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]

Core Insights - Wix.com Ltd. has launched Wix Checking and Wix Capital to enhance cash flow management for small businesses, enabling growth directly from the Wix platform [1][9] Group 1: Wix Checking - Wix Checking provides a fully integrated business checking account at no extra cost for eligible users, utilizing Unit's embedded finance technology [2] - Users gain real-time visibility into revenue and expenses, allowing for quicker and more informed decision-making [2] - The service includes instant access to sales earnings, seamless synchronization with Wix Payments, and a Wix Visa business debit card for direct spending [2][9] Group 2: Wix Capital - Wix Capital is a Merchant Cash Advance solution that helps businesses overcome funding barriers without the lengthy approval processes typical of traditional bank loans [3] - Users can request advances on future sales by paying a fixed fee and agreeing to a percentage of revenue repayment, facilitating quick access to funds for essential business needs [3][9] Group 3: Service Availability and Security - Currently, Wix Checking and Wix Capital are available to a select group of U.S.-based users utilizing Wix Payments, with plans for broader rollout [4] - These services are provided through Lincoln Savings Bank, ensuring a regulated and secure financial experience for users [4] Group 4: Strategic Investments and Partnerships - Wix is focusing on strategic investments in AI offerings and has released AI Visibility Overview to enhance digital discovery for brands [5] - The company has expanded its partnership with PayPal to improve Wix Payments, allowing merchants to manage transactions from a unified dashboard [6] Group 5: Stock Performance - Wix currently holds a Zacks Rank 3 (Hold) and has seen its shares decline by 16.3% over the past year, compared to a 1.7% decline in the Computers - IT Services industry [7]

Core Insights - Wix has launched a suite of financial services, including Wix Checking and Wix Capital, aimed at helping small to medium-sized businesses manage cash flow and fund growth [2][3]. Group 1: Wix Financial Services - Wix Checking offers a business checking account integrated within the Wix platform at no extra cost, utilizing Unit's embedded finance solution [2]. - The checking tool syncs automatically with Wix Payments, eliminating the need for external banking tools and manual reconciliations, thereby saving time and reducing errors [2]. - Wix Capital is a merchant cash advance service designed to assist businesses in securing funding when traditional banks are not an option [3]. Group 2: Challenges for SMBs - Financial institutions have historically struggled to serve small to medium-sized businesses (SMBs) due to their varied business models, cash flow patterns, and credit profiles [4]. - Many SMBs lack dedicated finance teams or the volume to justify custom solutions, placing them in a challenging position between retail and corporate financing [4]. - Research indicates that 20% of SMBs without access to financing are concerned about their survival amid ongoing cost increases driven by tariffs [4][5]. Group 3: Access to Financing - Only 44% of SMBs have access to external financing, such as bank loans or lines of credit, while 56% rely on operational cash flow or personal capital for daily operations [6]. - This disparity in access to financing is particularly concerning in light of current macroeconomic trends [6].

Core Insights - Wix.com Ltd. has launched a new financial services suite, including Wix Checking and Wix Capital, aimed at helping merchants manage cash flow and support business growth [1][4] Group 1: Wix Checking - Wix Checking is an integrated business checking account that provides users with a real-time view of cash flow and business performance, allowing instant access to earnings upon sale completion [2] - The service syncs with Wix Payments, eliminating the need for external banking tools and manual reconciliations, thus saving time and reducing errors [2] - Merchants can use their funds via a Wix Visa® business debit card or transfer to an external bank account, offering flexibility in managing finances [2] Group 2: Wix Capital - Wix Capital is a Merchant Cash Advance (MCA) service designed to help businesses overcome cash flow gaps and access funds quickly [3] - This service allows users to request cash advances in exchange for a fixed fee and a percentage of future sales, providing a faster alternative to traditional bank funding [3] - Wix Capital is built into the Wix platform, enabling users to invest in their business without leaving the tools they already use [3] Group 3: Strategic Commitment - The introduction of Wix Checking and Wix Capital reflects Wix's commitment to supporting small businesses throughout their ownership journey, from daily operations to financial decision-making [4] - These services are currently available to a select group of U.S.-based users utilizing Wix Payments, with plans for gradual rollout to more users [4]