Wix.com's performance in Q3 surpassed expectations, leading to raised forecasts for revenue, billings, and free cash flow which set a strong foundation for continued momentum through FY25. Key initiatives such as Studio are enhancing the sustainability of the Partners segment, while AI-driven endeavors are boosting growth among Self-Creators, suggesting potential for further expansion in 2025.

While Wix.com delivered another strong financial quarter, there was an expectation for a quicker growth from the self-creator segment. Despite challenging comparisons, both partner and business solutions segments have shown acceleration. The company's free cash flow margin is nearing the 30% mark. It is noted that Wix is on track to hit the $500M free cash flow milestone in 2024, surpassing earlier long-term forecasts.

The firm noted Wix.com's robust Q3 growth and projected Q4 performance surpassing street expectations in terms of bookings growth and free cash flow. They acknowledged the company's consistent revenue stream, the introduction of new A.I. infused products, and enhanced projections for growth and margin profiles.

While Wix.com's third-quarter figures aligned with revenue expectations, their free cash flow notably exceeded market predictions. Additionally, Creative Subscriptions bookings witnessed an encouraging acceleration. A more favorable scenario for capital allocation might involve the refinancing of the convertible securities and an increase in share repurchases.

Wix.com's third quarter results significantly exceeded expectations, particularly in terms of bookings and free cash flow. The company's robust AI narrative remains compelling and is consistently reflected in the financial figures. Notably, the success of the price increase has enhanced visibility for potential further upside. Additionally, the company is achieving greater leverage as its customer economics, especially within subscriptions, continue to improve.