Wix.com raises FY23 revenue view to $1.54B-$1.56B from $1.52B-$1.54B

Consensus $1.53B. The company states: “Due to the outperformance we experienced in the first half of 2023, we are increasing our full year revenue outlook to $1,543 – $1,558 million, or 11 – 12% y/y growth, an increase from our previous outlook of $1,522 – $1,543 million or 10 – 11% y/y growth. Strong execution on our strategy and continued momentum from our cohorts give us confidence that revenue growth will accelerate in H2 even when compared to an outstanding 1H that exceeded expectations. The mid-point of our guidance range implies acceleration of revenue growth in the second half of the year compared to the first half. We expect this higher revenue growth outlook will drive increasing profitability throughout 2023 and beyond. We now anticipate non-GAAP gross margin of approximately 68% for the full year, up from our previous expectation of approximately 67% for the full year 2023, driven by increased profitability across both Creative Subscriptions and Business Solutions. We now anticipate Creative Subscriptions non-GAAP gross margin of approximately 82% for the full year, up from our previous expectation of approximately 81%. We now anticipate Business Solutions non-GAAP gross margin of approximately 28% for the full year, up from our previous expectation of approximately 27%. Non-GAAP operating expenses are expected to decrease to 56-57% of revenue for the full year, down from our previous expectation of 58-59% of revenue. This decrease is primarily driven by lower marketing expenses than previously anticipated. Non-GAAP sales and marketing expenses are now expected to be approximately 25-26% of revenue in 2023, down from our previous expectation of approximately 27% of revenue. As a result of accelerating revenue and incremental profitability improvements through the back half of the year, we are increasing our outlook for free cash flow, excluding HQ and cash restructuring costs, for the year to $200 – $210 million, or 13% of revenue, and we expect to exit 2023 with a free cash flow margin of approximately 15%. This compares to our previous free cash flow outlook of $172 – $180 million, or 11 – 12% of revenue and an exit rate of more than 13%. Our revised guidance for FCF implies acceleration of FCF margin in the second half of the year.”