Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be reporting earnings tomorrow before the bell. Here's what you need to know.
Last quarter Wix reported revenues of $341.5 million, up 12.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a 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 8.82% year on year to $344.3 million, slowing down from the 34% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.39%.
Looking at Wix's peers in the e-commerce software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. GoDaddy delivered top-line growth of 9.04% year on year, missing analyst estimates by 0.1% and Squarespace reported revenues up 8.51% year on year, exceeding estimates by 0.32%. Both companies (GoDaddy and Squarespace) traded flat on the results. Read our full analysis of GoDaddy's results here and Squarespace's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 10.3% over the last month. Wix is up 12.9% during the same time, and is heading into the earnings with analyst price target of $93, compared to share price of $72.35.
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The author has no position in any of the stocks mentioned.