Wix.com shares rise premarket after fourth-quarter income tops estimates

Investing.com - Shares in Wix.com (NASDAQ:WIX) rose in premarket U.S. trading on Wednesday after price increases and strong demand for its artificial intelligence-enhanced products helped the website builder post better-than-anticipated fourth-quarter income.

The Israeli group reported diluted earnings per share, stripping out one-time items, of $1.93, surpassing analysts estimates of $1.59 per share. The figure had come in at $1.22 a year earlier.

Revenue, meanwhile, rose by 14% to $460.5 million, compared with estimates of $461.75 million.

In a statement, CEO Avishai Abrahami said the company had made "meaningful enhancements" to its Studio web creation platform, including advancements to its AI visual sitemap.

Wix.com noted that Studio has "outperformed," while AI usage and conversion benefits have been ramping up, adding that it anticipates these initiatives will be "even bigger growth engines in 2025."

“Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records.," said CFO Lior Shemesh.

The firm guided for full-year revenue of between $1.97 billion to $2 billion, with first-quarter top-line results in particular of $469 million to $473 million. In 2024, revenue grew by 13% to $1.76 billion.

Wix.com added that it had completed a $200 million share buyback plan in January, which brought its total repurchases since August 2023 up to $725 million.

Shares in the provider of web development services have surged by more than 81% over the past year.

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