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
  • Wix.com Ltd WIX reported fourth-quarter FY21 revenue growth of 16% 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% Y/Y to $246.7 million. The Creative Subscriptions bookings climbed 12% Y/Y to $264 million.
  • Creative Subscriptions ARR was $1.01 billion, up 15% Y/Y.
  • Business Solutions' revenue rose 19% to $81.7 million, and the bookings jumped 25% Y/Y to $87.5 million.
  • The non-GAAP gross margin contracted 300 bps to 62% as costs surged 24.7% 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% - 13% Y/Y to $338 million - $343 million, below the consensus of $355.3 million. The company's Q1 2021 saw revenue grow 41% 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."
  • Price Action: WIX shares traded lower by 10.2% at $104.00 in the premarket on the last check Wednesday.

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