Wix Q2 GAAP Loss Widens to $76M on Surging AI Costs; Revenue Beats, Guidance Reaffirmed
WIX sits 47% above its 52-week low of $40.16.
Summary
Wix swung to a GAAP net loss of $76.4M ($1.78/share) in Q2, reversing a $57.7M profit a year ago, as R&D and S&M spending surged to fund AI development. Restructuring costs added $27.1M to the expense line. Revenue grew 15% to $563M, beating the $554M consensus, and adjusted EPS of $1.39 topped estimates. The company reaffirmed full-year revenue growth in the low- to mid-teens and guided Q3 to low-double-digit growth. Shares rose 7% after hours, suggesting the market is looking past the GAAP loss to the revenue beat and steady outlook. This follows the 20% workforce reduction announced in May and the recent class-action filing, but the reaffirmed guidance and after-hours pop signal that the worst of the margin compression may be priced in.
At the time of this announcement, WIX was trading at $59.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $40.16 to $190.93. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.