Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be reporting results tomorrow before market hours. Here's what to expect.
Wix met analysts' revenue expectations last quarter, reporting revenues of $419.8 million, up 12.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts' billings estimates but a decline in its gross margin.
Is Wix a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Wix's revenue to grow 11.2% year on year to $433.8 million, slowing from the 13% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wix has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 0.9% on average.
Looking at Wix's peers in the e-commerce software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Squarespace delivered year-on-year revenue growth of 19.9%, beating analysts' expectations by 1.2%, and GoDaddy reported revenues up 7.3%, in line with consensus estimates. Squarespace's stock price was unchanged after the results, while GoDaddy was up 7%.
Read our full analysis of Squarespace's results here and GoDaddy's results here.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the e-commerce software stocks have fared somewhat better, they have not been spared, with share prices down 6% on average over the last month. Wix is down 2.3% during the same time and is heading into earnings with an average analyst price target of $184.7 (compared to the current share price of $151.9).
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