Wix Q2 2025: Navigating Contradictions in AI Integration, Revenue Growth, and Market Trends

AI integration and market expansion, partners revenue growth, AI integration and churn rates, organic search traffic trends, AI integration and product expansion are the key contradictions discussed in Wix's latest 2025Q2 earnings call.



Cohort Growth and AI Adoption:
- Wix.com Ltd. saw new-user cohort bookings grow 14% over the previous year's cohort in their first quarter and accelerated further in late Q2, with an over 20% increase in early Q3.
- This growth was driven by increasing demand for AI-powered online creation, improved onboarding funnel, and increased adoption of AI across the platform.

Base44 Acquisition and Market Expansion:
- The acquisition of Base44, a vibe coding platform, is expected to generate $40 million to $50 million in ARR by the end of 2025, with plans to reach $100 million ARR milestone soon.
- The strategic acquisition enables Wix to access a new market of developers and enterprises, enhancing its total addressable market and driving future growth.

Revenue and Bookings Growth:
- Total revenue for Q2 2025 reached $490 million, up 12% year-over-year, exceeding guidance, while total bookings grew to $510 million, up 10% year-over-year.
- The growth in revenue and bookings was supported by strong new cohort behavior, increased AI product adoption, and contributions from the Base44 acquisition.

Operating Efficiency and Margin Expansion:
- Non-GAAP gross margin improved to 70% in Q2, reflecting productivity benefits from AI solutions and optimized vendor partnerships.
- The company achieved a non-GAAP operating income of $110 million, up from 21% in Q1, demonstrating continued operating leverage despite increased investments in AI and headcount.