Wix returns to $10 billion valuation amid strong revenue growth
Wix returns to $10 billion valuation amid strong revenue growth
Bookings rise 15% as the company accelerates its path to $2 billion in annual revenue.
Wix.com continues the positive momentum it has experienced since the beginning of the year, which has restored its market value to $10 billion following an annual surge of nearly 100%.
The stock is up over 10% on Wall Street on Wednesday after Wix posted strong performance metrics in both growth and profitability, raising its full-year forecast once again as it continues progressing toward $2 billion in annual revenue.
For the first time, Wix is now returning to the valuation it held at the end of 2021, just before entering a crisis that led to several rounds of layoffs and efficiency measures. These adjustments were necessary after the "hangover" from the pandemic period, during which the company saw a significant business surge as many businesses rushed to open online stores during global lockdowns.
Wix, which develops tools for building websites and online stores, now projects annual revenues of $1.75–1.76 billion, reflecting a 13% growth rate. This is an improvement over the previous annual growth forecast of 11%, announced earlier this year.
The real highlight of Wix's report is the continued rapid growth in bookings, a reliable indicator of future growth. Bookings are expected to reach $1.83 billion by the end of 2024, marking a 15% increase.
As a result, Wix anticipates its cash flow will amount to $483–488 million by year-end, compared to its previous forecast of $460–470 million. The company notes that the combination of accelerated growth and operational improvements implemented over the past two years leaves room for even faster growth and higher profitability.
In the third quarter, Wix reported revenues of $444.7 million, representing a 13% increase compared to the same quarter last year. The fastest-growing segment was affiliate revenue—businesses that create websites for their clients on Wix’s platform—which grew by 30% to generate $155.2 million in revenue.
Wix reported a net profit of $26.8 million, or $0.46 per share, and a cash flow of $130 million for the quarter. Notably, the company slightly increased its workforce for the first time in a long period, bringing the total to 5,308 employees—an addition of several dozen. However, Wix clarified that this is not a return to active hiring but rather a point fluctuation.
"Our manpower status is stable, and we currently have everything we need to continue growing," said Nir Zohar, the company’s president, when announcing the results. Speaking in a broader context, Zohar added:
"As a public company, we report quarterly, but our thinking is long-term. Two and a half years ago, we set a goal to achieve deep and sustainable profitability, and today we see that we have achieved it. While the global economic environment remains challenging, we are successfully accelerating growth. One of the key drivers of our progress, even as small businesses continue to face challenges, is our partners. This activity is expanding the pie, and we plan to continue improving it moving forward."
Zohar also noted that while the macroeconomic indicators of the U.S. economy are generally positive, its growth rate has not yet returned to pre-pandemic levels. Furthermore, a critical metric that impacts Wix's operations—the rate of new business creation—remains historically weak.
