NEW YORK - Wix.com Ltd. (NASDAQ: NASDAQ:WIX), a leading global SaaS platform for website creation, announced its fourth-quarter earnings, surpassing analyst expectations with an EPS of $1.29, significantly higher than the estimated $0.96. The company's revenue also exceeded forecasts, coming in at $403.8M against a consensus estimate of $402.61M.
The company's strong performance is reflected in its stock movement, with shares rising following the earnings release. This positive investor sentiment is likely driven by Wix's robust fourth-quarter results and optimistic guidance for the fiscal year 2024.
Wix's revenue for the fourth quarter showed a 14% increase year-over-year (YoY), driven by a remarkable 38% YoY growth in its Partners business. The company's adjusted net income for the quarter stood at $74.0M, translating to $1.29 per basic share or $1.22 per diluted share. This financial success was attributed to the company's continued growth acceleration in the Partners business and solid operating leverage.
For the full year 2023, Wix reported total revenue of $1.56B, marking a 13% YoY increase. The company's adjusted net income for the year was $268.3M, or $4.72 per basic share or $4.39 per diluted share. Wix also achieved a record free cash flow (FCF) margin of 22% in the fourth quarter and a full-year FCF margin of 16%, surpassing the target margin of 13%.
Looking ahead, Wix provided an optimistic outlook for the first quarter and full year of 2024. The company forecasts total revenue in the range of $1.73 to $1.76B for FY2024, aligning with the analyst consensus of $1.75B. For Q1 2024, Wix anticipates revenue between $415 to $419B, compared to the consensus estimate of $416.5B. Moreover, Wix projects total bookings to grow by 12-14% YoY in 2024, indicating an acceleration from the previous year.
Wix's CEO, Avishai Abrahami, commented on the company's successful year, highlighting the growth acceleration and record profitability driven by robust business fundamentals and the momentum in the Partners business. He also emphasized the impact of Wix Studio and AI innovations on the company's performance.
The company's CFO, Lior Shemesh, expressed confidence in Wix's ability to outperform its three-year plan, citing visibility from a stable macro environment, strong cohort behavior in the Partners business, and the benefits from product launches in 2023 as key factors.
Investors have responded positively to the company's financial achievements and future prospects, as reflected in the stock's upward movement. Wix's strategic focus on innovation and operational efficiency has positioned it well for continued growth and profitability in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.