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Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.55 for first-quarter 2025, which missed the Zacks Consensus Estimate of $1.66. The company had reported EPS of $1.29 in the year-ago quarter.
Quarterly revenues increased 13% year over year to $473.7 million, beating the Zacks Consensus Estimate of $471.8 million. The top line exceeded management’s guidance ($469-$473 million), driven by strong performance of the new user cohort and continued healthy engagement from existing users. Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. The recent launch of Wixel is a primary step in this vision.
At the end of March 31, 2025, registered users were 288 million.
WIX's shares have gained 8.7% compared with the Zacks Computer-IT Services’ growth of 8.1% in the past year.
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Quarter in Detail
Creative Subscriptions’ revenues (71.3% of total revenues) increased 11% year over year to $337.7 million. Business Solutions’ revenues (28.7% of total revenues) rose 18% to $136 million.
For the first quarter, Creative Subscriptions' annualized recurring revenues were $1.37 billion, up 10% year over year.
Bookings jumped 12% to $510.9 million year over year. Creative Subscriptions’ bookings increased 10% to $369.5 million and Business Solutions’ bookings rose 15% to $141.4 million.
Wix.com Ltd. Price, Consensus and EPS Surprise
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
Partners’ revenues in the first quarter were $171.6 million, up 24% year over year. The Wix Studio platform, aimed at agencies and professionals, is the key driver with strong adoption and market share gains, aided by Wixel’s potential to further integrate into the workflow of design partners.
Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4% to first-quarter 2025 revenues, up 14%,16%,10% and 7% year over year, respectively.
Operating Details
Non-GAAP gross margin was 69% compared with 68% in the prior-year quarter. Creative Subscriptions segment achieved 84% and the Business Solutions segment 31%.
Wix reported a non-GAAP operating income of $99.8 million compared with $69.4 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of March 31, 2025, Wix had cash and cash equivalents of $653.3 million compared with $660.9 million as of Dec 31, 2024.
Cash flow from operations amounted to $145.5 million compared with $113.8 million in the previous year.
Capital expenditures totaled $3.1 million. Free cash flow was $142.4 million.
Wix repurchased $200 million worth of shares in January 2025, acquiring 868,026 shares at an average price of $230.41. To reinforce shareholder value, the board has now authorized an additional $200 million repurchase, bringing the total program to $400 million.