Wix.com (WIX, Financial) has recently acquired Hour One, marking a significant step in its evolution as a leader in AI-driven digital solutions. This strategic acquisition grants Wix access to cutting-edge technologies that are set to redefine the landscape of web and visual design creation. The integration of Hour One into Wix is expected to enhance the company’s ability to offer smarter, faster, and more immersive web creation services.
By incorporating these advancements, Wix plans to minimize its dependency on third-party technology providers, better manage associated costs, and maintain superior quality control over its rapidly advancing front-end technologies. Additionally, this acquisition brings a team rich in talent with extensive expertise in generative AI and media infrastructure. With these resources, Wix aims to push the boundaries of innovation and create unprecedented experiences for creators and businesses.
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 $225.43 with a high estimate of $270.00 and a low estimate of $169.11. The average target implies an upside of 45.45% from the current price of $154.99. 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 1.9, 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 20.52% from the current price of $154.99. 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.
