Wix.com (NASDAQ:WIX) is rallying in early Thursday trading after topping second quarter consensus expectations.
The company, which provides website development services, reported earnings of $1.26, $0.69 better than the analyst estimate of $0.57, while revenue for the quarter came in at $389.98 million versus the consensus estimate of $382.6M. Total bookings in the quarter were $398.5M, up 12% year-over-year.
At the time of writing, Wix shares are up more than 8% at $95.77 per share.
Wix said its Outperformance continued, with revenue boosted by Creative Subscriptions and Business Solutions growth, which accelerated for the third consecutive quarter.
"It has been an incredible past six months at Wix on many fronts as we generated accelerating profitable growth through execution excellence and focused operational discipline. As a result, Q2 again performed above expectations and exceeded our revenue growth and FCF margin guides," said Avishai Abrahami, Wix Co-founder and CEO.
The company said it expects to accelerate top-line growth and margin expansion through the back half of the year after a very strong first half.
Wix expects Q3 revenue to be between $386M and $391M, while it raised its full-year revenue expectations due to its positive performance in H1. It sees full-year revenue from $1.54 billion to $1.56 billion.
"We expect this higher revenue growth outlook will drive increasing profitability throughout 2023 and beyond," the company said.
Reacting to the report, RBC Capital analysts said WIX's bookings came in modestly ahead of Street expectations, with Business Solutions growing 23% and Creative Subscription growing 9%.
"The company reported FCF of $49M excluding HQ buildout costs which was ahead of our $40M estimate," they wrote.
Morgan Stanley analysts said Wix's strong results "should dampen recent AI concerns."
"Revenue & profitability upside to Q2 results / FY23 guidance & healthy bookings should support shares following relative underperformance on the back of AI concerns & weak 3rd party data reports," they wrote.