Core Insights - Wix.com Ltd. reported a record increase in free cash flow (FCF) outlook, now anticipating a 26% FCF margin in FY2024, one year ahead of plan, and is on track to hit the Rule of 40 milestone this year [1][6][14] Financial Performance - Q1 2024 total bookings reached $457.3 million, up 10% year-over-year, driven by a reacceleration in Creative Subscriptions growth [7][10] - Total revenue for Q1 2024 was $419.8 million, exceeding expectations with a 12% year-over-year increase, supported by strong performance in the Partners business [7][11] - Creative Subscriptions revenue was $304.3 million, up 9% year-over-year, while Business Solutions revenue increased by 20% year-over-year to $115.5 million [8][11] - GAAP net income for Q1 2024 was $24.0 million, or $0.43 per basic share, marking a significant improvement from a net loss of $10.4 million in Q1 2023 [26][27] Growth Drivers - The company experienced strong product traction, particularly with its AI Website Builder and Wix Studio, which contributed to higher conversion rates and premium subscriptions [2][3] - Bookings growth is expected to accelerate to 16% year-over-year in the second half of 2024, driven by AI products and the ramping of Studio [3][10] - The Creative Subscriptions Annualized Recurring Revenue (ARR) increased to $1.24 billion, reflecting a 10% year-over-year growth [8][24] Outlook - Wix raised its full-year bookings outlook to $1,796 - $1,826 million, representing a 12-14% year-over-year growth [9][10] - The full-year revenue outlook has also been increased to $1,738 - $1,761 million, indicating an 11-13% year-over-year growth [11][12] - The company expects to generate free cash flow of $445 - $455 million in 2024, or approximately 26% of revenue, significantly ahead of its three-year plan [14][15] Operational Efficiency - The company maintained a stable cost structure, with non-GAAP operating expenses expected to be 50-51% of revenue for the full year, down from previous expectations [12][13] - Wix completed $300 million in share repurchases, reducing the share count and enhancing expected free cash flow per share trajectory for the year [14][15]
Wix Reports First Quarter 2024 Results