Wix.com Ltd. (NASDAQ:WIX) Q3 2023 Earnings Call Transcript November 9, 2023 8:30 AM ET

Company Participants

Emily Liu - IR

Avishai Abrahami - CEO & Co-Founder

Nir Zohar - President & COO

Lior Shemesh - CFO

Conference Call Participants

Trevor Young - Barclays

Ygal Arounian - Citi

Andrew Boone - JMP Securities

Chris Zhang - UBS

Bernie McTernan - Needham and Company

Ken Wong - Oppenheimer & Company

Mark Zgutowicz - Benchmark Company

Operator

Good day, and thank you for standing by. Welcome to the Wix Q3 2023 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's 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 your first speaker today, Emily Liu with Investor Relations. Emily, please go ahead.

Emily Liu

Thanks, Stacy, and good morning, everyone. Welcome to Wix's third quarter 2023 earnings call. Joining me today to discuss the 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 delivered a tremendous third quarter that exceeded both growth and profitability expectations for another consecutive quarter. Revenue in Q3 grew to $394 million, which is $3 million above the high end of our guidance. We generated more than $62 million of free cash flow, or 16% of revenues, ahead of our expectations.

As a result of our outperformance year-to-date, we are again raising revenue and free cash flow guidance for the year, and we now expect to finish 2023 ahead of the margin targets set at our Analyst Day in August.

As we begin to wrap up an outstanding yearֵ, I want to spend most of my time today talking about products that we expect will be our primary growth engines going into 2024 and years to come, Wix Studio and AI.