Israeli software company Wix.com (NASDAQ:WIX) jumped in trading after the company reported earnings for its third quarter of FY23. Earnings per diluted share came in at $1.10, which beat analysts’ consensus estimate of $0.68 per share.
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The company’s total revenues increased by 14% year-over-year to $393.8 million, surpassing analysts’ expectations of $389.6 million.
Looking forward, the management expects its Q4 revenues to be in the range of $400 million to $405 million, up by 13% to 14% year-over-year. In FY23, Wix.com raised its outlook to land between $1.55 billion and $1.56 billion, up from its prior guidance in the range of $1.54 billion to $1.56 billion. The company stated that it was increasing its guidance “due to the outperformance we experienced in the first three quarters of 2023.”
Wix.com added that “due to stronger than expected revenue growth and continued benefits from completed operational efficiencies,” the company was increasing its outlook for free cash flow, excluding HQ and cash restructuring costs, for FY23 to between $235 million and $240 million. This would put the company in “striking distance of our minimum 25% FCF [free cash flow] margin anticipated for 2025.”
What is the Buy Rating for Wix?
Analysts are bullish about WIX stock with a Strong Buy consensus rating based on 10 Buys and one Hold. The average WIX price target of $121.30 implies an upside potential of 35% at current levels.
