The following is a summary of the Wix.com Ltd. (WIX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Wix reported a Q1 revenue reaching $420 million, exceeding expectations.
Gross bookings for Q1 grew to $457 million.
Free cash flow for Q1 grew to $111 million, marking a high point in profitability.
The company raised its total bookings outlook for 2024 to be between $1,796 million and $1,826 million.
Revenue outlook for 2024 also increased to a range between $1,738 million and $1,761 million.
Non-GAAP gross margin in Q1 was 68%, aligning with the company's year-long expectations.
Wix expects gross bookings growth to accelerate in the second half of 2024 to 16% at the guidance range's high end.
The company forecasts a free cash flow (excluding headquarter cost) of $445 million to $455 million or around 26% of 2024 revenue.
Business Progress:
The company's new offering, AI website builder, saw success with hundreds of thousands of sites created since its launch.
Wix Studio surpassed initial expectations with more than 1 million accounts created.
Wix expects to significantly exceed the Rule of 40 in 2025, propelled by growth and free cash flow margin.
The company completed its $300 million repurchase plan in February and initiated another $225 million repurchase authorization.
Positive business momentum in Q1 and expected improved booking strength for the remainder of the year set Wix up for anticipated revenue growth acceleration in 2025.
The adoption of both AI tools and the Wix Studio platform had a significant impact on their accelerated business performance.
Successful adoption of the Wix Studio platform by agencies enabled Wix to capture new market shares.
More details: Wix.com IR
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