Wix.com (WIX) Q3 2024 earnings summary

Executive summary

• Achieved accelerating growth in Q3 2024, with bookings up 16% year-over-year to $449.8 million and revenue up 13% to $444.7 million, driven by innovation in AI, Studio platforms, and commerce activity.

• Partners revenue grew 30% year-over-year to $155 million, with Studio accounting for 75% of new partner bookings and driving the majority of new bookings.

• AI-powered onboarding and tools improved user conversion and engagement, with over 50% of new users utilizing AI onboarding and a 13% uplift in conversion rates.

• Commerce platform GPV grew 14% year-over-year to $3.3 billion, with transaction revenue up 23% to $54.3 million, supported by new verticals and larger merchants.

• Free cash flow margin reached 29% in Q3, reflecting operating leverage and cost efficiencies.

Financial highlights

• Q3 bookings reached $450 million, up 16% year-over-year, and Q3 revenue was $445 million, up 13% year-over-year.

• Creative Subscriptions revenue was $319 million, up 10% year-over-year, with ARR at $1.31 billion, up 11%.

• Non-GAAP gross margin improved to 69% in Q3, with Creative Subscriptions at 84% and Business Solutions at 31%.

• Non-GAAP operating expenses declined to 49% of revenue in Q3, reflecting ongoing cost efficiencies.

• Free cash flow in Q3 was $128 million (29% of revenue); full-year guidance is $483–$488 million (~28% of revenue).

Outlook and guidance

• Full-year 2024 bookings outlook raised to $1,822–$1,832 million (14–15% year-over-year growth), with an exit rate of 18%.

• Full-year revenue guidance increased to $1,757–$1,764 million (13% year-over-year growth).

• Free cash flow guidance (excluding HQ costs) raised to $483–$488 million, or 27–28% of revenue.

• Non-GAAP operating expenses expected at 49% of revenue for the year, slightly improved from prior guidance.

• Expects to surpass the Rule of 40 in 2024, with further margin expansion and growth acceleration anticipated in 2025 and beyond, supported by new AI products and stable cost structure.