Wix.com Clocks 6% Revenue Growth In Q4 Backed By Notable Releases Including AI Text Creator

Wix.com Ltd WIX reported fourth-quarter FY22 revenue growth of 6% year-on-year to $355.04 million, beating the consensus of $351.98 million.
Segments: Creative Subscription revenue increased 8% Y/Y to $265.3 million. The Creative Subscriptions bookings grew by 7% Y/Y to $281.8 million.
Creative Subscriptions ARR was $1.08 billion, up 7% Y/Y.
Business Solutions' revenue rose 3% to $89.8 million, and the bookings jumped 3% Y/Y to $90 million.
The non-GAAP gross margin expanded by 300 bps to 65%.
Non-GAAP EPS of $0.61 beat the consensus of $0.09.
Wix.com generated $38.6 million in free cash flow and held $1.08 billion in cash and equivalents.
"We released hundreds of new products and features throughout 2022 to improve our platform for self creators and partners. Among the most notable releases this year were Wix Blocks for developers, our new Wix Editor, Wix Portfolio and our new AI Text Creator," said Avishai Abrahami, Wix Co-founder and CEO.
Outlook: Wix.com sees Q1 revenue of $367 million - $371 million, up 7% - 9% Y/Y.
The company expects FY23 revenue of $1.510 billion - $1.535 billion, up 9% - 11% Y/Y.
Price Action: WIX shares closed lower by 5.3% at $80.87 on Tuesday.

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