Earnings To Watch: Wix Reports Q4 Results Tomorrow

Kayode Omotosho /
2022/02/15 6:35 am EST
Add to Watchlist

Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Wix reported revenues of $320.7 million, up 26.2% year on year, beating analyst revenue expectations by 1.77%. It was a mixed quarter for the company with solid revenue growth but revenue guidance for the next quarter narrowly missing what analysts were expecting.

Is Wix buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wix's revenue to grow 17.8% year on year to $332.8 million, slowing down from the 38% year-over-year increase in revenue the company had recorded in the same quarter last year. Loss is expected to come in at -$0.42 per share.

Wix Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Wix's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. GoDaddy (NYSE:GDDY) delivered top-line growth of 16.6% year on year, beating analyst estimates by 4.74% and HubSpot (NYSE:HUBS) reported revenues up 46.5% year on year, exceeding estimates by 3.29%. GoDaddy traded up 8.62% on results, HubSpot was up 1.97%. Read our full analysis of GoDaddy's results here and HubSpot's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 3.06% over the last month. Wix is down 14.2% during the same time, and is heading into the earnings with analyst price target of $249.9, compared to share price of $112.78.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.