Wix Analysts Stay Bullish Despite EPS Miss, Citing Strong Product Pipeline And Second-Half Growth Plans

Wall Street analysts rerated Wix.com Ltd WIX after the company reported its fiscal first-quarter 2025 results on Wednesday. The quarterly revenue grew 13% to $473.7 million, topping the analyst consensus estimate of $472.9 million. Adjusted EPS of $1.55 missed the analyst consensus estimate of $1.60.

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Wix.com reiterated its fiscal 2025 revenue outlook of $1.97 billion to $2 billion versus the analyst consensus estimate of $2.02 billion. 

Needham analyst Bernie McTernan reiterated Wix.com with a Buy and a $250 price target on Thursday.

Piper Sandler analyst Clarke Jeffries maintained Wix.com with an Overweight and lowered the price target from $262 to $225 on Thursday.

Cantor Fitzgerald’s Deepak Mathivanan reiterated Wix.com with an Overweight and a $200 price target on Wednesday.

Citizens analyst Andrew Boone maintained a Market Outperform rating and a $250 price target on Wednesday.

Needham: Wix beat the high end of its revenue guidance in first-quarter, noting strong cohort trends, McTernan said. However, second-quarter guidance calls for a deceleration, even at the high end of guidance. Though it pointed to strong cohort trends quarter to date, presumably with the lower-than-expected revenue guide driven by difficult comparisons and conservative macro assumptions, the analyst said. He said the company reiterated its guidance for the year, which includes the expectations of an acceleration in the second half of 2025. The latter part of the guidance was a particular focus for investors. Wix expects to achieve these results from underlying cohort strength, which will accelerate Partner trends in the second half and a deceleration in Self-Creator from first-quarter growth levels, per the analyst.

McTernan projected second-quarter adjusted EPS of $1.84.

Piper Sandler: Wix reported revenue of $473.7 million, representing 13% Y/Y growth, just above street estimates of $472.0 million, Jeffries noted. Creative Subscriptions grew 11% to $337.7 million, while Business Solutions was again a source of weakness, with growth slowing to 17.7% Y/Y from 21.5% last quarter, the analyst said. Given that Partners revenue accounts for ~50% of GPV, it also slowed Q/Q to 24.0% Y/Y growth from 29.2% growth last quarter, coming to $171.6 million of revenue in the quarter, he said. He said implied self-creator revenue was $302.0 million, growing 7.3% versus 6.8% last quarter. As per the analyst, free cash flow results were strongest versus consensus at $142.4 million (representing a 30% margin) versus Street at $135.4 million.

Jeffries projected second-quarter adjusted EPS of $1.76.

Cantor Fitzgerald: Wix reported first-quarter results with revenue in-line and free cash flow above Street estimates by 4%, Mathivanan noted. The analyst said the total booking growth of +12% Y/Y came one pt ahead of Street. At a segment level, Partners revenue decelerated 5-pts to +24% Y/Y while Self Create growth remained relatively stable at +7% Y/Y, he noted. He said that guidance for second-quarter revenues of +11-12% Y/Y came in line with prior Street expectations at the high end. More importantly, Wix maintained its fiscal 2025 bookings outlook (+11-13% Y/Y) despite dissipating FX headwinds, factoring in incremental macro conservatism, Mathivanan said. Taking a step back, he added that innovation remains healthy as Wix continues to roll out new AI-powered products over the past several months (Wixel, Astro, Wix functions, Wix automation).

Mathivanan projected second-quarter adjusted EPS of $1.52.

Citizens: Boone said Wix reported better-than-expected quarterly results with bookings and revenue 1% above consensus, and free cash flow came in ~5% above consensus. However, second-quarter revenue came in 1% below consensus, and with 2025 guidance unchanged, guidance is now more second-half-loaded, the analyst noted. Partners revenue, a key growth driver for the last eight quarters, decelerated 5 points to +24% Y/Y as it had a 2-point FX headwind and was impacted by slowing GPV, he said. More positively, Boone said the top of the funnel was healthy as new users were 7% larger than last year, while Wix continues to focus on high-intent and commerce-led users. He noted that Wix’s product cadence appears to have accelerated over the previous year, with Wixel and AI Site Chat recently being brought to market. With industry rationality continuing, AI improving efficiency at Wix itself, and new products helping to sustain growth, Boone said that free cash flow can continue to surprise the upside. At the same time, the company buys back more shares.

Boone projected second-quarter adjusted EPS of $1.38.

Price Action: WIX stock is trading higher by 0.93% to $153.75 at last check Thursday.

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