WIX - Wix.com beats Q4 top and bottom line estimates; initiates Q1 and FY23 outlook

• Wix.com press release ( NASDAQ: WIX ): Q4 Non-GAAP EPS of $0.61 beats by $0.51 .
• Revenue of $355M (+6.0% Y/Y) beats by $3.12M .
• Total revenue on a y/y constant currency basis was $361.4M, up 8% y/y.
• Total bookings in the fourth quarter of 2022 were $371.8M, up 6% y/y.
• Total bookings on a y/y constant currency basis were $385.8uM, up 10% y/y.
• Total non-GAAP gross margin in the fourth quarter of 2022 was 65%.
• Outlook: For the full year, we expect total revenue to be $1,510 - $1,535 million vs. consensus of $1.51B, representing approximately 9 - 11% y/y growth.
• Non-GAAP gross margin is expected to increase to ~66% for the full year 2023 with an exit margin of ~67%.
• 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.
• 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.
• "We expect total revenue in Q1'23 to be $367-$371 million, representing approximately 7-9% y/y growth vs. consensus of $365.53M."

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