Q3 results surpassed expectations, prompting updates to revenue, billings, and free cash flow forecasts that establish a solid foundation for continued momentum into FY25. Core initiatives, including developments in Studio that enhance the durability in Partners, along with AI initiatives that facilitate growth in Self-Creators, are expected to sustain progress into 2025.

While Wix.com delivered another robust quarter, there were expectations for a faster growth rate in its self-creator segment. Nevertheless, both the partner and business solutions segments have shown acceleration even against tough comparisons. Additionally, the company's free cash flow margin is nearing the 30% mark, and it is projected to reach close to $500 million in free cash flow by 2024, surpassing earlier long-term forecasts.

After Wix.com reported robust third-quarter growth alongside fourth-quarter guidance exceeding Street expectations for bookings growth and free cash flow, analysts have refined their estimates. Enhanced optimism is driven by the company's highly recurring revenue stream, the introduction of new AI-infused products, and revised projections for future growth and margins.

While Wix.com's third-quarter results were consistent with expectations in terms of revenue, its free cash flow exceeded expectations, and Creative Subscriptions bookings showed notable growth. The quarter was described as 'strong', and there's a suggestion that a better capital allocation strategy might include refinancing the convertible securities and increasing share repurchases.

Wix.com demonstrated robust performance in Q3, surpassing consensus estimates in bookings, revenue, and free cash flow, fueled by its Partners, Studio, AI, and transactional strengths. Management anticipates revenue acceleration and further leverage in FY25, building on the robust bookings of FY24.