WIX - Wix surges 10% on strong Q2 results raised guidance

2023-08-03 09:28:51 ET

Wix.com ( NASDAQ: WIX ), which creates websites for other companies, surged nearly 10% in pre-market trading on Thursday after the Tel Aviv, Israel-based company reported strong second-quarter results and raised its full-year guidance.

For the period ending June 30, Wix earned an adjusted $1.26 per share as revenue rose 13% year-over-year to $389.98M. Included in that was an 11% rise in Creative Subscriptions revenue to $287.1M.

Analysts were expecting Wix ( WIX ) to earn 60 cents per share, excluding one-time items, on $382.61M in revenue.

Following the results, several analysts on Wall Street praised the concerns, including Morgan Stanley analyst Elizabeth Porter, who said the strong results should "dampen recent AI concerns."

Citi analyst Ygal Arounian, who has a buy rating and $120 price target on Wix.com ( WIX ), also praised the results and said the company is continuing to address any disruption from artificial intelligence.

In a statement , Wix co-founder and CEO Avishai Abrahami said the company continues to be "at the forefront of AI technology," introducing AI and generative AI products that are coming soon to all Wix users, including AI Site Generator and AI Assistant for Business.

"With these incredible accomplishments and the momentum we've generated this year so far, I am very excited for what is still to come as we continue to build a place for any business, community or person to create their dreams online," Abrahami added.

Looking ahead, Wix ( WIX ) expects third-quarter revenue to be between $386M and $391M, above the $384.7M estimate.

The company also raised its full-year sales forecast, as it now expects revenue to be between $1.54B and $1.56B, up from a prior view of $1.52B to $1.54B.

Shares of competitor Squarespace ( SQSP ) were up 1.3% following the results.

More on Wix and Squarespace

• D.A. Davidson positive on Squarespace and Wix, starts coverage with Buy
• Wix.com: Freemium Model And AI Tools Driving Growth
• Squarespace: Unveiling The Path To Success, 22x FCF

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