2024

Rule

Strong

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<p class="has-drop-cap">Wix.com Ltd. (NASDAQ: WIX) has reported its financial results for the <a aria-label="second quarter of 2024 (opens in a new tab)" href="https://2e8ef144-0b0c-4535-937c-d1a8e3227970.usrfiles.com/ugd/2e8ef1_0097c9f5c26d467a9b203136b1562ac5.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">second quarter of 2024</a>, showcasing a robust performance fueled by strategic initiatives and product innovations. <br><br>The company saw significant growth in key metrics, driven largely by the uptake of Wix Studio, enhanced AI capabilities, and an expanded commerce platform. In the second quarter of 2024, Wix recorded total bookings of $458.4 million, marking a 15% year-over-year increase.</p>
<p>This growth was attributed to the strong performance of Wix Studio subscriptions, improved retention rates, and a higher number of accounts purchasing multiple subscriptions. <br><br>Additionally, the expansion of Wix’s commerce platform, including the integration of a new payment partner for Wix Payments, contributed to a record take rate of 1.68%. The company’s total revenue for the quarter was $435.7 million, exceeding expectations and reflecting a 12% year-over-year increase. Creative Subscriptions revenue grew by 9% to $312.1 million, while Business Solutions revenue surged by 20% to $123.6 million.</p>
<p>Wix’s financial results also highlighted continued margin expansion, with a free cash flow (FCF) margin of 27% for the quarter. This was driven by additional operating leverage, positioning the company to achieve the Rule of 40 milestone a full year ahead of schedule. <br><br>The company’s non-GAAP net income for the quarter was $99.6 million, or $1.67 per diluted share, significantly surpassing the GAAP net income of $39.5 million, or $0.68 per diluted share. This strong performance underscores Wix’s solid business fundamentals and successful execution of its strategic initiatives.</p>
<h3 id="wix-com-beats-eps-and-revenue-expectations-in-q2">Wix.com Beats EPS and Revenue Expectations in Q2</h3>
<p>When comparing the current quarter’s performance against expectations, Wix’s results were notably impressive. <br><br>The company exceeded the expected <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">earnings per share (EPS)</a> of $1.35, reporting a non-GAAP EPS of $1.67. Additionally, Wix surpassed the revenue expectation of $433.77 million, achieving $435.7 million. This outperformance was driven by strong growth in both the Creative Subscriptions and Business Solutions segments, with the latter seeing a 20% year-over-year increase in revenue.<br><br>The company’s total bookings of $458.4 million also outpaced the prior year’s $398.5 million, reflecting a 15% increase. This growth was supported by the successful implementation of a price increase earlier in the year, as well as the positive impact of Wix’s AI strategy and commerce platform expansion. <br><br>The record take rate of 1.68% further highlighted the success of these initiatives, contributing to higher transaction revenue growth of 21% year-over-year.</p>
<p>Wix’s ability to exceed both EPS and revenue expectations demonstrates the effectiveness of its strategic initiatives and the resilience of its business model. The company’s focus on product innovation, particularly with Wix Studio and AI capabilities, has positioned it well for continued growth.</p>
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<h3 id="wix-updates-guidance-for-second-half-and-full-year-2024">Wix Updates Guidance for Second Half and Full Year 2024</h3>
<p>Wix has provided updated guidance for the second half of 2024 and the full year. The company now expects full-year bookings to be in the range of $1,802 to $1,822 million, reflecting 13-14% year-over-year growth.</p>
<p>This is an increase from the previous guidance of $1,796 to $1,826 million. Wix anticipates that bookings growth will continue to accelerate to 16% year-over-year in the second half, driven by the ongoing success of Wix Studio, AI products, and the expanded commerce platform. <br><br>For the third quarter of 2024, Wix expects total revenue to be between $440 and $445 million, representing 12-13% year-over-year growth. The company has also updated its full-year revenue outlook to $1,747 to $1,761 million, or 12-13% year-over-year growth.</p>
<p>This revised guidance reflects the momentum built in the first half of the year and the strong traction of Wix’s key product initiatives. Additionally, Wix expects to achieve a non-GAAP total gross margin of 68-69% for the full year, with non-GAAP Business Solutions gross margin exceeding 30%. Wix’s updated guidance also includes expectations for free cash flow, excluding headquarters costs, to be between $460 and $470 million, or 26-27% of revenue.</p>
<p>This represents an increase from the previous guidance of $445 to $455 million. The company’s ability to achieve the Rule of 40 milestone this year, driven by strong top-line growth and incremental margin improvements, underscores its solid financial position and growth potential.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/wix-com-ltd-reports-strong-q2-performance-with-458-4-m-in-bookings/">Wix.com Ltd. Reports Strong Q2 Performance with $458.4 M in Bookings</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Wix.com Ltd. Reports Strong Q2 Performance with $458.4 M in Bookings

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