Wix.Com Ltd 2024 Earnings: Growth & Innovation Insights- Intellectia AI™

2025-02-194mins

Content

# Accelerated Growth and Innovation - Wix.Com Ltd Earnings Report

## Wix.Com Ltd Earnings

Wix.Com Ltd, a leading platform for website building, recently announced its financial results for the fourth quarter and full year 2024. The company showcased impressive revenue growth and significant innovation in its product offerings. The company capped off the year with strong free cash flow (FCF) generation, surpassing the Rule of 40 in 2024 and aiming for the Rule of 45 in 2025. Notably, Wix achieved its first year of positive GAAP operating income, demonstrating its sustainable growth path.

## Wix.Com Ltd Results

Below is a summary of key financial metrics for the fourth quarter and full year of 2024:

| Financial Metric            | Q4 2024       | Year-Over-Year Change | Full Year 2024 | Year-Over-Year Change |
|-----------------------------|---------------|------------------------|----------------|-----------------------|
| Total Revenue               | $460.5 million| +14%                   | $1.761 billion | +13%                  |
| GAAP Net Income             | $48.0 million | N/A                    | $138.3 million | N/A                   |
| Non-GAAP Net Income         | $117.1 million| N/A                    | $383.3 million | N/A                   |
| EPS (Basic, GAAP)           | $0.86         | N/A                    | $2.49          | N/A                   |
| EPS (Diluted, GAAP)         | $0.80         | N/A                    | $2.36          | N/A                   |
| Free Cash Flow              | $131.8 million| +100% (nearly)         | $478.1 million | N/A                   |
| FCF Margin                  | 29%           | N/A                    | 28%            | N/A                   |

**Note**: N/A indicates that specific percentage changes were not provided.

## Revenue Breakdown

The company's revenue performance across major segments is outlined below:

| Segment                     | Q4 2024 Revenue  | Year-Over-Year Change | Full Year 2024 Revenue | Year-Over-Year Change |
|-----------------------------|------------------|-----------------------|------------------------|-----------------------|
| Creative Subscriptions      | $329.7 million   | +11%                  | $1.265 billion         | +10%                  |
| Business Solutions          | $130.7 million   | +21%                  | $495.7 million         | +21%                  |
| Transaction Revenue         | $57.1 million    | +23%                  | $214.9 million         | +21%                  |
| Partners Revenue            | $168.1 million   | +29%                  | $610.1 million         | +30%                  |

Wix's revenue growth was supported by a robust performance in its core segments. The Creative Subscriptions segment saw a 10% revenue increase for the entire year, showcasing a strong demand for Wix's subscription services. Business Solutions experienced more pronounced growth at 21%, driven by increased transaction volumes and new client acquisitions. Partners revenue, which represents sales through agencies and freelancers, surged by an impressive 30%, emphasizing Wix’s success in leveraging third-party collaborations to expand its user base and reach.

## Key Developments

Wix achieved several significant milestones during this period. Among these was the successful development and launch of innovative AI-driven solutions, including the next-generation AI Website Builder and advancements in the Studio platform. This innovation spree included the introduction of an AI visual sitemap, a wireframe generator, and Figma integration—enhancements that are expected to further solidify Wix’s market position.

Furthermore, the company completed a substantial $200 million share repurchase plan in early 2025, totaling $725 million in repurchases since August 2023. This demonstrates Wix's commitment to returning value to shareholders and managing its share count effectively. Additionally, the company closed the year with over 6.2 million total premium subscriptions and more than 282 million registered users, underlining its expansive growth and user acquisition strategy.

## Comments from Company Officers

Avishai Abrahami, Co-founder, and CEO of Wix, highlighted the company’s relentless pursuit of innovation and creativity. "This past year was one of exciting innovation as we introduced revolutionary AI solutions," Abrahami stated. He expressed optimism about 2025, pointing to transformative products set to launch that promise to enhance the Self Creator experience and drive growth into double digits in the coming years.

CFO Lior Shemesh noted: "With AI usage ramping and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond." He emphasized that strategic enhancements and efficiencies would enable ongoing margin expansion and set profitability records.

## Dividends and Share Repurchases

Wix did not announce any specific dividends for the year, focusing instead on significant share repurchases. The completed $200 million repurchase plan is part of a strategy to manage the share count and enhance shareholder value.

## Wix.Com Ltd Stock Forecast

Given the robust financial performance and strategic initiatives, Wix.Com Ltd's stock appears poised for further growth. The company’s market cap stands at approximately $8.86 billion, with a share price last recorded at $1.82.

Considering the solid revenue and earnings trajectory, coupled with the company's forward-looking innovation strategies, the stock has room for appreciation. High projections for the stock could see it rise to approximately $2.20, assuming continued strong performance and realizing anticipated growth prospects. Conversely, should the market face macroeconomic challenges, a low estimate might place the stock around $1.60, reflecting potential volatility and external pressures.

In summary, Wix has underscored its position as a leader in the SaaS website building industry through strategic innovation and effective execution, reinforcing investor confidence in its ability to sustain growth and profitability over the long term.