Wix.com (WIX) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with bookings up 15% year-over-year to $458.4M and revenue up 12% to $435.7M, both exceeding guidance, driven by product innovation, AI, and Wix Studio adoption.

• Partners and transaction revenue segments led growth, with Partners revenue up 29% year-over-year and significant momentum in commerce platform expansion.

• Creative Subscriptions ARR grew 10% year-over-year to $1.28B, with user monetization and operational efficiency improvements.

• Free cash flow margin expanded to 27%, and the Rule of 40 milestone is expected to be achieved a year ahead of plan.

• Broad geographic reach with 40% of revenue from outside North America and double-digit growth across all regions.

Financial highlights

• Q2 bookings reached $458.4M, up 15% year-over-year; revenue was $435.7M, up 12% year-over-year.

• Commerce transaction revenue grew 21% year-over-year to $54M, with take rate at a record 1.68%.

• Creative Subscriptions ARR reached $1.28B (+10% y/y); Partners revenue was $148.4M (+29% y/y).

• Non-GAAP gross margin was 68%; non-GAAP operating margin reached 21% of revenue; GAAP operating margin was 7%.

• Free cash flow (excluding HQ build-out) was $117.8M, or 27% of revenue.

Outlook and guidance

• Q3 2024 revenue expected at $440–$445M, representing 12–13% year-over-year growth.

• Full-year 2024 bookings guidance updated to $1,802–$1,822M (13–14% growth), and revenue to $1,747–$1,761M (12–13% growth).

• Free cash flow guidance raised to $460–$470M (26–27% of revenue), with Rule of 40 milestone expected to be achieved a year ahead of plan.

• Full-year non-GAAP gross margin expected at 68–69%; Business Solutions non-GAAP gross margin to exceed 30%.

• Guidance reflects some conservatism due to FX volatility and macroeconomic unpredictability.