Israeli website building platform company Wix.com Limited (NASDAQ: Wix) reported strong second-quarter results while higher demand for its enhanced products builds positive momentum for the second half of 2024 and the company raised its guidance accordingly.
Wix allows customers to create and manage websites and online stores on its platform. The company’s stock price fell 2% in early trading today, giving it a market value of $8.8 billion, after rising 4.80% yesterday.
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Second-quarter revenue was $435.7 million, up 12% from the same quarter in 2023. The increase was due to an increase in the number of commercial partners. GAAP net income was $39.5 million ($0.70 per share) and non-GAAP net income was $99.60 million ($1.80 per share).
Wix also slightly raised its 2024 outlook, now expecting revenue between $1.747 billion and $1.761 billion from $1.738 billion and $1.761 billion. The company also revised its expected cash flow to $460-470 million from $445-455 million.
“Strong execution on our key growth initiatives and strong business fundamentals drove incredible growth momentum and additional margin expansion this quarter,” said Lior Shemesh, CFO of Wix. “YoY bookings growth accelerated to 15% in Q2 from 10% in Q1 as a result of our growth initiatives as well as the price increases implemented earlier this year. Notably, this growth was supported by accelerating bookings growth across both our creator and partner businesses. These key product initiatives coupled with strong user behavior are expected to drive continued bookings growth acceleration to 16% in the second half at the high end of our forecast.”
Wix CEO Nir Zohar said at the press conference that any global slowdown does not pose a significant threat to Wix. “Our growth has come primarily from things we have control over, like new products and services we’ve launched, and we haven’t seen anything big at the company level here,” he said. “Are we immune? I don’t know, we’ve seen tough times in the past where platforms like ours were a solution for people who were laid off and saw an opportunity in us.”
Wix, which has 5,200 employees, bought back $225 million worth of shares in the second quarter, and has bought back $1 billion worth of shares since 2021.