Wix's Q1 2025 Earnings Call: Contradictions in AI Integration, Monetization Strategies, and Partner Revenue Growth

Earnings DecryptWednesday, May 21, 2025 11:48 am ET
2min read
AI integration and impact on web builder world, AI monetization strategy, partners revenue growth expectations are the key contradictions discussed in Wix's latest 2025Q1 earnings call.

WIX Total Revenue YoY, Total Revenue


Strong User Cohort and Revenue Growth:
- Wix.com reported $511 million in total bookings for Q1 2025, reflecting a 12% year-over-year increase.
- The growth was driven by a strong new user cohort that generated $36 million in bookings, up 12% from the previous year's Q1 cohort.

AI-Powered Product Innovations:
- Wix introduced new AI-powered products such as Wixel and Astro, which are expected to improve user engagement and boost package upgrades.
- These innovations are part of Wix’s strategic vision to enhance platform efficiency and deliver personalized experiences to users.

Transaction Revenue Growth:
- Transaction revenue for Q1 2025 was $59 million, up 19% year-over-year, driven by increased GPV and improved take rates.
- Growth was further supported by the addition of a new Wix Payments partner in the previous year.

Partners Revenue Expansion:
- Partners revenue grew 24% year-over-year to $172 million in Q1 2025.
- This was due to more subscription purchases, particularly higher-price ones, and improved adoption of business applications.