Wix.com (NASDAQ:WIX) shares are gaining premarket Thursday after the web development company beat top and bottom line consensus expectations.
The company reported Q3 EPS of $1.10, $0.42 better than the analyst estimate of $0.68. Revenue for the quarter came in at $393.8 million, up 14% YoY and ahead of the consensus estimate of $389.69 million.
WIX said it has seen "incredible momentum" in its Partners business, with the segment's revenue at $119.4 million, up 38% YoY. In addition, WIX noted that current B2B partnerships are increasingly driving growth, while it has also seen early uptake of Wix Studio.
"Wix's performance in the third quarter exceeded both growth and profitability expectations for another consecutive quarter, as we successfully executed on our strategic priorities while remaining diligent with managing expenses," commented Avishai Abrahami, Wix Co-founder and CEO. "The strength in our Partners business is especially noteworthy with our team firing on all cylinders and revenue growth continuing to accelerate.
Looking ahead, the company sees Q4 2023 revenue of $400 million to $405 million, versus the consensus of $399.3 million, while FY2023 revenue is expected to be between $1.558 billion and $1.563 billion, versus the consensus of $1.556 billion.
Reacting to the report, analysts at Morgan Stanley said that despite fears of a weakening SMB environment, the company reporting "revenue and profitability upside to Q3 results/FY23 guidance" should help to support the shares.
The analysts, who have an Equal-Weight rating and a $111 price target on the stock, also noted WIX's continued expense discipline driving upside to operating income, as well as its Q3 bookings growth of 10%, which was ~2 points below consensus.
Wix.com shares are up around 2.5% ahead of the open on Thursday.