Wix Reports Strong Q3 Growth and Raises Outlook
Thursday, Nov 21, 2024 8:33 am ET
3min 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.
In conclusion, Wix's strong Q3 performance, driven by Studio momentum, AI benefits, and robust commerce activity, positions the company for continued growth and success. With a focus on expanding AI capabilities and maintaining strong customer engagement, Wix is well-positioned to capitalize on the increasing demand for innovative and user-friendly SaaS solutions.
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.
In conclusion, Wix's strong Q3 performance, driven by Studio momentum, AI benefits, and robust commerce activity, positions the company for continued growth and success. With a focus on expanding AI capabilities and maintaining strong customer engagement, Wix is well-positioned to capitalize on the increasing demand for innovative and user-friendly SaaS solutions.
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