Wix.com Ltd (NASDAQ: WIX) saw its stock plunge 5.04% in Thursday's intraday trading session, following the release of its Q4 2024 earnings report and 2025 guidance. Despite achieving several milestones and strong performance, the company's outlook raised concerns among investors.
On the positive side, Wix.com achieved its 'Rule of 40' milestone a year ahead of schedule, showcasing robust execution. Bookings grew an impressive 18% year-over-year, driven by the self-creators business and strong partner momentum. Additionally, the company reported its first year of positive GAAP operating income, marking a significant financial milestone.
However, the company faced several headwinds and challenges that dampened investor sentiment. A modest negative FX impact affected bookings and revenue in Q4 due to elevated volatility. Transaction revenue also fell short of expectations due to situational GPV headwinds and FX impacts. Moreover, Wix.com is not modeling double-digit growth for self-creators in 2025, indicating potential challenges in this segment. The company also anticipates a significant FX headwind for 2025, impacting its financial outlook.