What To Expect From Wix’s (WIX) Q3 Earnings

Petr Huřťák /
2022/11/09 2:15 am EST

Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be reporting results tomorrow morning. Here's what to expect.

Last quarter Wix reported revenues of $345.2 million, up 9.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.

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 7.06% year on year to $343.4 million, slowing down from the 26.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.27%.

Looking at Wix's peers in the e-commerce software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Squarespace delivered top-line growth of 8.32% year on year, beating analyst estimates by 0.88% and BigCommerce reported revenues up 22.1% year on year, exceeding estimates by 3.97%. Squarespace was flat on the results, and BigCommerce was down 9.05%. Read our full analysis of Squarespace's results here and BigCommerce's results here.

Tech stocks have been under pressure since the end of last year and while some of the e-commerce software stocks have fared somewhat better, they have not been spared, with share price declining 9.2% over the last month. Wix is down 15.4% during the same time, and is heading into the earnings with analyst price target of $93.10, compared to share price of $67.02.

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.