WIX Beats Q1 Forecasts with $1.38 EPS and $419.8 Million Revenue
Wix.com Ltd. (NASDAQ: WIX), a leading SaaS website builder platform, has reported a strong start to the fiscal year 2024, showcasing robust financial performance in the first quarter.
The company achieved total revenue of $419.8 million, marking a 12% year-over-year increase. This was driven by a reacceleration in Creative Subscriptions growth, which saw revenue rise to $304.3 million, up 9% from the previous year.
The Business Solutions segment also showed impressive growth, with revenue reaching $115.5 million, a 20% increase year-over-year.
Total bookings for the quarter amounted to $457.3 million, reflecting a 10% year-over-year growth. The momentum in the Partners business was particularly noteworthy, driven by the strong uptake of Wix Studio. This segment alone contributed $138.4 million in revenue, up 33% year-over-year.
The company also reported a GAAP operating income of $9.7 million, marking the second consecutive quarter of GAAP operating profit, and a free cash flow margin of 26%, setting a new record.
WIX Beats EPS and Revenue Expectations in Q1
Wix’s first-quarter performance notably exceeded market expectations. Analysts had projected an earnings per share (EPS) of $1.03 and revenue of $417.9 million.
However, Wix reported a non-GAAP net income of $77.3 million, translating to an EPS of $1.38 per basic share and $1.29 per diluted share, significantly surpassing the anticipated figures. The total revenue of $419.8 million also exceeded the expected $417.9 million, underscoring the company’s strong market position and operational efficiency.
The company’s robust performance was underpinned by higher conversion rates and improved monetization across its user base. This was further supported by the substantial traction of its AI product offerings and the continued success of Wix Studio.
The high conversion rates of Studio users, resulting in more premium subscriptions than anticipated, highlight the effectiveness of Wix’s product strategy and its ability to meet market demands.
WIX Ups 2024 Full Year Guidance
Looking ahead, Wix has raised its full-year 2024 guidance based on the strong first-quarter performance and positive business trends. The company now expects full-year bookings to be in the range of $1,796 to $1,826 million, representing a 12-14% year-over-year growth.
This revised outlook is approximately $13 million higher at the midpoint compared to previous estimates. The increase in bookings is anticipated to be driven by accelerating growth in both the Self Creators and Partners segments, with AI products and Wix Studio playing pivotal roles.
Wix also updated its revenue outlook for 2024, now expecting total revenue to be between $1,738 and $1,761 million, reflecting an 11-13% year-over-year growth. For the second quarter of 2024, the company projects total revenue to be in the range of $431 to $435 million, which translates to an 11-12% year-over-year growth.
Additionally, Wix has maintained its non-GAAP total gross margin guidance at 68-69% for the full year and expects non-GAAP operating expenses to be 50-51% of revenue.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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