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 improvements.
We 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.