Shares of Wix.com (NASDAQ: WIX) jumped more than 7% in premarket trading Wednesday after the company posted stronger-than-expected fourth-quarter earnings, driven by price increases and growing demand for its AI-enhanced products.
The Israel-based website builder reported diluted earnings per share (EPS) of $1.93, excluding one-time items, beating analyst estimates of $1.59. This marks a significant improvement from $1.22 EPS a year ago. Meanwhile, revenue rose 14% to $460.5 million, slightly below Wall Street’s forecast of $461.75 million.
In a statement, CEO Avishai Abrahami said the company had made “meaningful enhancements” to its Studio web creation platform, including upgrades to its AI visual sitemap.
Wix.com noted that Studio has “outperformed” expectations, with AI usage and conversion rates continuing to rise. The company forecasts these initiatives will drive even stronger growth in 2025.
Chief Financial Officer Lior Shemesh emphasized the company’s focus on profitability, stating:
“Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records.”
For the full year, Wix.com projected revenue between $1.97 billion and $2 billion, with first-quarter revenue expected to range from $469 million to $473 million. In 2024, the company reported a 13% revenue growth, reaching $1.76 billion.
The company also announced the completion of a $200 million share buyback in January, bringing the total repurchased shares since August 2023 to $725 million. Wix stock has surged over 81% in the past year.
Despite the strong results, JPMorgan analyst Alexei Gogolev lowered the price target for Wix.com (NASDAQ: WIX) to $189, down from $205, while maintaining a Neutral rating on the stock.
