Wix.Com Ltd Earnings Overview
Wix.com Ltd., a frontrunner in the SaaS website building industry, has released its second-quarter earnings for 2025, showcasing robust financial performance and promising growth signals backed by the successful acquisition of Base44. According to the latest report, the company's business fundamentals have seen meaningful improvement, driving a positive outlook for year-on-year (y/y) growth in bookings and revenue for the latter half of the year.
Wix.Com Ltd Financial Results
The financial results for Q2 2025 reveal significant improvements across several key metrics. Below is a summary in table format for clarity:
| Financial Metric | Q2 2025 Amount (in million USD) | Year-over-Year Growth (%) |
|---|---|---|
| Total Revenue | 489.9 | 12 |
| Creative Subscriptions Revenue | 345.5 | 11 |
| Business Solutions Revenue | 144.5 | 17 |
| Transaction Revenue | 63.6 | 18 |
| Partners Revenue | 183.3 | 24 |
| Total Bookings | 509.9 | 11 |
| GAAP Net Income | 57.7 | - |
| Non-GAAP Net Income | 136.2 | - |
The company's total revenue for the quarter stood at $489.9 million, reflecting a 12% increase y/y, while Creative Subscriptions revenue hit $345.5 million, marking an 11% growth. Business Solutions revenue saw a more robust increase of 17%, reaching $144.5 million. Additionally, within the Business Solutions, transaction revenue and partners revenue grew by 18% and 24%, respectively.
Revenue Breakdown & Segment Performance
Wix's revenues are primarily generated from two major segments: Creative Subscriptions and Business Solutions. Below is a detailed breakdown:
| Segment | Q2 2025 Revenue (in million USD) | Year-over-Year Growth (%) |
|---|---|---|
| Creative Subscriptions | 345.5 | 11 |
| Creative Subscriptions ARR | 1,407.0 | 10 |
| Business Solutions | 144.5 | 17 |
| Business Solutions Bookings | 145.1 | 12 |
An in-depth analysis of these figures highlights that the Creative Subscriptions segment continues to be a significant revenue driver for Wix, achieving an 11% y/y revenue growth. The Business Solutions segment also demonstrates strong momentum with a 17% growth, emphasizing Wix's diversified revenue streams. The revenue growth in both segments underscores Wix's ability to enhance its market presence and deliver value through innovative offerings and strategic initiatives.
Key Developments
Wix's acquisition of Base44 marks a pivotal development, significantly expanding the company's total addressable market to include application development, thus complementing its existing offerings. The acquisition is expected to rapidly grow Base44's Annual Recurring Revenue (ARR) to between $40 to $50 million by year-end, with further potential to accelerate towards the $100 million ARR milestone.
Additionally, Wix is making substantial advancements in AI-powered online creation, enabling users to build sophisticated projects more efficiently. This technological enhancement has led to new cohort bookings reaching their highest levels since peak COVID-19.
Executive Insights
Avishai Abrahami, Co-founder and CEO at Wix, emphasized that demand for AI-powered online creation continues to accelerate, with Wix playing a crucial role in this evolving landscape. Similarly, Nir Zohar, President & Co-founder at Wix, highlighted the improving business fundamentals and better conversion rates across major markets as contributors to the company's strong Q2 performance.
Lior Shemesh, CFO, also projected confidence in Wix's growth trajectory, stating that the foundation being laid through strong cohort performance and Base44's contributions is expected to propel growth in the second half of 2025 and beyond.
Dividends and Share Repurchases
In alignment with its capital return strategy, Wix executed $100 million in share repurchases during Q2 2025, acquiring approximately 646,000 ordinary shares at an average price of $154.69 per share. While Wix has not announced a dividend policy, the share repurchase program indicates a strategic approach to return value to shareholders.
Stock Forecast
Based on Wix's solid financial performance, successful acquisition strategies, and improvements in business fundamentals, the stock outlook remains optimistic. In light of the company's current market capitalization of approximately $8.86 billion and ongoing growth initiatives, high-end stock price projections could reach around $175 in the medium term. Conversely, in a more conservative scenario, considering market volatilities and economic uncertainties, a low-end projection could sit around $150.
Conclusion
Wix.com Ltd. has showcased a noteworthy Q2 2025 performance with strong revenue growth, enhanced by strategic acquisitions and impressive cohort dynamics. The company's proactive approach in harnessing AI capabilities and expanding its market presence through Base44 positions it for a promising future. Shareholders and potential investors can look forward to an era of dynamic growth as Wix continues to reshape the digital creation space.
