What Happened:
Shares of website design and e-commerce platform provider Wix.com (NASDAQ:WIX) jumped 9.2% in the after-market session after the company reported a "beat and raise" quarter. First quarter results surpassed analysts' expectations for revenue, operating income, free cash flow, and earnings per share. Revenue guidance for the next quarter and full year were also above Consensus. An additional positive aspect was the company's upward revision of the full-year free cash flow guidance, excluding HQ costs, now projected at $172 - $180 million. This reflects a significant improvement compared to the previous outlook of $152 - $162 million. Furthermore, the non-GAAP gross margin for the full year was raised to approximately 67%, surpassing the previous expectation of around 66%. These results and revisions highlight the company's strong performance and upbeat outlook going forward.
What is the market telling us:
Wix's shares are quite volatile and over the last year have had 44 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Wix is up 16.1% since the beginning of the year, but at $87.75 per share it is still trading 12.1% below its 52-week high of $99.81 from April 2023. Investors who bought $1,000 worth of Wix's shares 5 years ago would now be looking at an investment worth $996.36.
Is now the time to buy Wix? Access our full analysis of the earnings results here, it's free.