SaaS website builder platform Wix.com Ltd (NASDAQ:WIX) reported its fiscal third-quarter 2024 results. Revenue grew 13% year over year to $444.7 million, beating the analyst consensus estimate of $444.0 million. Adjusted EPS of $1.50 beat the analyst consensus estimate of $1.43.

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Creative Subscription revenue increased 10% Y/Y to $318.8 million. The Creative Subscriptions bookings climbed 15% Y/Y to $326.6 million. Creative Subscriptions ARR was $1.31 billion, up 11% Y/Y.

Partners revenue in the quarter was $155.2 million, up 30% Y/Y. Business Solutions’ revenue rose 22% Y/Y to $125.8 million, and bookings jumped 17% Y/Y to $123.1 million.

The adjusted gross margin increased by 100 bps to 69%. As of September end, Wix.com generated $129.8 million in operating cash flow and held $961.2 million in cash and equivalents.

Wix Co-founder and CEO Avishai Abrahami highlighted the company’s continued success this year, attributing it to a sharp focus on innovation and the strong performance of key growth initiatives. Studio, a significant growth driver, delivered outstanding results, with bookings from Studio subscriptions showing notable quarter-over-quarter acceleration. New purchases and renewals were particularly robust, with 75% of new Partner bookings coming from Studio accounts, up from the prior quarter.

Additionally, the AI onboarding process, featuring the AI Website Builder, significantly improved user experience, driving a 13% increase in conversion rates among recent Self Creator cohorts. Early results from the expanding AI business assistant suite also showed promise, enhancing conversion rates and customer care efficiency.

CFO Lior Shemesh reported another strong quarter of accelerating growth and expanding free cash flow (FCF) margins, driven by the effective execution of strategic priorities. Bookings grew to 16% year-over-year, fueled by Studio’s momentum, the expanding AI product suite, solid commerce activity, and strong fundamentals. Stable operations supported sequential FCF margin growth to 29% of revenue.

Building on this solid performance, Shemesh announced an improved full-year outlook for bookings, revenue, and FCF. Second-half bookings growth is expected to reach 17% year-over-year, with an 18% growth rate anticipated by the end of 2024. These improvements reflect the success of product investments and strong customer cohorts. While surpassing the Rule of 40 this year, Shemesh expressed confidence in further growth acceleration and margin expansion in 2025 and beyond.