Financial Data and Key Metrics Changes - Total bookings grew to $515 million in Q3 2025, up 14% year-over-year, driven by robust new user cohorts and better-than-expected results from Base44 [15][16] - Total revenue increased to $505 million, also up 14% year-over-year, exceeding the high end of guidance [15][16] - Non-GAAP gross margin in Q3 was 69%, down slightly from 70% in Q2 [18] - Free cash flow was $159 million, or 32% of revenue, an increase from 30% last quarter [20] Business Line Data and Key Metrics Changes - Partners' revenue grew 24% year-over-year to $192 million, driven by traction among professional designers and solid Studio adoption [16] - Transaction revenue was $65 million, up 20% year-over-year, driven by 13% growth in GPV [16] - Base44's share of audience traffic increased from low single digits in June to over 10% in October [11][12] Market Data and Key Metrics Changes - GPV grew 13% year-over-year to $3.7 billion, with partners contributing approximately 55% of total GPV [16] - Base44 serves over 2 million users globally, translating to more than 1,000 new paying subscribers daily [12] Company Strategy and Development Direction - The company aims to democratize software creation through Vibe Coding, enabling users without coding knowledge to build applications [3][5] - Base44 is positioned as a leader among low-code tools, with significant growth potential in the AI-powered app building space [6][11] - The company is focusing on building a comprehensive brand and marketing function for Base44 to capture a larger market share [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the core business and the ability to enter new markets effectively [14] - The company raised its full-year bookings outlook to $2,060-$2,078 million, reflecting strong performance from Base44 [22][23] - Expectations for free cash flow are approximately $600 million for 2025, or 30% of revenue [24] Other Important Information - The company issued $1.15 billion in 0% convertible senior notes due 2030, with plans to use the cash for business purposes and potential M&A opportunities [22] - The anticipated launch of a new flagship product has been delayed to early 2026 due to technical challenges [7][70] Q&A Session Summary Question: Dynamics of monthly vs. annual subscriptions for Base44 - Management noted that most Base44 users are on monthly subscriptions, with expectations that as trust builds, more users will transition to annual plans [26][27] Question: Churn rates and subscription dynamics - Churn is currently higher than Wix's standard, but management is optimistic about future retention as the product matures [27][28] Question: Pathway to improving Base44 margins - Management indicated that as Base44 matures, margins are expected to improve, with a focus on reducing AI costs and optimizing the customer mix [49][53] Question: Impact of hyper-growth on margins - Management acknowledged that while there will be short-term margin pressure due to high growth, they expect margins to improve as the business scales [56][66] Question: Delays in the new self-creator tool - The delay is attributed to fine-tuning technology and addressing technical challenges, with a confident outlook for a launch in early 2026 [70] Question: Retention trends for Base44 cohorts - Early retention trends for Base44 are similar to those seen in Wix's early days, with expectations for improvement as brand visibility increases [43][44]

Core Insights - Wix.com Ltd reported non-GAAP earnings per share (EPS) of $1.68 for Q3 2025, significantly exceeding the Zacks Consensus Estimate of 39 cents and up from $1.50 in the same quarter last year [1] - Quarterly revenues increased by 14% year over year to $505.2 million, surpassing the Zacks Consensus Estimate of $502.65 million and management's guidance of $498-$504 million [2] Revenue Breakdown - Creative Subscriptions, accounting for 70.5% of total revenues, saw a 12% year-over-year increase to $356.2 million, with annualized recurring revenues reaching $1.5 billion, up 11% year over year [5] - Business Solutions revenues rose by 18% to $149 million, with transaction revenues totaling $65.3 million, up 20% [5] - Partner revenues increased by 24% year over year to $192.1 million, with regional contributions from North America (61%), Europe (25%), Asia and others (11%), and Latin America (4%) [7] Growth Drivers - Base44 emerged as a key growth engine, increasing market share from low single digits to over 10% since June, with expectations to reach at least $50 million in annual recurring revenue (ARR) by year-end [3][9] - Bookings improved by 14% year over year to $514.5 million, with Creative Subscriptions bookings increasing by 12% and Business Solutions bookings rising by 20% [6] Financial Performance - Non-GAAP gross margin remained flat at 69%, with Creative Subscriptions achieving a margin of 84% and Business Solutions at 34% [10] - Non-GAAP operating income was reported at $89.9 million, compared to $88.4 million in the previous year [10] Cash Flow and Balance Sheet - As of September 30, 2025, Wix had cash and cash equivalents of $889.6 million, up from $693 million as of June 30, 2025 [11] - Free cash flow was reported at $127.3 million, with capital expenditures totaling $1.4 million [11] 2025 Outlook - Wix revised its 2025 bookings outlook to $2,060–2,078 million, an increase of 13–14% from previous projections [12] - The full-year revenue outlook was adjusted to $1,990–2,000 million, reflecting a similar increase driven by multi-year plan adoption [13] - Non-GAAP gross margin expectations were slightly lowered to 68–69% due to increased AI costs, with operating expenses projected to be about 50% of full-year revenue [14] Q4 2025 Guidance - Management anticipates total revenues for Q4 2025 to be between $521 million and $531 million, indicating a year-over-year increase of 13–15% [16]

Company Overview Third Quarter 2025 1 Safe Harbor Forward Looking Statements This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like "anticipate," "assume," "believe," "aim," "fore ...

Core Insights - Wix.com reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, and showing an increase from $1.5 per share a year ago, resulting in an earnings surprise of +15.86% [1] - The company generated revenues of $505.19 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.51% and up from $444.67 million year-over-year [2] - Wix.com has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Future Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.57 on revenues of $524.39 million, while for the current fiscal year, the estimate is $6.74 on revenues of $1.99 billion [7] - The Zacks Rank for Wix.com is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Wix.com belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 Wix Reports Third Quarter 2025 Results NEW YORK – November 19, 2025 -- Wix.com Ltd. (Nasdaq: WIX) (the "Company"), a leading global platform for creating, managing, and growing a complete digital presence, today reported financial results for the third quarter of 2025. In addition, the Company provided its outlook for the fourth quarter and an updated outlook for full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q3'25 Shareholder Update and ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Sigma Lithium Corporation (SGML) is up 31% at $10.21 [3] - Safe & Green Holdings Corp. (SGBX) is up 22% at $4.17 [3] - VCI Global Limited (VCIG) is up 15% at $1.18 [3] - Vera Bradley, Inc. (VRA) is up 13% at $3.27 [3] - TMC the metals company Inc. (TMC) is up 8% at $5.88 [3] - DDC Enterprise Limited (DDC) is up 6% at $4.74 [3] - Relmada Therapeutics, Inc. (RLMD) is up 6% at $4.55 [3] - Tonix Pharmaceuticals Holding Corp. (TNXP) is up 5% at $17.18 [3] - Viewbix Inc. (VBIX) is up 5% at $2.10 [3] - Penguin Solutions, Inc. (PENG) is up 4% at $18.98 [3] Premarket Losers - Aimei Health Technology Co., Ltd (AFJK) is down 10% at $9.40 [4] - Gauzy Ltd. (GAUZ) is down 8% at $2.15 [4] - Wix.com Ltd. (WIX) is down 7% at $116.87 [4] - Diginex Limited (DGNX) is down 7% at $14.99 [4] - Okeanis Eco Tankers Corp. (ECO) is down 6% at $36.85 [4] - Olema Pharmaceuticals, Inc. (OLMA) is down 6% at $18.89 [4] - KULR Technology Group, Inc. (KULR) is down 6% at $2.52 [4] - Movano Inc. (MOVE) is down 5% at $10.54 [4] - Core AI Holdings (CHAI) is down 4% at $2.16 [4] - ARB IOT Group Limited (ARBB) is down 3% at $5.74 [4]

Core Insights - Wix's stock price has fallen into a bear market, declining over 48% from its peak this year due to concerns regarding its growth and increasing competition [1] Company Summary - The significant drop in Wix's stock price indicates a loss of investor confidence, primarily driven by worries about the company's growth trajectory [1] - The emergence of new competitors in the market is contributing to the challenges faced by Wix, further exacerbating the decline in its stock value [1]

Core Insights - Wix.com Ltd. reported a 14% year-over-year growth in total bookings and revenue for Q3 2025, driven by strong performance in Creative Subscriptions and Business Solutions [4][5][9] - The company is optimistic about its future growth, particularly with the introduction of Base44, an AI-driven platform that is expected to significantly contribute to revenue in 2026 and beyond [2][4][11] Financial Performance - Total revenue for Q3 2025 was $505.2 million, reflecting a 14% increase compared to the same quarter last year [5][22] - Creative Subscriptions revenue reached $356.2 million, up 12% year-over-year, while Business Solutions revenue increased by 18% to $149.0 million [5][22] - Total bookings for Q3 2025 were $514.5 million, also up 14% year-over-year [5][29] Key Metrics - Creative Subscriptions Annualized Recurring Revenue (ARR) increased to $1.457 billion, marking an 11% year-over-year growth [5][19] - The company achieved a total gross margin of 68% on a GAAP basis, with Creative Subscriptions gross margin at 83% [5][22] - Non-GAAP net income for Q3 2025 was $100.2 million, translating to $1.80 per basic share [5][22] Strategic Outlook - Wix raised its full-year bookings outlook to between $2,060 million and $2,078 million, reflecting a growth expectation of 13-14% year-over-year [9][10] - The revenue outlook for the full year has also been updated to $1,990 million to $2,000 million, indicating a similar growth rate [10][11] - The company plans to accelerate marketing investments in Base44 to capture stronger-than-anticipated demand [9][11] Market Position - Wix's market share has grown from low-single digits to over 10% since June 2025, indicating a strong competitive position in the AI application builder market [2][4] - Base44 has quickly gained traction, serving over 2 million users and adding more than 1,000 new paying subscribers daily [4][5]

Core Insights - No Street GP LP has established a new position in Wix.com valued at approximately $97.7 million, representing 6.4% of the fund's U.S. equity holdings as of September 30 [2][6]. Company Overview - Wix.com Ltd. is a leading provider of cloud-based website development and business management solutions, leveraging a scalable subscription model and diversified product suite to capture recurring revenue [5]. - As of the latest market close, Wix's share price is $125.29, with a market capitalization of $7 billion, trailing twelve months (TTM) revenue of $1.9 billion, and TTM net income of $166.3 million [4]. Recent Performance - Wix's second-quarter revenue increased by 12% to $489.9 million, driven by a 14% year-over-year growth in new-cohort bookings [7]. - The company achieved free cash flow of $147.7 million and executed $100 million in share repurchases at an average price of $154.69 [7]. Investment Dynamics - The investment in Wix comes as the stock has declined over 60% since its 2021 highs, indicating a potential recovery phase as the company shows improving cohorts and durable cash flow [6][9]. - The acquisition of Base44 is expected to expand Wix's reach into application development, with management anticipating annual recurring revenue (ARR) from this segment to reach $40 million to $50 million by year-end [7].

Core Insights - Analysts forecast Wix.com (WIX) to report quarterly earnings of $1.45 per share, reflecting a year-over-year decline of 3.3% and revenues of $502.65 million, which is a 13% increase compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1] Revenue Estimates - 'Revenues - Business Solutions' are expected to reach $147.14 million, indicating a year-over-year increase of 16.9% [4] - 'Revenues - Creative Subscriptions' are projected at $355.56 million, reflecting an 11.5% increase from the year-ago quarter [4] Total Bookings - Analysts estimate 'Total Bookings' to be $509.25 million, up from $449.78 million reported in the same quarter last year [4] - 'Total Bookings - Business Solutions' is expected to be $148.91 million, compared to $123.14 million in the same quarter last year [5] - 'Total Bookings - Creative Subscriptions' is projected at $361.59 million, up from $326.64 million reported in the same quarter last year [6] User Metrics - The number of registered users at period end is expected to reach 303.94 million, up from 278.00 million in the same quarter last year [6] Gross Profit Estimates - 'Non-GAAP Gross Profit - Business Solutions' is projected to be $47.21 million, compared to $38.41 million in the same quarter last year [7] - 'Non-GAAP Gross Profit - Creative Subscriptions' is expected to reach $302.24 million, up from $268.48 million reported in the same quarter last year [7] Stock Performance - Wix.com shares have experienced a decline of 4.2% in the past month, contrasting with a 1.4% increase in the Zacks S&P 500 composite [7]