Latest news with #Ruleof45
Yahoo
23-05-2025
- Business
- Yahoo
5 Big Data Stocks to Buy for Stellar Returns in the Short Term
Big Data refers to a vast and diverse collection of structured, unstructured and semi-structured data that inundates businesses on a day-to-day basis. The big data space focuses on companies that process, store and analyze data, and provide data mining, transformation, visualization and predictive analytics tools. Here, we have selected five such companies — Confluent Inc. CFLT, Blackbaud Inc. BLKB, Sprout Social Inc. SPT, HubSpot Inc. HUBS and Teradata Corp. TDC. These stocks have double-digit short-term price upside potential. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Big Data is utilized in advanced analytics applications like predictive modeling and machine learning to solve business problems and make informed decisions. The latest high-end digital mobility advancements, including the Internet of Things (IoT) and artificial intelligence (AI), have led to rapid growth in data. Consequently, new big data tools have emerged to collect, process, and analyze data to derive maximum value out of it. Big data offers corporations better decision-making and risk management abilities. It has also increased agility and innovation, making operations more efficient and resulting in improved customer experiences. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Zacks Rank #2 Confluent operates a data streaming platform in the United States and internationally. CFLT provides platforms that allow customers to connect their applications, systems, and data layers comprising Confluent Cloud, a managed cloud-native software-as-a-service (SaaS), and Confluent Platform, an enterprise-grade self-managed software. CFLT serves banking and financial services, retail and ecommerce, manufacturing, automotive, telecommunication, gaming, insurance, and technology industries, as well as the public sector. CFLT has an expected revenue and earnings growth rate of 19% and 32.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.5% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 28.9% from the last closing price of $21.05. The brokerage target price is currently in the range of $22-$36. This indicates a maximum upside of 71% and no downside. Zacks Rank #1 Blackbaud is engaged in the provision of cloud software and services in the United States and internationally. BLKB's first-quarter 2025 results reflect solid execution of its strategic goals, with organic revenue growth, improved profitability and stock buybacks. BLKB remains on track to achieve Rule of 45 status by 2030 and expects continued free cash flow margin expansion. Robust free cash flow cushions BLKB's stock repurchase strategy. In the first quarter, BLKB repurchased around 4% of its outstanding shares, aligning with its 2025 plan to buy back 3% to 5%. Adjusted EBITDA margin reached 34.3% in the first quarter. For 2025, Blackbaud expects adjusted EBITDA margin in the range of 34.9% to 35.9%. Blackbaud has an expected revenue and earnings growth rate of -3.1% and 17.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.4% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 10.7% from the last closing price of $62.12. The brokerage target price is currently in the range of $60-$85. This indicates a maximum upside of 36.8% and a maximum downside of 3.4%. Zacks Rank #2 Sprout Social designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. SPT provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. SPT offers AI-powered solutions, such as publishing and scheduling, social customer care, reporting and analytics, social listening and business intelligence, reputation management, social commerce, influencer marketing, employee advocacy, and automation and workflows. Sprout Social has an expected revenue and earnings growth rate of 11.3% and 20.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 30.7% from the last closing price of $21.55. The brokerage target price is currently in the range of $18-$42. This indicates a maximum upside of 94.9% and a maximum downside of 16.5%. Zacks Rank #2 HubSpot provides a cloud-based customer relationship management platform for businesses in the Americas, Europe, and the Asia Pacific. HUBS is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS' starter edition is leading to solid client additions in the lower end of the market. The integration of HubSpot AI, which includes state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, is driving more value to customers. HUBS' seat pricing model lowers the barrier for customers to get started with its business and mitigates pricing friction for upgrades. The growing adoption of inbound applications is a tailwind. HubSpot has an expected revenue and earnings growth rate of 15.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 49% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 19% from the last closing price of $621.25. The brokerage target price is currently in the range of $645-$930. This indicates a maximum upside of 49.7% and no downside. Zacks Rank #2 Teradata provides a connected hybrid cloud analytics and data platform in the United States and internationally. TDC is benefiting from strong cloud ARR growth. TDC's AI and hybrid cloud innovations, supported by strategic partnerships with NVIDIA, Microsoft, and Google are strengthening its market position. TDC's advanced AI solutions, particularly in Customer Experience AI, are in high demand as businesses prioritize data-driven insights. TDC's expertise in providing scalable, cloud-based analytics positions it well in growing markets like AI, data centers, and digital transformation. Teradata has an expected revenue and earnings growth rate of -6.5% and -2.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has remained unchanged in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 18.7% from the last closing price of $21.82. The brokerage target price is currently in the range of $21-$35. This indicates a maximum upside of 60.4% and a maximum downside of 3.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradata Corporation (TDC) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Sprout Social, Inc. (SPT) : Free Stock Analysis Report Confluent, Inc. (CFLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Associated Press
30-04-2025
- Business
- Associated Press
Blackbaud Promotes Chad Anderson to Chief Financial Officer
Former CFO Tony Boor to Take on New Role as Executive Vice President of Corporate Development and Strategy CHARLESTON, S.C., April 30, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced the promotion of Chad Anderson to executive vice president and chief financial officer (CFO). Anderson will oversee the company's financial reporting and controls, and investor relations. Tony Boor, who has successfully served as Blackbaud's CFO for 14 years, will transition to a new role as executive vice president of corporate development and strategy, focused on advancing Blackbaud's long-term value and driving enterprise-wide strategies that maximize impact and efficiency. 'I am delighted to announce Chad's promotion to CFO,' said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. 'Chad is a highly accomplished global finance executive and a 12-year veteran of Blackbaud, with deep knowledge of our business, our customers and the industry. He has played a key role in maturing, modernizing, and improving the efficiency of our financial organization and has driven enterprise-wide initiatives critical to our company's future. We want to thank Tony for establishing a first-class finance organization over the past 14 years, and I'm very pleased that he'll be staying on in a new role to help ensure a smooth transition and continue to drive our success and operational excellence, namely helping lead our charge to become a Rule of 45 company by 2030.' Anderson joined Blackbaud in 2013 and most recently served as chief accounting officer, overseeing accounting operations and ensuring the company's financial health and compliance. Prior to that, he was corporate controller, responsible for the company's global financial operations. Before joining Blackbaud, Anderson was an executive at Brightpoint Inc., a global provider of mobile device lifecycle services to the wireless industry. There, he served as vice president of finance for international operations and then chief financial officer of the Europe, Middle East and Africa region. Boor joined Blackbaud as CFO in 2011 and has contributed immensely to Blackbaud's growth and success. Prior to Blackbaud, he was CFO of Brightpoint Inc. He has also held roles as CFO and CIO of Expo New Mexico, controller of Day Dream Publishing, and worked as a CPA for public accounting firms, including Ernst & Young and KPMG. Both Anderson and Boor will continue to serve on Blackbaud's executive leadership team. About Blackbaud Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers, and Forbes' list of America's Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at or follow us on X/Twitter, LinkedIn, Instagram and Facebook. Media Inquiries [email protected] Forward-looking Statements Except for historical information, all of the statements, expectations and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc. View original content to download multimedia: SOURCE Blackbaud
Associated Press
30-04-2025
- Business
- Associated Press
Blackbaud Announces 2025 First Quarter Results
Company Reiterates FY 2025 Financial Guidance CHARLESTON, S.C., April 30, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its first quarter ended March 31, 2025. 'Our strong first quarter results are a testament to our continued execution against our strategic initiatives to drive long-term profitable growth,' said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. 'Financially, we grew the top line on an organic basis, while making substantial progress towards improved profitability and returning capital through stock repurchases. Blackbaud is a much stronger company than it was just one year ago and remains the clear leader in the social impact software market. Our solid first quarter gives me confidence that Blackbaud is well positioned for 2025 and beyond as we aim to be a Rule of 45 company by 2030.' First Quarter 2025 Results Compared to First Quarter 2024 Results: 'I'm pleased with our first quarter financial performance to start the year,' said Tony Boor, executive vice president and CFO, Blackbaud. 'When backing out the divested EVERFI contribution in Q1 last year, non-GAAP organic revenue grew 5.8%. Non-GAAP adjusted EBITDA margin in the quarter was 34.3%, a 250 basis points increase year over year. We repurchased approximately 4% of common stock outstanding in the quarter, and free cash flow performance was in line with expectations, with the year-over-year decline driven by the previously discussed Washington D.C. lease cash release payment, increased interest expense, and fluctuations in the timing of vendor payments. We remain committed to delivering an attractive financial investment balanced between top-line growth, profitability and cash flow, all of which are supported by our proven operating plan.' An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading 'Non-GAAP Financial Measures.' A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Recent Company Highlights Visit for more information about Blackbaud's recent highlights. Financial Outlook Blackbaud today reaffirmed its 2025 full year financial guidance: Included in its 2025 full year financial guidance are the following updated assumptions: Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts. In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the 'Security Incident'). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. In line with the company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled 'Non-GAAP Financial Measures' for more information on Blackbaud's use of non-GAAP financial measures. Stock Repurchase Program As of March 31, 2025, Blackbaud had approximately $545 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024. Reclassifications Our revenue from 'recurring' and 'one-time services and other' have been combined within 'revenue' beginning in 2025 due to the immateriality of our one-time services and other revenue. In order to provide comparability between periods presented, our 'recurring' and 'one-time services and other' revenue lines have been combined within 'revenue' in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period. Similarly, 'cost of recurring' and 'cost of one-time services and other' have been combined within 'cost of revenue' in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period. Conference Call Details What: Blackbaud's 2025 First Quarter Conference Call When: April 30, 2025 Time: 8:00 a.m. (Eastern Time) Live Call: 1-877-407-3088 (US/Canada) Webcast: Blackbaud's Investor Relations Webpage About Blackbaud Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers and Forbes' list of America's Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at or follow us on X/Twitter, LinkedIn, Instagram, and Facebook. Investor Contact [email protected] Media Contact [email protected] Forward-Looking Statements Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law. Trademarks All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc. Non-GAAP Financial Measures Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business. While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud also uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment, plus cash outflows related to the Security Incident. Blackbaud believes non-GAAP free cash flow and non-GAAP adjusted free cash flow provide useful measures of the company's operating performance. Non-GAAP free cash flow and Non-GAAP adjusted free cash flow are not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures. In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies, if any, acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate. Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; Security Incident-related costs; and impairment and disposition charges. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows: View original content to download multimedia: SOURCE Blackbaud
Zawya
24-02-2025
- Business
- Zawya
Fortinet reports fourth quarter and full year 2024 financial results
RELATED TOPICS EARNINGS RELATED COMPANIES FortiGuard Labs Security Operations ARR2 Fortinet SASE ARR2 Fourth Quarter 2024 Highlights Total revenue of $1.66 billion, up 17% year over year Product revenue of $574 million, up 18% year over year Billings of $2.00 billion, up 7% year over year1 Record GAAP operating margin of 35% Record Non-GAAP operating margin of 39%1 Unified SASE ARR2 up 28% and Security Operations ARR2 up 32%, year over year Ranked #7 on the Forbes Most Trusted Companies in America 2025 list, the only cybersecurity company in the top 50 Full Year 2024 Highlights Total revenue of $5.96 billion, up 12% year over year Service revenue of $4.05 billion, up 20% year over year Record GAAP operating margin of 30% Record Non-GAAP operating margin of 35%1 Remaining performance obligations of $6.42 billion, up 12% year over year Cash flow from operations of $2.26 billion Free cash flow of $1.88 billion1 Exceeded the 'Rule of 45' for the fifth consecutive year SUNNYVALE, Calif. - Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the fourth quarter of 2024 and full year ended December 31, 2024. 'In the fourth quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 720 basis points year-over-year to a company record of 39%, while revenue grew 17%,' said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. 'We continue to execute our strategy of investing in the high-growth Unified SASE and Security Operations markets, while strengthening our position in Secure Networking. Our customers are increasingly recognizing the benefits of a single-vendor approach to SASE, and we expect to emerge as a leader in this space, being the only company to natively develop all SASE functions within a unified operating system, FortiOS, which seamlessly integrates networking and security capabilities.' About Fortinet Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams ('CERTs'), government entities, and academia, is a fundamental aspect of Fortinet's commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet's elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at the Fortinet Blog or FortiGuard Labs.
Yahoo
19-02-2025
- Business
- Yahoo
Wix Reports Fourth Quarter and Full Year 2024 Results
Capping off a year of sustained growth acceleration and stronger than expected FCF generation – surpassing Rule of 40 in 2024 and on track to achieve Rule of 45 in 2025 Culminated a year of accelerated growth and innovation with Q4 bookings of $465 million, up 18% y/y, and Q4 revenue of $460 million, up 14% y/y Steady growth acceleration in Self Creators coupled with continued strength in high-growth Partners, demonstrated by Partners revenue growth of 30% y/y in FY2024 Strong momentum across key product focus areas, including Studio, AI and commerce as well as solid business fundamentals and price increase benefit Robust growth and a stable operating cost base drove FCF1 generation to nearly double in 2024 compared to previous year, resulting in continued profitability improvement with Q4 FCF margin of 29% and full year FCF1 margin of 28% Achieved first year of positive GAAP operating income in Wix history On track to achieve Rule of 45 in 2025 at high end of outlook through continued innovation-powered growth and further FCF margin expansion Completed $200 million share repurchase plan in January, totaling $725 million in aggregate repurchases since August 2023NEW YORK -- Ltd. (Nasdaq: WIX), the leading SaaS website builder platform2, today reported financial results for the fourth quarter and full year 2024. In addition, the Company provided its initial outlook for the first quarter and full year 2025. Please visit the Wix Investor Relations website at to view the Q4'24 Shareholder Update and other materials. 'Wix sets a high standard for innovation and creativity, and we're constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,' said Avishai Abrahami, Wix Co-founder and CEO. '2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come. We're thrilled about these strategic enhancements, which are set to propel our business forward and establish a powerful foundation for the years ahead.' 'We wrapped 2024 with accelerated growth and profitability, driven by successful execution of our product roadmap and pricing strategy as well as strong business fundamentals,' added Lior Shemesh, CFO at Wix. 'With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond. Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records. The high end of our outlook puts us at Rule of 45 in 2025 as we continue to prioritize balancing profitable growth through best-in-class innovation and steadfast execution.' Q4 2024 Financial Results Total revenue in the fourth quarter of 2024 was $460.5 million, up 14% y/y Creative Subscriptions revenue in the fourth quarter of 2024 was $329.7 million, up 11% y/y Creative Subscriptions ARR increased to $1.343 billion as of the end of the quarter, up 13% y/y Business Solutions revenue in the fourth quarter of 2024 was $130.7 million, up 21% y/y Transaction revenue3 was $57.1 million, up 23% y/y Partners revenue4 in the fourth quarter of 2024 was $168.1 million, up 29% y/y Total bookings in the fourth quarter of 2024 were $464.6 million, up 18% y/y Total bookings on a y/y constant currency basis were $466.2 million Creative Subscriptions bookings in the fourth quarter of 2024 were $325.2 million, up 15% y/y Business Solutions bookings in the fourth quarter of 2024 were $139.4 million, up 25% y/y Total gross margin on a GAAP basis in the fourth quarter of 2024 was 69% Creative Subscriptions gross margin on a GAAP basis was 84% Business Solutions gross margin on a GAAP basis was 30% Total non-GAAP gross margin in the fourth quarter of 2024 was 70% Creative Subscriptions gross margin on a non-GAAP basis was 85% Business Solutions gross margin on a non-GAAP basis was 32% GAAP net income in the fourth quarter of 2024 was $48.0 million, or $0.86 per basic share or $0.80 per diluted share Non-GAAP net income in the fourth quarter of 2024 was $117.1 million, or $2.10 per basic share or $1.93 per diluted share Net cash provided by operating activities for the fourth quarter of 2024 was $133.7 million, while capital expenditures totaled $2.0 million, leading to free cash flow of $131.8 million FY 2024 Financial Results Total revenue for the full year 2024 was $1.761 billion, up 13% y/y Creative Subscriptions revenue for the full year 2024 was $1.265 billion, up 10% y/y Business Solutions revenue for the full year 2024 was $495.7 million, up 21% y/y Transaction revenue3 was $214.9 million, up 21% y/y Partners revenue4 for the full year 2024 was $610.1 million, up 30% y/y Total bookings for the full year 2024 were $1.830 billion, up 15% y/y Creative Subscriptions bookings for the full year 2024 were $1.315 billion, up 12% y/y Business Solutions bookings for the full year 2024 were $514.6 million, up 22% y/y Total gross margin on a GAAP basis for the full year 2024 was 68% Creative Subscriptions gross margin on a GAAP basis was 83% Business Solutions gross margin on a GAAP basis was 29% Total non-GAAP gross margin for the full year 2024 was 69% Creative Subscriptions gross margin on a non-GAAP basis was 84% Business Solutions gross margin on a non-GAAP basis was 30% GAAP net income for the full year 2024 was $138.3 million, or $2.49 per basic share or $2.36 per diluted share Non-GAAP net income for the full year 2024 was $383.3 million, or $6.90 per basic share or $6.39 per diluted share Net cash provided by operating activities for the full year 2024 was $497.4 million, while capital expenditures totaled $19.3 million, leading to free cash flow of $478.1 million Excluding the capex investment associated with our new headquarters office build out, free cash flow1 for the full year 2024 would have been $488.4 million, or 28% of revenue Executed $466 million in repurchases of ordinary shares in 2024 as we remained committed to share count management and returning value to shareholders Finished full year 2024 with 6.2 million total premium subscriptions as of December 31, 2024 Registered users as of December 31, 2024 were over 282 million Total employee count as of December 31, 2024 was 5,283 ____________________1 Free cash flow excluding expenses associated with the buildout of our new corporate headquarters.2 Based on number of active live sites as reported by competitors' figures, independent third-party data and internal data as of Q3 2024.3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.4 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users ('Agencies') as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint ('Resellers'). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses. Financial Outlook We expect another year of robust bookings and revenue growth powered by existing key growth initiatives and ongoing product enhancements against a stable and positive demand environment: With Studio continuing to outperform and AI usage and conversion benefits ramping, we anticipate these initiatives to be even bigger growth engines in 2025 We are continuously testing and rolling out product enhancements as well as new strategic initiatives, which are driving demonstrable added value to users. As a result, we expect incremental ARPS and conversion expect top-line contribution from those enhancements and initiatives already rolled out and underway to layer in as we progress through the year, resulting in accelerated growth in 2H. This acceleration is anticipated for both revenue and bookings, even as bookings fully laps pricing tailwinds in mid-Q1'25. While confident the new products in our pipeline, particularly the meaningful Self Creator offerings coming this year, will drive medium-term growth, we are incorporating almost no contribution from new products into our 2025 forecast. As a global company with ~40% of revenue derived in non-US dollar currencies, we began to experience adverse effects from outsized changes in FX rates beginning mid-Q4 and continuing YTD, particularly the US dollar to Euro and British pound exchange rates. Assuming late January spot rates, we anticipate strong FX headwinds to 2025 outlook. As such, we provide outlook for the year and the first quarter on both as-reported and constant currency bases. As-reported As-reported growth y/y FX impact Constant currency growth y/y Full year 2025 Bookings $2,025 - 2,060 million 11 - 13% ~$45 million 13 - 15% Revenue $1,970 - 2,000 million 12 - 14% ~$34 million 14 - 16% Free cash flow $590 - 610 million 30 - 31% margin ~$25 million 31 - 32% margin Q1'25 Revenue $469 - 473 million 12 - 13% ~$6 million 13 - 14% With a meaningful portion of our operating expenses denominated in non-US currencies, the strengthening US dollar is expected to drive a modest benefit to 2025 expenses. As a result, the net FX impact on free cash flow is expected to be smaller than the anticipated top-line headwinds. We believe our strong commitment to sustained top-line momentum and translating growth into additional operating leverage puts us on track to achieve Rule of 45 in 2025 at the high end of our outlook. Conference Call and Webcast Information Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 19, 2025. A live and archived webcast of the conference call will be accessible from the "Investor Relations" section of the Company's website at About Ltd. Wix is the leading SaaS website builder platform1 to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users - self-creators, agencies, enterprises, and more - with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients. For more about Wix, please visit our Press RoomMedia Relations Contact: PR@ Non-GAAP Financial Measures and Key Operating Metrics To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow on a constant currency basis, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, bookings, cumulative cohort bookings, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company's control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results. Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners. Forward-Looking Statements This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like 'anticipate,' 'assume,' 'believe,' 'aim,' 'forecast,' 'indication,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'outlook,' 'future,' 'will,' 'seek' and similar terms or phrases. The forward-looking statements contained in this document, including the quarterly and annual guidance, are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence ('AI'), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading 'Risk Factors' in the Company's annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise. Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP (In thousands, except loss per share data) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Revenues Creative Subscriptions $ 329,732 $ 296,154 $ 1,264,975 $ 1,152,007 Business Solutions 130,723 107,617 495,675 409,658 460,455 403,771 1,760,650 1,561,665 Cost of Revenues Creative Subscriptions 52,671 52,794 213,422 215,515 Business Solutions 90,965 73,319 351,213 297,013 143,636 126,113 564,635 512,528 Gross Profit 316,819 277,658 1,196,015 1,049,137 Operating expenses: Research and development 127,186 125,743 495,281 481,293 Selling and marketing 106,629 103,642 425,457 399,577 General and administrative 46,984 43,401 175,136 160,033 Impairment, restructuring and other costs - 3,103 - 32,614 Total operating expenses 280,799 275,889 1,095,874 1,073,517 Operating income (loss) 36,020 1,769 100,141 (24,380) Financial income, net 16,355 6,461 51,820 62,474 Other income (expenses), net (94) 44 (36) (255) Income before taxes on income 52,281 8,274 151,925 37,839 Income tax expenses 4,257 5,320 13,603 4,702 Net income $ 48,024 $ 2,954 $ 138,322 $ 33,137 Basic net income per share $ 0.86 $ 0.05 $ 2.49 $ 0.58 Basic weighted-average shares used to compute net income per share 55,786,201 57,317,815 55,579,368 56,829,962 Diluted net income per share $ 0.80 $ 0.05 $ 2.36 $ 0.57 Diluted weighted-average shares used to compute net income per share 60,648,791 59,085,757 59,953,371 58,403,037 Ltd. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December 31, December 31, 2024 2023 Assets (unaudited) (audited) Current Assets: Cash and cash equivalents $ 660,939 $ 609,622 Short-term deposits 106,844 212,709 Restricted deposits 773 2,125 Marketable securities 338,593 140,563 Trade receivables 46,166 57,394 Prepaid expenses and other current assets 126,887 47,792 Total current assets 1,280,202 1,070,205 Long-Term Assets: Prepaid expenses and other long-term assets 27,021 34,296 Property and equipment, net 128,155 136,928 Marketable securities 6,135 64,806 Intangible assets, net 22,141 28,010 Goodwill 49,329 49,329 Operating lease right-of-use assets 399,861 420,562 Total long-term assets 632,642 733,931 Total assets $ 1,912,844 $ 1,804,136 Liabilities and Shareholders' Deficiency Current Liabilities: Trade payables $ 48,003 $ 38,305 Employees and payroll accruals 142,007 56,581 Deferred revenues 661,171 592,608 Current portion of convertible notes, net 572,880 - Accrued expenses and other current liabilities 63,246 76,556 Operating lease liabilities 27,907 24,981 Total current liabilities 1,515,214 789,031 Long Term Liabilities: Long-term deferred revenues 89,271 83,384 Long-term deferred tax liability 1,965 7,167 Convertible notes, net - 569,714 Other long-term liabilities 16,021 7,699 Long-term operating lease liabilities 369,159 401,626 Total long-term liabilities 476,416 1,069,590 Total liabilities 1,991,630 1,858,621 Shareholders' Deficiency Ordinary shares 107 110 Additional paid-in capital 1,840,574 1,539,952 Treasury Stock (1,025,167) (558,875) Accumulated other comprehensive loss 7,242 4,192 Accumulated deficit (901,542) (1,039,864) Total shareholders' deficiency (78,786) (54,485) Total liabilities and shareholders' deficiency $ 1,912,844 $ 1,804,136 Ltd. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) OPERATING ACTIVITIES: Net income $ 48,024 $ 2,954 $ 138,322 $ 33,137 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 6,278 6,725 25,246 20,492 Amortization 1,460 1,488 5,869 5,954 Share based compensation expenses 61,801 58,195 240,721 224,625 Amortization of debt discount and debt issuance costs 793 789 3,166 4,194 Changes in accrued interest and exchange rate on short term and long term deposits (635) (586) 852 (2,415) Non-cash impairment, restructuring and other costs - 3,567 - 26,699 Amortization of premium and discount and accrued interest on marketable securities, net (7,838) 4,237 (13,381) 8,346 Remeasurement loss (gain) on Marketable equity - (10,296) (3,367) (30,608) Changes in deferred income taxes, net (7) (2,035) (5,196) (8,784) Changes in operating lease right-of-use assets 4,351 7,174 24,246 27,231 Changes in operating lease liabilities (2,821) 16,701 (33,086) (31,333) Loss on foreign exchange, net 2,471 - 3,906 - Decrease (increase) in trade receivables 4,058 (2,794) 11,228 (15,308) Decrease in prepaid expenses and other current and long-term assets (63,684) (10,845) (76,963) (20,105) Increase (decrease) in trade payables 17,329 15,120 12,893 (52,455) Increase (decrease) in employees and payroll accruals 66,407 (8,307) 85,426 (29,532) Increase in short term and long term deferred revenues 1,609 2,788 74,450 76,193 Increase (decrease) in accrued expenses and other current liabilities (5,860) 5,505 3,083 11,915 Net cash provided by operating activities 133,736 90,380 497,415 248,246 INVESTING ACTIVITIES: Proceeds from short-term deposits and restricted deposits 97,051 131,754 276,697 625,495 Investment in short-term deposits and restricted deposits (25,540) (99,725) (170,332) (297,917) Investment in marketable securities - (2,607) (267,209) (6,732) Proceeds from marketable securities 15,000 33,690 125,176 250,960 Purchase of property and equipment and lease prepayment (1,562) (9,582) (17,813) (63,021) Capitalization of internal use of software (401) (408) (1,523) (3,028) Investment in other assets - - - (111) Proceeds from investment in other assets $ - - $ 550 - Proceeds from sale of equity securities - 19,203 22,148 68,671 Purchases of investments in privately held companies (1,000) (76) (3,160) (7,603) Net cash provided by investing activities 83,548 72,249 (35,466) 566,714 FINANCING ACTIVITIES: Proceeds from exercise of options and ESPP shares 6,692 898 59,576 39,660 Purchase of treasury stock - (58,698) (466,302) (127,017) Repayment of convertible notes - - - (362,667) Net cash provided by (used in) financing activities 6,692 (57,800) (406,726) (450,024) Effect of exchange rates on cash, cash equivalent and restricted cash (2,471) - (3,906) - INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 221,505 104,829 51,317 364,936 CASH AND CASH EQUIVALENTS—Beginning of period 439,434 504,793 609,622 244,686 CASH AND CASH EQUIVALENTS—End of period $ 660,939 $ 609,622 $ 660,939 $ 609,622 Ltd. KEY PERFORMANCE METRICS (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Creative Subscriptions 329,732 296,154 1,264,975 1,152,007 Business Solutions 130,723 107,617 495,675 409,658 Total Revenues $ 460,455 $ 403,771 $ 1,760,650 $ 1,561,665 Creative Subscriptions 325,203 283,501 1,315,445 1,174,776 Business Solutions 139,389 111,503 514,607 422,727 Total Bookings $ 464,592 $ 395,004 $ 1,830,052 $ 1,597,503 Free Cash Flow $ 131,773 $ 80,390 $ 478,079 $ 182,197 Free Cash Flow excluding HQ build out and restructuring costs $ 131,773 $ 90,125 $ 488,404 $ 246,058 Creative Subscriptions ARR $ 1,343,070 $ 1,192,814 $ 1,343,070 $ 1,192,814 Ltd. RECONCILIATION OF REVENUES TO BOOKINGS (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Revenues $ 460,455 $ 403,771 $ 1,760,650 $ 1,561,665 Change in deferred revenues 1,609 2,788 74,450 76,193 Change in unbilled contractual obligations 2,528 (11,555) (5,048) (40,355) Bookings $ 464,592 $ 395,004 $ 1,830,052 $ 1,597,503 Y/Y growth 18% 15% Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Creative Subscriptions Revenues $ 329,732 $ 296,154 $ 1,264,975 $ 1,152,007 Change in deferred revenues (7,057) (1,098) 55,518 63,124 Change in unbilled contractual obligations 2,528 (11,555) (5,048) (40,355) Creative Subscriptions Bookings $ 325,203 $ 283,501 $ 1,315,445 $ 1,174,776 Y/Y growth 15% 12% Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Business Solutions Revenues $ 130,723 $ 107,617 $ 495,675 $ 409,658 Change in deferred revenues 8,666 3,886 18,932 13,069 Business Solutions Bookings $ 139,389 $ 111,503 $ 514,607 $ 422,727 Y/Y growth 25% 22% Ltd. RECONCILIATION OF COHORT BOOKINGS (In millions) Year Ended December 31, 2024 2023 (unaudited) Q1 Cohort revenues $ 45 $ 45 Q1 Change in deferred revenues 16 15 Q1 Cohort Bookings $ 61 $ 60 Ltd. RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT (In thousands) Three Months Ended December 31, 2024 2023 (unaudited) Revenues $ 460,455 $ 403,771 FX impact on Q4/24 using Y/Y rates (110) - Revenues excluding FX impact $ 460,345 $ 403,771 Y/Y growth 14% Three Months Ended December 31, 2024 2023 (unaudited) Bookings $ 464,592 $ 395,004 FX impact on Q4/24 using Y/Y rates 1,600 - Bookings excluding FX impact $ 466,192 $ 395,004 Y/Y growth 18% Ltd. TOTAL ADJUSTMENTS GAAP TO NON-GAAP (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (1) Share based compensation expenses: (unaudited) (unaudited) Cost of revenues $ 3,466 $ 3,675 $ 14,146 $ 15,013 Research and development 32,320 31,982 126,462 119,482 Selling and marketing 9,625 11,232 38,755 41,277 General and administrative 16,390 11,306 61,358 48,853 Total share based compensation expenses 61,801 58,195 240,721 224,625 (2) Amortization 1,834 1,488 6,243 5,954 (3) Acquisition related expenses - 9 6 472 (4) Amortization of debt discount and debt issuance costs 793 789 3,166 4,194 (5) Impairment, restructuring and other costs - 3,103 - 32,614 (6) Sales tax accrual and other G&A expenses 881 137 1,464 748 (7) Unrealized loss (gain) on equity and other investments - (10,296) (2,536) (30,608) (8) Non-operating foreign exchange income 3,767 15,287 (4,703) 1,499 (9) Provision for income tax effects related to non-GAAP adjustments - 2,368 583 (4,337) Total adjustments of GAAP to Non GAAP $ 69,076 $ 71,080 $ 244,944 $ 235,161 Ltd. RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Gross Profit $ 316,819 $ 277,658 $ 1,196,015 $ 1,049,137 Share based compensation expenses 3,466 3,675 14,146 15,013 Acquisition related expenses - 5 - 229 Amortization 667 667 2,669 2,669 Non GAAP Gross Profit 320,952 282,005 1,212,830 1,067,048 Non GAAP Gross margin 70% 70% 69% 68% Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Gross Profit - Creative Subscriptions $ 277,061 $ 243,360 $ 1,051,553 $ 936,492 Share based compensation expenses 2,482 2,695 10,232 11,081 Non GAAP Gross Profit - Creative Subscriptions 279,543 246,055 1,061,785 947,573 Non GAAP Gross margin - Creative Subscriptions 85% 83% 84% 82% Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Gross Profit - Business Solutions $ 39,758 $ 34,298 $ 144,462 $ 112,645 Share based compensation expenses 984 980 3,914 3,932 Acquisition related expenses - 5 - 229 Amortization 667 667 2,669 2,669 Non GAAP Gross Profit - Business Solutions 41,409 35,950 151,045 119,475 Non GAAP Gross margin - Business Solutions 32% 33% 30% 29% Ltd. RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Operating income (loss) $ 36,020 $ 1,769 $ 100,141 $ (24,380) Adjustments: Share based compensation expenses 61,801 58,195 240,721 224,625 Amortization 1,834 1,488 6,243 5,954 Impairment, restructuring and other charges - 3,103 - 32,614 Sales tax accrual and other G&A expenses 881 137 1,464 748 Acquisition related expenses - 9 6 472 Total adjustments $ 64,516 $ 62,932 $ 248,434 $ 264,413 Non GAAP operating income $ 100,536 $ 64,701 $ 348,575 $ 240,033 Non GAAP operating margin 22% 16% 20% 15% Ltd. RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Net income $ 48,024 $ 2,954 $ 138,322 $ 33,137 Share based compensation expenses and other Non GAAP adjustments 69,076 71,080 244,944 235,161 Non-GAAP net income$ $ 117,100 $ 74,034 $ 383,266 $ 268,298 Basic Non GAAP net income per share $ 2.10 $ 1.29 $ 6.90 $ 4.72 Weighted average shares used in computing basic Non GAAP net income per share 55,786,201 57,317,815 55,579,368 56,829,962 Diluted Non GAAP net income per share $ 1.93 $ 1.22 $ 6.39 $ 4.39 Weighted average shares used in computing diluted Non GAAP net income per share 60,648,791 60,512,505 59,953,371 61,106,462 Ltd. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (In thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Net cash provided by operating activities $ 133,736 $ 90,380 $ 497,415 $ 248,246 Capital expenditures, net (1,963) (9,990) (19,336) (66,049) Free Cash Flow $ 131,773 $ 80,390 $ 478,079 $ 182,197 Restructuring and other costs - 1,411 - 5,915 Capex related to HQ build out - 8,324 10,325 57,946 Free Cash Flow excluding HQ build out and restructuring costs $ 131,773 $ 90,125 $ 488,404 $ 246,058 AttachmentsSign in to access your portfolio
