Wix.com (NASDAQ:WIX) raised its full-year expectations on Wednesday after delivering a solid third quarter marked by a 14% increase in revenue and increasing adoption of Base44, the AI-driven coding platform it acquired earlier this year.
The company now anticipates 2025 bookings of $2.06 billion to $2.08 billion, slightly above its previous range of $2.04 billion to $2.08 billion.
Its full-year revenue outlook was also nudged higher to $1.99 billion to $2 billion, compared with the earlier forecast of $1.98 billion to $2 billion.
For the fourth quarter, Wix projects revenue between $521 million and $531 million, representing 13%–15% growth from a year ago.
Wix reiterated that non-GAAP gross margin for 2025 is expected to land between 68% and 69%, noting that increased AI-related costs linked to Base44 activity are contributing to the margin profile. Non-GAAP operating expenses are seen at roughly 50% of revenue, while full-year free cash flow is expected to reach about $600 million, or approximately 30% of revenue.
In Q3, the New York–based web-creation company generated $505.2 million in revenue and $514.5 million in total bookings.
Creative Subscriptions revenue grew 12% to $356.2 million, while Business Solutions revenue jumped 18% to $149 million.
Creative Subscriptions ARR reached $1.48 billion, up 11%.
Business Solutions transaction revenue came in at $65.3 million, up 20%, and Partners revenue climbed 24% to $192.1 million.
Jefferies analysts highlighted that “Q3 delivered a ~1% beat to rev & bookings, similar to Q2, while mid-pt of FY25 rev & bookings guide were raised $7.5M & $11.5M respectively – driven by both healthy core and strong Base44.”
They added that “Base44 adds another entry pt to the Wix ecosystem and blunts any AI threats.”
Jefferies also pointed out that “Rev $505M (+14% y/y; 13% ex-FX) was just above high end of guide $498–504M, while bookings $514M beat St. $509M by $5M.”
Wix said increasing usage of Base44 played an important role in the quarter’s performance. The AI platform’s share of the market has risen “from low-single digits to more than 10% since June,” with “over 2 million users served and more than one thousand new paying subscribers joining everyday.”
CEO Avishai Abrahami commented, “With Base44, we’re extending this mission by bringing the next generation of AI and natural-language development to applications.”
President Nir Zohar added that bookings strength underscores “healthy demand and robust business fundamentals.”
GAAP results showed a net loss of $0.6 million, or $0.01 per share, versus net income of $26.8 million in the prior year.
Non-GAAP net income totaled $100.2 million, or $1.80 per basic share.
Free cash flow was $127.3 million, or $159.4 million excluding acquisition-related costs—equivalent to 32% of revenue. The company also spent $175 million on share repurchases during the quarter.
GAAP gross margin stood at 68%—with Creative Subscriptions at 83% and Business Solutions at 32%.
On a non-GAAP basis, gross margin was 69%, with Creative Subscriptions at 84% and Business Solutions at 34%.
Non-GAAP operating income came in at $89.9 million, while GAAP operating loss was $7.4 million.