WIX Set to Report Q2 Earnings: Here's What You Should Know

Wix.com Ltd WIX is slated to report second-quarter 2024 results on Aug 7.

The company expects revenues to be between $431 million and $435 million, implying 11-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $433.6 million, indicating an increase of 11.2% from a year ago.

The Zacks Consensus Estimate for earnings is pegged at $1.32 per share, up 4.8% from the year-earlier quarter's level.

WIX's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 56.5%.

The company's shares have risen 56% compared with the sub-industry's growth of 12.2% in the past year.

Image Source: Zacks Investment Research

Factors to Consider

Increasing adoption of the product portfolio, especially various AI products, is likely to have driven revenues in the to-be-reported quarter. Among AI products, in the last reported quarter, management highlighted that its key offering — AI Website Builder — received strong responses from Self Creators and Partners. This solution created a professional website that meets the user's requirements through a conversational AI chat experience.

Strengthening momentum in WIX Studio is another tailwind. In the last reported quarter, management noted that more than 1 million Studio accounts have been created by agencies and designers since the rollout of WIX Studio in August 2023. It also contributed to strong revenue growth from the Partners business.

Average revenues per subscription are likely to have been driven by an expansive product portfolio and strong commerce growth. Increasing revenues from B2B businesses are an added positive.

WIX expects higher bookings, favorable gross margin mix and operational efficiencies to drive free cash flow performance. 

Recent Key Developments

On Jun 24, 2024, Wix launched the Figma to Wix Studio plugin. By leveraging the plugin, professionals can seamlessly transfer their Figma designs to the Wix Studio platform. This will allow them to take advantage of Wix Studio's robust native business solutions, AI-powered tools and agency-level capabilities.

On Jun 10, 2024, Wix expanded the availability of its AI Website Builder in different languages. Besides English, AI Website Builder is now available to global users in French, German, Portuguese, Spanish, Italian, Japanese, Turkish and Korean languages. This initiative aids users in building websites in their preferred language.

On May 16, 2024, Wix introduced three new AI-based image enhancement and creation tools to assist users in improving, customizing and personalizing visual content for their websites. These tools include AI Image Creator, Object Eraser and AI Image Editor. The new AI-based tools complement Wix's existing suite of AI features. Customers can now leverage the Wix platform alongside the AI Website Builder to streamline the process of creating and managing their online presence.

On May 9, 2024, Wix launched the AI Portfolio Creator, a groundbreaking tool that leverages the power of AI to aid users in crafting and showcasing an online professional portfolio. The AI Portfolio Creator effectively streamlines the portfolio creation experience by allowing users to smoothly upload and organize large-scale image collections with just a few clicks.

Users first need to select the type of portfolio they want. The AI Portfolio Creator swings into action once all selections are made and images are uploaded. It then sorts and generates project options with clustered images, recommended titles and descriptions, along with personalized layout options.

What Our Model Says

Our proven model does not predict an earnings beat for WIX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

WIX currently has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.

Hecla Mining Company HL has an Earnings ESP of +50.00% and a Zacks Rank #1 at present.

HL is scheduled to report quarterly earnings on Aug 6. The Zacks Consensus Estimate for HL's to-be-reported quarter's EPS and revenues is pegged at 1 cent and $208.8 million, respectively. Shares of HL have lost 4.3% in the past year.

Maplebear Inc. CART currently has an Earnings ESP of +9.80% and a Zacks Rank #2. CART is scheduled to report quarterly earnings on Aug 6.

The Zacks Consensus Estimate for CART's to-be-reported quarter's EPS and revenues is pegged at 13 cents and $804.9 million, respectively. Shares of CART have lost 6.3% in the past year.

Hagerty, Inc HGTY has an Earnings ESP of +44.44% and a Zacks Rank #2 at present. HGTY is set to report quarterly figures on Aug 6.

The Zacks Consensus Estimate for HGTY's to-be-reported quarter's EPS and revenues is pegged at 9 cents and $312.6 million, respectively. Shares of HGTY have surged 26.5% in the past year.

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