Company Overview - Wix.com Ltd. is a leading global platform for creating, managing, and growing a complete digital presence, founded in 2006 [2] - The platform empowers millions of users, including self-creators, agencies, and enterprises, with industry-leading infrastructure, performance, and security [2] - Wix combines advanced AI, flexible design, and robust business and commerce solutions to help users build stronger brands and scale their businesses online [2] Upcoming Event - Wix management will participate in a fireside chat at Citi's 2025 Global TMT Conference on September 3rd at 2:50 p.m. ET [1] - The event will be available via live audio webcast and archived replay on Wix's investor relations website [1]

Core Insights - A significant rotation has occurred during the Q2 earnings season, with a shift from small and mid-cap stocks to large-cap tech stocks, despite the S&P 500 remaining near all-time highs [1] Group 1: Market Performance - The S&P 500 has been supported by strong performance from large-cap technology stocks [1] - There has been a notable outflow from small and mid-cap stocks during this period [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications [1]

Core Viewpoint - Wix.com Ltd. has authorized an increase in its securities repurchase program by an additional $200 million, bringing the total potential repurchase amount to $500 million, subject to legal and market conditions [1][2]. Group 1: Repurchase Program Details - The repurchase program now totals up to $500 million, which includes a previously authorized $400 million, of which $100 million has already been utilized [1]. - Since the beginning of 2025, the company has repurchased $300 million of its ordinary shares [1]. - The repurchase may occur through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws [2]. Group 2: Conditions and Factors Influencing Repurchase - The initiation of the $200 million increase in the repurchase program is contingent upon satisfying Israeli law requirements and a 30-day period for creditors to object [2]. - The actual timing, number, and value of securities repurchased will depend on factors such as market price, capital availability, economic conditions, and the company's financial results [2]. Group 3: Company Overview - Wix is a leading global platform for creating and managing digital presences, founded in 2006, serving millions of users including self-creators and enterprises [3]. - The platform combines advanced AI, flexible design, and robust business solutions to help users build brands and scale their businesses online [3].

Group 1 - The impact of artificial intelligence (AI) on the U.S. financial market is significant, with companies like Nvidia (NVDA.US) reaching a market capitalization of nearly $4.5 trillion, while startups like OpenAI and Anthropic have raised billions [1] - Investors are increasingly concerned about the potential disruption caused by AI, leading to sell-offs in stocks of companies expected to see declining demand due to AI advancements, including Wix.com (WIX.US), Shutterstock (SSTK.US), and Adobe (ADBE.US) [1][5] - Since mid-May, the performance of the group of companies identified as most at risk from AI has lagged the S&P 500 index by approximately 22 percentage points [1] Group 2 - Daniel Newman, CEO of Futurum Group, indicated that the anticipated impact of AI on service-oriented industries may occur sooner than expected, potentially within two years instead of five [2] - Major tech companies like Microsoft (MSFT.US) and Meta (META.US) are investing hundreds of billions into AI research, causing investors to adopt a more cautious stance [5] - By 2025, Wix.com and Shutterstock's stock prices are projected to drop by at least 33%, while Adobe's stock is expected to decline by 23% due to fears of clients shifting to AI-generated content [5] Group 3 - Investor sentiment is turning negative as AI changes how information is accessed and how businesses operate, with even leading tech firms like Microsoft reducing jobs to allocate more resources for AI investments [6] - Gartner Inc. recently lowered its revenue forecasts, resulting in a 30% drop in its stock price, highlighting the market's concerns about AI's disruptive potential [6][9] - Historical precedents exist where new technologies have replaced old industries, raising fears that many companies may become obsolete due to AI [9] Group 4 - The current market dynamics show that AI is a dominant factor in determining stock winners and losers, contrasting with earlier concerns about competition from low-cost AI models in China [10] - Major companies like Microsoft, Meta, Alphabet, and Amazon are expected to invest approximately $350 billion in capital expenditures this fiscal year, a nearly 50% increase from the previous year, primarily for AI infrastructure [10] - Google is seen as well-positioned in the AI landscape, yet it is also included in the basket of companies assessed for AI risk, indicating ongoing concerns about its stock performance [10] Group 5 - Companies in the advertising sector, such as Omnicom Group, are facing significant challenges, with Omnicom's stock down 15% due to competition from AI-driven advertising solutions [11] - WPP, a competitor, has seen its stock price drop over 50%, reflecting the pressure on traditional advertising models from AI advancements [11][12] - Analysts predict that the investment theme surrounding AI risks will continue to gain traction as many companies face potential threats from AI technologies [12]

Group 1 - Wix.com Ltd. reported second-quarter adjusted EPS of $2.28 and revenue of $489.93 million, exceeding analyst expectations [1] - The quarterly revenue grew 12% year-over-year, surpassing the analyst consensus estimate of $487.47 million [1] - The company expressed confidence in accelerating growth for the remainder of 2025, supported by a stable macroeconomic environment and strong momentum in its core business [2] Group 2 - Wix.com revised its fiscal 2025 revenue outlook to a range of $1.975 billion to $2.000 billion, slightly adjusted from the previous range [3] - The company expects third-quarter fiscal 2025 revenue between $498.00 million and $504.00 million, aligning closely with the analyst consensus estimate of $502.33 million [3] - Following the earnings announcement, Wix.com shares increased by 6.5% to $136.79 [3] Group 3 - Analysts adjusted their price targets for Wix.com after the earnings announcement, with most lowering their targets significantly [4][6] - Needham and Raymond James analysts maintained a Buy rating but reduced their price targets from $250 to $200 [6] - Scotiabank raised its price target from $250 to $255 while maintaining a Sector Outperform rating [6]

Group 1 - The company aims to invest in firms with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy involves managing a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles on selected companies approximately three times a week, including extensive quarterly follow-ups and constant updates [1] Group 2 - The company may rate high-quality firms as 'Hold' if their growth opportunities do not meet the desired threshold or if the downside risk is considered too high [1]

Core Insights - Wix.com Ltd (WIX) reported non-GAAP EPS of $2.28 for Q2 2025, exceeding the Zacks Consensus Estimate of $1.75 and up from $1.67 in the same quarter last year [1] - Quarterly revenues rose 12% year over year to $489.9 million, surpassing the Zacks Consensus Estimate of $487.5 million and management's guidance of $485-$489 million [1][8] Financial Performance - Creative Subscriptions revenues, accounting for 70.5% of total revenues, increased 11% year over year to $345.5 million, while Business Solutions revenues rose 17% to $144.5 million [5] - Annualized recurring revenues for Creative Subscriptions reached $1.41 billion, up 10% year over year, with total bookings jumping 11% to $509.9 million [5] - Non-GAAP gross margin improved to 70% from 68% in the prior year, with Creative Subscriptions achieving a margin of 85% and Business Solutions at 33% [9] Strategic Developments - The acquisition of Base44 allows Wix to enter the application development market, targeting an ARR growth from a few million in June to $40–$50 million by the end of 2025, aiming for a $100 million ARR milestone [3] - The company raised its 2025 revenue guidance to a range of $1.975-$2 billion, reflecting a growth expectation of 12-14% [11] Market Reaction - Following the announcement of strong earnings and the Base44 acquisition, Wix's shares surged approximately 10% in pre-market trading on August 6, 2025 [4] - Over the past year, WIX's shares have increased by 18.1%, contrasting with a 3.1% decline in the Zacks Computer-IT Services sector [4] Cash Flow and Balance Sheet - As of June 30, 2025, Wix had cash and cash equivalents of $693 million, up from $653.3 million at the end of Q1 2025, with cash flow from operations amounting to $150.3 million [10] - Free cash flow for the quarter was reported at $147.7 million, and the company repurchased $100 million worth of shares [10]

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]