Wix.com Tops Q3 Backed By Healthy Demand

Wix.com Ltd WIX reported third-quarter FY22 revenue growth of 8% year-on-year to $345.8 million, beating the consensus of $343.3 million.
Segments: Creative Subscription revenue increased 8% Y/Y to $261.1 million. The Creative Subscriptions bookings declined 8% Y/Y to $269.9 million.
Creative Subscriptions ARR was $1.07 billion, up 8% Y/Y.
Business Solutions' revenue rose 8% to $84.7 million, and the bookings jumped 2% Y/Y to $82.5 million.
The non-GAAP gross margin expanded by 200 bps to 65%.
Non-GAAP EPS of $0.06 beat the consensus loss of $(0.09).
Wix.com used $(22.6) million in free cash flow and held $1.2 billion in cash and equivalents.
The board recently authorized a $300 million share repurchase plan.
"Demand for building, maintaining, and growing an online presence remains healthy, driving strong business fundamentals for Wix this quarter," said Avishai Abrahami, Wix Co-founder and CEO. "As the operating environment remains dynamic and uncertainties persist, we focused on carrying out the cost savings plan introduced last quarter, while continuing to execute on strategic initiatives."
Outlook: Wix.com sees Q4 revenue of $349 million - $354 million, up 5% - 6% Y/Y.
The company revised the FY22 revenue growth rate to 9% Y/Y against the prior 8% - 10% Y/Y.
The updated outlook reflects foreign exchange, or FX, rates that have created stronger headwinds.
Price Action: WIX shares closed lower by 0.27% at $69.52 on Wednesday.

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