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May 21, 2025

Wix.com Reports Strong Q1 2025 Amid Sustained Profitability

Wix.com delivered impressive results for the first quarter of 2025, reporting revenue of $473.7 million, narrowly surpassing the $472.1 million estimate. The cloud-based website platform achieved an operating income of $37.4 million and reported total gross profits of $321.9 million, yielding an adjusted gross margin of 69%. Net income stood at $33.8 million with free cash flow amounting to $142.4 million.

Financial Overview

  • Total Revenue: $473.7 million vs. $472.1 million forecast

  • Gross Profit and Margin: $321.9 million; 69% adjusted gross margin

  • Operating Income: $37.4 million

  • Net Income: $33.8 million

  • Free Cash Flow: $142.4 million

Maintaining Margins in a Competitive Landscape

The consistent 69% adjusted gross margin reflects Wixโ€™s scalable subscription-based model. Investors looking for deeper insights into Wix’s profitability can explore trailing-twelve-month metrics compared against other SaaS peers.

Forecast and Growth Prospects

  • Q2 Revenue Projection: $485โ€“489 million (an 11-12% year-on-year increase)

  • Full-Year 2025 Revenue Forecast: $1.97โ€“2.00 billion

Wix’s forecast suggests optimism around continued growth in subscriber numbers and demand for professional services.

Investor Focus Areas

  1. Subscription Revenue per User (ARPU): Upselling higher-tier plans is essential to reach the upper range of Q2 revenue guidance.

  2. Efficient Cost Management: Sustained margin expansion may occur if research and marketing expenses grow more slowly than revenue.

  3. Monitoring Free Cash Flow: With $142 million in free cash flow, itโ€™s crucial to observe capital expenditure patterns and any share-buyback or dividend announcements.

By combining recurring revenue strength with disciplined cost management, Wix is well-positioned to meet growth objectives and maintain robust margins through 2025.

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