Internet site building platform Wix (Nasdaq: WIX) has reported second quarter results that handily beat analysts’ estimates, and has upgraded its guidance. In response, the company’s share price, which fell 5.08% yesterday to $88.51, giving the company a market cap of $5 billion, is up by more than 10% in pre-market trading today.
Second quarter revenue totaled $390 million, which compares with a consensus estimate of $383 million, while non-GAAP earnings were $78.1 million, or $1.26 per diluted share, well ahead of the consensus estimate of $0.6. The company recorded the first quarter of positive GAAP-based operating income in its history, of $13 million, or 3% of revenue. GAAP based net profit was $33.6 million.
Net cash generated from operating activities for the second quarter of 2023 was $47.8 million, while capital expenditures totaled $15.8 million, leading to free cash flow of $32.0 million.
Wix now expects third quarter revenue to be $386-391 million, implying 12-13% year-on-year growth, and full-year revenue to be to $1,543-1,558 million, up from its previous guidance of $1,522 - $1,543 million, and implying 11-12% growth over 2022. Free cash flow for the year, excluding headquarters and cash restructuring costs, is expected to be $200-210 million, or 13% of revenue, which compares with a previous forecast of $172-180 million, or 11-12% of revenue.
"It has been an incredible past six months at Wix on many fronts as we generated accelerating profitable growth through execution excellence and focused operational discipline. As a result, the second quarter again performed above expectations and exceeded our revenue growth and FCF margin guides," said Wix co-founder and CEO Avishai Abrahami, "In addition to this outperformance, we also made remarkable strides in our product evolution with the introduction of our new cornerstone Partner product, Wix Studio.
"Wix Studio revolutionizes the way professionals build and manage projects at scale by combining AI-powered features, the latest design and development capabilities and seamless workflows for multi-site management to help freelancers and agencies complete projects with greater quality and velocity and scale their business faster.
"Our innovation did not stop there this quarter, as we continued to be at the forefront of AI technology with the introduction of exciting AI and gen-AI-driven products coming soon to all Wix users, including AI Site Generator and AI Assistant for Business, among others."
Published by Globes, Israel business news - en.globes.co.il - on August 3, 2023.
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