Following the release of its third-quarter earnings report for 2024, Wix.com Ltd. (NASDAQ: WIX) is seeing a notable surge on the US stock charts today. As of the latest check, WIX shares surged by 12.60%, reaching $207.11. This rise reflects investor confidence in its robust performance and strategic focus.
Wix.com reported a 13% year-over-year (y/y) increase in total revenue, to post $444.7 million. Total bookings also saw a 16% y/y rise in reaching $449.8 million. GAAP net income remained $26.8 million, translating to $0.49 per basic share and $0.46 per diluted share.
Strategic Drivers of Growth
The company’s bookings growth, which accelerated to 16% y/y, was driven by several key factors: increased traction for Studio, the ramp-up of AI-powered products, and robust commerce activity. These successes were accompanied by a sequential expansion in free cash flow (FCF) margin, now at 29% of revenue.
Studio’s performance has been particularly noteworthy. Bookings attributed to Studio subscriptions surged quarter-over-quarter, with 75% of bookings from new partners coming from Studio accounts—an increase from the prior quarter. This underscores the growing preference among agencies for Wix.com Studio platform.
Additionally, Wix.com’s innovative AI onboarding process, including the AI Website Builder, has significantly enhanced user experience. Tests with the latest Self Creator cohort revealed a 13% increase in conversion rates. Early benefits from AI-driven business assistants are also emerging, improving conversion rates and customer support efficiency.
Looking Ahead: Innovations and Growth Potential
Its continued success is proof of its dedication to cutting-edge innovation and calculated expansion plans. Wix.com anticipates sustained sales growth and margin expansion in 2025, with growing pace in 2024.
Notably, WIX plans to monetize its upcoming AI-powered tools, which aim to transform merchant operations, customer interactions, and content creation. These innovations promise to deliver immense value to users and represent a new revenue stream for the company.
Positioned for Sustained Success
As Wix.com continues to exceed performance benchmarks and embrace AI-driven advancements, it remains well-positioned for sustained growth. The company’s strategic focus and innovative edge signal further opportunities for long-term success.
