Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) reported results in line with analysts' expectations in Q4 FY2023, with revenue up 13.7% year on year to $403.8 million. The company expects next quarter's revenue to be around $417 million, in line with analysts' estimates. It made a non-GAAP profit of $1.22 per share, improving from its profit of $0.61 per share in the same quarter last year.

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Wix (WIX) Q4 FY2023 Highlights:

• Revenue: $403.8 million vs analyst estimates of $402.6 million (small beat)

• EPS (non-GAAP): $1.22 vs analyst estimates of $0.96 (26.6% beat)

• Revenue Guidance for Q1 2024 is $417 million at the midpoint, roughly in line with what analysts were expecting

• Management's revenue guidance for the upcoming financial year 2024 is $1.75 billion at the midpoint, in line with analyst expectations and implying 11.7% growth (vs 12.5% in FY2023)

• Free Cash Flow of $80.39 million, up 79.6% from the previous quarter

• Gross Margin (GAAP): 68.8%, up from 63.7% in the same quarter last year

• Market Capitalization: $7.16 billion

"We wrapped up an outstanding year of accelerating growth and record profitability with a strong fourth quarter underpinned by robust business fundamentals and anchored by incredible momentum in our Partners business," said Avishai Abrahami, Wix Co-founder and CEO.

Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.

E-commerce Software

While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.

Sales Growth

As you can see below, Wix's revenue growth has been unremarkable over the last two years, growing from $333.4 million in Q4 FY2021 to $403.8 million this quarter.

This quarter, Wix's quarterly revenue was once again up 13.7% year on year. We can see that Wix's revenue increased by $9.93 million quarter on quarter, which is a solid improvement from the $3.86 million increase in Q3 2023. Shareholders should applaud the acceleration of growth.

Next quarter's guidance suggests that Wix is expecting revenue to grow 11.5% year on year to $417 million, improving on the 9.5% year-on-year increase it recorded in the same quarter last year. For the upcoming financial year, management expects revenue to be $1.75 billion at the midpoint, growing 11.7% year on year compared to the 12.5% increase in FY2023.