Wix.com sees FY23 revenue $1.51B-$1.54B, consensus $1.51B

The company said, "For the full year, we expect total revenue to be $1,510 – $1,535 million, representing approximately 9 – 11% y/y growth. Our focus in 2023 will continue to be on driving cost efficiencies across the business while innovating industry-first products for our users. As a result of the $50 million of incremental cost savings expected in 2023 (~$65 million on an annualized basis), we anticipate profitability to accelerate compared to the three-year plan outlined at our Analyst Day in May 2022. Non-GAAP gross margin is expected to increase to ~66% for the full year 2023 with an exit margin of ~67%. This improvement will be driven by increases in gross margin to Creative Subscriptions, which we expect will be ~80% and Business Solutions, which we expect to be ~27% in 2023. Non-GAAP operating expenses are expected to be slightly down y/y to 59-60% of revenue for full year 2023 as operational efficiencies from our cost reduction efforts materialize. We expect depreciation expenses of approximately $17 – $19 million, non-HQ related capex of approximately $8 – $9 million and HQ-related capex of $50 – $55 million for full year 2023. Due to the timing of vendor payments associated with the buildout of our headquarters, we now anticipate HQ-related capex of $5 – 10 million in 2024 following the completion of the project in late 2023. The total cost associated with the buildout of our headquarters remains ~$150 million, unchanged from prior expectations. As a result, free cash flow excluding HQ investments is expected to be roughly $152 – $162 million, or 10-11% of revenue in 2023. We expect free cash flow 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. Finally, stock-based compensation is expected to decrease to 15% of revenue in 2023, down from 17% of revenue in 2022, as headcount across the organization declines. We expect stock-based compensation as a percentage of revenue to continue to decline y/y through 2025."