Wix.com (WIX) pops on big profit beat, solid guidance

Wix.com (NASDAQ: WIX) shares are moving higher in pre-market Wednesday after the website maker reported much better-than-expected profit for the fourth quarter.

Wix.com reported an EPS of $0.61 on revenue of $355 million, beating the average analyst estimate for earnings of $0.07 per share on revenue of $351.9M.

"In the face of a dynamic macroeconomic environment this year, we shifted our focus toward tightening spending and becoming more efficient in the execution of our priorities,” said Avishai Abrahami, Wix Co-founder and CEO.

For this quarter, the company sees revenue in the range of $367-371M, beating the $365.6M consensus. For 2023, revenue is seen between $1.51 billion and $1.54B, again above the consensus of $1.51B.

"We enter 2023 with great confidence that we are creating a best-in-class platform that will bring forth innovation and create lasting value for our users and shareholders. The actions and strategies implemented this past year position us well to weather this uncertain period, emerge a stronger and more profitable software company, and achieve 'Rule of 40' in 2025,” Abrahami added.

Morgan Stanley analyst Elizabeth Porter commented:

“FY23 rev guide modestly ahead of Street is better-than-feared after weak peer prints, while commitment on cost cuts drives OI/FCF ahead of consensus & prior targets. We look for signs that FY22 is the bottom after weak net adds & ARPU growth,” Porter said in a note.

By Senad Karaahmetovic

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