Core Insights - Wix.com Ltd. is experiencing strong business fundamentals despite a significant decline in stock price, with cash flow and growth metrics indicating a healthy operational performance [1][11][12] Company Overview - Wix.com Ltd. is a leading provider of cloud-based website development and business management solutions, serving hundreds of millions of registered users globally [6] - The company operates on a scalable, subscription-driven business model, offering a comprehensive suite of tools for users to build and manage their online presence [6] Financial Performance - In the third quarter, Wix reported a revenue increase of 14% year-over-year, reaching $505 million, with bookings growing at the same rate [11] - Free cash flow for the quarter was $127 million, approximately 25% of revenue, and could have exceeded $159 million excluding certain costs [11] - Annual Recurring Revenue (ARR) from Creative Subscriptions rose to $1.46 billion, while Business Solutions revenue increased by 18% [11] Investment Activity - Elwood Capital Partners increased its stake in Wix by acquiring 17,710 shares, bringing its total holding to 40,033 shares valued at $7.11 million as of September 30 [2][3] - The new position represents 4.34% of Elwood Capital's assets under management [3] Market Context - As of the latest data, Wix shares were priced at $105.43, reflecting a 53% decline over the past year, significantly underperforming the S&P 500, which rose by 15% during the same period [3] - The stock has decreased approximately 70% from its 2021 highs, indicating a disconnect between market sentiment and the company's underlying fundamentals [12] Future Outlook - Management anticipates that the AI-driven product Base44 will generate at least $50 million in ARR by year-end, with potential growth towards $100 million due to strong early adoption [11]

Core Insights - Wix has partnered with Stripe to enhance local payment options in Europe, marking the first expansion of their partnership outside North America [2][3] - The collaboration aims to provide a seamless and secure payment experience for businesses across various European countries [3][4] Group 1: Partnership Expansion - The partnership allows eligible businesses in Austria, Belgium, Finland, Germany, Italy, Lithuania, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom to accept locally preferred payment methods [3][4] - Popular local payment methods such as Klarna, iDEAL, and Clearpay will be available through Wix Payments [4] Group 2: Business Operations - All payments, orders, bookings, and payouts will be managed directly within Wix, simplifying workflows for business owners and eliminating the need for third-party tools [4] - Wix plans to further expand Stripe-powered Wix Payments into additional markets in Europe, the Middle East, Africa, and the Asia-Pacific region [4] Group 3: Market Insights - Experts emphasize the importance of understanding local payment methods for businesses entering foreign markets, highlighting the need for certifications and licenses [5] - Research indicates that 99% of cross-border shoppers expect to pay with their preferred methods, reinforcing the idea that "all payment is local" [6]

Core Insights - Wix Payments has expanded its local payment options in collaboration with Stripe, now available in 11 European countries, marking a significant milestone in their partnership [1][3] - Eligible businesses in Austria, Belgium, Finland, Germany, Italy, Lithuania, the Netherlands, Portugal, Spain, Switzerland, and the United Kingdom can now accept locally preferred payment methods [1][2] Group 1: Partnership Expansion - The collaboration between Wix and Stripe has extended beyond North America, enhancing the payment solutions available to businesses in Europe [1][3] - This expansion allows businesses to offer popular local payment methods such as iDEAL, Clearpay, and Klarna, catering to the growing demand for flexible payment options [2] Group 2: Unified Payment Management - Wix Payments provides a fully integrated solution for businesses to manage payments directly on their Wix websites, simplifying workflows by eliminating the need for third-party tools [2][3] - Merchants in the UK can unify online transactions with Point-of-Sale, gaining a comprehensive view of their operations across different channels [2] Group 3: Future Plans - Wix intends to further expand Stripe-powered Wix Payments into additional EMEA markets and the Asia-Pacific region [4]

Core Insights - Wix.com Ltd. has announced a new integration with Stripe's Agentic Commerce Suite, enhancing its capabilities in AI-powered shopping and enabling merchants to sell across multiple AI agents [2][10] - The integration aims to simplify the fragmented AI-commerce landscape by providing a unified, low-code solution for merchants [3][10] - Wix's partnerships, particularly with PayPal, are expected to drive future growth and improve operational efficiency for merchants [5][6] Financial Outlook - For Q4 2025, Wix anticipates total revenues between $521 million and $531 million, reflecting a year-over-year increase of 13–15% [8] - The full-year revenue outlook for 2025 has been adjusted to $1,990–$2,000 million, indicating a growth of 13–14% compared to previous estimates [8] Market Position - Wix's stock has seen a decline of 53.2% over the past year, contrasting with a 16.5% decline in the Computers - IT Services industry [9]

Core Insights - Senvest Management has significantly increased its stake in Wix.com, purchasing an additional $118.7 million worth of shares, indicating strong confidence in the company's long-term potential [1][2][6] Company Overview - Wix.com Ltd. is a provider of cloud-based website development and business management solutions, offering a scalable platform with integrated tools for users to build and manage their online presence [5][8] - As of the latest data, Wix.com has a market capitalization of $5.9 billion and reported a revenue of $1.9 billion with a net income of $138.9 million for the trailing twelve months [4] Financial Performance - Senvest's position in Wix.com now represents approximately 14.2% of its assets under management, with a total of nearly 2.5 million shares valued at $442.1 million as of September 30 [2][3] - Wix.com has shown a revenue growth of 14% in the latest quarter, driven by strong customer engagement and the success of its new Base44 AI development platform, which is projected to exceed $50 million in annual recurring revenue by year-end [9][10] - The company generated $127 million in free cash flow in the third quarter and executed $175 million in share repurchases, reflecting confidence in its future cash generation capabilities [9][10] Market Position and Strategy - Despite a significant decline in share price (down 51% over the past year), Senvest's increased investment suggests a belief in Wix's potential for a turnaround as it focuses on high-return AI initiatives [3][11] - Wix.com employs a freemium model, generating revenue through premium subscriptions and value-added business solutions, catering to individuals, small businesses, and enterprises globally [5][8]

Financial Performance - Total registered users are approximately 299 million[11] - Q3'25 transaction revenue reached $65 million, a 20% year-over-year increase[11] - Q3'25 partners revenue was $192 million, up 24% year-over-year[11] - Creative Subscriptions Annualized Recurring Revenue (ARR) is approximately $1.5 billion[11] - Q3'25 free cash flow (FCF) margin was 32%[11] - Q3'25 gross payment volume (GPV) reached $3.7 billion, a 13% year-over-year increase[11] Revenue and Bookings - Total revenue for 2025 is estimated to be between $1.99 billion and $2 billion[23] - Creative Subscriptions ARR expanded consistently, reaching $1.457 billion in Q3'25, an 11% year-over-year increase[27] - Total bookings for 2025 are projected to be between $2.06 billion and $2.078 billion[30] Strategic Initiatives - Base44, acquired in June 2025, is projected to generate at least $50 million of ARR by the end of 2025[19] - The Q1'25 user cohort is the strongest since the COVID cohort, growing 8% year-over-year and 17% quarter-over-quarter[39] - The company expects approximately $18.4 billion in future bookings over the next 10 years from existing cohorts[46]

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. is set to release its second-quarter 2025 results on August 6, with expected revenues between $485 million and $489 million, reflecting an 11-12% growth year-over-year [1] - The Zacks Consensus Estimate for earnings is $1.75 per share, indicating a 4.79% increase from the previous year [2] - Wix's stock has decreased by 13.9% over the past year, contrasting with a 1.2% loss in the Zacks Computers - IT Services industry [2] Revenue and Growth Drivers - Revenue growth is anticipated from improved operational efficiency, AI product rollouts, and a diversified geographic footprint [3] - The adoption of Wix Studio and enterprise tools is identified as a key growth driver [3] - Creative Subscriptions and Business Solutions segments are projected to generate revenues of $345.4 million and $142 million, respectively [11] AI Integration and Strategic Acquisitions - Wix has launched Wixel, an AI-driven visual design platform, enhancing content creation capabilities [4][8] - The acquisition of Hour One and Base44 strengthens Wix's position in generative AI and no-code application development [5][6][8] - These acquisitions aim to expand Wix's offerings beyond web design into broader digital creation [5] User Growth and Payment Solutions - The number of registered users utilizing Wix Payments has grown, with nearly 5.3 million new user additions, a 7% year-over-year increase [9] - Wix has expanded its partnership with PayPal to enhance payment options for U.S. merchants [12] - A partnership with Alibaba.com aims to empower small businesses and enhance global reach [14] Recent Developments - Wix introduced the AI Visibility Overview tool to align websites with large language models, enhancing digital discovery [13] - The company continues to invest in technology enhancements and strategic expansions, although this may impact margins [11]

Core Insights - Wix and PayPal have initiated a deeper integration that allows PayPal to be directly available within the Wix Payments platform, enhancing transaction management for merchants [1][2] - The integration is currently available to Wix Payments users in the United States, with plans for future expansion to other regions [2] - This partnership enables merchants to manage all transactions from a single dashboard and offers additional payment options, including PayPal Pay Later and Venmo [2][3] Company and Industry Developments - PayPal will act as a payment service provider (PSP) and will enhance card processing capabilities within Wix Payments, improving conversion rates and profitability for users [3] - The integration aims to provide a faster and more unified checkout experience for merchants, allowing them to manage payments efficiently [3][4] - Wix offers a software-as-a-service (SaaS) platform for website building, while Wix Payments facilitates payment management for small businesses [4][5] Marketing and Consumer Engagement - PayPal's Pay Later service, a buy now, pay later (BNPL) option, has been promoted through an advertising campaign featuring actor Will Ferrell [6] - The integration of PayPal's payment methods into Wix Payments is designed to enhance the checkout experience and enable merchants to receive payments quickly [4][6]

Core Insights - PayPal has expanded its partnership with Wix, integrating its payment solutions into the Wix Payments platform to enhance payment management for merchants [1][2][4] Group 1: Integration Benefits - The integration allows U.S.-based merchants to manage PayPal transactions directly within the Wix Payments dashboard, consolidating reporting, chargebacks, and payouts [2][3] - Merchants can access PayPal's features such as PayPal Pay Later and Venmo, providing customers with more flexible payment options [2][3] Group 2: Operational Efficiency - Funds from PayPal wallet purchases are directly deposited into merchants' Wix Payments accounts, simplifying cash flow reconciliation [3] - PayPal will act as a Payment Service Provider (PSP) within Wix Payments, enhancing card processing capabilities and streamlining the merchant experience [3] Group 3: Strategic Goals - Wix aims to improve user experience and conversion rates by integrating PayPal, allowing for a faster and more unified checkout process [4] - PayPal shares Wix's commitment to helping businesses grow by providing quicker access to capital and enhancing the overall payment experience [4] Group 4: Availability - This integrated solution is currently available to U.S.-based Wix Payments users, with plans for future expansion to other regions [5]