Wix leans on AI and buybacks to power through macro headwinds
Company reports $93.9M in adjusted profit, adds 5.3M users, but tempers guidance due to economic uncertainty.
Wix reported a 13% year-over-year revenue increase in the first quarter, reaching $473.7 million, slightly above analyst estimates.
The company posted a net profit of $33.8 million, while adjusted net income (excluding accounting items) rose to $93.9 million, a 70% jump compared to the same period last year.
Free cash flow totaled $142.4 million, meeting Wix’s long-standing goal of generating at least 30% of revenue. Bookings revenue climbed 12% to $510.9 million, suggesting that the website-building platform is sustaining its current growth trajectory.
During the quarter, Wix added 5.3 million new users, a 7% increase, bringing its total to over 287 million registered users.
Wix issued a relatively cautious outlook for the rest of the year, indicating it expects the current double-digit growth rate to continue, though not accelerate significantly. The company attributed its conservative guidance to changing macroeconomic conditions that are likely to affect its business solutions segment, including the launch of new online stores.
For the second quarter, Wix projects revenue between $485 million and $489 million, representing approximately 12% year-over-year growth. The full-year forecast calls for $2 billion in revenue, reflecting a similar growth rate. Free cash flow is expected to reach $600 million, or 30% of annual revenue.
To add shareholder value amid a relatively uneventful earnings release, Wix announced it is doubling its share buyback program to $400 million.
On the strategic front, Wix made notable strides in artificial intelligence with the launch of Wixel, a new AI-driven visual design platform. According to CEO and co-founder Avishai Abrahami, “Wixel will do for design what Wix did for website building, put creative control in the hands of everyone.”
Wix also introduced Astro, a personal AI assistant that guides users through the platform and promotes the use of advanced tools. Additional innovations include Wix Automations and Wix Functions, both aimed at enabling automation and greater customization for client websites.
