Wix.com Stock Slides on Q4 Revenue Miss, Slower Revenue Growth Forecast for Q1

By Benzinga
Benzinga
Benzinga
February 16, 2022 Updated: February 16, 2022

Wix.com Ltd. reported fourth-quarter FY21 revenue growth of 16 percent year-on-year to $328.3 million, missing the consensus of $331.2 million.

Wix.com is a global SaaS platform to create, manage, and grow an online presence.

Segments

Creative Subscriptions revenue increased 15 percent Y/Y to $246.7 million. The Creative Subscriptions bookings climbed 12 percent Y/Y to $264 million.

Creative Subscriptions ARR was $1.01 billion, up 15 percent Y/Y.

Business Solutions’ revenue rose 19 percent to $81.7 million, and the bookings jumped 25 percent Y/Y to $87.5 million.

The non-GAAP gross margin contracted 300 bps to 62 percent as costs surged 24.7 percent Y/Y.

Non-GAAP EPS loss of $(0.37) beat the consensus loss of $(0.38).

Wix.com generated $21 million in operating cash flow and held $1.3 billion in cash and equivalents.

Outlook

Wix.com sees Q1 2022 revenue to grow 11 percent – 13 percent Y/Y to $338 million – $343 million, below the consensus of $355.3 million. The company’s Q1 2021 saw revenue grow 41 percent y/y.

Wix.com expects the Y/Y growth of total revenue to accelerate each quarter through the end of 2022.

Avishai Abrahami, Co-founder and CEO, said, “We are putting our best foot forward to increase our growth by expanding our market leadership with self-creators, strengthening our reach through partners, and doubling down on our commerce platform.”

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

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