Wix.com Ltd. (NASDAQ:WIX) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET

Corporate Participants

Emily Liu - Investor Relations

Avishai Abrahami - Chief Executive Officer and Co-Founder

Nir Zohar - President and Chief Operating Officer

Lior Shemesh - Chief Financial Officer

Conference Call Participants

Matt Pfau - William Blair

Ken Wong - Oppenheimer & Co

Stefanos Crist - Needham & Co

Elizabeth Porter - MS

Chris Zhang - Credit Suisse

Ygal Arounian - Citigroup

Clarke Jeffries - Piper Sandler

Andrew Boone - JMP Securities

Brad Erickson - RBC Capital Markets

Operator

Good day and thank you for standing by. Welcome to the Wix Q2 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Emily Liu, Investor Relations. Please go ahead.

Emily Liu

Thanks, and good morning, everyone. Welcome to Wix's second quarter 2023 earnings call. Joining me today to discuss our results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, our President and COO; and Lior Shemesh, our CFO.

During this call, we may make forward-looking statements, and these statements are based on current expectations and assumptions. Please consider the risk factors included in our press release and most recent Form 20-F that could cause our actual results to differ materially from these forward-looking statements. We do not undertake any obligation to update these forward-looking statements.

In addition, we will comment on non-GAAP financial results and key operating metrics. You can find all reconciliations between our GAAP and non-GAAP results in the earnings materials and in our Interactive Analyst center on the Investor Relations section of our website, investors.wix.com.

With that, I'll turn the call over to Avishai.

Avishai Abrahami

Thanks, Emily, and good morning, everyone.

We continued the momentum built up over the past few quarters into a strong Q2, exceeding expectations as we accelerated both profitability and growth for the third consecutive quarter. This is a testament to our focused commitment to our growth strategy while balancing operational efficiency.

Revenue in Q2 grew to $390 million, above our guidance. We generated more than $49 million of free cash flow or 13% of revenues, also outperforming expectations. A meaningful driver of the strong performance this quarter was our Partners business, which grew revenue 36% year-over-year in Q2.