WIX 2022 Q3 季报

[crosfan]

WIX 2022 Q3 ??

Earnings per share: $0.06 vs. - $0.07 expected, - $0.21 one year earlier
Revenue: $345.81 million, $320.8 one year earlier

2022 Q4 forecast

Revenue: $350.29 million consensus expected
Earnings per share: $0.05 consensus expected

[crosfan]

Q3 2022 Financial Results

• Total revenue in the third quarter of 2022 was $345.8 million, up 8% y/y
  
  • Total revenue on a y/y constant currency basis was $350.8 million, up 10% y/y
• Creative Subscriptions revenue in the third quarter of 2022 was $261.1 million, up 8% y/y
  
  • Creative Subscriptions ARR increased to $1.07 billion, up 8% y/y
• Business Solutions revenue in the third quarter of 2022 was $84.7 million, up 8% y/y
  
  • Transaction revenue [1] was $36.0 million, up 12% y/y
• Partners revenue [2] in the third quarter of 2022 was $86.7 million, up 24% y/y
• Total bookings in the third quarter of 2022 were $352.5 million, down (6)% y/y
  
  • Total bookings on a y/y constant currency basis were $366.5 million, down (2)% y/y
  • Total bookings in Q3'21 were up 33% y/y due to our largest ever B2B partnership, creating a difficult y/y comparison to Q3'22
• Creative Subscriptions bookings in the third quarter of 2022 were $269.9 million, down (8)% y/y
• Business Solutions bookings in the third quarter of 2022 were $82.5 million, up 2% y/y
• Total gross margin on a GAAP basis in the third quarter of 2022 was 63%
  
  • Creative Subscriptions gross margin on a GAAP basis was 76%
  • Business Solutions gross margin on a GAAP basis was 22%
• Total non-GAAP gross margin in the third quarter of 2022 was 65%
  
  • Creative Subscriptions gross margin on a non-GAAP basis was 78%
  • Business Solutions gross margin on a non-GAAP basis was 24%
• GAAP net loss in the third quarter of 2022 was $(47.4) million, or $(0.81) per share
• Non-GAAP net income in the third quarter of 2022 was $3.6 million, or $0.06 per share
• Net cash provided by operating activities for the third quarter of 2022 was $0.3 million, while capital expenditures totaled $22.9 million, leading to free cash flow of $(22.6) million
• Excluding the capex investment associated with our new headquarters office build out, free cash flow for the third quarter of 2022 would have been $4.6 million

Financial Outlook

Our updated outlook reflects foreign exchange, or FX, rates that have created stronger headwinds to results since we last issued guidance.

For Q4, we expect total revenue to be $349 to $354 million, representing approximately 5 - 6% y/y growth.

For the full year, we now expect revenue to grow 9% y/y. This updated full year guidance reflects the impact of FX rates, which worsened through the third quarter and into November. Assuming FX rates remained constant from July, we would expect revenue growth for the full year to be 10%, consistent with the high end of our previous guidance.

We expect to generate positive non-GAAP operating income and FCF (excluding HQ capex) to meaningfully ramp to $47 to $50 million in Q4.

We now expect FCF excluding HQ capex for the full year to be approximately 2% of revenue, within our previous guidance range. Assuming FX rates remained constant since July, we expect FCF (excluding HQ capex) would be ~3% of revenue for the full year, consistent with the high end of our guidance range last quarter. This improvement will be driven by a combination of increased leverage from our completed cost reduction plan and lower marketing spend as we refocus on higher-intent users.

Changes in FX rates have had a significant impact on our reported results to date and on our expectations for the full year. Assuming y/y constant currency rates as of today:

• Our full year total revenue outlook would be ~$20 million higher, or 10-11% y/y growth
• Our full year total bookings outlook would be ~$43 million higher
• Our full year free cash flow (excluding HQ capex), would be ~$43 million higher or ~5% of revenue, consistent with the high end of the range provided in May