance, Wix said that because of the level of volatility in demand for online services over the last year and a half due to Covid, it would not provide annual guidance. Its guidance for the first quarter 0f 2022 is for revenue in the range of $338-343 million, representing 11-13% year on year growth. The first quarter revenue guidance is below the average analysts' estimate of $355.3 million. "We expect year on year growth of total revenue to accelerate each quarter through the end of 2022," the company said.
"2020 and 2021 brought unprecedented changes, challenges and opportunities for almost every business worldwide due to uncertainty and volatility brought on by the pandemic. Now, as we enter our third year of Covid-19, the world has begun to transition once again," said Wix CEO and co-founder Avishai Abrahami. "We exited 2021 with fundamentals of our business at much higher levels than when we entered the pandemic, positioning us for success in the coming years, and we are clear on what needs to be done to maintain this momentum.
"We are putting our best foot forward to increase our growth by expanding our market leadership with self-creators, strengthening our reach through partners, and doubling down on our commerce platform."
Wix's share price had lost 67% over the past year before today's session and following publication of its results the share price is currently down 23.69% at $88.36, giving a market cap of $5.03 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2022.
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