Core Insights - Wix.com reported significant growth and operational improvements in its fourth-quarter and full-year 2024 results, achieving its "rule of 40" target a year ahead of schedule and aiming for a "rule of 45" in 2025 [1][2][12] Financial Performance - Bookings grew by 15% in 2024, accelerating to 18% in Q4, while non-GAAP operating margins expanded to 20% of revenue, an increase of 450 basis points from 2023 [3] - Free cash flow nearly doubled to $488 million, representing 28% of revenue [3] - The company expects existing user cohorts to generate $18.4 billion in bookings over the next 10 years, up from $16.2 billion estimated last year [8] Strategic Developments - The professional partner segment is the fastest-growing revenue source, with partner revenue growing 30% year over year, and over 2 million Studio accounts created, with 75% from new partners [4] - Wix's AI strategy is enhancing user conversion rates and creating new revenue streams, with over 1 million sites created using the new AI website builder [5][6] User Cohort and Market Focus - The strategic shift to target higher-intent users has improved cohort economics, with the Q1 2024 user cohort generating approximately $61 million in cumulative bookings [8] - Average bookings per subscription increased by 13% year-over-year to over $294, driven by higher-tiered packages and increased business solutions adoption [8] Product Innovations - Wix plans to launch two major products aimed at accelerating growth in the self-creator segment, with one expanding design capabilities beyond websites and another transforming online presence building [10] - These new products are expected to drive double-digit growth in the self-creator business by 2026 [10] Future Outlook - Wix enters 2025 with strong momentum across its partner and self-creator businesses, focusing on expanding design capabilities, transforming the self-creator experience, and monetizing AI across the platform [11]

Group 1 - The article does not provide any specific company or industry insights, focusing instead on the author's personal views and disclaimers [1][2][3] Group 2 - There is no relevant financial data or performance metrics discussed in the provided documents [1][2][3]

Group 1 - The stock market is reaching new all-time highs in early 2025, prompting cautious investors to consider reallocating their portfolios towards "growth at a reasonable price" stocks [1] - The article highlights the importance of focusing on less flashy growth stocks that still offer potential value [1] - Gary Alexander, with extensive experience in technology and startups, provides insights into current industry trends and themes [1] Group 2 - The article is authored by an analyst who holds a beneficial long position in WIX shares, indicating a personal investment interest [2] - The disclosure emphasizes that the opinions expressed are solely those of the author and not influenced by external compensation [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views may not represent the platform as a whole [3]

Group 1 - Wix.com Ltd.'s stock has surged by over 130% since February 2023, indicating strong performance [1] - Despite the impressive returns, Wix remains relatively under-discussed among analysts and media [1] Group 2 - The analysis does not provide financial advice and encourages consultation with a registered financial advisor before making investment decisions [2][3]

Financial Data and Key Metrics Changes - Total bookings in Q4 2024 reached $465 million, an 18% year-over-year increase, driven by strong creative subscriptions and business solutions performance [34] - Total revenue in Q4 grew to $460 million, up 14% year-over-year, with partner revenue increasing 29% year-over-year to $168 million [35] - For the full year 2024, total bookings grew to $1.83 billion, a 15% increase year-over-year, while total revenue was $1.761 billion, up 13% year-over-year [38] Business Line Data and Key Metrics Changes - The self-creators business experienced steady revenue growth acceleration throughout 2024, supported by the AI product suite [10] - Partner revenue grew 30% year-over-year, reflecting success in capturing market share among agencies and strong adoption of the Studio platform [9] - Average bookings per subscription (ABPS) increased 13% year-over-year to over $294, driven by a shift to higher-tiered packages and increased adoption of business solutions [26] Market Data and Key Metrics Changes - The company exited 2024 with bookings growth of 18% year-over-year, fueled by acceleration in the self-creators business and sustained partner momentum [9] - The Q1 2024 user cohort generated approximately $61 million in cumulative bookings, marking a strong performance compared to previous cohorts [24] - Net revenue retention improved to 100% in 2024, indicating strong user engagement and retention [29] Company Strategy and Development Direction - The company aims to achieve the "rule of forty-five" in 2025, building on the success of its product initiatives [7][32] - New product launches planned for 2025 include solutions that expand design capabilities beyond websites and transformative tools for self-creators [14][15] - AI remains a central focus in the product roadmap, with plans to enhance user experience and drive growth through AI-powered tools [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth momentum into 2025, driven by strategic initiatives and product enhancements [30][40] - The company anticipates strong FX headwinds impacting its 2025 outlook, but expects to maintain growth through effective cost management and product innovation [43][46] - Management highlighted the importance of targeting higher intent users to maximize lifetime value and drive bookings growth [22] Other Important Information - The company generated free cash flow of $488 million in 2024, nearly double that of 2023, reflecting effective cost management [39] - A $575 million convertible note is due in August 2025, which the company plans to pay down with cash [48] - The company completed a $200 million share repurchase program, repurchasing approximately 868,000 shares [49] Q&A Session Summary Question: Can you elaborate on the 2025 guidance and the components driving strength? - Management noted that Studio and AI are expected to contribute significantly to growth, with Studio accounting for about 50% of overall purchases [52][53] Question: How should investors view the premium subscriber growth opportunity? - Management emphasized that net subscriber growth is a secondary KPI, focusing instead on cohort value and long-term bookings projections [60][62] Question: Can you provide details on the new self-creator solution? - Management indicated that the new solution will allow users to expand design capabilities beyond websites, addressing the need for content adaptation across various platforms [66][68] Question: What are the expectations for free cash flow margin expansion? - Management expects gross margin improvement and operating expense leverage to contribute to free cash flow growth [120] Question: How is the top of the funnel looking at the start of the year? - Management reported positive trends in user acquisition and engagement, indicating a strong start to 2025 [122]

Core Insights - Wix.com reported revenue of $460.46 million for the quarter ended December 2024, reflecting a 14% increase year-over-year, with EPS at $1.93 compared to $1.22 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate by 0.19%, while the EPS exceeded the consensus estimate by 19.88% [1] Financial Performance Metrics - Total Bookings reached $464.59 million, slightly above the average estimate of $464.16 million [4] - Creative Subscriptions ARR was reported at $1.34 billion, marginally higher than the estimated $1.33 billion [4] - The number of registered users at the end of the period was 282 million, surpassing the average estimate of 280.77 million [4] - Total Bookings for Business Solutions amounted to $139.39 million, exceeding the average estimate of $129.58 million [4] - Total Bookings for Creative Subscriptions were $325.20 million, below the average estimate of $336.07 million [4] - Revenues from Business Solutions were $130.72 million, slightly below the average estimate of $131.70 million, representing a year-over-year increase of 21.5% [4] - Revenues from Creative Subscriptions were $329.73 million, in line with the average estimate of $329.61 million, showing an 11.3% year-over-year increase [4] - Non-GAAP Gross Profit for Business Solutions was $41.41 million, below the average estimate of $42.51 million [4] - Non-GAAP Gross Profit for Creative Subscriptions was $279.54 million, slightly above the average estimate of $278.20 million [4] Stock Performance - Wix.com shares have returned -4.4% over the past month, contrasting with the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Overview Fourth Quarter and Full Year 2024 1 Safe Harbor Forward Looking Statements This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like "anticipate," "assume," "believe ...

Core Insights - Wix.com Ltd reported non-GAAP EPS of $1.93 for Q4 2024, surpassing the Zacks Consensus Estimate of $1.61 and up from $1.22 in the same quarter last year [1] - Quarterly revenues increased 14% year over year to $460.5 million, slightly missing the Zacks Consensus Estimate of $461.3 million; total revenues for 2024 reached $1.761 billion, a 13% increase [2] Financial Performance - Creative Subscriptions, accounting for 71.6% of total revenues, saw an 11% year-over-year increase to $329.7 million; Business Solutions revenues rose 21% to $130.7 million [4] - Bookings improved 18% year over year to $464.4 million, with Creative Subscriptions bookings increasing 15% to $325.2 million and Business Solutions bookings rising 25% to $139.4 million [5] - Non-GAAP gross margin remained flat at 70%, with Creative Subscriptions at 85% and Business Solutions at 32%; non-GAAP operating income was $100.5 million compared to $64.7 million in the previous year [7] User Growth and Regional Performance - As of December 31, 2024, Wix had 282 million registered users [2] - Revenue contributions by region were 60% from North America, 25% from Europe, and 11% from Asia and others, with year-over-year growth of 15%, 17%, and 10% respectively; Latin America contributed 4% but saw a 2% decline [6] Cash Flow and Balance Sheet - Wix's cash and cash equivalents increased to $660.9 million from $439.4 million as of September 30, 2024; cash flow from operations was $497.4 million, up from $248.2 million year over year [8] - Free cash flow for the quarter was reported at $478.1 million [10] Future Outlook - For Q1 2025, Wix expects revenues between $469 million and $473 million, indicating a growth of 12-13% year over year; for the full year 2025, revenues are anticipated to grow 12-14% to a range of $1.97-$2 billion [12] - Free cash flow for 2025 is estimated to be between $590-$610 million, representing 30-31% of revenues [12] - The company acknowledges potential headwinds from a stronger U.S. dollar but expects minimal impact on free cash flow due to cost efficiencies [11]

Core Insights - Wix.com reported fiscal Q4 2024 revenue of $460.46 million, a 14% year-over-year increase, slightly missing analyst expectations of $461.75 million. Adjusted EPS was $1.93, surpassing the consensus estimate of $1.59 [1] - Creative Subscription revenue rose 11% year-over-year to $329.7 million, with bookings increasing 15% to $325.2 million. Annual recurring revenue (ARR) for Creative Subscriptions reached $1.34 billion, up 13% year-over-year [1] - Partners revenue grew 29% year-over-year to $168.1 million, while Business Solutions revenue increased 21% to $130.7 million, with bookings jumping 25% to $139.4 million [2] Financial Performance - The adjusted gross margin remained stable at 70%. Operating cash flow for the quarter was $133.74 million, with cash and equivalents totaling $999.53 million as of the end of December [2] - Wix.com expects fiscal 2025 revenue between $1.970 billion and $2.000 billion, compared to a consensus of $2.018 billion. Projected bookings for 2025 are between $2.025 billion and $2.060 billion [4] Strategic Developments - The company introduced innovative AI solutions in 2024, including a new generation AI Website Builder and enhancements to the Studio platform, such as AI visual sitemap and wireframe generator [3] - Two transformative products are planned for launch in spring and early fall 2025, aimed at expanding the Self Creator experience [3] Market Outlook - Wix.com stock surged 82% over the past 12 months, with analysts noting the company is gaining market share, supported by product improvements and potential advantages from competitive challenges faced by rivals like WordPress [5] - The stock traded higher by 6.51% at $242.60 in premarket trading following the earnings report [5]

Core Insights - Wix.com reported a strong earnings beat for Q4 2024 with adjusted EPS of $1.93, surpassing the consensus estimate of $1.59, while revenue of $460.5 million slightly missed the forecast of $461 million [1][3] - The company achieved a 14% year-over-year revenue growth, indicating robust performance despite the revenue miss [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $1.93, a 58% increase from $1.22 in Q4 2023 [3] - Revenue for Q4 2024 was $460.5 million, up from $403.8 million in Q4 2023, reflecting a 14% increase [3] - Free cash flow reached $131.8 million, a significant rise of 64% from $80.4 million in Q4 2023 [3][6] - Adjusted gross margin improved to 70%, up from 69% year-over-year [3][6] Business Overview - Wix.com is a cloud-based web development platform that enables users to create websites, focusing on AI for product enhancements and international market expansion [4][5] - The company has diversified its offerings with AI-driven solutions, contributing to user engagement and conversion rates [5] User Growth and Market Expansion - Registered users exceeded 282 million by year-end, with premium subscriptions reaching 6.2 million, supporting revenue growth through conversion of free users [8] - 40% of revenue is now generated from non-U.S. currencies, highlighting successful international market penetration [7] Strategic Initiatives - Wix completed a $200 million share repurchase plan in January, totaling $725 million in buybacks since August 2023, with more expected in 2025 [9] - Management projects Q1 2025 revenue between $469 million to $473 million and full-year 2025 revenue between $1.97 billion to $2.0 billion, indicating a 12% to 14% growth outlook [10]