Wix Gears Up to Report Q1 Earnings: Here's What You Should Know

Wix.com Ltd. WIX is scheduled to release first-quarter 2025 results on May 21, before market open.

For first-quarter 2025, revenues are expected between $469 million and $473 million, indicating 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $471.8 million, suggesting an increase of 12.4% from that reported a year ago.

The Zacks Consensus Estimate for earnings is pegged at $1.66 per share, implying a 28.7% rise from the year-earlier quarter's actual.

WIX’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.95%. The stock has risen 34.8% compared with the Zacks Computers - IT Services industry’s growth of 9.7% in the past year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Factors Shaping WIX’s Q1 Results

The growing adoption of Wix's product portfolio, particularly Wix Studio and various AI-driven solutions, is likely to have driven the revenues in the to-be-reported quarter. WIX is focusing on generative AI as it represents a significant business growth driver. The launch of the AI Website Builder in 2024 has provided users with a transformative experience and is now the mainstay of WIX’s AI portfolio.

It continues to add new products to capitalize on the AI boom. In January 2025, Wix unveiled Business Launcher, an AI-driven tool designed to help users transform new business ideas into reality, from concept to execution. The tool analyzes users' skills, experience and goals to generate personalized business ideas with just a few questions or by uploading a resume.

WIX has also been embedding AI assistants across its platform. New AI-business assistants have been improving operational efficiency and customer conversion rates. In December 2024, Wix launched its first monetized product, AI Site-Chat, a virtual agent that helps businesses engage visitors 24/7, addresses queries and provides real-time info. It improves customer experience and boosts potential sales.

WIX Studio, the company’s premium offering for agencies and professionals, currently has more than two million accounts, with 75% created by new Partners. The platform’s compelling features and efficiency have made it the foremost choice for larger projects.

Wix.com Ltd. Price and EPS Surprise

 

Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote

Also, WIX’s strategy on onboarding higher-intent users and maximizing the lifetime value of its current user base, along with targeting marketing, bodes well. Steady momentum in the Self Creators and Partners’ channel, along with the expansion of the commerce platform, is likely to have impacted the company’s performance.

The Zacks Consensus Estimate for revenues from the Creative Subscriptions and Business Solutions segments is pegged at $337 million and $135 million, respectively.

Approximately 40% of Wix’s revenues are generated in non-U.S. dollar currencies, making it susceptible to foreign exchange fluctuations. The company experienced unfavorable forex impacts in the middle of the fourth quarter of 2024 and spanning till early 2025, mainly due to the strengthening U.S. dollar against the euro and British pound.  For the first quarter of 2025, revenues are expected to increase 13-14% at cc, including roughly $6 million of adverse forex impact.

Increasing investments in product development, infrastructure and platform, along with a volatile macroeconomic environment, continue to be concerns.

WIX’s Key Recent Developments

On May 15, 2025, Wix introduced Wixel, a new standalone AI-driven visual design platform designed to make professional-grade design accessible to everyone. Combining advanced AI with a user-friendly interface and robust features, Wixel empowers users to easily transform ideas into high-quality visual content with minimal effort.

On April 9, 2025, Wix unveiled Astro, an AI-powered business assistant designed to enhance user productivity and streamline business operations. This innovative tool allows users to interact through a chat-based interface to perform a wide range of business and back-office tasks effortlessly. Astro represents the first in a series of AI-driven agents Wix plans to introduce, setting the foundation for increased efficiency, better monetization and business growth for users.

What Does Our Model Predict for WIX?

Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Wix has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Autodesk, Inc ADSK currently has an Earnings ESP of +0.05% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADSK is scheduled to report quarterly earnings on May 22. The Zacks Consensus Estimate for Autodesk’s to-be-reported quarter’s earnings and revenues is pegged at $2.14 per share and $1.61 billion, respectively. Shares of ADSK have gained 33.7% in the past year.

Intuit Inc. INTU presently has an Earnings ESP of +0.43% and a Zacks Rank #3. INTU is scheduled to report quarterly numbers on May 22. The Zacks Consensus Estimate for INTU’s to-be-reported quarter’s earnings and revenues is pegged at $10.89 per share and $7.54 billion, respectively. Shares of INTU have gained 5% year-to-date.

Urban Outfitters, Inc. URBN has an Earnings ESP of +1.03% and a Zacks Rank #3 at present. URBN is scheduled to report quarterly figures on May 21. The Zacks Consensus Estimate for URBN’s to-be-reported quarter’s earnings and revenues is pegged at 81 cents per share and $1.29 billion, respectively. Shares of URBN have surged 12.5% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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