Latest news with #WixCom
Globe and Mail
21-05-2025
- Business
- Globe and Mail
WIX's Q1 Earnings Lag, Top Line Up Y/Y on AI Innovation & User Growth
Ltd WIX reported non-GAAP earnings per share (EPS) of $1.55 for first-quarter 2025, which missed the Zacks Consensus Estimate of $1.66. The company had reported EPS of $1.29 in the year-ago quarter. Quarterly revenues increased 13% year over year to $473.7 million, beating the Zacks Consensus Estimate of $471.8 million. The top line exceeded management's guidance ($469-$473 million), driven by strong performance of the new user cohort and continued healthy engagement from existing users. Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. The recent launch of Wixel is a primary step in this vision. At the end of March 31, 2025, registered users were 288 million. WIX's shares have gained 8.7% compared with the Zacks Computer-IT Services ' growth of 8.1% in the past year. Quarter in Detail Creative Subscriptions ' revenues (71.3% of total revenues) increased 11% year over year to $337.7 million. Business Solutions ' revenues (28.7% of total revenues) rose 18% to $136 million. For the first quarter, Creative Subscriptions' annualized recurring revenues were $1.37 billion, up 10% year over year. Bookings jumped 12% to $510.9 million year over year. Creative Subscriptions' bookings increased 10% to $369.5 million and Business Solutions' bookings rose 15% to $141.4 million. Partners' revenues in the first quarter were $171.6 million, up 24% year over year. The Wix Studio platform, aimed at agencies and professionals, is the key driver with strong adoption and market share gains, aided by Wixel's potential to further integrate into the workflow of design partners. Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to first-quarter 2025 revenues, up 14%,16%,10% and 7% year over year, respectively. Operating Details Non-GAAP gross margin was 69% compared with 68% in the prior-year quarter. Creative Subscriptions segment achieved 84% and the Business Solutions segment 31%. Wix reported a non-GAAP operating income of $99.8 million compared with $69.4 million in the year-ago quarter. Balance Sheet & Cash Flow As of March 31, 2025, Wix had cash and cash equivalents of $653.3 million compared with $660.9 million as of Dec 31, 2024. Cash flow from operations amounted to $145.5 million compared with $113.8 million in the previous year. Capital expenditures totaled $3.1 million. Free cash flow was $142.4 million. Wix repurchased $200 million worth of shares in January 2025, acquiring 868,026 shares at an average price of $230.41. To reinforce shareholder value, the board has now authorized an additional $200 million repurchase, bringing the total program to $400 million. Q2 & 2025 Financial Outlook Despite macroeconomic uncertainty and foreign exchange fluctuations, Wix has maintained its 2025 guidance. The company continues to expect revenues to grow 12-14% in the range of $1.97-$2 billion. Management reiterated non-GAAP total gross margin at 70% and non-GAAP operating expenses to be 47-48% of 2025 net sales. Amid strong results and a healthy top of the funnel, Wix reiterated bookings outlook at $2,025–2,060 million (up 11–13% year over year). This cautious approach reflects macro uncertainty in the Business Solutions segment, though easing forex headwinds help balance the risk. It estimates free cash flow for 2025 in the range of $590-$610 million, implying 30-31% of revenues. For second-quarter 2025, revenues are expected to be between $485 million and $489 million, suggesting 11-12% growth from the prior-year quarter's reported figure. Its Rule of 45 strategy, which combines revenue growth and free cash flow margin, is expected to be met at the high end of its 2025 outlook. WIX's Zacks Rank Currently, Wix carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Recent Performance of Other Companies CDW Corporation CDW reported first-quarter 2025 non-GAAP EPS of $2.15, beating the Zacks Consensus Estimate of $1.96. Also, the bottom line increased approximately 12% year over year. In the past year, shares of CDW have declined 20.3%. ServiceNow NOW reported first-quarter 2025 adjusted earnings of $4.04 per share, which beat the Zacks Consensus Estimate by 6.60% and increased 18.5% year over year. NOW's revenues of $3.09 billion surpassed the consensus mark by 0.18% and increased 18.6% year over year. Shares of NOW have soared 32.6% in the past year. Infosys INFY ended fiscal 2025 on a mixed note, with its fourth-quarter earnings surpassing the Zacks Consensus Estimate while revenues fell short of the same. For the quarter, the company reported earnings of 20 cents per share, beating the consensus mark by a penny. However, Infosys' bottom line registered a year-over-year decline of 15.3%. In the past year, shares of INFY have gained 5.6%. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Noble Gas Inc. (INFY): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report CDW Corporation (CDW): Free Stock Analysis Report Ltd. (WIX): Free Stock Analysis Report
Entrepreneur
12-05-2025
- Business
- Entrepreneur
Wix.com (WIX): Top Stock for the Next Bull Run
(WIX) has posted 13th straight earnings beats showing truly impressive growth. Yet it still got caught up in the latest market sell off pushing shares well below fair value.... This story originally appeared on WallStreetZen You probably know the company name. Perhaps because you use it for your own website. Or perhaps from their many commercials. The point is that (WIX) Is a thriving online company whose shares have tremendous upside potential. Especially after the recent correction that was overly cruel to tech stocks. This has shares trading WELL below fair value. Opportunity is knocking! WIX is best known as one of the leading companies that helps you build and host websites. Just like many of their competitors they have learned how to add more services and greatly increase the average revenue per user (ARPU) which is a key metric for subscription businesses like this one. One of its best attributes is how well it scores for the Growth factors that are a part of the Zen Ratings model (in the top 3% for Growth of all stocks analyzed). Their Financial rating is not far behind in the top 4%. Our studies show that stocks that score well for Growth and Financials are much more likely to beat earnings in the future. Few things on this planet are better for share prices then repeating this feat quarter after quarter. This is truly a case where there is really no weakness in our 115 factor Zen Ratings review of the company which puts it in the top 2% of stock overall. This equates to A rating (aka Strong Buy). See full Zen Ratings analysis of WIX here > Indeed Wall Street analysts are taking note of WIX's impressive story as well. This is why there is an average target price of $239 on shares. Yet some top analysts see an even brighter future: $270 Deepak Mathivanan @ Cantor Fitzgerald (top 3% of analysts based on stock picking performance) $300 from Josh Beck @ Raymond James (top 2%) All the above gives ample reason to snag WIX shares as it now trades just under $180 thanks to the recent market correction. This leads me to 'drop and drag' this thriving web builder stock into our portfolio now to enjoy ample upside in the months and years to come. What To Do Next? (WIX) is just one of the stellar 18 stocks found in my Zen Investor portfolio. I pick these stocks based upon their attractiveness in our proven Zen Ratings model. Plus keying in on lessons learned over my 45 year investing career. Over that time I have seen 7 bear markets, 8 bull markets, and just about everything between. Analyzing this current investment landscape led me to add 3 stocks last week that are perfectly suited for this market environment. The only way to see these top picks is to become a Zen Investor member. Gladly that is a very simple process. And right now comes with the ability to save up to 50% on your membership. Discover the Zen Investor & My Top Stocks Now > Wishing you a world of investment success! Steve Reitmeister…but everyone calls me Reity (pronounced 'Righty') Editor of the Zen Investor What to Do Next?
