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Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.93 for fourth-quarter 2024, which exceeded the Zacks Consensus Estimate of $1.61. The company had reported EPS of $1.22 in the year-ago quarter.
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Quarterly revenues increased 14% year over year to $460.5 million but missed the Zacks Consensus Estimate of $461.3 million. For 2024, revenues expanded 13% to $1.761 billion.
At the end of Dec. 31, 2024, registered users were 282 million.
In response to the results and strategic updates for 2025, WIX’s shares went up 6.2% in pre-market trading on Feb. 19. WIX's shares have gained 81.8% compared with the Zacks Computer-IT Services’s growth of 7.4% in the past year.
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Quarter in Detail
Creative Subscriptions’ revenues (71.6% of total revenues) increased 11% year over year to $329.7 million. Business Solutions’ revenues (28.4% of total revenues) rose 21% to $130.7 million.
For the fourth quarter, Creative Subscriptions annualized recurring revenues were $1.34 billion, up 13% year over year.
Bookings of $464.4 million improved 18% year over year. Creative Subscriptions’ bookings increased 15% year over year to $325.2 million. Business Solutions’ bookings rose 25% to $139.4 million.
Partners revenues in the fourth quarter were $168.1 million, up 29% year over year. WIX continues to witness strong growth and success with its Partners, driven by rapid adoption of its WIX Studio platform.
Wix.com Ltd. Price, Consensus and EPS Surprise
Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote
Region-wise, North America, Europe, and Asia and others contributed 60%, 25%, and 11%, respectively, to fourth-quarter revenues, up 15%, 17% and 10% year over year. Latin America contributed 4% to total quarterly revenues, declining 2% year over year.
Operating Details
Non-GAAP gross margin was flat year over year at 70%, with the Creative Subscriptions segment achieving 85% and the Business Solutions segment at 32%.
Wix reported a non-GAAP operating income of $100.5 million compared with $64.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec. 31, 2024, Wix had cash and cash equivalents of $660.9 million compared with $439.4 million as of Sept. 30, 2024.
Cash flow from operations amounted to $497.4 million compared with $248.2 million in the previous year.
Capital expenditures totaled $19.3 million. Free cash flow was $478.1 million.
Financial Vision for 2025
Approximately 40% of Wix’s revenues come from non-U.S. dollar currencies, exposing it to forex fluctuations. The company acknowledges headwinds from a stronger U.S. dollar but expects the impact on free cash flow to be minimal due to cost efficiencies. Its Rule of 45 strategy (which combines revenue growth and free cash flow margin) is expected to be met at the high end of its 2025 outlook.
For first-quarter 2025, revenues are expected to be between $469 million and $473 million, suggesting 12-13% growth from the prior-year quarter's reported figure.
The company anticipates 2025 revenues to grow 12-14% in the range of $1.97-$2 billion.
Wix estimates free cash flow for 2025 in the range of $590-$610 million, implying 30-31% of revenues.