Wix.com Ltd. WIX is scheduled to release fourth-quarter 2024 results on Feb. 19, before market open.
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The company expects fourth-quarter revenues to be between $457 million and $464 million, implying 13-15% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $461.3 million, indicating an increase of 14.3% from a year ago.
The Zacks Consensus Estimate for earnings is pegged at $1.61 per share, up 32% from the year-earlier quarter.
WIX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 20.11%. The stock has risen 75.8% compared with the Zacks Computers - IT Services industry’s growth of 5.8% in the past year.
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Factors Shaping WIX’s Q4 Results
The growing adoption of Wix's product portfolio, particularly Wix Studio and various AI-driven solutions, is likely to have driven the revenues in the to-be-reported quarter.
Wix Studio has been gaining strong traction with the addition of new features and enhancements. In the last reported quarter, Wix Studio contributed 75% of new partner bookings.
WIX is focusing on generative artificial intelligence (AI) as it represents a significant business growth driver. The company is also embedding AI assistants across its platform and noted that it has released 29 AI business assistants in the last earnings call. It continues to add new products to gain on the AI boom. In December 2024, Wix launched AI Site-Chat, a virtual agent that helps businesses engage visitors 24/7, address queries and provide real-time info. It improves customer experience and boosts potential sales.
Steady momentum in the Self Creators and Partners’ channel, along with the expansion of the commerce platform, are likely to have acted as tailwinds.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
The Zacks Consensus Estimate for revenues from the Creative Subscriptions and Business Solutions segments is pegged at $330 million and $132 million, respectively.
Wix also revised its 2024 guidance for bookings and revenues. The revenue outlook is $1,757-$1,764 million, implying 13% year-over-year growth compared with the earlier projection of $1,747-$1,761 million. Bookings are revised to $1,822-$1,832 million (14-15% year-over-year growth), up from prior guidance of $1,802-$1,822 million.
As bookings and revenue grow, Wix aims to maintain a stable cost base, paving the way for meaningful free cash flow margin expansion. Free cash flow (excluding HQ capital expenditure) is projected in the range of $483–$488 million (27–28% of revenues), up from earlier guidance of $460–$470 million.
Increasing investments in product development, infrastructure and platform, along with a volatile macroeconomic environment and adverse foreign currency fluctuations, continue to be concerns.
WIX’s Key Recent Developments
On Jan. 30, 2025, Wix unveiled Business Launcher, an AI-driven tool designed to help users transform new business ideas into reality, from concept to execution. The tool analyzes users' skills, experience and goals to generate personalized business ideas with just a few questions or by uploading a resume.
On Jan. 23, 2025, Wix unveiled a new integration with YouTube Shopping, allowing merchants to sell their products directly on the platform. Building on its partnership with Google Shopping, this update enables merchants to display their products in a dedicated store format on their YouTube profiles, further strengthening their social shopping capabilities.
On Jan. 21, 2025, Wix announced a partnership with Worldline, a global leader in payment services, to support small and medium businesses (SMEs). This partnership will give SMEs using Worldline a high-quality platform to create, manage and grow their online presence, helping them increase revenues. Meanwhile, Wix users will benefit from Worldline’s local payment and banking solutions, enabling them to better serve their customers.
What Does Our Model Predict for WIX?
Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Wix has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Gaming and Leisure Properties, Inc. GLPI currently has an Earnings ESP of +0.83% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GLPI is scheduled to report quarterly earnings on Feb. 20. The Zacks Consensus Estimate for Gaming and Leisure Properties to-be-reported quarter’s earnings and revenues is pegged at 94 cents per share and $391.1 million, respectively. Shares of GLPI have gained 7.6% in the past year.
Savers Value Village, Inc. SVV presently has an Earnings ESP of +2.85% and a Zacks Rank #2. SVV is scheduled to report quarterly numbers on Feb. 20. The Zacks Consensus Estimate for SVV’s to-be-reported quarter’s earnings and revenues is pegged at 12 cents per share and $402 million, respectively. Shares of SVV have declined 42.9% in the past year.
Sprouts Farmers Market, Inc. SFM has an Earnings ESP of +9.58% and a Zacks Rank #2 at present. SFM is scheduled to report quarterly figures on Feb. 20. The Zacks Consensus Estimate for SFM’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $1.95 billion, respectively. Shares of SFM have surged 235.2% in the past year.
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