Wix.com Ltd. (NASDAQ: WIX) stock fell after missing analyst expectations. The web development platform reported a loss of $0.72 per share in the first quarter of March 2022 on revenue of $342 million. The consensus estimate was a loss of $0.65 per share on $340.1 million in revenue.
WIX stock was down 10% to $64.01 at the time of writing.
Financial Highlights
- Q1’22 total revenue of $342 million, up 14% y/y and representing a two-year CAGR of 27%.
- Q1’22 total bookings of $393 million, up 12% y/y and representing a two-year CAGR of 26%.
- Continued execution of long-term strategy illustrated by increased revenue generated through partners1 in Q1’22 of $82 million, up 41% y/y, and transaction revenue of $36.6 million, an increase of 24% y/y.
- Adopted board-approved financial plan to reach 20% FCF margins by 2025.
- GAAP net loss in the first quarter of 2022 was $(227.3) million, or $(3.95) per share.
- Non-GAAP net loss in the first quarter of 2022 was $(41.4) million, or $(0.72) per share.
- Net cash used in operating activities for the first quarter of 2022 was $13.7 million, while capital expenditures totaled $19.9 million, leading to a free cash flow of $(33.6) million.
Outlook
Wix.com anticipates total revenue of $342 – $346 million in Q2’22, representing an 8 – 10% year-on-year increase. This range includes a $0.6 million negative impact from the closure of our operations in Russia and certain regions of Ukraine and a $4 million headwind from y/y changes in foreign exchange rates. Without these, the company expected revenue to increase by 10 to 11% year on year in Q2’22.
CEO’s Quote
“Wix has remained focused on executing on our long-term opportunities, our product and marketing roadmaps, and concentrating on what we can control despite the recent months of instability and volatility,” said Avishai Abrahami, Wix co-founder and CEO.
Company Profile
Wix.com Ltd provides a platform for web development. It offers a simple-to-use yet powerful cloud-based platform that eliminates the need for complex coding and replaces costly design services.
