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NEW YORK - Wix.com Ltd. (NASDAQ: NASDAQ:WIX), a leading SaaS website builder platform with a market capitalization of $11.15 billion, has announced a new share repurchase program authorized by its Board of Directors. The company is set to buy back up to $200 million of its securities, which may include ordinary shares and/or convertible notes. This move underscores the board’s belief in Wix’s ability to generate substantial cash flow and its dedication to enhancing shareholder value. According to InvestingPro data, the company generated an impressive $479.6 million in free cash flow over the last twelve months, with revenue growing at 12.74% year-over-year.
The repurchase of company securities will be conducted over time, potentially through open market purchases, privately negotiated transactions, or other methods in compliance with U.S. securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. Wix may also engage in plans that align with Rule 10b5-1 of the Exchange Act to facilitate these repurchases.
The program does not require Wix to purchase a specific number of securities and can be suspended or discontinued at the company’s discretion. The timing, volume, and value of the repurchases will depend on various factors, such as Wix’s stock price, market and economic conditions, financial results, liquidity, and potential objections from creditors.
The repurchase initiative is expected to begin after a 30-day period that allows creditors to object to the company’s distribution plans, as per Israeli regulations. Wix plans to fund the repurchases using its available cash and future operational cash flow.
Wix, established in 2006, offers a comprehensive platform that enables users to create and manage a digital presence with advanced features, including commerce and business solutions, SEO, and marketing tools. The company is committed to innovation and regularly introduces new products to help users establish a robust online presence.
This press release contains forward-looking statements that are based on current expectations and are subject to change. Factors such as user acquisition, product acceptance, artificial intelligence development, and macro-economic conditions may impact future results.
The information reported is based on a press release statement from Wix.com Ltd.
In other recent news, Wix.com has provided a detailed outlook for its financial performance, emphasizing its guidance for 2025. The company anticipates a 13-15% growth in bookings and a 14-16% increase in revenue, excluding foreign exchange impacts, reflecting a positive trajectory compared to 2024. Analysts from Benchmark, Cantor Fitzgerald, Needham, Raymond (NSE:RYMD) James, and Citi have responded by raising their price targets for Wix.com, citing strong fourth-quarter results and favorable free cash flow margins. Cantor Fitzgerald and Citi both highlighted the company’s successful execution of key initiatives, such as Studio AI and commerce expansions, contributing to an 18% year-over-year increase in total bookings.
Raymond James maintained a Strong Buy rating, pointing to the momentum of Wix.com’s Studio product and the potential benefits from new AI-driven offerings. Meanwhile, Needham praised Wix.com as a top product-driven growth story and emphasized the enduring benefits of attracting new developers and agencies. Despite facing foreign exchange headwinds, Wix.com has managed to exceed revenue and free cash flow expectations, which has been acknowledged by multiple analyst firms.
Wix.com’s management has not factored in revenue from new products for 2025, suggesting potential upside if these products succeed. Analysts have noted the company’s market position and product pipeline as critical factors for future growth, with Citi expressing optimism about Wix.com’s pricing power and the impact of new product launches. Overall, these developments reflect a strong consensus among analysts about Wix.com’s potential for continued growth and expansion.
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