Wix Q3 Earnings: Revenue Surge, Margin Expansion, AI Momentum, Raised FY24 Guidance
Wednesday, Nov 20, 2024 6:01 am ET
4min read Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform, reported impressive third-quarter results for 2024, highlighting a strong acceleration in bookings and revenue growth driven by key product innovations. Total bookings reached $449.8 million, marking a 16% year-over-year increase, while total revenue grew to $444.7 million, up 13% year-over-year. The company anticipates exiting 2024 with bookings growth of 18%, up from earlier guidance of 16%, fueled by robust Studio momentum, AI gains, and sustained customer engagement.
Wix's CEO, Avishai Abrahami, emphasized the effectiveness of their innovative strategies, particularly the AI-powered onboarding tools, which demonstrated a 13% uplift in conversion rates for new self-creators. The strength of Studio subscriptions and increasing partner contributions, with 75% of new partner bookings stemming from Studio accounts, reflect growing agency interest in Wix's offerings.
The solid performance translated into expanded free cash flow (FCF) with margins improving by approximately 170 basis points sequentially to 29%. This upward trend allowed Wix to raise its full-year bookings, revenue, and free cash flow guidance. The company expects FCF for 2024 to be between $483 - $488 million, signifying stable operational costs amid a growth trajectory.
Wix's non-GAAP net income increased to $89.3 million or $1.62 per share, up from $65.1 million the previous year, supporting the company’s commitment to innovation while maintaining healthy margins. CFO Lior Shemesh reiterated the company’s confidence in continuous growth in 2025, buoyed by maturing product investments and strategic execution. As Wix focuses on further expanding its AI capabilities, the firm remains optimistic about achieving and exceeding the Rule of 40, balancing growth with profitability.
Wix's AI onboarding process has demonstrated significant benefits, with a 13% uplift in conversion rates for new self-creators. This highlights the effectiveness of AI in streamlining user acquisition and retention. Moreover, the company's commitment to expanding AI capabilities is expected to further differentiate its offerings, potentially leading to enhanced customer engagement and growth.
Wix's Q3 earnings report showcased impressive growth, with total bookings surging 16% y/y to $449.8 million, driven by Studio momentum, AI benefits, and robust commerce activity. The company's AI onboarding process demonstrated a 13% conversion uplift in the most recent Self Creator cohort, indicating enhanced user acquisition and retention. Wix's CEO, Avishai Abrahami, expressed excitement for upcoming AI-powered innovations, which are expected to transform merchant management and customer interactions. By reimagining how users interact with their customers and enhancing the content creation experience, these AI capabilities will likely drive immense value for Wix's users. As Wix focuses on expanding its AI capabilities, it remains optimistic about achieving and exceeding the Rule of 40, balancing growth with profitability.
Wix's CEO, Avishai Abrahami, emphasized the effectiveness of their innovative strategies, particularly the AI-powered onboarding tools, which demonstrated a 13% uplift in conversion rates for new self-creators. The strength of Studio subscriptions and increasing partner contributions, with 75% of new partner bookings stemming from Studio accounts, reflect growing agency interest in Wix's offerings.
The solid performance translated into expanded free cash flow (FCF) with margins improving by approximately 170 basis points sequentially to 29%. This upward trend allowed Wix to raise its full-year bookings, revenue, and free cash flow guidance. The company expects FCF for 2024 to be between $483 - $488 million, signifying stable operational costs amid a growth trajectory.
Wix's non-GAAP net income increased to $89.3 million or $1.62 per share, up from $65.1 million the previous year, supporting the company’s commitment to innovation while maintaining healthy margins. CFO Lior Shemesh reiterated the company’s confidence in continuous growth in 2025, buoyed by maturing product investments and strategic execution. As Wix focuses on further expanding its AI capabilities, the firm remains optimistic about achieving and exceeding the Rule of 40, balancing growth with profitability.
Wix's AI onboarding process has demonstrated significant benefits, with a 13% uplift in conversion rates for new self-creators. This highlights the effectiveness of AI in streamlining user acquisition and retention. Moreover, the company's commitment to expanding AI capabilities is expected to further differentiate its offerings, potentially leading to enhanced customer engagement and growth.
Wix's Q3 earnings report showcased impressive growth, with total bookings surging 16% y/y to $449.8 million, driven by Studio momentum, AI benefits, and robust commerce activity. The company's AI onboarding process demonstrated a 13% conversion uplift in the most recent Self Creator cohort, indicating enhanced user acquisition and retention. Wix's CEO, Avishai Abrahami, expressed excitement for upcoming AI-powered innovations, which are expected to transform merchant management and customer interactions. By reimagining how users interact with their customers and enhancing the content creation experience, these AI capabilities will likely drive immense value for Wix's users. As Wix focuses on expanding its AI capabilities, it remains optimistic about achieving and exceeding the Rule of 40, balancing growth with profitability.
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