Wix Reports Third Quarter 2025 Results

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]