WIX 2022 Q4 季报

[crosfan]

WIX 2022 Q4 ??

Earnings per share: - $0.67 (adjusted 0.61) vs. $0.08 expected, -$0.34 year earlier
Revenue: $355 million (6% y/y) vs. $351.7 million

For the year, the company reported a loss of $424.9 million, or $7.33 per share. Revenue was reported as $1.39 billion. up 9%.


2023 Q1 forecast

Revenue: $367 million to $371 million (7-9% y/y) vs. $366 million expected

For all of 2023 it expects revenue of $1.51-$1.535 billion (9-11%) vs. full year revenue of $1.511 billion exoected

[crosfan]

Q4 2022 Financial Results

• Total revenue in the fourth quarter of 2022 was $355.0 million, up 6% y/y
  
  • Total revenue on a y/y constant currency basis was $361.4 million, up 8% y/y
• Creative Subscriptions revenue in the fourth quarter of 2022 was $265.3 million, up 8% y/y
  
  • Creative Subscriptions ARR increased to $1.08 billion, up 7% y/y
  
  
• Business Solutions revenue in the fourth quarter of 2022 was $89.8 million, up 3% y/y
  
  • Transaction revenue was $38.9 million, up 8% y/y
• Partners revenue4 in the fourth quarter of 2022 was $94.6 million, up 23% y/y
• Total bookings in the fourth quarter of 2022 were $371.8 million, up 6% y/y
  
  • Total bookings on a y/y constant currency basis were $385.8 million, up 10% y/y
• Creative Subscriptions bookings in the fourth quarter of 2022 were $281.8 million , up 7% y/y
• Business Solutions bookings in the fourth quarter of 2022 were $90.0 million, up 3% y/y
• Total gross margin on a GAAP basis in the fourth quarter of 2022 was 64%
  
  • Creative Subscriptions gross margin on a GAAP basis was 78%
  • Business Solutions gross margin on a GAAP basis was 22%
• Total non-GAAP gross margin in the fourth quarter of 2022 was 65%
  
  • Creative Subscriptions gross margin on a non-GAAP basis was 79%
  • Business Solutions gross margin on a non-GAAP basis was 24%
• GAAP net loss in the fourth quarter of 2022 was $(39.0) million, or $(0.67) per share
• Non-GAAP net income in the fourth quarter of 2022 was $35.6 million, or $0.61 per share
• Net cash provided by operating activities for the fourth quarter of 2022 was $53.2 million, while capital expenditures totaled $14.6 million, leading to free cash flow of $38.6 million
• Excluding the capex investment associated with our new headquarters office build out, free cash flow for the third quarter of 2022 would have been $4.6 million
• Executed $243 million in repurchases of ordinary shares, or approximately 5% of total shares outstanding, under Board-authorized $300 million share repurchase program

FY 2022 Financial Results

• Total revenue for the full year 2022 was $1.39 billion, up 9% y/y
  
  • Total revenue on a y/y constant currency basis was $1.40 billion, up 11% y/y
  • Creative Subscriptions revenue for the full year 2022 was $1.04 billion, up 9% y/y
  • Business Solutions revenue for the full year 2022 was $348.2 million, up 9% y/y
    
    • Transaction revenue3 for the full year was $148.2 million, up 14% y/y
  • Partners revenue4 for the full year 2022 was $348.2 million, up 29% y/y
• Total bookings for the full year 2022 were $1.47 billion, up 4% y/y
  
  • Total bookings on a y/y constant currency basis were $1.52 billion, up 7% y/y
• Creative Subscriptions bookings for the full year 2022 were $1.12 billion , up 3% y/y
• Business Solutions bookings for the full year 2022 were $350.7 million, up 6% y/y
• Total gross margin on a GAAP basis for the full year 2022 was 62%
  
  • Creative Subscriptions gross margin on a GAAP basis was 76%
  • Business Solutions gross margin on a GAAP basis was 21%
• Total non-GAAP gross margin for the full year 2022 was 64%
  
  • Creative Subscriptions gross margin on a non-GAAP basis was 77%
  • Business Solutions gross margin on a non-GAAP basis was 23%
• GAAP net loss for the full year 2022 was $(424.9) million, or $(7.33) per share
• Non-GAAP net loss for the full year 2022 was $(10.0) million, or $(0.17) per share
• Net cash provided by operating activities for the full year 2022 was $37.2 million, while capital expenditures totaled $70.7 million, leading to free cash flow of $(33.5) million
• Excluding the capex investment associated with our new headquarters office build out, free cash flow for the full year 2022 would have been $32.4 million
• Added 96 thousand net premium subscriptions in full year 2022 to reach nearly 6.1 million as of December 31, 2022, a 2% increase over the total number of premium subscriptions at December 31, 2021
• Registered users as of December 31, 2022 were 243 million, representing a 10% increase compared to December 31, 2021
• Total employee headcount as of December 31, 2022 of 5,516, including 152 part time employees, down 7% y/y

Financial Outlook

Assuming no deterioration in the macro environment, we expect total revenue in Q1'23 to be $367-$371 million, representing approximately 7-9% y/y growth.

For the full year, we expect total revenue to be $1,510 - $1,535 million, representing approximately 9 - 11% y/y growth.

Our focus in 2023 will continue to be on driving cost efficiencies across the business while innovating industry-first products for our users. As a result of the $50 million of incremental cost savings expected in 2023 (~$65 million on an annualized basis), we anticipate profitability to accelerate compared to the three-year plan outlined at our Analyst Day in May 2022.

Non-GAAP gross margin is expected to increase to ~66% for the full year 2023 with an exit margin of ~67%. This improvement will be driven by increases in gross margin to Creative Subscriptions, which we expect will be ~80% and Business Solutions, which we expect to be ~27% in 2023.

Non-GAAP operating expenses are expected to be slightly down y/y to 59-60% of revenue for full year 2023 as operational efficiencies from our cost reduction efforts materialize.

We expect depreciation expenses of approximately $17 - $19 million, non-HQ related capex of approximately $8 - $9 million and HQ-related capex of $50 - $55 million for full year 2023. Due to the timing of vendor payments associated with the buildout of our headquarters, we now anticipate HQ-related capex of $5 - 10 million in 2024 following the completion of the project in late 2023. The total cost associated with the buildout of our headquarters remains ~$150 million, unchanged from prior expectations.

As a result, free cash flow excluding HQ investments is expected to be roughly $152 - $162 million, or 10-11% of revenue in 2023. We expect free cash flow margin to improve as we progress through the year and exit 2023 with a free cash flow margin of ~12-13%, driven by the new efficiencies implemented in 1H23.

Finally, stock-based compensation is expected to decrease to 15% of revenue in 2023, down from 17% of revenue in 2022, as headcount across the organization declines. We expect stock-based compensation as a percentage of revenue to continue to decline y/y through 2025.

The accelerated profitability expected in 2023 will put us on the path to achieve the "Rule of 40" in 2025.