Wix Earnings: What To Look For From WIX

Kayode Omotosho /
2023/02/21 3:10 am EST

Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be announcing earnings results tomorrow before the bell. Here's what you need to know.

Last quarter Wix reported revenues of $345.8 million, up 7.79% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but 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 7.16% year on year to $351.8 million, slowing down from the 18% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are 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 1.14%.

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 delivered top-line growth of 2.02% year on year, missing analyst estimates by 0.3% and Shopify reported revenues up 25.7% year on year, exceeding estimates by 5.1%. GoDaddy traded down 3.13% on the results, Shopify was down 0.71%. Read our full analysis of GoDaddy's results here and Shopify's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 7.77% over the last month. Wix is down 3.43% during the same time, and is heading into the earnings with analyst price target of $99.3, compared to share price of $85.4.

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.