Wix Reports Third Quarter 2024 Results
SaaS website builder platform Wix reported its financial results for the third quarter of 2024. The company saw notable growth across all areas and is exiting Q3 with an optimistic outlook for 2024.
Wix’s bookings reached $449.8 million in the third quarter, resulting in a 16% year-over-year (y/y) growth. The biggest growth contributors include Wix’s platform for agencies and freelancers, Wix Studio, increased ecommerce activity, and the company’s strong focus on AI advancements.
Furthermore, Wix noted a 13% y/y increase in revenue, totaling $444.7 million, thanks to both Self Creators (customers who build sites and applications for themselves) and Partners (those who create for other users). Partners include agencies, freelancers, and resellers.
Wix saw “tremendous partner momentum” in Q3 2024, with partners generating revenue of $155 million, up 30% from Q3 in 2023 and approximately 74% over the past two years.
Most of Wix’s revenue in Q3 came from Creative Subscriptions ($318.18 million), while Business Solutions contributed $125.8 million. However, revenue from Creative Subscriptions grew at a lower rate (up by 10% y/y) compared to revenue from Business Solutions (up by 22% y/y).
Total bookings in Q3 of 2024 reached $449.8 million, up 16% y/y. Most bookings came from Creative Subscriptions ($326.6 million), and the rest ($123.1 million) from Business Solutions bookings. Again, Business Solutions bookings saw a greater y/y growth than Creative Subscription bookings (17% vs. 15%).
Wix reported the total gross margin on generally accepted accounting principles (GAAP) basis in Q3 of 2024 was 68%. The gross margin on a GAAP basis for Creative Subscriptions was 83%, and for Business Solutions was 29%.
On the other hand, the total non-GAAP gross margin in the third quarter was 69% (84% for Creative Subscriptions and 31% for Business Solutions).
In Q3 of 2024, Wix accumulated $129.8 million in net cash from operating activities, while its capital expenditures totaled $2.1 million, resulting in a free cash flow of $127.8 million.
In addition to the Q3 results, Wix provided an updated outlook for the entirety of 2024.
The company raised its full-year bookings outlook to $1,822–$1,832 million (14–15% y/y) from $1,802–$1,822 million (13–14% y/y) and its full-year revenue outlook to $1,757–$1,764 million (13% y/y) from $1,747–$1,761 million. It expects Q4’24 revenue to reach $457–$464 million (13–15% y/y).
