Core Insights - Wix.com reported revenue of $489.93 million for the quarter ended June 2025, marking a year-over-year increase of 12.4% and exceeding the Zacks Consensus Estimate by 0.51% [1] - The company's EPS for the same period was $2.28, a significant increase from $1.67 a year ago, resulting in an EPS surprise of 30.29% compared to the consensus estimate of $1.75 [1] Financial Performance Metrics - Total Bookings reached $509.92 million, slightly above the average estimate of $506.41 million from seven analysts [4] - Creative Subscriptions ARR was reported at $1.41 billion, matching the six-analyst average estimate [4] - Total Bookings for Business Solutions were $145.05 million, below the four-analyst average estimate of $147.18 million [4] - The number of registered users at the end of the period was 293 million, slightly below the four-analyst average estimate of 293.4 million [4] - Total Bookings for Creative Subscriptions were $364.87 million, exceeding the four-analyst average estimate of $360.4 million [4] - Revenues from Business Solutions were $144.47 million, surpassing the average estimate of $141.98 million and reflecting a year-over-year increase of 16.9% [4] - Revenues from Creative Subscriptions were $345.46 million, slightly above the average estimate of $345.42 million, with a year-over-year increase of 10.7% [4] - Non-GAAP Gross Profit for Business Solutions was $46.96 million, exceeding the average estimate of $44.88 million [4] - Non-GAAP Gross Profit for Creative Subscriptions was $293.93 million, also above the average estimate of $292.55 million [4] Stock Performance - Wix.com shares have returned -20.8% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total bookings grew to $510 million in Q2, up 11% year over year, driven by stronger new user cohorts and deeper adoption of AI offerings [23][24] - Total revenue increased to $490 million, up 12% year over year, exceeding the high end of guidance [23][24] - Non-GAAP gross margin in Q2 was 70%, up from 69% in Q1, reflecting productivity benefits from AI solutions [24] - Non-GAAP operating income was $110 million, or 22% of revenue, up from 21% in Q1 [25] - Free cash flow for Q2 was $148 million, or 30% of revenue [25] Business Line Data and Key Metrics Changes - Partners revenue grew 24% year over year to $183 million, driven by continued adoption in the professional audience segment [23] - Transaction revenue was $64 million, up 18% year over year, driven by GPV growth and improved take rate [24] - GPV grew 11% year over year to $3.6 billion, with partners contributing nearly 55% of total GPV [24] Market Data and Key Metrics Changes - New user cohort bookings grew 14% over the previous year's cohort in its first quarter, with particular strength in the U.S., UK, and Europe [14][15] - Over 5 million new users onboarded in Q2, up 6% year over year, with an improving mix of high intent and commerce-oriented users [16][19] Company Strategy and Development Direction - The company is focusing on AI-driven advancements to lower barriers to digital creation and enhance user experience [5][6] - Vibe coding is recognized as a future growth driver, with the acquisition of Base44 expected to unlock new markets and audiences [9][10] - The company aims to combine intuitive visual editing with flexible vibe coding to lead in the next era of online creation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term growth by delivering essential tools for users to adapt and succeed [21] - Positive demand trends are expected to continue, with new user cohort bookings growing more than 20% exiting July compared to the previous year [20][28] - The company raised its full-year bookings outlook to $2.04 billion to $2.075 billion, reflecting strong new cohort behavior and contributions from Base44 [26][27] Other Important Information - The company repurchased approximately 646,000 shares for nearly $100 million, demonstrating commitment to returning value to shareholders [25] - Non-GAAP total gross margin is expected to be approximately 69% for the full year, with operating expenses around 49% of revenue [29][30] Q&A Session Summary Question: Insights on Vibe Coding and Base44 - Management views vibe coding as complementary to the core Wix drag-and-drop editor, emphasizing its potential for application building while maintaining visual editing capabilities [32][34] Question: Contribution of Base44 to Bookings - Base44 has some contribution to the bookings raise, but the majority comes from the strength of new cohorts [42][43] Question: Confidence in Sustained Strength - Confidence stems from favorable trends observed in Q2 and early Q3, driven by brand strength and increased demand [48][49] Question: Pricing Strategy Impact - Recent pricing changes were limited and part of the original plan, with no significant impact on retention or future pricing strategies [50][90] Question: Future Capital Allocation Plans - The company plans to repay convertible debt with cash on hand, with future capital needs to be assessed as necessary [82]

Financial Data and Key Metrics Changes - Total bookings grew to $510 million in Q2 2025, up 11% year over year, driven by stronger new user cohorts and deeper adoption of AI offerings [24] - Total revenue increased to $490 million, reflecting a 12% year over year growth, exceeding the high end of guidance [24] - Non-GAAP gross margin in Q2 was 70%, up from 69% in Q1, indicating productivity benefits from AI solutions [25] - Non-GAAP operating income was $110 million, or 22% of revenue, up from 21% in Q1 [26] - Free cash flow for Q2 was $148 million, representing 30% of revenue [26] Business Line Data and Key Metrics Changes - Partners revenue grew 24% year over year to $183 million, driven by adoption in the professional audience segment [24] - Transaction revenue increased by 18% year over year to $64 million, supported by 11% growth in Gross Payment Volume (GPV) [25] - GPV reached $3.6 billion, with partners contributing nearly 55% of total GPV [25] Market Data and Key Metrics Changes - New user cohort bookings grew 14% over the previous year's cohort in its first quarter, with notable strength in the U.S., UK, and Europe [13][14] - Over 5 million new users onboarded in Q2, a 6% increase year over year, with a mix of high intent and commerce-oriented users [15] Company Strategy and Development Direction - The company is focusing on AI-driven advancements to lower barriers to digital creation, positioning itself to thrive in the evolving online landscape [4][5] - The acquisition of Base44 is aimed at unlocking new markets and enhancing the company's capabilities in Vibe coding, which is expected to be a major growth driver in 2026 and beyond [7][8] - The strategy includes combining intuitive visual editing with flexible Vibe coding to cater to a broader range of users [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive long-term growth through essential tools that help users adapt and succeed [21] - Positive demand trends have continued into early Q3, with new user cohort bookings growing over 20% compared to the previous year [20] - The company raised its full-year bookings outlook to $2.04 billion to $2.075 billion, reflecting an expected growth of 11% to 13% year over year [27] Other Important Information - The company began executing a $400 million share repurchase authorization, repurchasing approximately 646,000 shares for nearly $100 million [26] - Non-GAAP total gross margin is expected to be approximately 69% for the full year, with operating expenses around 49% of revenue [30] Q&A Session Summary Question: Insights on Vibe coding and Base44 - Management views Vibe coding as complementary to the core Wix drag-and-drop editor, emphasizing that both will coexist and serve different user needs [34][35] Question: Contribution of Base44 to bookings - Base44's contribution is acknowledged, but the majority of the bookings guidance raise is attributed to the strength of new cohorts [42][43] Question: Customer retention and pricing strategy - Stronger than expected retention dynamics are noted, with limited impact from recent pricing changes [90]

Revenue Performance - Total revenue for Q2 2025 was $489.9 million, representing a 12% year-over-year increase[8]. - Creative Subscriptions revenue in Q2 2025 was $345.5 million, up 11% year-over-year, with ARR increasing to $1.407 billion, a 10% year-over-year growth[8]. - Business Solutions revenue in Q2 2025 was $144.5 million, reflecting a 17% year-over-year increase, with transaction revenue at $63.6 million, up 18% year-over-year[8]. - Total revenues for the first half of 2025 amounted to $963,581,000, a rise from $855,522,000 in the same period of 2024, reflecting a growth of 12.6%[26]. - Total revenues for Q2 2025 reached $489,930,000, compared to $435,746,000 in Q2 2024, marking a 12% year-over-year growth[34]. Profitability Metrics - Gross profit for Q2 2025 was $336,590,000, compared to $294,072,000 in Q2 2024, indicating a year-over-year increase of 14.4%[26]. - Operating income for the first half of 2025 was $81,711,000, significantly higher than $38,275,000 in the first half of 2024, showing a growth of 113.5%[26]. - Net income for Q2 2025 was $57,703,000, up from $39,518,000 in Q2 2024, which is an increase of 45.9%[26]. - Basic net income per share for Q2 2025 was $1.03, compared to $0.71 in Q2 2024, reflecting a growth of 45.1%[26]. - Non-GAAP gross profit for the same period was $340,893,000, reflecting a non-GAAP gross margin of 70%, up from 68% year-over-year[43]. - Operating income for the three months ended June 30, 2025, was $44,306,000, compared to $28,605,000 in the prior year, representing a growth of 55%[44]. - Non-GAAP operating income increased to $110,153,000 for the three months ended June 30, 2025, with a non-GAAP operating margin of 22%, up from 21% in 2024[44]. - Net income for the three months ended June 30, 2025, was $57,703,000, a 46% increase from $39,518,000 in the same quarter of 2024[46]. - Non-GAAP net income for the three months ended June 30, 2025, reached $136,247,000, compared to $99,617,000 in the prior year, marking a 37% increase[46]. Cash Flow and Financial Outlook - Free cash flow for 2025 is projected to be $595 - $610 million, or 30-31% of revenue[13]. - Free Cash Flow for Q2 2025 was $147,665,000, compared to $112,834,000 in Q2 2024, showing a 31% increase[34]. - Full year bookings outlook has been raised to $2,040 - $2,075 million, indicating an 11-13% year-over-year growth[11]. - Full year revenue outlook updated to $1,975 - $2,000 million, reflecting a 12-14% year-over-year growth[12]. Employee and Operational Metrics - Total employee count at the end of Q2 2025 was 5,326[8]. - The company reported a year-over-year growth of 10% in bookings excluding foreign exchange impact for Q2 2025[39]. - The acquisition of Base44 is expected to drive ARR from a few million in June to $40 to $50 million by the end of 2025, aiming for a $100 million ARR milestone[4]. Balance Sheet Highlights - Total assets as of June 30, 2025, were $1,996,037,000, an increase from $1,913,042,000 as of December 31, 2024[28]. - Total liabilities increased to $2,113,700,000 as of June 30, 2025, compared to $1,991,828,000 at the end of 2024[29]. - The company reported a deferred revenue of $715,705,000 as of June 30, 2025, up from $661,171,000 at the end of 2024, indicating a growth of 8.2%[28]. - The increase in liabilities for the six months ended June 30, 2025, was $77,323,000, compared to $14,024,000 in the previous year[31]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $704,142,000, compared to $276,067,000 at the end of Q2 2024[32]. - Net cash used in investing activities was $14,119,000 for the six months ended June 30, 2025, compared to $132,302,000 for the same period in 2024[32].

Financial Performance - Total revenue for Q2 2025 reached $489.93 million, reflecting a 12% year-over-year increase[66] - Creative Subscriptions Annualized Recurring Revenue (ARR) stood at approximately $1.4 billion as of June 30, 2025, a 10% increase year-over-year[11, 24] - Total bookings for Q2 2025 amounted to $509.92 million, representing an 11% year-over-year growth[66] - The company anticipates generating a free cash flow (FCF) margin of 30-31% in 2025[58] - Non-GAAP gross margin was 70% in Q2 2025[67] Business Segments - Partners revenue for Q2 2025 was $183.32 million, a 24% increase year-over-year[11, 73] - Transaction revenue for Q2 2025 reached $63.55 million, an 18% increase year-over-year[11, 73] User Cohorts and Marketing - New cohort bookings growth accelerated to 14% in Q2 2025 over the Q2 2024 cohort[36] - The company estimates approximately $18.4 billion in expected future bookings over the next 10 years from existing cohorts[45] Geographic Reach - Approximately 40% of the company's revenue comes from outside North America[11] Acquisition - Wix acquired Base44 in June 2025, which is projected to generate $40-$50 million of ARR by the end of 2025[17]

Core Insights - Wix.com Ltd. reported strong financial results for Q2 2025, with total revenue of $489.9 million, representing a 12% year-over-year increase [6][8] - The company is experiencing significant growth in new cohort bookings, which grew 14% year-over-year, with early Q3 bookings showing over 20% growth year-over-year [5][8] - The acquisition of Base44 is expected to significantly enhance Wix's total addressable market, particularly in application development, with projected annual recurring revenue (ARR) growth from a few million to $40-50 million by the end of 2025 [3][5] Financial Performance - Total revenue for Q2 2025 was $489.9 million, up 12% year-over-year, with Creative Subscriptions revenue at $345.5 million (up 11% year-over-year) and Business Solutions revenue at $144.5 million (up 17% year-over-year) [6][8] - Non-GAAP net income for Q2 2025 was $136.2 million, or $2.44 per basic share, compared to $1.03 per basic share for GAAP net income [10][9] - Free cash flow for Q2 2025 was $147.7 million, with total bookings reaching $509.9 million, an 11% increase year-over-year [6][10] Growth Outlook - The company raised its full-year bookings outlook to $2,040 - $2,075 million, reflecting an expected growth of 11-13% year-over-year, driven by strong new cohort performance and contributions from Base44 [8][9] - Wix anticipates total revenue for Q3 2025 to be between $498 - $504 million, representing a 12-13% year-over-year increase [9] - The company expects to generate free cash flow of $595 - $610 million in 2025, which would be approximately 30-31% of revenue [12] Strategic Initiatives - The ongoing demand for AI-powered online creation is driving Wix's growth, with the company focusing on expanding into new markets enabled by AI technologies [2][3] - The acquisition of Base44 is seen as a strategic move to enhance Wix's capabilities in application development and to attract new audiences [3][5] - Wix's business fundamentals are improving, with better conversion rates across key markets and increased monetization from recently launched AI tools [5][8]

Core Insights - Wix.com Ltd. has launched Wix Checking and Wix Capital to enhance cash flow management for small businesses, enabling growth directly from the Wix platform [1][9] Group 1: Wix Checking - Wix Checking provides a fully integrated business checking account at no extra cost for eligible users, utilizing Unit's embedded finance technology [2] - Users gain real-time visibility into revenue and expenses, allowing for quicker and more informed decision-making [2] - The service includes instant access to sales earnings, seamless synchronization with Wix Payments, and a Wix Visa business debit card for direct spending [2][9] Group 2: Wix Capital - Wix Capital is a Merchant Cash Advance solution that helps businesses overcome funding barriers without the lengthy approval processes typical of traditional bank loans [3] - Users can request advances on future sales by paying a fixed fee and agreeing to a percentage of revenue repayment, facilitating quick access to funds for essential business needs [3][9] Group 3: Service Availability and Security - Currently, Wix Checking and Wix Capital are available to a select group of U.S.-based users utilizing Wix Payments, with plans for broader rollout [4] - These services are provided through Lincoln Savings Bank, ensuring a regulated and secure financial experience for users [4] Group 4: Strategic Investments and Partnerships - Wix is focusing on strategic investments in AI offerings and has released AI Visibility Overview to enhance digital discovery for brands [5] - The company has expanded its partnership with PayPal to improve Wix Payments, allowing merchants to manage transactions from a unified dashboard [6] Group 5: Stock Performance - Wix currently holds a Zacks Rank 3 (Hold) and has seen its shares decline by 16.3% over the past year, compared to a 1.7% decline in the Computers - IT Services industry [7]

Core Insights - Wix has launched a suite of financial services, including Wix Checking and Wix Capital, aimed at helping small to medium-sized businesses manage cash flow and fund growth [2][3]. Group 1: Wix Financial Services - Wix Checking offers a business checking account integrated within the Wix platform at no extra cost, utilizing Unit's embedded finance solution [2]. - The checking tool syncs automatically with Wix Payments, eliminating the need for external banking tools and manual reconciliations, thereby saving time and reducing errors [2]. - Wix Capital is a merchant cash advance service designed to assist businesses in securing funding when traditional banks are not an option [3]. Group 2: Challenges for SMBs - Financial institutions have historically struggled to serve small to medium-sized businesses (SMBs) due to their varied business models, cash flow patterns, and credit profiles [4]. - Many SMBs lack dedicated finance teams or the volume to justify custom solutions, placing them in a challenging position between retail and corporate financing [4]. - Research indicates that 20% of SMBs without access to financing are concerned about their survival amid ongoing cost increases driven by tariffs [4][5]. Group 3: Access to Financing - Only 44% of SMBs have access to external financing, such as bank loans or lines of credit, while 56% rely on operational cash flow or personal capital for daily operations [6]. - This disparity in access to financing is particularly concerning in light of current macroeconomic trends [6].

Core Insights - Wix.com Ltd. is set to release its second-quarter 2025 results on August 6, with expected revenues between $485 million and $489 million, reflecting an 11-12% growth year-over-year [1] - The Zacks Consensus Estimate for earnings is $1.75 per share, indicating a 4.79% increase from the previous year [2] - Wix's stock has decreased by 13.9% over the past year, contrasting with a 1.2% loss in the Zacks Computers - IT Services industry [2] Revenue and Growth Drivers - Revenue growth is anticipated from improved operational efficiency, AI product rollouts, and a diversified geographic footprint [3] - The adoption of Wix Studio and enterprise tools is identified as a key growth driver [3] - Creative Subscriptions and Business Solutions segments are projected to generate revenues of $345.4 million and $142 million, respectively [11] AI Integration and Strategic Acquisitions - Wix has launched Wixel, an AI-driven visual design platform, enhancing content creation capabilities [4][8] - The acquisition of Hour One and Base44 strengthens Wix's position in generative AI and no-code application development [5][6][8] - These acquisitions aim to expand Wix's offerings beyond web design into broader digital creation [5] User Growth and Payment Solutions - The number of registered users utilizing Wix Payments has grown, with nearly 5.3 million new user additions, a 7% year-over-year increase [9] - Wix has expanded its partnership with PayPal to enhance payment options for U.S. merchants [12] - A partnership with Alibaba.com aims to empower small businesses and enhance global reach [14] Recent Developments - Wix introduced the AI Visibility Overview tool to align websites with large language models, enhancing digital discovery [13] - The company continues to invest in technology enhancements and strategic expansions, although this may impact margins [11]

Core Insights - Analysts expect Wix.com (WIX) to report quarterly earnings of $1.75 per share, reflecting a year-over-year increase of 4.8% [1] - Projected revenues for the quarter are $487.58 million, which represents an 11.9% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Revenues - Business Solutions' are projected to reach $141.98 million, indicating a year-over-year change of +14.9% [4] - 'Revenues - Creative Subscriptions' are estimated at $345.42 million, suggesting a +10.7% year-over-year change [4] - Total Bookings are expected to reach $506.41 million, compared to $458.40 million reported in the same quarter last year [4] Annual Recurring Revenue (ARR) and Bookings - The consensus estimate for 'Creative Subscriptions ARR' is $1.41 billion, up from $1.28 billion a year ago [5] - 'Total Bookings - Business Solutions' is expected to be $147.18 million, compared to $129.43 million in the same quarter of the previous year [5] Gross Profit Estimates - 'Total Bookings - Creative Subscriptions' is projected at $360.40 million, compared to $328.97 million from the previous year [6] - 'Non-GAAP Gross Profit - Business Solutions' is estimated at $44.88 million, up from $36.65 million in the same quarter last year [6] - 'Non-GAAP Gross Profit - Creative Subscriptions' is expected to reach $292.55 million, compared to $261.61 million reported in the same quarter last year [7] Stock Performance - Wix.com shares have shown a return of -21.5% over the past month, while the Zacks S&P 500 composite has increased by +0.6% [7] - The company holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [7]