Wix.com (WIX) Q4 2024 earnings summary

Executive summary

• Achieved Rule of 40 a year ahead of plan, now targeting Rule of 45 in 2025, reflecting strong execution, innovation in web creation, and robust free cash flow margin.

• Bookings growth of 18% year over year in Q4 and 15% for full year 2024; Partners revenue up 30% and over 2 million Studio accounts created.

• AI product suite, including AI Website Builder and monetized AI Site Chat, drove higher conversion, engagement, and Partner momentum.

• Achieved first year of positive GAAP operating income and nearly doubled free cash flow in 2024.

• Completed $200 million share repurchase in January 2025, totaling $725 million since August 2023.

Financial highlights

• Q4 2024 bookings: $465 million, up 18% y/y; Q4 revenue: $460.5 million, up 14% y/y; FY 2024 bookings: $1.83 billion, up 15% y/y; FY 2024 revenue: $1.761 billion, up 13% y/y.

• Creative Subscriptions ARR at end of Q4: $1.343 billion, up 13% y/y.

• Non-GAAP operating income margin expanded to 20% of revenue; GAAP operating income positive for the first time at $100 million (6% of revenue).

• Free cash flow: $132 million in Q4 (29% of revenue); $488 million for 2024 (28% of revenue), nearly double 2023.

• Transaction revenue in Q4: $57.1 million, up 23% y/y; FY: $214.9 million, up 21% y/y.

Outlook and guidance

• 2025 bookings expected at $2.025–$2.06 billion (up 11–13% as-reported, 13–15% constant currency).

• 2025 revenue guidance: $1.97–$2.0 billion (up 12–14% as-reported, 14–16% constant currency).

• Q1 2025 revenue expected at $469–$473 million, up 12–13% y/y.

• Free cash flow expected at $590–$610 million (30–31% of revenue); CapEx of $13–$15 million.

• FX headwinds anticipated to impact top line, but some expense benefit expected.