Wix.com Ltd, the renowned SaaS website builder platform, has reported robust financial results for the second quarter of 2024, showcasing accelerated growth in bookings and revenue, driven by strategic product initiatives and expanding market presence. The company’s total bookings reached $458.4 million, marking a 15% year-over-year increase, attributed to the strong uptake of Wix Studio, enhanced AI capabilities, and an expanded commerce platform. This growth was further bolstered by the positive response to a price increase earlier in the year. Both Self Creators and Partners contributed to the bookings growth, with expectations for continued acceleration in the second half of the year.
Total revenue for the quarter exceeded expectations at $435.7 million, up 12% year-over-year, with significant growth in the Partners segment, which saw a 29% year-over-year increase. The transaction revenue also experienced a notable rise of 21% year-over-year, driven by the addition of a new payment partner to Wix Payments, resulting in a record take rate of 1.68%. The company’s focus on operational efficiency led to a free cash flow (FCF) margin of 27% for Q2, positioning Wix to achieve the Rule of 40 milestone this year, a full year ahead of plan.
Avishai Abrahami, Wix Co-founder and CEO, emphasized the success of the company’s strategic initiatives, particularly the outperforming Wix Studio, the integration of AI business assistants, and the expansion of the commerce platform. These initiatives not only enhanced the user creation experience but also reduced support resource requirements, paving the way for sustainable growth.
CFO Lior Shemesh highlighted the strong execution of growth initiatives and solid business fundamentals that drove bookings growth acceleration and additional margin expansion. The year-over-year bookings growth of 15% in Q2, up from 10% in Q1, underscores the effectiveness of these strategies. The company is optimistic about continued bookings growth acceleration to 16% in the second half of the year, supported by stable user behavior and strategic product initiatives.
Key financial highlights for Q2 2024 include:
Total revenue of $435.7 million, up 12% year-over-year.
Creative Subscriptions revenue of $312.1 million, up 9% year-over-year.
Creative Subscriptions ARR of $1.28 billion, up 10% year-over-year.
Business Solutions revenue of $123.6 million, up 20% year-over-year.
Transaction revenue of $53.9 million, up 21% year-over-year.
Partners revenue of $148.4 million, up 29% year-over-year.
Total bookings of $458.4 million, up 15% year-over-year.
GAAP net income of $39.5 million, or $0.71 per basic share.
Non-GAAP net income of $99.6 million, or $1.80 per basic share.
Free cash flow of $112.8 million, or 27% of revenue, excluding expenses related to the new corporate headquarters.
Wix has updated its full-year outlook, reflecting the momentum built in the first half of 2024. The company now expects full-year bookings to reach $1,802 – $1,822 million, or 13-14% year-over-year growth, and full-year revenue to range between $1,747 – $1,761 million, or 12-13% year-over-year growth. The updated outlook also includes an expectation for non-GAAP total gross margin of 68-69% and free cash flow of $460 – $470 million, or 26-27% of revenue.
The positive results and forward-looking outlook underscore Wix’s strong market position and its ability to drive sustained growth through innovation and strategic execution.