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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