Wix(US:WIX)2022-11-10 16:37Financial Data and Key Metrics Changes - Revenues in Q3 were $346 million, representing an 8% year-over-year growth, and on a constant currency basis, revenues were $351 million, or 10% growth year-over-year [8][26] - Non-GAAP gross profit grew more than 10% year-over-year, resulting in a non-GAAP gross margin of 63% [10] - Positive free cash flow was reported, excluding the investment in the new headquarters, amounting to $4.6 million in Q3 [25] Business Line Data and Key Metrics Changes - Transaction revenue, primarily from Wix Payments, was $36 million in Q3, reflecting a 12% year-over-year growth [27] - Partners revenue grew to $86.9 million, or 24% year-over-year, with a 26% growth on a constant currency basis [28] - Total bookings in Q3 were $352.5 million, with a year-over-year constant currency basis of $366.5 million [29] Market Data and Key Metrics Changes - User additions in Q3 were 4.7 million, reflecting the current demand environment [18] - The company adjusted marketing spend to focus on higher-intent users, resulting in a slight headwind to new user additions in Q3 [18] Company Strategy and Development Direction - The company aims to build a leading platform for creating and managing an online presence for self-creators, professionals, and developers [11] - New products like Wix Blocks and a new eCommerce vision were introduced to enhance offerings for professionals [14][15] - The company is focused on operational efficiencies and cost reduction, with plans to continue optimizing overhead costs [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but emphasized strong business fundamentals and execution [8][10] - The company expects to achieve free cash flow margin targets outlined in their three-year plan [11][37] - Management remains optimistic about the strength of their B2B pipeline despite current economic challenges [32] Other Important Information - The company has implemented a cost reduction plan, resulting in improved margins and free cash flow [10][24] - The new headquarters in Tel Aviv is expected to deliver operational efficiencies [20] Q&A Session Summary Question: What are the biggest opportunities for cost savings? - Management believes the cost reductions made will meet the targets set during the Analyst Day, adjusting costs based on macroeconomic conditions [41][42] Question: How is demand from partners versus self-creators? - Demand from partners is still healthy, but there has been a decline compared to previous year's growth due to economic conditions [48] Question: Can you discuss the competitive landscape? - The competitive landscape has seen a slowdown, but the company is performing better than most competitors and is positioned to gain market share [62] Question: What is the impact of pricing changes on revenue growth? - The pricing changes have had a positive impact, with expectations of higher average revenue per subscription [69][74] Question: How is the company addressing the slowdown in international markets? - The company is aware of the slowdown in regions like LatAm and Asia and is strategizing to regain momentum [75] Question: What are the expectations for free cash flow in 2023? - The company is committed to achieving the free cash flow margin targets set in their three-year plan [37][78]