FX.co ★ Wix Turns To Q1 Profit, Adj. EPS Beats View; Sees Revenue Growth In Q2; Lifts FY24 Revenue View

Wix.com Ltd. (WIX), a prominent SaaS website builder platform, announced on Monday that it has achieved a first-quarter net income of $24.0 million, or $0.41 per share, reversing last year’s loss of $10.37 million, or $0.18 per share.

The company’s adjusted net income rose to $77.3 million, or $1.29 per share, from $51.10 million, or $0.91 per share, a year earlier. According to Thomson Reuters, analysts had anticipated earnings of $1.03 per share, excluding special items.

Wix’s total revenue increased by 12 percent to $419.78 million from last year's $374.08 million, driven by sustained momentum in the Partners business and a stronger than expected uptake of Wix Studio. Analysts had forecasted revenues of $417.84 million for the quarter.

Looking ahead, Wix predicts second-quarter revenues in the range of $431 million to $435 million, representing an 11 to 12 percent growth from the previous year, in line with the Street's expectations of $435.21 million.

For fiscal 2024, the company now projects revenues between $1.738 billion and $1.761 billion, reflecting an 11 to 13 percent year-over-year growth, and an increase from its earlier forecast of $1.726 billion to $1.757 billion, buoyed by enhanced business visibility and higher bookings expectations. Analysts expect revenues to be around $1.75 billion for the year.

Moreover, Wix has raised its full-year bookings forecast to between $1.796 billion and $1.826 billion, signifying 12 to 14 percent growth, up from the previous outlook of $1.784 billion to $1.813 billion.

The company anticipates total bookings to accelerate to 16 percent in the second half, at the high end of the guidance range, up from the previously anticipated 15 percent.

Wix continues to project positive operating income for 2024, marking a second consecutive year of net income. The company still expects its adjusted total gross margin to be between 68 and 69 percent, with an adjusted Business Solutions gross margin exceeding 30 percent for the full year.