Wix.com (NASDAQ:WIX) jumped in pre-market trading after the company announced robust Q1 results. The Israeli software company reported Q1 adjusted earnings of $1.29 per share, compared to $0.91 per share in the same period last year. This was better than analysts’ expectations of $1.03 per share.
The company generated revenues of $419.8 million in the first quarter, up 12% year-over-year, surpassing consensus estimates of $417.9 million. Wix.com’s creative subscriptions business comprised 72.5% of its Q1 revenues, with revenues of $304.3 million, a growth of 9% year-over-year.
Meanwhile, the company’s total bookings in the first quarter were $457.3 million, up 10% year-over-year. Wix.com calculates bookings by adding changes in deferred revenues and unbilled contractual obligations to revenues for a particular period.
WIX’s FY24 and Q2 Outlook
Looking forward to FY24, the company raised its outlook and now expects revenues in the range of $1.74 billion to $1.76 billion, higher than its prior outlook of $1.74 billion to $1.76 billion. Wix.com has projected an FY24 bookings outlook likely to be in the range of $1.79 billion to $1.83 billion. Moreover, the company expects total bookings in the second half of this year to accelerate to 16%, up from the previously anticipated growth rate of 15%.
More importantly, Wix.com is likely to generate free cash flow, excluding headquarters costs, between $445 million and $455 million, or around 26% of revenue in FY24, up from its prior estimate of $370 million to $400 million, or between 21% and 23% of revenue.
In the second quarter, the company expects revenues between $431 million and $435 million.
Is WIX Stock a Buy or Sell?
Analysts remain bullish about WIX stock, with a Strong Buy consensus rating based on 16 Buys and two Holds. Over the past year, WIX has skyrocketed by more than 70%, and the average WIX price target of $158.24 implies an upside potential of 16.6% from current levels. These analyst ratings are likely to change following WIX’s Q1 results today.
