Core Viewpoint - Wix.com Ltd reported fiscal first-quarter 2025 results with a revenue increase of 13% to $473.7 million, exceeding analyst expectations, but adjusted EPS of $1.55 fell short of the consensus estimate of $1.60 [1] Financial Performance - Quarterly revenue reached $473.7 million, representing a 13% year-over-year growth, surpassing the analyst consensus estimate of $472.9 million [1][5] - Adjusted EPS was reported at $1.55, which missed the analyst consensus estimate of $1.60 [1] - Free cash flow was reported at $142.4 million, exceeding the consensus estimate of $135.4 million, reflecting a 30% margin [5] Segment Performance - Creative Subscriptions revenue grew 11% to $337.7 million, while Business Solutions growth slowed to 17.7% year-over-year from 21.5% in the previous quarter [5] - Partners revenue accounted for approximately 50% of GPV, showing a year-over-year growth of 24.0%, down from 29.2% in the previous quarter [5][7] - Self-Creator revenue implied at $302.0 million grew 7.3% compared to 6.8% in the last quarter [5] Guidance and Outlook - Wix reiterated its fiscal 2025 revenue outlook of $1.97 billion to $2 billion, slightly below the analyst consensus estimate of $2.02 billion [1] - Analysts project second-quarter adjusted EPS ranging from $1.38 to $1.84, indicating a cautious outlook for the upcoming quarter [4][6][8][10] - The company expects an acceleration in the second half of 2025, driven by underlying cohort strength and improved Partner trends [3][9] Analyst Ratings - Needham analyst reiterated a Buy rating with a price target of $250 [2] - Piper Sandler maintained an Overweight rating but lowered the price target from $262 to $225 [2] - Cantor Fitzgerald and Citizens analysts maintained Overweight and Market Outperform ratings with price targets of $200 and $250 respectively [2]

Core Insights - Wix.com experienced a significant stock price drop of 16% following the release of its quarterly results, which disappointed many investors despite the overall market decline being only 1.6% for the S&P 500 index [1] Financial Performance - In Q1, Wix.com reported revenue of $474 million, a 13% increase year-over-year, driven by a 12% rise in total bookings to $511 million [2] - The company's non-GAAP net income rose to just under $94 million ($1.55 per share), up from $77.3 million in the prior year [2] - The revenue exceeded Wall Street's consensus expectations of $472 million, but the adjusted net income fell short of the anticipated $1.63 per share [4] Growth Drivers - Wix.com attributed its revenue growth to several factors, including advancements in its artificial intelligence capabilities and the popularity of its Wix Studio design platform [5] Future Guidance - The company maintained its full-year guidance, expecting bookings for 2025 to be in the range of $2.025 billion to $2.06 billion, indicating at least 11% growth over 2024 [6] - Projected revenue for 2025 is estimated to be between $1.97 billion and $2 billion, with the lower end representing a 12% growth [6] - Wix.com anticipates generating free cash flow of $590 million to $610 million but did not provide a net income forecast [7] Market Reaction - Despite Wix.com’s performance exceeding its own expectations, the market's reaction was viewed as overblown, suggesting a potential reassessment of the stock may be warranted [8]

Core Insights - Wix.com reported revenue of $473.65 million for Q1 2025, a year-over-year increase of 12.8% and a surprise of +0.40% over the Zacks Consensus Estimate of $471.78 million [1] - The EPS for the same period was $1.55, compared to $1.29 a year ago, but fell short of the consensus estimate of $1.66 by -6.63% [1] Financial Performance Metrics - Total Bookings reached $510.91 million, slightly above the average estimate of $508.62 million [4] - Creative Subscriptions ARR was reported at $1.37 billion, slightly below the estimate of $1.38 billion [4] - Total Bookings for Business Solutions were $141.44 million, compared to the average estimate of $142.88 million [4] - Total Bookings for Creative Subscriptions were $369.47 million, exceeding the average estimate of $368.37 million [4] - Revenues from Business Solutions were $135.98 million, above the average estimate of $135.06 million, representing a year-over-year change of +17.7% [4] - Revenues from Creative Subscriptions were $337.68 million, slightly above the average estimate of $336.71 million, with a year-over-year change of +11% [4] - Non-GAAP Gross Profit for Business Solutions was $41.87 million, below the average estimate of $42.66 million [4] - Non-GAAP Gross Profit for Creative Subscriptions was $283.98 million, slightly above the average estimate of $283.35 million [4] Stock Performance - Wix.com shares have returned +17.6% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total bookings for Q1 2025 were $511 million, reflecting a 12% year-over-year increase [22] - Total revenue reached $474 million, up 13% year-over-year, exceeding the high end of guidance [23] - Non-GAAP gross margin for Q1 was 69%, consistent with expectations [26] - Free cash flow for Q1 was over $142 million, representing 30% of revenue [27] Business Line Data and Key Metrics Changes - Partners revenue grew 24% year-over-year to $172 million, driven by increased subscription purchases and adoption of business applications [23] - Transaction revenue in Q1 was $59 million, up 19% year-over-year, supported by increasing GPV and improved take rates [24] - Core GPV growth, excluding the impact of a small subsidiary, was 12% year-over-year in constant currency [25] Market Data and Key Metrics Changes - The new user cohort generated $36 million in bookings, a 12% increase over the previous year's cohort [14] - Nearly 5.3 million new users were added in Q1, representing a 7% year-over-year increase [16] - The company maintained a high proportion of high-intent and commerce-oriented users, indicating strong demand in key geographic regions [16] Company Strategy and Development Direction - The company launched Wixl, a new visual design platform, aiming to democratize visual design similar to how Wix democratized website building [6][8] - The introduction of Astra, an AI assistant, is expected to enhance user engagement and reduce churn [11] - The company is focused on continuous product innovation and strategic momentum aligned with long-term growth [5][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand trends observed in early 2025, with expectations for continued growth in new cohorts [19] - There is a cautious outlook regarding macroeconomic uncertainties, particularly affecting the Business Solutions segment [20] - The company aims to achieve a time to return on investment of four to five months for the Q1 2025 user cohort, indicating effective acquisition strategies [17] Other Important Information - The board authorized an additional $200 million for share repurchases, reflecting confidence in cash flow generation and commitment to shareholder value [29] - The company expects total revenue for Q2 to be between $485 million and $489 million, representing 11% to 12% year-over-year growth [28] Q&A Session Summary Question: Can you provide more details on Wixl's rollout and monetization expectations? - Management indicated that Wixl is in early stages, with plans for separate subscription pricing and partnerships to drive user acquisition [32][35] Question: What are the factors behind the deceleration in partners revenue growth? - Management noted that FX impacts and lower-than-expected GPV growth contributed to the deceleration, but remains optimistic about future growth [53][55] Question: How does the company view the competitive landscape for design software? - Management believes that Wix's focus on future-oriented AI capabilities differentiates it from traditional design tools, which may struggle to adapt [60][62] Question: What are the expectations for free cash flow margins throughout the year? - Management anticipates a modest increase in free cash flow margins, driven by revenue growth and operational efficiencies [47] Question: How does the company plan to address macroeconomic uncertainties in guidance? - Management emphasized the importance of conservatism in guidance due to unpredictable macro factors, while remaining confident in current demand trends [49]

Financial Data and Key Metrics Changes - Total bookings for Q1 2025 were $511 million, reflecting a 12% year-over-year increase [19] - Total revenue reached $474 million, up 13% year-over-year, exceeding the high end of guidance [20] - Non-GAAP gross margin for Q1 was 69%, consistent with expectations [23] - Free cash flow for Q1 was over $142 million, representing 30% of revenue [24] Business Line Data and Key Metrics Changes - Partners revenue grew 24% year-over-year to $172 million, driven by increased subscription purchases and adoption of business applications [20] - Transaction revenue in Q1 was $59 million, up 19% year-over-year, supported by increasing GPV and improved take rates [20] - New user cohort generated $36 million in bookings, a 12% increase over the previous year's cohort [12] Market Data and Key Metrics Changes - Nearly 5.3 million new users were added in Q1, marking a 7% year-over-year increase [13] - Strong traction was noted in high-spend geographic regions, particularly in the US and parts of Europe [13] Company Strategy and Development Direction - The company launched Wixl, a new visual design platform, aiming to democratize visual design similar to how Wix democratized website building [5][6] - The introduction of Astra, an AI assistant, is expected to enhance user engagement and reduce churn [9] - The company is focused on continuous product innovation and strategic momentum aligned with long-term vision [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand trends observed in early 2025, with expectations for continued growth in new cohorts [16] - There is a cautious outlook regarding macroeconomic volatility, particularly affecting the Business Solutions segment [17] - The company aims to maintain a conservative approach in guidance while acknowledging the potential for strong performance [25] Other Important Information - The board authorized an additional $200 million for share repurchases, reflecting confidence in cash flow generation and commitment to shareholder value [26] Q&A Session Summary Question: Expectations on the rollout and monetization of Wixl - Management indicated that Wixl is in early stages, with plans for separate subscription pricing and partnerships to drive adoption [29][32] Question: Thoughts on the AI landscape in web design - Management acknowledged the evolving AI landscape and emphasized the need for stability and maturity in AI tools before they can be widely adopted [34][39] Question: Free cash flow margins progression through the year - Management expects a modest increase in free cash flow margins, driven by revenue growth and operational leverage [42][43] Question: Factors affecting partners revenue deceleration - Management noted FX impacts and lower-than-expected GPV growth as contributing factors to the deceleration in partners revenue growth [49][51] Question: Differentiators for Wix in the design software market - Management highlighted Wix's focus on future-oriented AI capabilities rather than traditional drag-and-drop editing environments as a key differentiator [58][60] Question: Drivers for self creator growth and conversion - Management emphasized improving the editing environment and simplifying user journeys as key drivers for growth in self creators [82][84]

Core Insights - Wix.com Ltd reported non-GAAP EPS of $1.55 for Q1 2025, missing the Zacks Consensus Estimate of $1.66, but up from $1.29 in the same quarter last year [1] - Quarterly revenues increased by 13% year over year to $473.7 million, surpassing the Zacks Consensus Estimate of $471.8 million and management's guidance of $469-$473 million [2] Financial Performance - Creative Subscriptions revenues, accounting for 71.3% of total revenues, rose by 11% year over year to $337.7 million, while Business Solutions revenues increased by 18% to $136 million [4] - Non-GAAP gross margin improved to 69% from 68% in the prior year, with Creative Subscriptions achieving 84% and Business Solutions at 31% [6] - Non-GAAP operating income was reported at $99.8 million, compared to $69.4 million in the previous year [6] User Engagement and Market Position - As of March 31, 2025, Wix had 288 million registered users, with shares gaining 8.7% over the past year, outperforming the Zacks Computer-IT Services sector's growth of 8.1% [3] - Partners' revenues increased by 24% year over year to $171.6 million, driven by the Wix Studio platform's strong adoption [5] Cash Flow and Shareholder Returns - Cash flow from operations was $145.5 million, up from $113.8 million in the previous year, with free cash flow at $142.4 million [9] - The company repurchased $200 million worth of shares in January 2025 and has authorized an additional $200 million for share repurchase, totaling $400 million [9] Future Outlook - Wix maintains its 2025 revenue growth guidance of 12-14%, estimating revenues between $1.97 billion and $2 billion [10] - For Q2 2025, revenues are expected to be between $485 million and $489 million, indicating an 11-12% growth from the prior year [12]

Core Viewpoint - Wix.com reported quarterly earnings of $1.55 per share, missing the Zacks Consensus Estimate of $1.66 per share, but showing an increase from $1.29 per share a year ago, indicating a -6.63% earnings surprise [1] - The company posted revenues of $473.65 million for the quarter, surpassing the Zacks Consensus Estimate by 0.40% and up from $419.78 million year-over-year [2] Financial Performance - Over the last four quarters, Wix.com has surpassed consensus EPS estimates three times [2] - The company has also topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.84 on revenues of $488.2 million, and for the current fiscal year, it is $7.53 on revenues of $1.98 billion [7] Stock Performance - Wix.com shares have declined approximately 15.3% since the beginning of the year, contrasting with the S&P 500's gain of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Computers - IT Services industry, to which Wix.com belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Wix.com's stock performance [5]

● Company Overview First Quarter 2025 WIX 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," "aim," " ...

Exhibit 99.1 Wix Reports First Quarter 2025 Results NEW YORK, May 21, 2025 -- Wix.com Ltd. (Nasdaq: WIX) (the "Company"), the leading SaaS website builder platform , today reported financial results for the first quarter of 2025. In addition, the Company provided its outlook for the second quarter and an updated outlook for full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q1'25 Shareholder Update and other materials. 1 "This year we are setting out to ...

Core Viewpoint Wix.com Ltd. reported strong financial results for Q1 2025, highlighting significant growth in bookings and revenue, driven by product innovation and a robust user base. The launch of Wixel, an AI-powered visual design platform, marks a strategic expansion beyond website creation, aiming to democratize digital creation for users of all skill levels. Financial Performance - Q1 2025 total bookings reached $511 million, reflecting a 12% year-over-year increase, with strong demand continuing into April and early May [4][10] - Total revenue for Q1 2025 was $474 million, exceeding expectations and up 13% year-over-year, driven by growth in Self Creators and Partners segments [4][11] - Creative Subscriptions revenue was $338 million, up 11% year-over-year, while Business Solutions revenue increased by 18% to $136 million [5][25] - Free cash flow for Q1 2025 was $142 million, with a free cash flow margin of 30% [4][12] Product Innovation - The launch of Wixel represents a significant milestone for Wix, integrating advanced design tools into a single platform, aimed at enhancing user experience and accessibility [2][4] - The company continues to focus on empowering Self Creators and enhancing its AI capabilities, which have contributed to the strong performance in new user cohorts [9][10] Share Repurchase Program - Wix's Board of Directors has authorized an increase in the share repurchase program to a total of $400 million, reflecting confidence in the company's financial health [6][14] Financial Outlook - The company maintains its full-year bookings outlook of $2,025 - 2,060 million, projecting an 11-13% year-over-year increase, while also expecting total revenue for the year to be between $1,970 - 2,000 million, up 12-14% year-over-year [10][11] - For Q2 2025, Wix anticipates revenue between $485 - 489 million, representing an 11-12% year-over-year growth [11][12]