Wix.com (NASDAQ:WIX) Posts Earnings Results, Beats Estimates By $0.02 EPS

Wix.com (NASDAQ:WIX) issued its quarterly earnings data on Tuesday. The information services provider reported $1.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.40 by $0.02, FiscalAI reports. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.54%. The firm had revenue of $570.17 million during the quarter, compared to analyst estimates of $566.27 million. During the same quarter last year, the business posted $1.80 earnings per share. The business’s quarterly revenue was up 12.9% compared to the same quarter last year.

Here are the key takeaways from Wix.com’s conference call:

• Base44 reached nearly $250 million in ARR, with stronger conversion, improving cohort retention and upgrades, and Q3 gross margin of 58%; management expects second-half margin around 60% and sees further improvement ahead.
• Wix highlighted new growth opportunities across its portfolio: Symphony reached millions of dollars in ARR within months of launch, while Studio Two’s open AI-enabled workflow is intended to attract agencies and support an enterprise offering.
• Wix is accelerating Base44 marketing and enterprise sales investment, lowering its 2026 free cash flow margin outlook to approximately 16%, from a prior target in the high teens. Management said spending will remain tied to its return-on-investment targets.
• Wix maintained its full-year outlook for low-teens bookings growth and low-to-mid-teens revenue growth; for Q4, it expects low-double-digit revenue growth, with bookings growth continuing to lag revenue.
• Management said the company had 25% fewer employees at Q3-end than in 2022 while delivering double-digit bookings growth and launching new products, and expects the core business’s free cash flow to improve further.

Wix.com Stock Down 3.0%

WIX traded down $2.03 during trading on Thursday, reaching $66.31. The company had a trading volume of 45,476 shares, compared to its average volume of 1,909,111. The business has a 50 day simple moving average of $76.48 and a 200-day simple moving average of $70.22. The stock has a market cap of $3.87 billion, a P/E ratio of -17.18, a PEG ratio of 30.60 and a beta of 1.06. Wix.com has a 52 week low of $40.16 and a 52 week high of $134.09.

Insider Buying and Selling at Wix.com

In other news, Director Ron Gutler sold 5,718 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $85.42, for a total value of $488,431.56. Following the completion of the sale, the director owned 15,631 shares in the company, valued at approximately $1,335,200.02. This trade represents a 26.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Avishai Abrahami purchased 654 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were purchased at an average cost of $59.89 per share, with a total value of $39,168.06. Following the completion of the purchase, the chief executive officer owned 486,225 shares in the company, valued at $29,120,015.25. This trade represents a 0.13% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 2,622 shares of company stock valued at $157,032. Insiders own 6.20% of the company’s stock.

Analyst Upgrades and Downgrades

WIX has been the subject of a number of research reports. Evercore set a $95.00 price target on Wix.com in a research note on Tuesday, August 4th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $85.00 price objective on shares of Wix.com in a research note on Tuesday. Wedbush cut their target price on shares of Wix.com from $80.00 to $75.00 and set a “neutral” rating for the company in a report on Tuesday. Cantor Fitzgerald reduced their price target on shares of Wix.com from $90.00 to $80.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Bank of America cut shares of Wix.com from a “buy” rating to an “underperform” rating and dropped their price objective for the stock from $75.00 to $68.00 in a research note on Tuesday. Ten analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $89.52.

Key Wix.com News

These are some of the WIX news items that stood out recently:

• Positive Sentiment: Base44, Wix’s AI website-building business, approached $250 million in annual recurring revenue and nearly 60% non-GAAP gross margin in Q3, offering a potential growth engine. Three key takeaways for long-term investors
• Negative Sentiment: Wix cut its cash-flow margin outlook as it increases spending on AI and marketing. That weaker near-term cash-flow outlook has weighed on investor reaction despite the earnings beat. Wix increases AI spending and cuts cash-flow outlook
• Negative Sentiment: Bank of America lowered its rating to Underperform from Buy and cut its price target to $68 from $75. Other firms, including JPMorgan, Wells Fargo and RBC, also lowered targets, adding pressure to sentiment. Bank of America lowers Wix rating

About Wix.com

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences. The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.