Core Viewpoint - Wix.com has shown strong performance in its recent earnings report, exceeding expectations in both earnings and revenue, driven by the growth of its Base44 platform and overall strong demand for its services [2][3][4]. Financial Performance - Wix reported non-GAAP EPS of $1.68 for Q3 2025, surpassing the Zacks Consensus Estimate of 39 cents and up from $1.50 in the same quarter last year [2]. - Quarterly revenues increased by 14% year over year to $505.2 million, exceeding the Zacks Consensus Estimate of $502.65 million and management's guidance of $498-$504 million [3]. - Creative Subscriptions revenues, which account for 70.5% of total revenues, rose 12% year over year to $356.2 million, while Business Solutions revenues increased by 18% to $149 million [5]. Growth Drivers - Base44 has emerged as a significant growth driver, with its market share increasing from low single digits to over 10% since June, and it is projected to reach at least $50 million in ARR by year-end [4]. - 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]. Regional Performance - Partner revenues in Q3 were $192.1 million, reflecting a 24% year-over-year increase, with North America contributing 61% to total revenues [7]. Operating Metrics - Non-GAAP gross margin remained flat at 69%, with Creative Subscriptions achieving a margin of 84% and Business Solutions at 34% [8]. - Non-GAAP operating income was reported at $89.9 million, slightly up from $88.4 million in the previous year [8]. Balance Sheet and Cash Flow - As of September 30, 2025, Wix had cash and cash equivalents of $889.6 million, an increase from $693 million as of June 30, 2025 [9]. - Free cash flow for the quarter was $127.3 million, with capital expenditures totaling $1.4 million [10]. 2025 Outlook - Wix revised its 2025 bookings outlook to $2,060–2,078 million, an increase from previous projections, primarily due to Base44's outperformance [11]. - The full-year revenue outlook was adjusted to $1,990–2,000 million, reflecting a shift towards multi-year plans that enhance long-term stability [12]. - The company expects a non-GAAP gross margin of 68–69% for 2025, slightly lower due to increased AI costs [13]. Q4 2025 Guidance - Management anticipates Q4 2025 revenues to be between $521 million and $531 million, indicating a year-over-year increase of 13–15% [15]. Industry Context - Wix.com operates within the Zacks Computers - IT Services industry, where competitors like Amdocs have shown varied performance, with Amdocs reporting a revenue decline of 9% year over year [19].

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]