Wix.com (WIX +1.16%) saw its stock close Wednesday barely in positive territory, as the market digested the DIY website company's latest quarterly earnings report. Cautiously optimistic investors pushed the stock 0.3% higher, which wasn't quite enough to meet the 0.7% increase of the bellwether S&P 500 index on the day.
Encouraging growth on the top and bottom lines
In Wix.com's second quarter, the company's revenue grew by 12% year over year to just under $490 million. Of its two reporting segments, creative subscriptions, its foundational website design services, rose by nearly 11% to $345 million and change. The smaller business solutions segment, meanwhile, enjoyed 17% growth to more than $144 million.
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A more robust improvement was seen on the bottom line, with non-GAAP (adjusted) net income zooming 37% higher to $136 million. On a per-share basis, that shook out to $2.28 per share.
Both figures comfortably topped the consensus analyst estimates. The average pundit projection for revenue was a bit north of $487 million, while that for adjusted, per-share profitability stood at only $1.75.
In a letter to shareholders, Wix.com attributed the increases largely to "Strong demand, combined with better conversion in core markets and steadily higher monetization."
NASDAQ: WIX
Key Data Points
Only a slight change in guidance
Wix.com also made a slight adjustment to the lower end of its full-year revenue guidance range. It's now expecting the top line to come in at just under $1.98 billion to $2 billion for the year, which would represent growth of at least 12% over the 2024 result. Previously, it was modeling $1.97 billion to $2 billion.
