Wix Reports First Quarter 2025 Results

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]