Wix Reports Q1 Gains but Lowers Q2 Revenue Outlook

Wix.com Ltd. shows a solid first-quarter performance with profit and revenue growth. However, an underwhelming adjusted earnings report and conservative Q2 revenue forecast may signal caution for investors.

Date: 21-05-2025

AI Rating: 6

**Corporate Earnings and Revenue Performance**

Wix.com Ltd. reported net income of $33.77 million for the first quarter, translating to an earnings per share (EPS) of $0.57, which is a significant increase from the $24 million or $0.41 EPS recorded in the same quarter last year. This is an excellent indicator of profitability growth. However, while adjusted net income came in at $93.87 million or $1.55 per share, it fell short of Wall Street's expectations of $1.66 per share. This discrepancy could raise concerns among investors about the company meeting future earnings targets.

The total revenue for the first quarter was reported at $473.65 million, up 13% year-over-year from $419.78 million. This exceeded the analyst expectations of $471.94 million, reflecting solid demand for its services. The Creative Subscriptions revenue grew by 11% to $337.7 million, while the Business Solutions segment surged 18% to $136 million, showcasing strong growth in both segments.

The company has provided a revenue forecast for the second quarter, estimating revenue to be between $485 million and $489 million, an increase of 11% to 12% year-over-year. However, this outlook is below the analysts' expectations of $490.13 million. This cautious guidance may temper investor enthusiasm even amid solid past performance.

Despite these projections and the increase in the total repurchase authorization to $400 million, the risk lies in potential macroeconomic uncertainties affecting performance, as noted by management. The forecast for fiscal 2025 remains stable; they expect revenues between $1.97 billion and $2 billion, which is a 12% to 14% increase from the prior year.

In conclusion, while Wix demonstrates positive growth metrics overall, the underperformance in adjusted EPS and the conservative outlook could pressure its stock price in the near term.

Stocks: WIX