Wix.com Ltd. (WIX): history, ownership, mission, how it works & makes money

A Brief History of Wix.com Ltd.

Wix.com Ltd. was established in 2006 as a cloud-based website development platform, offering users the ability to create professional websites without needing coding skills. Over the years, Wix has evolved into a leading Software as a Service (SaaS) company, providing a comprehensive suite of tools for website building, e-commerce, and online marketing.

Company Growth and Development

In its early years, Wix gained popularity through its user-friendly interface and innovative drag-and-drop features. By 2013, Wix went public on NASDAQ under the ticker symbol WIX, achieving a market capitalization of approximately $750 million. The company’s growth trajectory continued, fueled by strategic acquisitions and the introduction of new features.

Financial Performance

As of the first quarter of 2024, Wix reported total revenues of $419.8 million, marking a 12% year-over-year increase from $374.1 million in the same quarter of 2023. The revenue breakdown includes:

Wix's total bookings for Q1 2024 were reported at $457.3 million, which is a 10% increase year-over-year from $414.9 million in Q1 2023. The bookings are categorized as follows:

Key Financial Metrics

In Q1 2024, Wix achieved a GAAP net income of $24.0 million, translating to earnings of $0.43 per basic share and $0.41 per diluted share. This represents a significant turnaround from a net loss of $10.4 million in Q1 2023. The following table summarizes key financial metrics:

Market Position and Future Outlook

Wix continues to strengthen its market position, with a Creative Subscriptions Annualized Recurring Revenue (ARR) of approximately $1.24 billion, reflecting a 10% increase year-over-year. The company anticipates total bookings growth to accelerate to 16% in the second half of 2024, driven by its expanding AI product suite and robust performance in the Partner segment.

Wix expects to generate free cash flow in the range of $445 - $455 million for the full year 2024, representing about 26% of revenue. This increased forecast is attributed to operational efficiencies and a favorable gross margin mix, which has positioned Wix ahead of its three-year plan.

As of March 31, 2024, Wix had total assets amounting to $1.69 billion, with current assets of $999.9 million and total liabilities of $1.89 billion. The company’s strategy focuses on enhancing user experience and expanding its service offerings through continuous innovation.

A Who Owns Wix.com Ltd. (WIX)

Major Shareholders

As of 2024, Wix.com Ltd. (WIX) has several key shareholders, including institutional investors and company executives. The following table outlines the major shareholders and their respective ownership percentages:

Stock Performance

Wix.com Ltd. has experienced various stock price movements throughout 2024. As of May 2024, the stock price was approximately $124.91 per share, following a significant share repurchase program totaling $300 million, which included the repurchase of 2.4 million shares.

Capital Structure

The total number of fully diluted shares expected by the end of 2024 is projected to be between 62 million and 63 million.

Financial Overview

Wix.com Ltd. reported total revenues of $419.8 million for the first quarter of 2024, marking a 12% increase year-over-year. The breakdown of revenue sources is as follows:

Future Outlook

Wix.com Ltd. anticipates generating free cash flow of approximately $445 million to $455 million in 2024, representing about 26% of revenue. The company expects to see continued growth in bookings, with a projection of 12-14% year-over-year growth for the entire year.

Wix.com Ltd. (WIX) Mission Statement

Overview of Mission Statement

Wix.com Ltd. aims to empower individuals and businesses to create a professional online presence with ease. The company focuses on providing innovative tools and solutions that allow users to build, manage, and grow their websites effectively.

Core Values

• User-Centric Design: Prioritizing user experience in all products and services.
• Innovation: Continuously enhancing offerings through technology and creativity.
• Accessibility: Making website creation accessible to everyone, regardless of technical skill level.
• Community Engagement: Fostering a community where users can share insights and support each other.

Financial Performance Indicators

Market Position and Strategy

Wix is positioned as a leading Software as a Service (SaaS) platform in the website building market. The company's strategy involves leveraging artificial intelligence and advanced tools to enhance user capabilities. In Q1 2024, Wix reported significant traction with its AI Website Builder, leading to hundreds of thousands of sites created in a short period.

Growth Projections

Wix anticipates continued growth in bookings, with a forecasted acceleration to 16% year-over-year in the second half of 2024. This is driven by strong performance in both Self Creators and Partners segments, bolstered by enhanced AI-driven product offerings.

Employee and Operational Metrics

Outlook for 2024

Wix has increased its full-year revenue outlook to between $1,738 million and $1,761 million, representing an 11-13% year-over-year growth. This increase reflects robust demand for both its Creative Subscriptions and Business Solutions offerings, alongside a favorable market environment.

Conclusion

Wix's mission statement underscores its commitment to innovation, user empowerment, and community engagement, positioning it well for continued growth in the competitive website building industry.

How Wix.com Ltd. (WIX) Works

Business Model Overview

Wix.com Ltd. operates as a cloud-based web development platform that enables users to create and manage websites. The company offers a variety of services, including website building, hosting, and e-commerce solutions. Wix generates revenue primarily through two segments: Creative Subscriptions and Business Solutions.

Financial Performance

In the first quarter of 2024, Wix reported a net income of $24.0 million, translating to a basic net income per share of $0.43 and diluted net income per share of $0.41. The company’s non-GAAP net income was reported at $77.3 million, with a basic non-GAAP net income per share of $1.38 and diluted non-GAAP net income per share of $1.29.

Key Performance Metrics

Wix's key performance indicators include Creative Subscriptions Annualized Recurring Revenue (ARR) and total bookings. As of Q1 2024, the Creative Subscriptions ARR reached $1.24 billion, reflecting a 10% year-over-year increase. Total bookings stood at $457.3 million, up 10% compared to the previous year.

Operational Insights

Wix continues to expand its offerings, focusing on AI-driven solutions and enhancing user engagement through its Wix Studio product. The company reported that over one million Studio accounts were created since its launch, indicating strong uptake of its professional tools.

Market Position and Strategy

Wix is positioned as a leader in the SaaS website builder market, emphasizing continuous innovation and user-centric features. The company anticipates accelerating growth in its Creative Subscriptions and Business Solutions segments, particularly through enhanced AI capabilities and partnerships.

Cash Flow and Capital Management

Wix generated net cash provided by operating activities of $113.8 million in Q1 2024. The company has also been active in managing its share count, completing $300 million in share repurchases during the quarter.

Future Outlook

Wix has raised its full-year revenue outlook for 2024 to between $1.738 billion and $1.761 billion, projecting a growth rate of 11-13% year-over-year. The company expects total bookings growth to accelerate to 16% in the second half of 2024.

Employee Metrics

As of Q1 2024, Wix employed 5,235 individuals, representing a slight decrease of 1% quarter-over-quarter.

How Wix.com Ltd. (WIX) Makes Money

Revenue Streams

Wix.com generates revenue through two primary segments: Creative Subscriptions and Business Solutions. As of Q1 2024, total revenue was $419.8 million, reflecting a 12% year-over-year growth.

Creative Subscriptions

Creative Subscriptions are the backbone of Wix's revenue model, contributing significantly to its Annual Recurring Revenue (ARR). As of Q1 2024, the ARR for Creative Subscriptions stood at approximately $1.24 billion, an increase of 10% year-over-year. This segment includes various subscription plans that allow users to create and maintain websites, with offerings ranging from free plans to premium subscriptions.

Business Solutions

The Business Solutions segment encompasses a variety of services designed to help businesses grow online. This includes Wix Payments, shipping solutions, and multi-channel commerce. In Q1 2024, Business Solutions revenue reached $115.5 million, up 20% from the previous year. The transaction revenue, a subset of this segment, was reported at $49.5 million, indicating a 17% year-over-year growth.

Partners Revenue

Wix partners with agencies and freelancers to create websites for other users. This partnership model has become an essential revenue source, generating $138.4 million in Q1 2024, reflecting a robust 33% year-over-year growth.

Cost Structure and Gross Margins

Wix's cost structure includes significant investments in research and development, sales and marketing, and general administrative expenses. In Q1 2024, total operating expenses amounted to $272.8 million. The gross profit for Creative Subscriptions was $249.5 million, with a gross margin of 82%. For Business Solutions, the gross profit was $32.9 million, with a gross margin of 29%.

Net Income and Cash Flow

Wix reported a net income of $24.0 million in Q1 2024, translating to $0.43 per basic share. The non-GAAP net income was significantly higher at $77.3 million, or $1.38 per basic share. The company generated $113.8 million in net cash from operating activities, leading to a free cash flow of $105.7 million.

Future Outlook

Wix's management has provided an optimistic forecast for 2024, projecting total revenue between $1.738 billion and $1.761 billion, representing a year-over-year growth of 11-13%. The company anticipates a free cash flow margin of approximately 26% for the full year, which is a year ahead of their long-term plan.