The following is a summary of the Wix.com Ltd. (WIX) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Wix.com reported third quarter 2024 bookings growth of 16% year-over-year, with revenue growing to $445 million, up 13% compared to last year.

• Non-GAAP gross margin for Q3 was 69%, reflecting an increase from the originally anticipated 68% to 69%, attributing to better non-GAAP Business Solutions gross margin and payments gross margin.

• Free cash flow for the quarter amounted to $128 million, representing 29% of revenue, indicating efficient operating cost management and strong profitability.

• The updated full-year outlook includes total bookings projected between $1,822 million to $1,832 million and revenue from $1,757 million to $1,764 million.

Business Progress:

• Wix is expanding its AI capabilities, currently offering 29 AI assistants to enhance user decision-making and platform experience. Key products include an AI Website Builder now available in 20 languages, significantly improving user onboarding and conversion.

• Studio platform launched a visual sitemap and wireframe generator to support design and agency work, with 74 updates rolled out in Q3 to boost agency and designer productivity.

• Significant user base growth with nearly 5 million additions in Q3, notable for the first growth since 2020, showing strong brand and platform value.

Opportunities:

• Continued AI development and upcoming monetization offer significant growth potential, with AI tools aimed at transforming merchant business management and customer interactions.

• Studio platform's increasing adoption, particularly among new and larger agencies, is expected to drive future revenue growth and partner relationships.

Risks:

• While AI enhancements are positive, the gradual adoption can affect the expected speed of financial returns from these innovations.

• Dependence on continued robust performance of newly introduced products and platforms such as Studio for sustained revenue growth.

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