Wix Posts Revenue Beat, Lifts Outlook as Taxes Tip Q3 to Small Loss

Strong adjusted profit with solid cash generation contrasted with a GAAP loss caused chiefly by higher taxes.

Overview

Revenue reached $505.2 million, topping estimates on strength in Creative Subscriptions ($356.2 million) and a 20% year-over-year gain in Business Solutions.
GAAP results swung to a net loss of $0.589 million, or $0.01 per share, as income tax expense rose to $12.28 million from $3.08 million a year earlier.
Adjusted earnings were $1.68 per share ($100.2 million), beating the $1.49 consensus, and free cash flow excluding acquisitions was $159 million.
Operating income turned to a $7.4 million loss as $32 million of costs tied to Base44 and HourOne plus heavier marketing pressured margins.
Wix guided Q4 revenue to $521–$531 million and raised full-year revenue guidance to $1.99–$2.00 billion, while BofA kept a Buy rating but cut its price target to $170.