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

Wix.com Stock Slides on Q4 Revenue Miss, Slower Revenue Growth Forecast for Q1
Stock photo of data charts on paper. (Lukas/Pexels)
Benzinga
2/16/2022
Updated:
2/16/2022

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
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