Wix (WIX, Financial) just made investors sit up and take notice, jumping nearly 13% today after smashing expectations in its Q3 2024 earnings report. The website-building powerhouse posted a 13% revenue growth year-over-year, hitting $444.7 million, while non-GAAP EPS surged 36% to $1.50, outpacing Wall Street estimates. And here's the kicker: free cash flow skyrocketed 185% compared to last year, landing at $127.8 million. The market's reaction? A surge of confidence in Wix's ability to innovate and execute.
What's behind the buzz? Wix's AI-powered tools and Wix Studio stole the show. Studio, the platform designed for professional creators, drove 75% of new Partner bookings this quarter, while AI features like personalized onboarding boosted conversion rates by 13%. CEO Avishai Abrahami isn't slowing down, hinting at even bigger AI-driven innovations ahead that could redefine how businesses and creators manage their digital presence. With momentum picking up, Wix raised its full-year bookings and revenue forecasts, signaling its confidence in smashing the coveted Rule of 40 metric this year—well ahead of schedule.
But let's keep it real. Wix still faces the challenge of converting its 222 million registered users into paying subscribers, with only 6 million currently on premium plans. Yet, today's leap in stock price shows investors are betting that Wix's relentless focus on AI, product diversification, and operational efficiency is the recipe for long-term success. Buckle up—Wix might just be warming up.
