Wix Reports Third Quarter 2024 Results

Core Insights - Wix.com Ltd. reported strong financial performance in Q3 2024, with total bookings of $449.8 million, reflecting a 16% year-over-year growth, driven by Studio momentum, AI benefits, and robust commerce activity [1][2] - The company expects to exit 2024 with year-over-year bookings growth of 18%, raising its full-year bookings, revenue, and free cash flow guidance [1][4][7] - Free cash flow margin expanded to approximately 29%, indicating strong operational leverage and bookings strength [1][3] Financial Performance - Total revenue for Q3 2024 reached$ 444.7 million, up 13% year-over-year, with Creative Subscriptions revenue at $318.8 million (up 10% y/y) and Business Solutions revenue at$ 125.8 million (up 22% y/y) [2][3][26] - Non-GAAP net income for Q3 2024 was $89.3 million, translating to$ 1.62 per basic share, while GAAP net income was $26.8 million, or$ 0.49 per basic share [3][21] - Creative Subscriptions Annualized Recurring Revenue (ARR) increased to $1.31 billion, up 11% year-over-year [2][26] Growth Drivers - The company highlighted the success of its Studio product, with 75% of new Partner bookings coming from Studio accounts, indicating strong adoption among agencies [2] - AI innovations, particularly the AI-powered user onboarding tool, demonstrated a 13% uplift in conversion rates for the Self Creator cohort [1][2] - Wix anticipates further growth acceleration and margin expansion in 2025, supported by ongoing product innovations and a stable operating cost structure [8][10] Updated Guidance - Wix raised its full-year bookings outlook to$ 1,822 - $1,832 million, reflecting 14-15% year-over-year growth, compared to previous guidance of$ 1,802 - $1,822 million [4] - The updated revenue outlook for the full year is now$ 1,757 - $1,764 million, maintaining a 13% year-over-year growth expectation [5][6] - The company expects Q4 2024 revenue to be between$ 457 - $464 million, representing 13-15% year-over-year growth [6]