Wix.com (NASDAQ:WIX), the Tel Aviv-based tech firm, reported robust Q3 FY2023 results Thursday. The company reported a 13.9% Year-over-Year (YoY) increase in revenue to $393.8 million and a non-GAAP earnings per share (EPS) of $1.10, up from $0.06 last year. These results outperformed analyst estimates.
Bookings for the quarter rose by 10% YoY to $389.1 million, while free cash flow was reported at $44.8 million. After accounting for capital expenditures of $19.4 million, which included investments in a new headquarters, the adjusted free cash flow stood at $62.8 million.
In addition to its Q3 results, Wix raised its full-year revenue and free cash flow guidance above prior forecasts due to strong performance and market conditions. The company now expects sales between $1.558 billion and $1.563 billion, with a full-year free cash flow margin projected at around 15%. For Q4 2023, Wix anticipates revenues between $400 million and $405 million, surpassing the consensus estimate of $399.31 million and marking a 13.4% YoY growth.
Wix's CEO Avishai Abrahami said that the company exceeded growth and profitability expectations for yet another quarter by successfully executing strategic priorities while managing expenses.
With over 80% of the retail market still open for online disruption, Wix's revenue has grown steadily from $320.8 million in Q3 FY2021 to this quarter's $393.8 million, demonstrating the increasing demand for e-commerce software solutions. The company retains $0.67 for every $1 in revenue after accounting for running expenses, indicating a gross profit margin of 67.2% in Q3.
Wix's market capitalization stands at $5.14 billion, with a cash balance of $504.8 million, positioning it well to pursue a high-growth business strategy in the growing $200 billion e-commerce market. The company's stock has increased more than 2,000% since its IPO a decade ago and is considered less risky now than in the years following its public debut.
InvestingPro Insights
InvestingPro data and tips provide unique insights into Wix's performance and future prospects. A notable trend from InvestingPro is the management's aggressive share buyback strategy, indicating their confidence in the company's future growth. This has resulted in a high shareholder yield, further enhancing the value of Wix's shares.
Despite operating with a moderate level of debt, Wix has shown a significant return over the past week and an even more impressive return over the last decade, as highlighted by InvestingPro. This aligns with the company's strong Q3 FY2023 results and the more than 2,000% increase in its stock since its IPO a decade ago.
While Wix has not been profitable over the last twelve months, analysts, according to InvestingPro Tips, predict the company will turn profitable this year. This is in line with the company's raised full-year revenue and free cash flow guidance, reflecting its strong performance and market conditions.
InvestingPro offers numerous additional tips for Wix and other companies, providing valuable insights to investors and market enthusiasts. The platform's comprehensive data and tips enhance understanding of company performance and market trends, making it an indispensable tool for investment decision-making.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.