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
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Total Revenue: $473.7 million vs. $472.1 million forecast
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Gross Profit and Margin: $321.9 million; 69% adjusted gross margin
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Operating Income: $37.4 million
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Net Income: $33.8 million
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Free Cash Flow: $142.4 million
Maintaining Margins in a Competitive Landscape
The consistent 69% adjusted gross margin reflects Wixโs 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
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Q2 Revenue Projection: $485โ489 million (an 11-12% year-on-year increase)
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Full-Year 2025 Revenue Forecast: $1.97โ2.00 billion
Wix’s forecast suggests optimism around continued growth in subscriber numbers and demand for professional services.
Investor Focus Areas
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Subscription Revenue per User (ARPU): Upselling higher-tier plans is essential to reach the upper range of Q2 revenue guidance.
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Efficient Cost Management: Sustained margin expansion may occur if research and marketing expenses grow more slowly than revenue.
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Monitoring Free Cash Flow: With $142 million in free cash flow, itโs 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.