Wix Achieves "Rule of 40" Early: 5 Key Takeaways From Q4 2024 Earnings

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$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$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]