Wix.com (WIX) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached $1.562B; bookings were $1.598B, while adjusted free cash flow was $246M, or 16% of revenue.

• Growth was supported by Creative Subscriptions ARR expansion, momentum in partner and transaction revenue, and improved operating efficiency.

Financial highlights

• Q4 revenue was $404M, up 14% YoY; FY23 revenue was $1.562B versus $1.388B in FY22.

• Q4 bookings were $395M, up 6% YoY; FY23 bookings were $1.598B versus $1.472B in FY22.

• FY23 non-GAAP gross profit was $1.067B, with a 68% non-GAAP gross margin; non-GAAP S&M was $355M, or 33% of gross profit.

• Adjusted FCF, excluding HQ costs and $5.9M of cash restructuring costs, was $246M, or 16% of revenue; adjusted FCF per share was $3.82.

Outlook and guidance

• FY24 revenue guidance: $1.73B-$1.76B, representing 11%-13% YoY growth.

• FY24 bookings guidance: $1.78B-$1.81B, representing 12%-14% YoY growth; bookings guidance was reintroduced with improved visibility and confidence.

• FY24 adjusted FCF guidance: $370M-$400M, or 21%-23% margin, excluding HQ investments; higher bookings growth and operating leverage support the outlook.

• FY24 non-GAAP gross margin outlook was 68%-69%; non-GAAP operating expenses were expected at 51%-52% of revenue.

• FY24 diluted FCF per share guidance was raised to more than $5, from the prior target of more than $3.