Wix.com Shares Surge Premarket After Fourth-Quarter Income Tops Estimates

Wix.com Ltd. (Nasdaq: WIX) shares rose in premarket trading on Wednesday, February 19, 2025, after the company reported fourth-quarter earnings that surpassed analysts' estimates. The leading SaaS website builder platform reported strong growth and profitability, driven by successful product innovation and pricing strategies.

Wix.com's fourth-quarter revenue reached $460.5 million, up 14% year-over-year (YoY), while total bookings grew by 18% YoY to $464.6 million. The company's Creative Subscriptions revenue increased by 11% YoY to $329.7 million, and its Business Solutions revenue grew by 21% YoY to $130.7 million. Partners revenue also contributed significantly, growing by 29% YoY to $168.1 million.



Wix.com's strong financial performance was driven by several key factors:

1. Accelerated Growth in Self Creators and Partners: Wix experienced steady growth acceleration in Self Creators and continued strength in high-growth Partners. In the fourth quarter, Partners revenue grew by 29% year-over-year (YoY), demonstrating the strong momentum in this segment.
2. Strong Momentum in Key Product Focus Areas: Wix's focus on Studio, AI, and commerce contributed to its revenue growth. The company has been investing in these areas, and the positive reception from users and partners indicates that these trends will remain strong in the long term.
3. Price Increase Benefit: Wix implemented price increases, which contributed to its revenue growth. This strategy is expected to continue, as the company balances profitable growth with innovation and steadfast execution.
4. Robust Growth and Stable Operating Cost Base: Wix's robust growth, coupled with a stable operating cost base, drove free cash flow (FCF) generation to nearly double in 2024 compared to the previous year. This resulted in continued profitability improvement, with a Q4 FCF margin of 29% and a full-year FCF margin of 28%.



Wix.com's CEO, Avishai Abrahami, expressed confidence in the company's growth prospects, stating, "2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come."

The company's CFO, Lior Shemesh, added, "We wrapped 2024 with accelerated growth and innovation, culminating in Q4 bookings of $465 million, up 18% y/y, and Q4 revenue of $460 million, up 14% y/y. With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond."

Wix.com's strong fourth-quarter results and positive outlook have driven investor confidence, with shares up 1.64% to $96.79 on Wednesday. As the company continues to innovate and execute on its strategic initiatives, investors can expect Wix.com to maintain its momentum and deliver long-term growth.