Wix.com Stocks Soars After Q2 Performance, Thanks To AI - What's Going On?

Wix.com Ltd WIX reported second-quarter FY23 revenue growth of 13% year-on-year to $389.98 million, beating the consensus of $381.9 million. Non-GAAP EPS of $1.26 beat the consensus of $0.54.

Segments: Creative Subscription revenue increased 11% Y/Y to $287.1 million. The Creative Subscriptions bookings climbed 9% Y/Y to $293.9 million. Creative Subscriptions ARR was $1.16 billion, up 10% Y/Y.

Business Solutions' revenue rose 18% to $102.9 million, and the bookings jumped 23% Y/Y to $104.6 million.

The non-GAAP gross margin expanded by 600 bps to 68%.

Wix.com generated $47.8 million in operating cash flow and held $832.1 million in cash and equivalents.

Avishai Abrahami, Wix Co-founder and CEO, said, "Wix Studio revolutionizes the way professionals build and manage projects at scale by combining AI-powered features, the latest design and development capabilities, and seamless workflows for multi-site management to help freelancers and agencies complete projects with greater quality and velocity and scale their business faster." 

"Our innovation did not stop there this quarter, as we continued to be at the forefront of AI technology with the introduction of exciting AI and gen-AI-driven products coming soon to all Wix users, including AI Site Generator and AI Assistant for Business, among others. With these incredible accomplishments and the momentum we've generated this year so far, I am very excited for what is still to come as we continue to build a place for any business, community, or person to create their dreams online."

Outlook: Wix.com sees Q3 revenue of $386 million - $391 million (consensus $384.73 million). 

The company raised its FY23 revenue outlook to $1.543 billion - $1.558 billion (prior $1.522 billion - $1.543 billion) vs. the consensus of $1.53 billion.

Price Action: WIX shares are up 6.81% at $94.54 on the last check Thursday.