Wix Reports Second Quarter 2025 Results

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]