Wix(US:WIX)2024-05-20 11:37Financial Performance - Total revenue for Q1 2024 was $419.8 million, up 12% year-over-year, driven by strong performance in the Partners business and increased Wix Studio uptake[10]. - Total bookings in Q1 2024 reached $457.3 million, reflecting a 10% year-over-year growth, with Creative Subscriptions bookings at $334.6 million, up 7% year-over-year[10]. - GAAP net income for Q1 2024 was $24.0 million, or $0.43 per basic share, while non-GAAP net income was $77.3 million, or $1.38 per basic share[10]. - Net income for Q1 2024 was $24.0 million, compared to a net loss of $10.4 million in Q1 2023, indicating a turnaround in profitability[30]. - Basic net income per share for Q1 2024 was $0.43, compared to a loss of $0.18 per share in Q1 2023[30]. - Operating income for Q1 2024 was $9.7 million, a significant improvement from an operating loss of $33.3 million in Q1 2023[30]. - Non-GAAP operating income increased to $69,421,000 in Q1 2024, compared to $48,518,000 in Q1 2023, resulting in a non-GAAP operating margin of 17% versus 13%[50]. - Non-GAAP net income rose to $77,287,000 in Q1 2024, up from $51,099,000 in Q1 2023, with basic non-GAAP net income per share increasing to $1.38 from $0.91[52]. Cash Flow and Margins - Free cash flow (FCF) margin for Q1 2024 was a record 26%, significantly ahead of the three-year plan, with FCF of $105.7 million[4]. - The company anticipates generating free cash flow of $445 - $455 million for 2024, or approximately 26% of revenue, up from previous expectations of 21-23%[17]. - Free cash flow for Q1 2024 was $105,711 thousand, significantly higher than $25,029 thousand in Q1 2023[38]. - Non-GAAP gross margin improved to 68% in Q1 2024, compared to 67% in Q1 2023[49]. - Non-GAAP total gross margin is expected to be 68-69% for the full year 2024, with Business Solutions gross margin projected to exceed 30%[15]. Revenue Breakdown - Creative Subscriptions annual recurring revenue (ARR) increased to $1.24 billion as of the end of Q1 2024, up 10% year-over-year[10]. - Creative Subscriptions revenue increased to $304.3 million in Q1 2024 from $278.1 million in Q1 2023, representing a growth of 9%[30]. - Business Solutions revenue rose to $115.5 million in Q1 2024, up from $95.9 million in Q1 2023, marking a growth of 20%[30]. - Total revenues for Q1 2024 reached $419,776 thousand, a 12% increase from $374,076 thousand in Q1 2023[38]. Future Outlook - The company raised its full-year bookings outlook to $1,796 - $1,826 million, representing 12-14% year-over-year growth, with an acceleration to 16% expected in the second half of 2024[12]. - The company expects to achieve positive GAAP operating income for the full year 2024, marking a second consecutive year of GAAP net income[16]. - The strong performance in Q1 2024 is attributed to robust product traction, particularly in AI offerings and Wix Studio, which are expected to drive growth in 2024 and beyond[3]. Assets and Liabilities - Total current assets decreased to $999.9 million as of March 31, 2024, down from $1,070.2 million at the end of 2023[32]. - Total assets as of March 31, 2024, were $1.69 billion, a decrease from $1.80 billion at the end of 2023[32]. - Total liabilities increased to $1.89 billion as of March 31, 2024, compared to $1.86 billion at the end of 2023[32]. - Total shareholders' deficiency was reported at $(194,206) thousand, compared to $(54,485) thousand in the previous period[33].