First Published: 5:30 AM EST
Let us take an in-depth look at both of these companies earnings.
Wix Tops Q4 Estimates
Wix.com, the Israeli software company reported Q4 adjusted earnings of $0.61 per share beating analysts’ consensus estimate of $0.09. Total revenues increased by 6% year-over-year to $355 million, surpassing analysts’ expectations of $351.9 million.
Total bookings were up 6% year-over-year to $371.8 million.
Lior Shemesh, Wix’s CFO commented, ” Earlier this month, we began implementing further cost efficiency measures that we expect to yield an additional $50 million of cost savings in 2023 and $65 million on
an annualized basis. Combined with our original cost reduction plan, we now expect total cost savings of $200 million in 2023 and $215 million of annualized savings compared to the plan we shared at our May 2022 Analyst Day.”
Looking forward, management now expects FY23 revenues to grow between 9% and 11% year-over-year and range between $1.51 billion and $1.54 billion versus the consensus of $1.51 billion. In Q1, revenues are projected to range from $367 million to $371 million versus a consensus of $365.5 million.
As a result, Wix expects free cash flow (excluding HQ investments) to be between $152 million and $162 million in FY23. Moreover, Wix expects the FCF 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.”
Overall, analysts are cautiously optimistic about WIX stock with a Moderate Buy consensus rating based on three Buys and one Sell.
Fiverr Delivers Mixed Q4 Results
Fiverr, the online marketplace for freelance services reported adjusted earnings of $0.26 per share, versus $0.22 in the same period last year. Analysts were expecting the company to report earnings of $0.18 per share.
Revenues in the fourth quarter increased 4.2% year-over-year to $83.1 million but fell short of Street expectations of $83.4 million.
While Fiverr’s active buyers went up by 1% year-over-year to 4.3 million at the end of Q4, the spend per buyer increased by 8% year-over-year to $262.
However, the company warned that looking forward, Q1 is likely to be “the most challenging quarter in terms of year over year growth rate” due to a difficult comparison with the Q1 of last year. Fiverr has projected revenues in the range of $86.5 million to $88.5 million versus a consensus of $87.3 million.
In FY23, the company anticipates revenues to grow in the range of 4% to 8% year-over-year to be between $350 million and $365 million versus the consensus of $365.87 million while adjusted EBITDA is projected to be between $45 million and $55 million.
Analysts are cautiously optimistic about FVRR stock with a Moderate Buy consensus rating based on three Buys and two Holds.