What is the market's earnings forecast for Wix.com next quarter?

What does Wix.com do and what are its main business segments?

What were the key takeaways from Wix.com's earnings call?

What is the revenue and EPS growth rate for Wix.com year over year?

What is Wix.com's latest dividend and current dividend yield?

What is Wix.com's gross profit margin?

What were the key takeaways from Wix.com’s earnings call?

What factors drove the changes in Wix.com's revenue and profit?

- **BASE44 explodes**: 7x user growth in 3 months, 1,000+ new paying subs/day, $50M+ ARR by year-end.
- **Revenue beats expectations**: 14% YoY growth driven by core cohorts and BASE44.
- **AI cost trends**: 20% YoY decline in AI compute costs, with further reductions likely.
- **New product coming early 2026**: AI-powered website builder to complement vibe coding apps.
- **Margins under pressure**: BASE44's 90% monthly sub mix causing 1% gross margin decline, but improving as users convert to annual plans.

**【CEO Summary Section】**
- Introduced **vibe coding** as a revolutionary tool enabling non-coders to build applications, comparing it to Wix's original mission of democratizing website creation.
- Highlighted **BASE44's rapid growth**, with user traffic share increasing from near-zero to over 10% in 4 months.
- Announced a new flagship product for early 2026, emphasizing AI-human collaboration in creation.
- Emphasized Wix's dual focus: advancing vibe coding for app development while maintaining core website creation leadership.

**【COO Summary Section】**
- Core business cohorts showed **14% YoY growth**, driven by higher adoption of premium subscriptions and longer-duration plans.
- **BASE44 achieved 7x user growth** in 3 months, surpassing 2 million users, with 1,000+ new paying subscribers daily.
- Transaction revenue grew 20% YoY, driven by 13% GPV growth and elevated take rates in Wix Payments.
- Projected **BASE44 ARR of $50M+ by year-end**, exceeding initial expectations.

**【CFO Financial Commentary】**
- Q3 **total bookings $515M (14% YoY)**, revenue $505M (14% YoY), beating guidance.
- **Non-GAAP gross margin 69%**, down 1% YoY due to AI compute costs for BASE44.
- Sales & marketing expenses increased 23% QoQ to scale BASE44 demand, with TROI exceeding expectations.
- Free cash flow $159M (32% of revenue), up from 30% last quarter.
- Raised full-year bookings guidance to **$2.06B-$2.08B (13-14% YoY)**, driven by BASE44 outperformance.

**【Q&A Highlights】**
- **BASE44 subscription mix**: 90% monthly vs. Wix's 80% annual, causing short-term margin pressure but expected to stabilize as users convert to annual plans.
- AI compute costs declining 20% YoY, with further reductions expected as LLM efficiency improves.
- Wix Payments take rate up 200bps YoY, capturing share of $1.2T SMB commerce market.
- New product pipeline includes AI-powered website builder and expanded vibe coding capabilities for e-commerce.


Wix.com Ltd. (WIX) Q3 2025 Earnings Call Transcript

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