Quick Facts / Company Snapshot
- Legal Name: Wix.com Ltd.
- Founded: 2006
- Headquarters: Tel Aviv, Israel
- Global Registered Users: 282 million+
- Total Premium Subscriptions: 6.18 million
- FY 2024 Total Revenue: $1.761 billion
- FY 2024 Creative Subscriptions Revenue: $1.265 billion
- FY 2024 Business Solutions Revenue: $495.7 million
- Partners Revenue Growth (YoY): 30%
- Total Bookings (FY 2024): $1.830 billion
- GAAP Net Income (FY 2024): $138.3 million
- Free Cash Flow (FY 2024): $478.1 million
- GAAP Gross Margin: 68%
- Creative Subscriptions Gross Margin (GAAP): 83%
- R&D Expense (TTM): $495.3 million
- Employees: 5,283
- Key Subsidiary: DeviantArt
- Primary Exchange: NASDAQ (Ticker: WIX)
- Core Technology: AI-Powered Web Creation, HTML5
- CEO: Avishai Abrahami
Company Overview
Wix.com Ltd. operates as a leading cloud-based web development platform, enabling millions of registered users worldwide to create a professional online presence. The company democratizes web creation by providing a comprehensive ecosystem that combines advanced design capabilities with business management solutions. Through its intuitive drag-and-drop interface, AI-powered builders, and robust developer tools, the platform serves a diverse user base ranging from individuals and self-creators to agencies, freelancers, and enterprise-grade organizations.
The company positions itself not merely as a website builder but as a complete operating system for business. Its infrastructure supports the entire lifecycle of an online entity, from initial design and domain registration to commerce, marketing, workflow automation, and customer relationship management. The platform is built on a foundation of enterprise-grade security, multi-cloud hosting, and high-performance rendering, ensuring reliability for businesses of all sizes.
Structurally, the organization divides its operations into two primary financial reporting segments: Creative Subscriptions and Business Solutions. This bifurcation allows for a focused strategic approach, catering to the distinct needs of pure-play web creation versus complex business application management. The company maintains a global workforce and physical presence, with its headquarters in Tel Aviv and additional offices facilitating regional support and development.
Business Segments
Creative Subscriptions
This segment functions as the bedrock of the company’s financial model, encompassing the core website creation products and hosting services. It is designed to provide users with access to the essential tools required to design, publish, and maintain a website.
Financial Performance:
- Segment Revenue: $1.265 billion
- Share of Total Revenue: 71.8%
- Year-Over-Year Growth: 10%
- Annualized Recurring Revenue (ARR): $1.34 billion
- Bookings: $1.315 billion (up 12% YoY)
- GAAP Gross Margin: 83%
Operational Scope: The Creative Subscriptions segment derives revenue primarily from the sale of premium website packages. These subscriptions remove Wix branding, allow for custom domain connection, and provide increased storage and bandwidth. This segment also includes domain name registration services. The high gross margin of 83% reflects the scalable nature of the SaaS model, where the incremental cost of serving an additional subscriber is minimal. The company reported a steady increase in Creative Subscriptions ARR, driven by stable retention rates and price optimization strategies implemented in early 2024.
Business Solutions
The Business Solutions segment addresses the commercial and operational needs of users, extending beyond mere web presence into active business management.
Financial Performance:
- Segment Revenue: $495.7 million
- Share of Total Revenue: 28.2%
- Year-Over-Year Growth: 21%
- Bookings: $514.6 million (up 22% YoY)
- GAAP Gross Margin: 29%
Operational Scope: This segment monetizes through the sale of specialized applications and services that enhance website functionality. Key drivers include G-Suite (Google Workspace) integrations, the Wix App Market, and Wix Payments.
- Transaction Revenue: A significant component of this segment is transaction revenue, which totaled $214.9 million in FY 2024, growing 21% year-over-year. This is generated primarily through Wix Payments, where fees are collected based on a percentage of Gross Payment Volume (GPV).
- Partners Revenue: Revenue generated through agencies and freelancers (Partners) reached $610.1 million in FY 2024, marking a 30% increase. This sub-metric highlights the company’s successful pivot toward serving professional web developers who build sites for others.
History and Evolution
The company was established in 2006, founded on the premise of simplifying web creation.
- 2006–2011 (The Flash Era): The platform initially launched using Adobe Flash technology, allowing for drag-and-drop design that was revolutionary at the time for non-coders.
- 2012 (Transition to HTML5): Anticipating the industry shift away from Flash, the company launched a new HTML5 editor. This strategic pivot ensured mobile compatibility and open-web standards compliance, securing its survival and future growth.
- 2013 (IPO): The company completed its Initial Public Offering on the NASDAQ, raising capital to fuel global expansion.
- 2016 (Artificial Design Intelligence): Wix ADI was introduced, utilizing early AI implementations to automatically build websites based on user answers to a few questions, lowering the barrier to entry even further.
- 2020 (Editor X): To cater to advanced designers and agencies, Editor X was launched, offering responsive design capabilities with CSS grid layouting.
- 2023–2024 (AI and Studio Era): The company consolidated its professional offerings into Wix Studio, a platform built specifically for agencies. Concurrently, it aggressively integrated Generative AI across its ecosystem, launching the AI Website Builder and AI text/image generation tools. This period marked a shift toward high-efficiency, AI-assisted creation for both self-creators and professionals.
Products and Services
Wix Editor
The flagship product offering a visual, drag-and-drop interface. It allows users to choose from over 900 designer-made templates and customize every element without touching code. It serves the mass market of DIY users.
Wix Studio
A specialized platform launched to replace Editor X, targeting agencies and enterprises. It features advanced layout tools, collaborative workspaces, and client management capabilities, allowing professionals to deliver high-end sites at scale.
AI Website Builder
A conversational interface where users describe their business or purpose, and the system generates a fully functional, business-ready website including text, images, and layout.
Wix Payments
A native payment gateway that allows merchants to accept credit cards and other payment methods directly through their dashboard. It simplifies financial management by keeping orders and payments in one system.
Velo by Wix
An open development platform that accelerates the building of advanced web applications. It allows serverless coding, database management, and integration with external APIs, catering to developers who need to extend the platform’s native capabilities.
Ascend by Wix (Marketing & CRM)
A comprehensive suite of business tools including:
- Email Marketing: Automated campaigns and newsletters.
- SEO Tools: AI-driven SEO setup plans, meta tag generation, and Google indexing integration.
- Inbox: Centralized customer communication management.
Vertical-Specific Applications
- Wix Stores: Complete eCommerce functionality.
- Wix Bookings: Scheduling software for service-based businesses.
- Wix Restaurants: Menu management and online ordering systems.
- Wix Blog: Content management and distribution tools.
Brand Portfolio
Wix
The primary consumer-facing brand, encompassing the core website builder and business solutions. It accounts for the vast majority of the company’s revenue and brand equity.
DeviantArt
Acquired in 2017, DeviantArt is an online community for artists and art enthusiasts. It operates as a subsidiary, providing a platform for over 60 million registered members to exhibit, promote, and share their works. The acquisition was strategic to integrate artist portfolios with web design capabilities.
Geographical Presence
The company operates a truly global platform with a physical footprint in key technology hubs.
Physical Footprint
- Headquarters: Tel Aviv, Israel. The company has invested in a new corporate headquarters campus, which influenced capital expenditure figures in 2024.
- Regional Offices: While specific revenue breakdowns by country are aggregated in the financial reports, the company maintains offices to support operations in:
- United States (New York, San Francisco, Miami, Austin)
- Europe (Dublin, Kyiv, Vilnius)
- South America (Brazil)
- Asia (Japan)
Revenue Distribution
The platform supports 21 languages, facilitating global adoption.
- North America: Remains the largest revenue driver (historically accounting for ~50-60% of total revenue).
- Europe: The second-largest market, with significant user bases in the UK, Germany, and France.
- Asia & Latin America: High-growth regions where the company invests in localized marketing and support.
Financial Performance Analysis
Consolidated Performance
The fiscal year 2024 was characterized by “meaningful growth acceleration” and a focus on profitability.
- Total Revenue: $1.761 billion (13% increase YoY).
- Total Bookings: $1.830 billion (15% increase YoY).
- Net Income: The company achieved a GAAP Net Income of $138.3 million, a significant turnaround reflecting operational discipline.
Profit and Loss Analysis
- Gross Profit: Total gross profit stood at $1.20 billion.
- Operating Expenses:
- R&D: $495.3 million. The company continues to invest heavily in innovation, particularly in AI technologies.
- S&M (Sales & Marketing): Marketing efficiency improved, contributing to the expansion of operating margins.
- Margins:
- GAAP Gross Margin: 68%.
- Non-GAAP Gross Margin: 69%.
- Net Margin: 7.9%.
Balance Sheet Analysis
- Total Assets: $1.91 billion.
- Cash Position: The company ended 2024 with a robust liquidity position, including cash, cash equivalents, and short-term deposits.
- Liabilities: Total liabilities were reported at $1.99 billion, including deferred revenues which represent prepaid subscriptions (a positive indicator of future revenue recognition).
- Equity: Shareholders’ equity showed a deficit of -$78.79 million, influenced by aggressive share repurchase programs ($466 million in 2024) which reduce equity on the balance sheet but return value to shareholders.
Cash Flow Analysis
- Operating Cash Flow: $497.4 million. The subscription model ensures strong upfront cash collection.
- Capital Expenditures: $19.3 million. This relatively low figure (approx. 1% of revenue) highlights the company’s asset-light software model, despite one-time investments in the new HQ.
- Free Cash Flow (FCF): $478.1 million.
- FCF Margin: 27-28% of revenue. This metric nearly doubled compared to the previous year, underscoring the success of cost-optimization initiatives.
Board of Directors and Leadership Team
Board of Directors
- Mark Tluszcz: Chairman of the Board. A seasoned investor and Managing Partner at Mangrove Capital Partners.
- Avishai Abrahami: Co-Founder and Chief Executive Officer.
- Deirdre Bigley: Director. Former CMO at Bloomberg, bringing expertise in global marketing.
- Ron Gutler: Director. Provides financial expertise, formerly associated with Bankers Trust Company.
- Gavin Patterson: Director. Former President and Chief Strategy Officer at Salesforce and CEO of BT Group.
- Nadav Abrahami: VP of Client Development and Director. Co-Founder instrumental in the technical architecture.
Leadership Team
- Avishai Abrahami: CEO. Focuses on product vision and technological strategy.
- Nir Zohar: President and COO. Manages day-to-day operations and strategic execution.
- Lior Shemesh: CFO. Oversees financial strategy, investor relations, and the path to profitability.
Subsidiaries, Associates, Joint Ventures
The company has expanded its capabilities through strategic acquisitions and subsidiary formation.
- DeviantArt: A social network for artists.
- SpeedETab: A mobile ordering technology provider, integrated into Wix Restaurants.
- Inkfrog: A platform helping sellers manage inventory across eBay and Amazon.
- Rise.ai: A gift card and customer loyalty solution.
- Modalyst: A dropshipping platform connecting online stores to suppliers.
- Base44: An entity associated with the company’s internal development or operational structure.
Physical Properties
The company does not own significant manufacturing plants due to its nature as a software entity. Its physical properties consist primarily of leased office spaces and data center arrangements.
- Tel Aviv Campus: A major real estate project aimed at consolidating the workforce in Israel.
- Global Leases: Offices in New York, San Francisco, Miami, Austin, Dublin, Kyiv, Vilnius, Dnipro, and Tokyo.
Segment-Wise Performance
Creative Subscriptions
- Performance: Stable growth of 10% YoY.
- Drivers: Price increases in early 2024 and consistent retention of the premium user base.
- Trend: The migration of users to higher-tier packages such as Wix Studio contributed to Average Revenue Per User (ARPU) expansion.
Business Solutions
- Performance: High growth of 21% YoY.
- Drivers: Strong adoption of Wix Payments and increased gross payment volume (GPV).
- Trend: Partners revenue (30% YoY growth) indicates that agencies are increasingly using Wix as their primary operating system, driving higher-value transaction and app usage.
Founders
- Avishai Abrahami: Serves as CEO. A serial entrepreneur with a background in technology and software architecture.
- Nadav Abrahami: Serves as VP of Client Development. Core developer of the original platform architecture.
- Giora Kaplan: Co-Founder and former CTO. Instrumental in the early technical development of the drag-and-drop editor.
Shareholding Pattern
- Institutional Investors: Hold approximately 104% of the float (percentage >100% can occur due to short interest or reporting lags), indicating very high institutional confidence. Top holders typically include major asset management firms.
- Insider Ownership: Founders and executives retain a significant stake, aligning management interests with shareholder value.
- Public Float: Actively traded on NASDAQ with high liquidity.
- Share Repurchases: The company repurchased $466 million of ordinary shares in 2024, reducing the share count to 56.11 million.
Parent
The company is a publicly traded entity (Wix.com Ltd.) and does not have a parent company. It acts as the ultimate parent for its subsidiaries.
Investments and Capital Expenditure Plans
- R&D Spending: The company allocates roughly 28-30% of revenue to Research and Development ($495.3 million in 2024). Strategic priorities include Generative AI models and the refinement of Wix Studio.
- Capex: FY 2024 capital expenditures were $19.3 million, largely related to the completion of the headquarters build-out. Future capex is expected to remain low, consistent with a SaaS business model.
- Share Buybacks: The Board authorized and executed significant buybacks ($200M+ plans), signaling an investment in the company’s own undervalued equity.
Future Strategy
- AI Integration: The primary strategic vector is the “AI-powered web.” The company aims to automate the majority of the web creation process, allowing users to generate complex sites with simple prompts.
- Partner Ecosystem: A major shift is underway to dominate the professional market through Wix Studio. The goal is to become the standard tool for agencies, capturing a larger share of the high-value web development market.
- Margin Expansion: Management has committed to the “Rule of 40” (and targeting “Rule of 45” in 2025), balancing revenue growth with free cash flow margin expansion.
Key Strengths
- Market Leadership: Over 280 million users create a massive data moat, training AI models better than competitors.
- Financial Discipline: Achieving a 28% Free Cash Flow margin proves the company can generate substantial cash while growing.
- Product Breadth: The “all-in-one” ecosystem reduces churn; once a user builds a site, sets up email, and processes payments with Wix, switching costs are high.
- Partner Network: The 30% growth in Partners revenue demonstrates success in moving upmarket to serve professionals.
Key Challenges and Risks
- Macroeconomic Sensitivity: As a platform for SMBs, the company is vulnerable to economic downturns that affect small business formation and survival rates.
- Foreign Exchange (FX): A significant portion of revenue is non-USD, while expenses are often in NIS (Israeli Shekel) or USD, creating exposure to currency fluctuations (FX impact on revenue was ~$34 million).
- Competition: The market is crowded with competitors ranging from other site builders (Squarespace, Shopify) to CMS platforms (WordPress).
- Geopolitical Risk: Being headquartered in Israel presents potential operational risks related to regional instability, although the company has successfully mitigated this through global decentralization.
Conclusion and Strategic Outlook
Wix.com Ltd. has successfully transitioned from a consumer-focused website builder to a comprehensive digital operating system for businesses and agencies. The fiscal year 2024 marked a turning point with the achievement of GAAP profitability and a surge in Free Cash Flow. With a clear strategy centered on Generative AI and the professional “Partners” segment, the company is well-positioned to sustain double-digit growth. The aggressive share repurchase program and disciplined cost management reflect a mature management team focused on maximizing shareholder value.
Official Site: https://www.wix.com
FAQ Section
1. What was Wix.com Ltd.’s total revenue in 2024? Wix.com Ltd. reported a total revenue of $1.761 billion for the fiscal year 2024, representing a 13% increase year-over-year.
2. Is Wix.com Ltd. profitable? Yes, for the full year 2024, Wix achieved a GAAP net income of $138.3 million, marking a significant milestone in its financial performance.
3. What are the main business segments of Wix? Wix operates in two primary segments: Creative Subscriptions (72% of revenue), which includes website packages, and Business Solutions (28% of revenue), which includes payments, apps, and enterprise tools.
4. How many premium subscribers does Wix have? As of the end of 2024, Wix had approximately 6.18 million total premium subscriptions.
5. What is the role of Wix Studio? Wix Studio is a platform specifically designed for agencies and freelancers (“Partners”), offering advanced design capabilities and client management tools to build complex websites at scale.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
