WIX's Q4 Earnings Top Estimates, Revenues Rise Y/Y, Stock Up

Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.93 for fourth-quarter 2024, which exceeded the Zacks Consensus Estimate of $1.61. The company had reported EPS of $1.22 in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues increased 14% year over year to $460.5 million but missed the Zacks Consensus Estimate of $461.3 million. For 2024, revenues expanded 13% to $1.761 billion.At the end of Dec. 31, 2024, registered users were 282 million.In response to the results and strategic updates for 2025, WIX’s shares went up 6.2% in pre-market trading on Feb. 19. WIX's shares have gained 81.8% compared with the Zacks Computer-IT Services’s growth of 7.4% in the past year.Image Source: Zacks Investment ResearchQuarter in DetailCreative Subscriptions’ revenues (71.6% of total revenues) increased 11% year over year to $329.7 million. Business Solutions’ revenues (28.4% of total revenues) rose 21% to $130.7 million.For the fourth quarter, Creative Subscriptions annualized recurring revenues were $1.34 billion, up 13% year over year.Bookings of $464.4 million improved 18% year over year. Creative Subscriptions’ bookings increased 15% year over year to $325.2 million. Business Solutions’ bookings rose 25% to $139.4 million. Partners revenues in the fourth quarter were $168.1 million, up 29% year over year. WIX continues to witness strong growth and success with its Partners, driven by rapid adoption of its WIX Studio platform.Wix.com Ltd. Price, Consensus and EPS Surprise Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. QuoteRegion-wise, North America, Europe, and Asia and others contributed 60%, 25%, and 11%, respectively, to fourth-quarter revenues, up 15%, 17% and 10% year over year. Latin America contributed 4% to total quarterly revenues, declining 2% year over year.Operating DetailsNon-GAAP gross margin was flat year over year at 70%, with the Creative Subscriptions segment achieving 85% and the Business Solutions segment at 32%.Wix reported a non-GAAP operating income of $100.5 million compared with $64.7 million in the year-ago quarter.Balance Sheet & Cash FlowAs of Dec. 31, 2024, Wix had cash and cash equivalents of $660.9 million compared with $439.4 million as of Sept. 30, 2024.Cash flow from operations amounted to $497.4 million compared with $248.2 million in the previous year.Capital expenditures totaled $19.3 million. Free cash flow was $478.1 million.Financial Vision for 2025Approximately 40% of Wix’s revenues come from non-U.S. dollar currencies, exposing it to forex fluctuations. The company acknowledges headwinds from a stronger U.S. dollar but expects the impact on free cash flow to be minimal due to cost efficiencies. Its Rule of 45 strategy (which combines revenue growth and free cash flow margin) is expected to be met at the high end of its 2025 outlook.For first-quarter 2025, revenues are expected to be between $469 million and $473 million, suggesting 12-13% growth from the prior-year quarter's reported figure.The company anticipates 2025 revenues to grow 12-14% in the range of $1.97-$2 billion.Wix estimates free cash flow for 2025 in the range of $590-$610 million, implying 30-31% of revenues.WIX’s Zacks RankCurrently, Wix carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other CompaniesSensata Technologies Holding plc ST reported fourth-quarter 2024 EPS of 76 cents compared with 81 cents a year ago. The bottom line met the Zacks Consensus Estimate.In the past year, shares of ST have lost 20.2%.BCE Inc. BCE reported fourth-quarter 2024 adjusted EPS of C$0.79 (56 cents) compared with C$0.76 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 50 cents.Shares of BCE have plunged 38.3% in the past year. PTC Inc PTC reported first-quarter fiscal 2025 non-GAAP EPS of $1.10, beating the Zacks Consensus Estimate by 20.9%. The company reported non-GAAP EPS of $1.11 in the prior-year quarter. In the past year, shares of PTC have declined 5.5%. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report BCE, Inc. (BCE): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report Wix.com Ltd. (WIX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks