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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WIX

WIX fundamentals

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