SQSP - Wix.com gains on strong Q1 guidance boost

2023-05-17 08:54:37 ET

Shares of web development company Wix.com ( NASDAQ: WIX ) rose more than 7% in pre-market trading on Wednesday after it reported strong first-quarter results and boosted its full-year sales outlook.

For the period ending March 31, Wix.com ( WIX ) earned an adjusted 91 cents per share as revenue rose 9.5% year-over-year to $374.07M. Analysts were expecting sales to come in at $369.4M.

Wix also noted that creative subscription revenue rose 9% to $278.1M, while creative subscription annual recurring revenue increased to $1.13B as of the end of the quarter.

Looking ahead, Israeli-based Wix.com ( WIX ) said it expects second-quarter sales to grow between 10% and 12% year-over-year to fall within a range of $380M to $385M.

Wix, which competes with GoDaddy ( GDDY ) and Squarespace ( SQSP ), boosted its full-year outlook as a result of the strong first-quarter and now expects sales to fall within a range of $1.522B and $1.543B, up from a previous outlook of $1.51B to $1.535B.

The company also boosted its free cash flow outlook for the full year to be between $172M and $180M, excluding costs related to its headquarter, up from a prior view of $152M to $162M.

Following the results, Oppenheimer analyst Kenneth Wong, who has an outperform rating and per-share price target of $110 on Wix, said the results were strong and the outlook is still "conservative and achievable."

Jefferies analyst Brent Thill boosted his per-share price target to $120 from $110 and noted the results showed "signs of a modest macro recovery."

More on Wix.com

• Wix.com rebounds as Raymond James upgrades after 10% sell-off
• Israel pauses judicial reforms: What it means for the tech sector
• Wix.com rises, GoDaddy slips as Morgan Stanley changes ratings on pair

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