Core Insights - Wix.com Ltd (WIX) reported non-GAAP EPS of $2.28 for Q2 2025, exceeding the Zacks Consensus Estimate of $1.75 and up from $1.67 in the same quarter last year [1] - Quarterly revenues rose 12% year over year to $489.9 million, surpassing the Zacks Consensus Estimate of $487.5 million and management's guidance of $485-$489 million [1][8] Financial Performance - Creative Subscriptions revenues, accounting for 70.5% of total revenues, increased 11% year over year to $345.5 million, while Business Solutions revenues rose 17% to $144.5 million [5] - Annualized recurring revenues for Creative Subscriptions reached $1.41 billion, up 10% year over year, with total bookings jumping 11% to $509.9 million [5] - Non-GAAP gross margin improved to 70% from 68% in the prior year, with Creative Subscriptions achieving a margin of 85% and Business Solutions at 33% [9] Strategic Developments - The acquisition of Base44 allows Wix to enter the application development market, targeting an ARR growth from a few million in June to $40–$50 million by the end of 2025, aiming for a $100 million ARR milestone [3] - The company raised its 2025 revenue guidance to a range of $1.975-$2 billion, reflecting a growth expectation of 12-14% [11] Market Reaction - Following the announcement of strong earnings and the Base44 acquisition, Wix's shares surged approximately 10% in pre-market trading on August 6, 2025 [4] - Over the past year, WIX's shares have increased by 18.1%, contrasting with a 3.1% decline in the Zacks Computer-IT Services sector [4] Cash Flow and Balance Sheet - As of June 30, 2025, Wix had cash and cash equivalents of $693 million, up from $653.3 million at the end of Q1 2025, with cash flow from operations amounting to $150.3 million [10] - Free cash flow for the quarter was reported at $147.7 million, and the company repurchased $100 million worth of shares [10]

Core Insights - Wix.com Ltd reported non-GAAP EPS of $1.55 for Q1 2025, missing the Zacks Consensus Estimate of $1.66, but up from $1.29 in the same quarter last year [1] - Quarterly revenues increased by 13% year over year to $473.7 million, surpassing the Zacks Consensus Estimate of $471.8 million and management's guidance of $469-$473 million [2] Financial Performance - Creative Subscriptions revenues, accounting for 71.3% of total revenues, rose by 11% year over year to $337.7 million, while Business Solutions revenues increased by 18% to $136 million [4] - Non-GAAP gross margin improved to 69% from 68% in the prior year, with Creative Subscriptions achieving 84% and Business Solutions at 31% [6] - Non-GAAP operating income was reported at $99.8 million, compared to $69.4 million in the previous year [6] User Engagement and Market Position - As of March 31, 2025, Wix had 288 million registered users, with shares gaining 8.7% over the past year, outperforming the Zacks Computer-IT Services sector's growth of 8.1% [3] - Partners' revenues increased by 24% year over year to $171.6 million, driven by the Wix Studio platform's strong adoption [5] Cash Flow and Shareholder Returns - Cash flow from operations was $145.5 million, up from $113.8 million in the previous year, with free cash flow at $142.4 million [9] - The company repurchased $200 million worth of shares in January 2025 and has authorized an additional $200 million for share repurchase, totaling $400 million [9] Future Outlook - Wix maintains its 2025 revenue growth guidance of 12-14%, estimating revenues between $1.97 billion and $2 billion [10] - For Q2 2025, revenues are expected to be between $485 million and $489 million, indicating an 11-12% growth from the prior year [12]