Wix.com (WIX) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong revenue and bookings growth, with total revenue up 13% year-over-year to $474 million and bookings up 12% to $511 million, driven by robust demand, product innovation, and AI-powered launches like Wixel and Astro.

• Partners revenue grew 24% year-over-year, fueled by Wix Studio adoption and platform investments.

• Creative Subscriptions ARR reached $1.4 billion, up 10% year-over-year, reflecting strong subscription momentum.

• Free cash flow margin reached 30% in Q1 2025, supporting increased share repurchases and ongoing investment in innovation.

• Strategic partnerships, including with Microsoft and OpenAI, are expanding reach and integrating new AI capabilities.

Financial highlights

• Q1 2025 total revenue: $474 million, up 13% year-over-year and above guidance.

• Q1 2025 total bookings: $511 million, up 12% year-over-year.

• Partners revenue: $172 million, up 24% year-over-year.

• Transaction revenue: $59 million, up 19% year-over-year; GPV reached $3.4 billion, up 10% year-over-year in constant currency.

• Free cash flow: $142.4 million in Q1 2025; margin at 30%.

Outlook and guidance

• FY 2025 revenue guidance: $1.97–2.0 billion, up 12–14% year-over-year.

• FY 2025 bookings guidance: $2.025–2.06 billion, up 11–13% year-over-year.

• Free cash flow guidance: $590–610 million (30–31% of revenue), with a goal to achieve Rule of 45 at the high end of outlook.

• Q2 2025 revenue expected at $485–489 million, up 11–12% year-over-year.

• Guidance remains conservative due to macroeconomic uncertainty and potential volatility in Business Solutions.