Why Wix.com Shares Are Trading Lower Today

Wix.com Ltd WIX reported first-quarter FY22 revenue growth of 14% year-on-year to $341.6 million, beating the consensus of $340.6 million.
Segments: Creative Subscription revenue increased 13% Y/Y to $255 million. The Creative Subscriptions bookings climbed 12% Y/Y to $299.8 million.
Creative Subscriptions ARR was $1.04 billion, up 12% Y/Y.
Business Solutions' revenue rose 17% to $86.6 million, and the bookings jumped 13% Y/Y to $93.5 million.
The non-GAAP gross margin contracted 100 bps to 62% as costs surged 18.4% Y/Y.
Non-GAAP EPS loss of $(0.72) missed the consensus loss of $(0.64).
Wix.com used $13.7 million in operating cash flow and held $1.3 billion in cash and equivalents.
Outlook: Wix.com sees Q2 revenue to grow 8% - 10% Y/Y to $342 million - $346 million (consensus $356.19 million). Excluding the Russia -Ukraine crisis, Wix.com expected Q2 revenue to grow 10% - 11% Y/Y.
The company sees FY22 revenue to grow 10% - 13% Y/Y. Excluding the crisis, WIX's revenue growth would be 12 - 15% Y/Y.
Price Action: WIX shares traded lower by 10.7% at $63.60 in premarket on the last check Monday.

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