Jerusalem, Feb 19 (Reuters) - Website builder Wix.com exceeded fourth-quarter net profit expectations on Wednesday, driven by price increases and the success of its artificial intelligence and Studio products for creating sophisticated websites. The company also projected revenue reaching $2 billion by 2025.
Wix reported earnings of $1.93 per diluted share, excluding one-time items, compared to $1.22 per share a year earlier. Revenue for the October-December quarter increased by 14% to $460.5 million.
Analysts had anticipated Wix to earn $1.59 per share, excluding one-time items, with revenue of $461.75 million, according to LSEG data.
Wix expects revenue for 2025 to range between $1.97 billion and $2.0 billion, with potential annual growth of up to 16%. It also anticipates first-quarter revenue of $469-$473 million, reflecting a 13-14% increase.
In 2024, Wix's revenue grew by 13% to $1.76 billion, and the adjusted diluted EPS, excluding items, rose to $6.39 from $4.39 per share in 2023.
The company stated, "With Studio continuing to excel and AI utilization and conversion benefits increasing, we foresee these initiatives serving as significant growth drivers in 2025." Studio functions as a web creation platform aimed at professionals and agencies.
Wix disclosed that it finalized a $200 million share repurchase program in January, bringing its total repurchases since August 2023 to $725 million.