Wells Fargo has revised its price target for Wix.com (WIX, Financial), lowering it slightly from $176 to $173, while maintaining an Equal Weight rating for the stock. Despite this adjustment, the firm views the market's reaction to the recent quarterly results as somewhat exaggerated. Wells Fargo is increasingly optimistic about Wix's future prospects. They've noted that the company's fiscal year 2025 bookings growth has been recalibrated to a more attainable target. The firm anticipates a favorable outlook with an upcoming analyst day in the latter half of the year and potential price hikes projected for fiscal year 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Wix.com Ltd (WIX, Financial) is $238.05 with a high estimate of $300.00 and a low estimate of $169.11. The average target implies an upside of 56.26% from the current price of $152.34. More detailed estimate data can be found on the Wix.com Ltd (WIX) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Wix.com Ltd's (WIX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Wix.com Ltd (WIX, Financial) in one year is $123.18, suggesting a downside of 19.14% from the current price of $152.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Wix.com Ltd (WIX) Summary page.
WIX Key Business Developments
Release Date: May 21, 2025
- Total Bookings: $511 million in Q1, up 12% year-over-year.
- Total Revenue: $474 million, up 13% year-over-year.
- Partners Revenue: Grew 24% year-over-year to $172 million.
- Transaction Revenue: $59 million, up 19% year-over-year.
- Non-GAAP Gross Margin: 69% in Q1.
- Non-GAAP Operating Income: Increased 44% year-over-year, totaling 21% of revenue.
- Non-GAAP R&D Expenses: $96 million, increased quarter-over-quarter.
- Non-GAAP Sales and Marketing Expenses: $102 million, grew quarter-over-quarter.
- Free Cash Flow: Over $142 million, or 30% of revenue.
- Q2 Revenue Outlook: $485 million to $489 million, representing 11% to 12% year-over-year growth.
- Full Year Revenue Guidance: $1,970 million to $2,000 million, or 12% to 14% growth year-over-year.
- Free Cash Flow Guidance for 2025: $590 million to $610 million, or 30% to 31% of revenue.
- Share Repurchase Program: Upsized by $200 million, total authorization at $400 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wix.com Ltd (WIX, Financial) launched Wixel, a new stand-alone visual design platform that leverages generative AI, marking a significant product innovation.
- The company reported a 12% year-over-year increase in Q1 2025 bookings, reaching $511 million, indicating strong demand for its platform.
- Wix.com Ltd (WIX) introduced Astro, an AI assistant within the Wix dashboard, expected to enhance user engagement and reduce churn.
- The company saw a 7% year-over-year increase in new users, adding nearly 5.3 million users in Q1 2025, driven by strong product innovation.
- Wix.com Ltd (WIX) achieved a milestone free cash flow of over $142 million, representing 30% of revenue, showcasing strong financial health.
Negative Points
- Despite strong Q1 results, Wix.com Ltd (WIX) expressed caution due to macroeconomic uncertainties, particularly affecting its Business Solutions segment.
- The company faces headwinds from a small subsidiary affecting GPV, with a two-point headwind expected to persist throughout the year.
- Wix.com Ltd (WIX) maintained a conservative outlook for the rest of 2025, despite strong demand trends, due to potential macro volatility.
- The partners revenue growth decelerated to 24% in Q1 2025 from 29% in the previous quarter, impacted by FX effects and slower GPV growth.
- Wixel, while promising, is still in its early stages and may take time to significantly impact Wix.com Ltd (WIX)'s revenues.
