Wix Analysts Stay Bullish Despite EPS Miss, Citing Strong Product Pipeline And Second-Half Growth Plans

Core Viewpoint - Wix.com Ltd reported fiscal first-quarter 2025 results with a revenue increase of 13% to $473.7 million, exceeding analyst expectations, but adjusted EPS of $1.55 fell short of the consensus estimate of $1.60 [1] Financial Performance - Quarterly revenue reached $473.7 million, representing a 13% year-over-year growth, surpassing the analyst consensus estimate of $472.9 million [1][5] - Adjusted EPS was reported at $1.55, which missed the analyst consensus estimate of $1.60 [1] - Free cash flow was reported at $142.4 million, exceeding the consensus estimate of $135.4 million, reflecting a 30% margin [5] Segment Performance - Creative Subscriptions revenue grew 11% to $337.7 million, while Business Solutions growth slowed to 17.7% year-over-year from 21.5% in the previous quarter [5] - Partners revenue accounted for approximately 50% of GPV, showing a year-over-year growth of 24.0%, down from 29.2% in the previous quarter [5][7] - Self-Creator revenue implied at $302.0 million grew 7.3% compared to 6.8% in the last quarter [5] Guidance and Outlook - Wix reiterated its fiscal 2025 revenue outlook of $1.97 billion to $2 billion, slightly below the analyst consensus estimate of $2.02 billion [1] - Analysts project second-quarter adjusted EPS ranging from $1.38 to $1.84, indicating a cautious outlook for the upcoming quarter [4][6][8][10] - The company expects an acceleration in the second half of 2025, driven by underlying cohort strength and improved Partner trends [3][9] Analyst Ratings - Needham analyst reiterated a Buy rating with a price target of $250 [2] - Piper Sandler maintained an Overweight rating but lowered the price target from $262 to $225 [2] - Cantor Fitzgerald and Citizens analysts maintained Overweight and Market Outperform ratings with price targets of $200 and $250 respectively [2]