Q3 2025 Wix.Com Ltd Earnings Call Transcript
Key Points
- Wix.com Ltd (WIX) reported strong financial results for Q3 2025, with total bookings growing to $515 million, up 14% year over year.
- The company saw a significant increase in organic traffic, indicating improved brand awareness and a strong position in the web creation market.
- Base 44, a recent acquisition, has outperformed expectations, with over 2 million users and a projected $50 million ARR by year-end.
- Transaction revenue increased by 20% year over year, driven by 13% growth in GPV and an elevated take rate.
- Wix.com Ltd (WIX) is strategically positioned to capitalize on the AI era, making its websites indexable by LLMs and adopting new e-commerce standards.
- The launch of a new flagship product has been delayed to early 2026, causing some dissatisfaction among stakeholders.
- Base 44's monthly subscription model presents a short-term headwind to free cash flow due to the misalignment between bookings and operating expenses.
- Non-GAAP gross margin decreased slightly to 69% in Q3, impacted by AI processing and compute costs.
- There is a higher churn rate for Base 44 compared to Wix's core business, although it is better than expected.
- The company anticipates continued pressure on margins due to upfront costs and investments in Base 44, with uncertainty around when margin expansion will resume.
Good day and thank you for standing by.
Welcome to week's 3rd quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Emily Liu, head ofations. Please go ahead.
Thanks and good morning everyone. Welcome to Wix's 3rd quarter 2025 earnings call.
Joining me today to discuss our results are Avishai Abrahami, CEO and co-founder, Nir Zohar, President and co-founder, and Lear Shemesh, our CFO.
During this call, we may make forward-looking statements, and these statements are based on current expectations and assumptions. Please consider the risk factors included in our press release and most recent form 20 that
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