Wix Earnings Preview: AI, Studio Expansion Drive Growth Expectations

Wix.com Ltd. (WIX), the popular cloud-based web development platform, is set to release its fourth-quarter 2024 earnings on February 19, 2025. Analysts anticipate strong growth driven by the company's AI-driven solutions and the expansion of its Wix Studio platform. Here's a closer look at the key factors influencing Wix's earnings and growth prospects.

AI-Driven Solutions: A Key Growth Driver

Wix's focus on artificial intelligence (AI) has been a significant driver of its growth. The company has been embedding AI assistants across its platform and has released 29 AI business assistants. In December 2024, Wix launched AI Site-Chat, a virtual agent that helps businesses engage visitors 24/7, address queries, and provide real-time information. This AI-driven feature is expected to boost potential sales and customer experience.

Wix Studio Expansion: Attracting Developers and Agencies

Wix Studio, the company's platform designed for developers and agencies, has gained strong traction with the addition of new features and enhancements. In the last reported quarter, Wix Studio contributed 75% of new partner bookings, indicating a significant increase in adoption by developers and agencies. The platform's operational discipline, steady momentum in the Self Creators and Partners' channel, and the expansion of the commerce platform have all contributed to its growth.



Competitive Landscape: Opportunities Amidst Rival Turmoil

Wix's competitive landscape is favorable, with WordPress experiencing turmoil and Squarespace transitioning to private equity ownership. These developments create opportunities for Wix to gain market share and continue its growth momentum. Wix's competitive advantages, such as ease of use, customization, AI integration, and strong financial performance, further solidify its position in the market.

Earnings Expectations and Guidance

Analysts expect Wix's fourth-quarter 2024 revenues to be between $457 million and $464 million, implying 13-15% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $461.3 million, indicating a 14.3% increase from a year ago. The Zacks Consensus Estimate for earnings is pegged at $1.61 per share, up 32% from the year-earlier quarter. WIX's earnings have beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 20.11%.

In conclusion, Wix's focus on AI-driven solutions and the expansion of its Wix Studio platform are expected to drive strong growth in the fourth quarter and beyond. The company's favorable competitive landscape, operational discipline, and strong financial performance further support its growth prospects. Investors should closely monitor Wix's earnings release and the subsequent conference call for more insights into the company's performance and guidance.