FMP

FMP

Wix.com Up 5% Following Q3 Results

Wix.com Ltd. (NASDAQ:WIX) shares closed 5.71% higher on Friday, following the company’s reported Q3 results, with EPS coming in at ($0.21), better than the consensus estimate of ($0.43). Quarterly revenue grew 26% year-over-year to $320.8 million, compared to the consensus estimate of $314.8 million.

The key debate that has emerged is around whether investors should ascribe the same credit to B2B deals that drive subscriptions vs. the company's core business which is showing meaningful deceleration. Management is investing for growth, but the analysts at RBC Capital think that H1 new business formation comps in particular become tougher for the core where it is unclear if B2B can offset this headwind.