Wix.com Ltd. (NASDAQ:WIX) Q3 2022 Earnings Conference Call November 10, 2022 8:30 AM ET

Company Participants

Emily Liu – Investor Relations

Avishai Abrahami – Co-Founder and Chief Executive Officer

Nir Zohar – President and Chief Operating Officer

Lior Shemesh – Chief Financial Officer

Conference Call Participants

Brent Thill – Jefferies

Andrew Boone – JMP Securities

Ron Josey – Citi

Elizabeth Porter – Morgan Stanley

Trevor Young – Barclays

Ken Wong – Oppenheimer & Company

Naved Khan – Truist Securities

Deepak Mathivanan – Wolfe Research

Operator

Good day, and thank you for standing by. Welcome to the Wix Q3 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator instructions]

I would now like to hand the conference over to your speaker today is Emily Liu, Investor Relations Analyst. Please go ahead.

Emily Liu

Thanks, and good morning, everyone. Welcome to Wix's third quarter 2022 earnings call. Joining me today to discuss the results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, our President and COO; 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. Thanks for joining us today. I want to start today’s call with a few highlights from the quarter and provide an overview of some exciting new products we recently announced. Nir and Lior will then share more details on our operations and financial results, and then we will take some questions.

Despite continued uncertainty, the strong fundamentals of our business along with great execution led to revenue growth ahead of our expectations and significant improvements in profitability. Revenues in Q3 were $346 million, or 8% growth year-over-year. On a constant currency basis, revenues were $351 million, or 10% growth year-over-year.

We consider our global reach to be one of our key competitive advantages. However, given the recent changes in foreign exchange rates, it has become a meaningful headwind to our financial results. Our free cash flow this year would be more than double if you assume year-over-year constant currency rates. While there is still a great deal of uncertainty and volatility in the macro economy, which we expect will continue into 2023, we are focused on what is under our control.