Wix.com Issues Conservative Outlook Due To Macro Uncertainty, Increases Stock Buyback

SaaS website builder platform Wix.com Ltd WIX reported its fiscal first-quarter 2025 results on Wednesday. The quarterly revenue grew 13% year-over-year to $473.7 million, topping the analyst consensus estimate of $472.9 million. Adjusted EPS of $1.55 missed the analyst consensus estimate of $1.60.

Creative Subscription revenue increased 11% Y/Y to $337.7 million. Creative Subscriptions bookings climbed 10% Y/Y to $369.5 million. Creative Subscriptions Annualized Recurring Revenue (ARR) was $1.37 billion, up 10% Y/Y.

Partners revenue in the quarter was $171.6 million, up 24% Y/Y. Business Solutions’ revenue rose 18% Y/Y to $136.0 million, and bookings jumped 15% Y/Y to $141.4 million. 

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The adjusted gross margin grew by 100 bps to 69%. During the quarter, Wix.com generated $145.5 million in operating cash flow and held $1.07 billion in cash and equivalents.

Wix’s Board authorized an increase to its stock buyback program to repurchase the company’s securities by up to $200 million, bringing the total repurchase authorization under the program to up to $400 million.

Wix.com reiterated fiscal 2025 revenue outlook of $1.97 billion to $2 billion versus the analyst consensus estimate of $2.02 billion and bookings of  $2.03 billion to $2.06 billion. This company said this outlook reflects conservatism due to macro uncertainty, specifically the Business Solutions segment, with potential volatility offset by fully dissipating foreign exchange headwinds.

The company reiterated free cash flow outlook, excluding headquarters costs, of $590 million to $610 million. Wix.com expects second-quarter fiscal 2025 revenue of $485 million to $489 million versus the analyst consensus estimate of $490.53 million.

Lior Shemesh, CFO at Wix, said, “Our strong first quarter results demonstrate the critical value of the Wix platform to anyone and everyone requiring an online presence globally amid an ever-evolving macro environment, particularly SMBs. Top of funnel demand was very strong with Q1’25 new user cohort bookings finishing 12% higher than the bookings generated by the Q1’24 cohort in its first quarter.”

Price Action: WIX stock is trading lower by 1.78% to $178.50 premarket at last check Wednesday.

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