Wix.com (NASDAQ:WIX) saw its shares drop around 5% intra-day today despite reporting stronger-than-expected fourth-quarter earnings, driven by price increases and growing demand for its AI-powered website creation tools.
For Q4, the company posted adjusted earnings per share of $1.93, far exceeding analyst estimates of $1.59 and marking a significant increase from $1.22 a year earlier. Revenue grew 14% year-over-year to $460.5 million, coming in just shy of the $461.75 million forecast.
Management highlighted the strong performance of Wix Studio, the company’s advanced web creation platform, which has benefited from enhanced AI capabilities. The company noted that AI-driven features are driving higher conversion rates, and expects these innovations to become even stronger growth catalysts in 2025.
Looking ahead, Wix provided bullish full-year revenue guidance, projecting $1.97 billion to $2 billion in 2025, with Q1 revenue expected between $469 million and $473 million. In 2024, total revenue rose 13% to $1.76 billion, reflecting sustained business momentum.