The chart below shows how WIX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WIX sees a -7.62% change in stock price 10 days leading up to the earnings, and a +0.36% change 10 days following the report. On the earnings day itself, the stock moves by +8.24%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: Wix.com Ltd. reported an EPS of $1.93, exceeding expectations of $1.61, indicating strong financial performance.
Bookings Growth Acceleration: The company achieved bookings growth of 18% year over year, driven by acceleration in the self-creators business and strong partner momentum.
Rule of Forty Achievement: Wix successfully reached the 'rule of forty' milestone a year ahead of schedule, showcasing effective execution and commitment to growth.
Partner Revenue Increase: Partner revenue grew by 30% year over year, reflecting success in capturing market share among agencies and professionals.
AI Website Builder Success: The introduction of the AI website builder has led to over one million sites created, demonstrating strong user engagement and conversion rates.
Subscription Bookings Growth: Wix's average bookings per subscription increased by 13% year over year, indicating improved monetization and user quality.
Free Cash Flow Surge: The company generated free cash flow of $488 million in 2024, nearly double the previous year, highlighting effective cost management and growth.
Bookings Growth Forecast: Wix anticipates total bookings growth of 11% to 13% year over year for 2025, indicating continued positive momentum.
Future Growth Targets: The company plans to achieve 'rule of forty-five' in 2025, setting ambitious growth and profitability targets for the future.
Negative
Bookings Growth Impact: Bookings growth was impacted by lower GPV growth across some service verticals compared to initial expectations, attributed to Christmas falling mid-week, resulting in fewer selling days for service-focused merchants.
FX Volatility Impact: The company experienced elevated FX volatility late in Q4, leading to a modest negative FX impact on bookings and revenue.
Revenue Growth Slowdown: Total revenue growth in 2024 was 13%, which, while positive, indicates a slowdown compared to previous years' growth rates.
FX Headwinds Impacting Bookings: The anticipated FX headwinds for 2025 are expected to negatively impact total bookings by approximately $45 million, which could affect overall revenue growth.
New Product Growth Uncertainty: The company is factoring almost no contribution from new products into their 2025 outlook, indicating uncertainty about future growth from these initiatives.
Wix.com Ltd. (NASDAQ:WIX) Q4 2024 Earnings Call Transcript
WIX.O
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