Wix.com Ltd (NASDAQ:WIX) reported better-than-expected sales for its fiscal first quarter 2024 on Monday.
Revenue grew 12% Y/Y to $419.8 million, beating the analyst consensus estimate of $417.8 million. Adjusted EPS of $1.29 beat the analyst consensus estimate of $1.03, according to data from Benzinga Pro.
Creative Subscription revenue increased 9% Y/Y to $304.3 million. The Creative Subscriptions bookings climbed 7% Y/Y to $334.6 million. Creative Subscriptions ARR was $1.24 billion, up 10% Y/Y. Business Solutions' revenue rose 20% Y/Y to $115.5 million, and the bookings jumped 21% Y/Y to $122.6 million.
Avishai Abrahami, Wix Co-founder and CEO said, "This outperformance was underpinned by robust business fundamentals as well as strong product traction, particularly for our expansive AI product offering and Wix Studio. Notably, we saw extremely strong usage of our AI Website Builder that was launched earlier in the quarter with hundreds of thousands of sites already created using the tool over just a few months. Wix Studio also continues to perform ahead of plan, with over one million Studio accounts created since our August launch."
Wix.com expects fiscal second-quarter revenue of $431 million – $435 million versus the consensus of $435.21 million. The company expects fiscal 2024 revenue of $1.738 billion – $1.761 billion (prior $1.726 billion-$1.757 billion) vs. the consensus of $1.75 billion. Wix.com projects 2024 bookings of $1.796 billion – $1.826 billion(prior $1.784 billion – $1.813 billion).
Wix.com shares gained 23.8% to close at $168.02 on Monday.
These analysts made changes to their price targets on Wix.com after the company reported quarterly results.
- Piper Sandler boosted the price target on Wix.com from $165 to $184. Piper Sandler analyst Clarke Jeffries downgraded the stock from Overweight to Neutral.
- Oppenheimer raised Wix.com price target from $160 to $200. Oppenheimer analyst Ken Wong maintained an Outperform rating.
- Needham boosted the price target on Wix.com from $160 to $190. Needham analyst Bernie McTernan maintained a Buy rating.
- Benchmark boosted the price target on Wix.com from $175 to $210. Benchmark analyst Mark Zgutowicz maintained a Buy rating.
- JMP Securities raised the price target on Wix.com from $150 to $180. JMP Securities analyst Andrew Boone maintained a Market Outperform rating.
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