Wix.com Ltd. (NASDAQ:WIX) Q1 2024 Earnings Call Transcript May 20, 2024 8:30 AM ET

Company Participants

Emily Liu - IR
Avishai Abrahami - CEO and Co-Founder
Nir Zohar - President and COO
Lior Shemesh - CFO

Conference Call Participants

Ygal Arounian - Citigroup
Ken Wong - Oppenheimer
Trevor Young - Barclays
Andrew Boone - JMP Securities
Josh Beck - Raymond James

Operator

Good day, and thank you for standing by. Welcome to Wix First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please note, that today's conference is being recorded.

I would now hand the conference over to your speaker host, Emily Liu of Investor Relations. Please go ahead.

Emily Liu

Thanks, and good morning, everyone. Welcome to Wix's first quarter 2024 earnings call. Joining me today to discuss the results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, our President and COO; and Lior Shemesh, our CFO.

During this call, we may make forward-looking statements, and these statements are based on current expectations and assumptions. Please consider the risk factors included in our press release and most recent Form 20-F that could cause our actual results to differ materially from these forward-looking statements. We do not undertake any obligation to update these forward-looking statements.

In addition, we will comment on non-GAAP financial results and key operating metrics. You can find all reconciliations between our GAAP and non-GAAP results in the earnings materials, and in our Interactive Analyst Center on the Investor Relations section of our website, investors.wix.com.

With that, I'll turn the call over to Avishai.

Avishai Abrahami

Thanks, Emily, and good morning, everyone. We had a fantastic start to 2024 as we built upon the strong momentum and milestones of last year. We exceeded our expectation across many areas of our business in the first quarter by executing on our product strategies, growth initiative and commitment to balanced profitable growth. As a result, we continue to differentiate ourselves and grow market share as users increasingly choose Wix as the go to platform to achieve their goals online.

We kicked off the year with a strong growth. Booking in Q1 grew to more than $457 million, exceeding expectations revenue grew to $420 million above our guidance. This outperformance drove free cash flow which grew to more than $111 million. This new high watermark in our profitability journey is a milestone that Lior will go into more details shortly. The strong growth we saw this quarter was driven by improving business fundamental, which I'll let Nir discuss in a few minutes and incredible product innovation. In particular, we are seeing remarkable results from the product milestone achieved last year, a leading portfolio of AI technology and Wix Studio.