As exciting as revenue growth seems to be for a number of investors, rest assured that a great many investors care as much about EARNINGS.
WIX disappointed on the earnings front coming in with Q2EPS at $0. The expectation was that WIX would finally show a modest ($0.09) profit. If WIX can’t substantially improve on its -14% operating margin and its -14.9 percent profit margin, then ever increasing revenue streams will simply lead to more losses.
I agree that earnings are important. But look at CFFO and FCF and the growth of those.
CFFO was $19.7M an increase of 74.3%. Full year growth of CFFO on a 12 month trailing basis was 149%.
FCF (which is CFFO less the cap ex investment required to grow the business) was $17.4M an increase of 70.6% over the prior year. The full year growth of FCF was 175%.
The results were inline with their guidance and their future guidance don’t raise any red flags. The one thing to watch is their SBC going forward.
Chris