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Wix Q1: A Strong Start to 2024 Fueled by AI and Studio Growth


Wix.com (NASDAQ: WIX), a leading software-as-a-service (SaaS) website builder platform, has released its financial results for the first quarter of 2024, revealing a strong start to the year. The company’s performance exceeded analyst expectations and underscored its successful growth strategy.

Wix.com is a significant player in the tech and cloud services sectors, empowering individuals and businesses to create, manage, and grow their online presence. Investors closely monitor Wix’s earnings as a key indicator of the health of the DIY website-building, small business, and e-commerce platform sectors, providing insights into the digital strategies and financial health of small businesses in the US.

Q1 2024 Financial Highlights

Revenue Growth

Wix.com’s Q1 2024 earnings report showcased robust financial performance, with total revenue reaching $419.8 million, a 12% year-over-year (YoY) increase from $374.1 million in Q1 2023. This growth highlights Wix’s success in attracting new users and monetizing its existing customer base, expanding its market share, and meeting the growing demand for its website-building services.

Revenue Breakdown

  • Creative Subscriptions: Generated $304.3 million, a 9% YoY increase from $278.1 million in Q1 2023. This indicates continued strength in Wix’s core website-building subscriptions.
  • Business Solutions: Experienced a 20% YoY increase, rising from $95.9 million in Q1 2023 to $115.5 million in Q1 2024. This growth reflects the increasing demand for Wix’s e-commerce solutions, marketing tools, and other add-on services.

Bookings and Cash Flow

  • Total Bookings: Reached $457.3 million, a 10% YoY increase from $414.9 million in Q1 2023. Bookings, which encompass cash receipts for premium subscriptions and committed payments, provide a forward-looking indication of future revenue streams.
  • Free Cash Flow (FCF): Wix reported $105.7 million in FCF, resulting in a 26% FCF margin. This demonstrates the company’s efficiency in converting revenue into cash flow after accounting for operating expenses and capital expenditures.

Key Growth Drivers: AI and Wix Studio

Wix’s financial performance was significantly driven by its AI products and Wix Studio.

  • AI Website Builder: Launched earlier in the quarter, the AI Website Builder has already seen hundreds of thousands of websites created, showcasing rapid adoption and significant user appeal. This tool simplifies website creation, driving user acquisition and engagement.
  • Wix Studio: This professional website design and development platform has surpassed one million accounts. Studio users are converting to premium subscriptions at a high rate, highlighting the platform’s ability to drive revenue by catering to web developers and agencies.

The “Rule of 40”

In the SaaS sector, the “Rule of 40” is a key metric for assessing growth and profitability, where the sum of a company’s revenue growth rate and its profit margin should equal at least 40%. Wix.com’s recent performance positions it to surpass this milestone in 2025, indicating robust growth and profitability, making it an attractive investment.

2024 Outlook

Wix.com executives have expressed confidence in the company’s future, citing positive user behavior and favorable business trends. The company has raised its full-year bookings outlook to $1.796 – $1.826 billion, representing a 12-14% YoY growth, and increased its FCF margin target for FY2024 to 26%. This puts Wix.com ahead of its three-year plan, demonstrating its ability to exceed expectations.


Wix’s impressive Q1 performance and positive outlook offer compelling reasons for investors to consider the company. The achievement of the “Rule of 40” milestone and the continued growth of AI products and Wix Studio suggest a promising future for Wix. As these innovations attract new users and drive engagement, Wix is well-positioned to capitalize on broader market opportunities, solidifying its status as a leader in the website-building and e-commerce platform sectors.