Wix.com Ltd. (NASDAQ: WIX) Earnings Report Highlights

• Wix.com Ltd. (NASDAQ:WIX) reported a first-quarter EPS of $1.55, missing the Zacks Consensus Estimate.
• The company's revenue for the quarter was $473.7 million, a 13% year-over-year increase.
• Wix's shares have increased by 8.7% over the past year, slightly outperforming the Zacks Computer-IT Services sector.

Wix.com Ltd. (NASDAQ:WIX) is a prominent player in the SaaS website building industry, offering a platform that allows users to create websites with ease. The company has been leveraging AI innovations to enhance user experience and streamline design processes. With a user base of 288 million as of March 2025, Wix continues to expand its offerings, including the recent launch of Wixel, an AI-powered visual design platform.

On May 21, 2025, Wix reported its first-quarter earnings, revealing an EPS of $1.55, which was below the Zacks Consensus Estimate of $1.66. Despite this shortfall, the EPS showed improvement from the previous year's $1.29. This marks an earnings surprise of -6.63%. However, in the previous quarter, Wix had exceeded expectations with an EPS of $1.93, showcasing its potential for strong performance.

Wix's revenue for the quarter was $473.7 million, slightly surpassing the Zacks Consensus Estimate of $471.8 million. This represents a 13% year-over-year increase, driven by strong performance from new user cohorts and sustained engagement from existing users. The company's total bookings reached $511 million, marking a 12% increase year-over-year, fueled by robust demand and new cohort strength.

The company's financial metrics reveal a P/E ratio of 63.25, indicating that investors are willing to pay $63.25 for every dollar of earnings. The price-to-sales ratio stands at 4.96, suggesting that investors are paying $4.96 for every dollar of sales. Despite a negative debt-to-equity ratio of -12.31, which may indicate a unique financial structure, Wix maintains a free cash flow margin of 30%, reflecting a resilient operating cost structure.

Wix's shares have increased by 8.7% over the past year, slightly outperforming the Zacks Computer-IT Services sector, which grew by 8.1%. This growth is supported by the company's key business units and strong bookings, despite macroeconomic uncertainties. As Wix continues to innovate and expand its offerings, it remains a significant player in the website building industry.