Why Wix.com Stock Dove by 16% Today

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]