Wix.com Ltd. (NASDAQ:WIX) is a leading cloud-based web development platform that allows users to create HTML5 websites and mobile sites through the use of online drag-and-drop tools. The company has gained popularity for its user-friendly interface and a wide range of customizable templates. Wix competes with other website builders like Squarespace and Weebly, but it stands out due to its innovative features and strong market presence.
On February 19, 2025, Wix reported earnings per share (EPS) of $1.93, surpassing the estimated $1.61. This impressive performance is attributed to the company's strategic price increases and the success of its AI and Studio products, which are designed for creating advanced websites. The EPS of $1.93 marks a significant increase from $1.22 per share the previous year, highlighting the company's strong financial growth.
Despite slightly missing revenue expectations with $460.5 million compared to the estimated $461.4 million, Wix's revenue for the October-December quarter rose by 14%. This growth was driven by steady acceleration in the Self Creators segment and robust performance in the high-growth Partners segment, with Partners revenue growing by 30% year-over-year in fiscal year 2024. The company's key product areas, such as Studio, AI, and commerce, also contributed to this momentum.
Looking ahead, Wix forecasts revenue of up to $2 billion in 2025, representing an annual growth of up to 16%. For the first quarter, the company expects revenue between $469 million and $473 million, marking a 13-14% increase. In 2024, Wix's revenue grew by 13% to $1.76 billion, with adjusted diluted EPS excluding items rising to $6.39 from $4.39 per share in 2023. The company attributes its growth to the strong performance of its Studio product and the increasing benefits from AI usage and conversion.
Wix's financial metrics reflect its strong market position. The company has a price-to-earnings (P/E) ratio of approximately 134.59, indicating that investors are willing to pay a high price for its earnings. The price-to-sales ratio stands at about 7.44, suggesting that the market values its sales at over seven times its revenue. Despite a negative debt-to-equity ratio of -4.88, Wix achieved its first year of positive GAAP operating income in its history, showcasing improved profitability and financial health.
