Israel web platform Wix's Q1 revenue rises 14%, slightly misses estimates

Overview

• Israel web platform's Q1 revenue rose 14% yr/yr, slightly missing analyst expectations

• Q1 bookings grew 15% yr/yr, driven by strong new user cohort and Base44 momentum

• Company repurchased about 30% of shares in $1.6 bln tender offer in April

Outlook

• Wix.com expects Q2 revenue to grow at mid-teens percentage y/y

• Company maintains full-year 2026 outlook for bookings and revenue growth at mid-teens percentage y/y

• Wix.com expects full-year FCF margin excluding acquisition costs to be in the high-teens

Result Drivers

• NEW USER COHORTS - Bookings from new user cohorts rose nearly 50% yr/yr, with meaningful contribution from Base44 and core Wix performance, per CFO Lior Shemesh

• AI PLATFORM DEVELOPMENT - Wix Harmony now runs on a proprietary AI model, giving more control over AI costs and supporting long-term profitability, per CEO Avishai Abrahami

• STABLE GROSS MARGINS - Core Wix Creative Subscriptions gross margin was stable as AI costs remained minimal, per CFO Lior Shemesh

Company press release: ID:nGNE7hJZDm

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Wix.Com Ltd is $115.00, about 51.6% above its May 12 closing price of $75.88

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

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