Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.50 for third-quarter 2024, exceeding the Zacks Consensus Estimate of $1.44. The company had reported EPS of $1.10 in the year-ago quarter.
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Total revenues increased 13% year over year to $444.7 million and beat the Zacks Consensus Estimate of $443.6 million.
At the end of Sept. 30, 2024, registered users were 278 million.
In response to the results, WIX’s shares went up 14.4% in pre-market trading on Nov. 20. WIX's shares have gained 87.2% compared with the industry’s growth of 21.3% in the past year.
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Quarter in Detail
Creative Subscriptions’ revenues (71.7% of total revenues) increased 10% year over year to $318.8 million. Business Solutions’ revenues (28.3% of total revenues) rose 22% to $125.8 million.
In the third quarter, Creative Subscriptions annualized recurring revenues were $1.31 billion, up 11% year over year.
Wix.com Ltd. Price, Consensus and EPS Surprise
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
Bookings of $449.8 million improved 16% year over year. Creative Subscriptions’ bookings increased 15% year over year to $326.6 million. Business Solutions’ bookings rose 17% to $123.1 million. Solid uptake of WIX Studio, artificial intelligence (AI) product suite, healthy business pipeline and expanding commerce platform drove the strong bookings performance in the quarter under discussion.
Bookings growth for Studio subscriptions increased significantly compared to the previous quarter. This was driven by strong new purchases and many existing customers renewing their subscriptions. In the third quarter, 75% of bookings from new customers came from Studio accounts, as more agencies adopted Studio for their projects.
Partners revenues in the third quarter were $155.2 million, up 30% year over year.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4%, respectively, to third-quarter 2024 revenues, up 12%, 17%,11% and 5% year over year.
Operating Details
Non-GAAP gross margin was 69%, up from 68% in the prior-year quarter, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.
Wix reported a non-GAAP operating income of $88.4 million compared with $58 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sept. 30, 2024, Wix had cash and cash equivalents of $439.4 million compared with $802.4 million as of June 30, 2024.
Cash flow from operations amounted to $129.8 million compared with $64.1 million in the year-ago quarter.
Capital expenditures totaled $2.1 million. Free cash flow was $127.8 million.
2024 Outlook Revised
Based on its strong performance in the third quarter, Wix has raised its projections for the full year. For 2024, bookings are expected to reach $1,822–$1,832 million up from the previous guidance of $1,802–$1,822 million.
Revenues are expected to be between $1,757 million and $1,764 million, suggesting 13% growth from the prior-year quarter's reported figure. Earlier, it projected revenues in the $1,747-$1,761 million band.
Free Cash Flow (excluding HQ capital expenditure) is projected in the range of $483–$488 million (27–28% of revenue), reflecting an increase from earlier guidance of $460–$470 million.
For the fourth quarter of 2024, revenue is expected to be between $457 million and $464 million, or 13-15% year-over-year growth, and the company anticipates exiting the year with bookings growth of 18%.
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.
Performance of Other Companies
BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.
Shares of BCE have lost 26.4% in the past year.
Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.
Shares of ITRI have surged 94.8% in the past year.
Watts Water Technologies, Inc. WTS reported third-quarter 2024 adjusted EPS of $2.03 compared with $2.04 in the prior-year quarter. The bottom line topped the Zacks Consensus Estimate by 2%.
Shares of WTS have gained 10.4% in the past year.
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