Wix(US:WIX)2025-05-21 13:30Financial Data and Key Metrics Changes - Total bookings for Q1 2025 were $511 million, reflecting a 12% year-over-year increase [19] - Total revenue reached $474 million, up 13% year-over-year, exceeding the high end of guidance [20] - Non-GAAP gross margin for Q1 was 69%, consistent with expectations [23] - Free cash flow for Q1 was over $142 million, representing 30% of revenue [24] Business Line Data and Key Metrics Changes - Partners revenue grew 24% year-over-year to $172 million, driven by increased subscription purchases and adoption of business applications [20] - Transaction revenue in Q1 was $59 million, up 19% year-over-year, supported by increasing GPV and improved take rates [20] - New user cohort generated $36 million in bookings, a 12% increase over the previous year's cohort [12] Market Data and Key Metrics Changes - Nearly 5.3 million new users were added in Q1, marking a 7% year-over-year increase [13] - Strong traction was noted in high-spend geographic regions, particularly in the US and parts of Europe [13] Company Strategy and Development Direction - The company launched Wixl, a new visual design platform, aiming to democratize visual design similar to how Wix democratized website building [5][6] - The introduction of Astra, an AI assistant, is expected to enhance user engagement and reduce churn [9] - The company is focused on continuous product innovation and strategic momentum aligned with long-term vision [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand trends observed in early 2025, with expectations for continued growth in new cohorts [16] - There is a cautious outlook regarding macroeconomic volatility, particularly affecting the Business Solutions segment [17] - The company aims to maintain a conservative approach in guidance while acknowledging the potential for strong performance [25] Other Important Information - The board authorized an additional $200 million for share repurchases, reflecting confidence in cash flow generation and commitment to shareholder value [26] Q&A Session Summary Question: Expectations on the rollout and monetization of Wixl - Management indicated that Wixl is in early stages, with plans for separate subscription pricing and partnerships to drive adoption [29][32] Question: Thoughts on the AI landscape in web design - Management acknowledged the evolving AI landscape and emphasized the need for stability and maturity in AI tools before they can be widely adopted [34][39] Question: Free cash flow margins progression through the year - Management expects a modest increase in free cash flow margins, driven by revenue growth and operational leverage [42][43] Question: Factors affecting partners revenue deceleration - Management noted FX impacts and lower-than-expected GPV growth as contributing factors to the deceleration in partners revenue growth [49][51] Question: Differentiators for Wix in the design software market - Management highlighted Wix's focus on future-oriented AI capabilities rather than traditional drag-and-drop editing environments as a key differentiator [58][60] Question: Drivers for self creator growth and conversion - Management emphasized improving the editing environment and simplifying user journeys as key drivers for growth in self creators [82][84]