Wix.com beats top-line and bottom-line estimates; initiates FY24 outlook

Outlook: “We expect total bookings of $1.78 – $1.81 billion, up 12 – 14% y/y, an acceleration from 2023. We expect y/y growth of total bookings to accelerate in the second half of 2024 to 15% at the high end of the guidance range, positioning the business to achieve accelerating y/y revenue growth in 2025.

In particular, the acceleration is expected to be primarily in Creative Subscription bookings, bringing it to double digit y/y growth in the 2H24.

We expect total revenue to be $1.73 – $1.76 billion, up 11 – 13% y/y vs. consensus of $1.75B.

We expect total revenue in Q1 2024 of $415 – $419 million, up 11 – 12% y/y vs. consensus of $416.55M.

We expect non-GAAP total gross margin of 68 – 69% with non-GAAP business solutions gross margin to exceed 30% for the full year.

We expect non-GAAP operating expenses to be 51 – 52% of revenue for the full year, with non-GAAP sales and marketing to remain similar to 2023 at roughly 23 – 24% of revenue.

We believe we are ahead of our plan to achieve GAAP profitability. We expect GAAP operating profit in 2024 as well as a second consecutive year of GAAP net income.

We expect to generate free cash flow, excluding headquarters costs, of $370 – $400 million, or 21 – 23% of revenue in 2024. We expect capital expenditures, excluding costs associated with our new headquarters build out, of approximately $7 – $10 million in 2024. We will incur the final costs for our new headquarters in the first half of the year and anticipate them to be roughly $8 – $10 million.”