Wix.com (WIX) Reports Q1 Earnings: What Key Metrics Have to Say

Wix.com (WIX) reported Q1 2025 revenue of $473.65 million, a 12.8% year-over-year increase, slightly above the Zacks Consensus Estimate; however, EPS of $1.55 missed estimates by 6.63%. Key metrics were mixed, with Total Bookings and Creative Subscriptions ARR slightly below consensus, while Business Solutions and Creative Subscriptions revenues exceeded expectations, growing 17.7% and 11% year-over-year, respectively. Despite the EPS miss, Wix shares have outperformed the S&P 500 over the past month, and the stock holds a Zacks Rank #3, suggesting market-average performance in the near term.

Analysis

Wix.com's first-quarter 2025 results presented a mixed financial picture. The company reported revenue of $473.65 million, marking a 12.8% year-over-year increase and a slight 0.40% beat against the Zacks Consensus Estimate of $471.78 million. However, earnings per share (EPS) came in at $1.55, which, despite being an improvement from $1.29 a year ago, represented a significant -6.63% miss compared to the consensus estimate of $1.66. An examination of key operating metrics reveals a nuanced performance: Total Bookings at $510.91 million narrowly exceeded the $508.62 million average estimate, and Creative Subscriptions Bookings also edged past forecasts at $369.47 million. Conversely, Creative Subscriptions Annual Recurring Revenue (ARR) of $1.37 billion slightly trailed the $1.38 billion estimate, and Total Bookings for Business Solutions at $141.44 million fell short of the $142.88 million analyst consensus. On the revenue front, both segments outperformed expectations, with Business Solutions revenue growing 17.7% year-over-year to $135.98 million and Creative Subscriptions revenue up 11% to $337.68 million, both surpassing analyst estimates. Non-GAAP Gross Profit for Creative Subscriptions at $283.98 million was slightly ahead of estimates, but Business Solutions Non-GAAP Gross Profit of $41.87 million missed the $42.66 million expectation. Despite the EPS shortfall and inconsistencies in underlying metrics, Wix.com shares have outperformed the S&P 500 composite over the past month with a +17.6% return, and the stock currently carries a Zacks Rank #3 (Hold), indicating expectations of market-neutral performance in the near term.

Key Decisions for Investors

• Investors should carefully weigh Wix.com's top-line revenue beat and robust year-over-year growth against the notable EPS miss and mixed performance in key metrics such as Creative Subscriptions ARR and Business Solutions bookings.
• Given the recent share price appreciation outpacing the broader market, juxtaposed with a Zacks Rank #3 (Hold) and underlying metric inconsistencies, a cautious approach may be warranted, focusing on future earnings calls for clarity on profitability drivers and booking trends.
• Monitor the Business Solutions segment closely; while its 17.7% year-over-year revenue growth is a positive signal, the corresponding misses in its bookings and non-GAAP gross profit require attention to assess the sustainability of this growth and its contribution to overall profitability.