Company Reports

Wix shares rallied 18% on Aug. 4 after a second-quarter top- and bottom-line beat versus FactSet consensus, and guidance for Base44 gross margin reaching 60% in the second half versus 0% at the start of 2026.

Wix.com offers a software-as-a-service content management system for building websites. The firm earns revenue by selling subscriptions to its platform, where users can easily build, host, and maintain a website. Wix’s advantage is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (self-creators). However, Wix is moving upmarket by targeting agencies and freelancers (partners) who build websites on behalf of others, mainly midsize businesses. Wix offers a variety of add-ons to a user’s website, such as payment services, email marketing, paid ad campaigns, Google Workspace, and apps created by Wix and third parties. With the acquisition of Base44, the firm has moved into vibe coding, a software development approach in which artificial intelligence generates code from natural language prompts, allowing users to build applications using plain language instead of writing traditional code.

In its first quarter, Wix delivered weak partners growth (19%) and missed on gross margin (66% versus 67.6% FactSet consensus) due mainly to Base44 inference costs. Shares fell 27% on May 13.

Wix.com offers a software-as-a-service content management system for building websites. The firm earns revenue by selling subscriptions to its platform, where users can easily build, host, and maintain a website. Wix’s advantage is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (self-creators). However, Wix is moving upmarket by targeting agencies and freelancers (partners) who build websites on behalf of others, mainly midsize businesses. Wix offers a variety of add-ons to a user’s website, such as payment services, email marketing, paid ad campaigns, Google Workspace, and apps created by Wix and third parties. With the acquisition of Base44, the firm has moved into vibe coding, a software development approach in which artificial intelligence generates code from natural language prompts, allowing users to build applications using plain language instead of writing traditional code.

We have reviewed our moat ratings in the global technology sector due to potential disruption from artificial intelligence.

Wix.com offers a software-as-a-service content management system for building websites. The firm earns revenue by selling subscriptions to its platform, where users can easily build, host, and maintain a website. Wix’s advantage is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (self-creators). However, Wix is moving upmarket by targeting agencies and freelancers (partners) who build websites on behalf of others, mainly midsize businesses. Wix offers a variety of add-ons to a user’s website, such as payment services, email marketing, paid ad campaigns, Google Workspace, and apps created by Wix and third parties. With the acquisition of Base44, the firm has moved into vibe coding, a software development approach where artificial intelligence generates code from natural language prompts, allowing users to build applications using plain language instead of writing traditional code.

Wix's fourth-quarter results and 2026 guidance were broadly in line with FactSet consensus, but Base44 just reached $100 million in annual recurring revenue, up from $59 million at year-end. Shares rose 13% on March 4.

Wix's third-quarter results were ahead of FactSet consensus, but this was overshadowed by guidance for sharply rising costs to support the Base44 acquisition. Shares fell 20% on Nov. 19.

Wix.com offers a software-as-a-service content management system for building websites. The firm earns revenue by selling subscriptions to its platform, where users can easily build, host, and maintain a website. Wix’s advantage is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (“self-creators”). However, Wix is moving upmarket by targeting agencies and freelancers (“partners”) who build websites on behalf of others, mainly midsize businesses. Wix offers a variety of add-ons to a user’s website such as payment services, email marketing, paid ad campaigns, Google Workspace, and apps created by Wix and third parties. With the acquisition of Base44, the firm has moved into vibe coding, a software development approach where artificial intelligence generates code from natural language prompts, allowing users to build applications using plain language instead of writing traditional code.

Wix's second quarter delivered in-line revenue and an EPS beat versus FactSet consensus. New cohort bookings were strong. Shares opened up 8% but finished the day flat.

Wix's first-quarter results were broadly in line with FactSet consensus, and 2025 guidance was maintained. However, management struck a cautious tone on the earnings call. Shares fell 16%.

Wix.com offers a software-as-a-service, or SaaS, content management system, or CMS, for building websites. The company primarily earns revenue by selling subscriptions to its platform where users can easily build, host, and maintain a website. Wix’s core value proposition is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (“self-creators”). However, Wix is now moving upmarket by targeting agencies and freelancers (“partners”) who build websites on behalf of others, mainly midsize businesses. Furthermore, Wix has widened its product offering to include a variety of add-ons to a user’s website such as payment services, email marketing, paid ad campaigns, Google Workspace, and a collection of apps created by Wix and third parties.

Wix's fourth-quarter revenue and EPS beat FactSet consensus while fiscal 2025 guidance looks broadly in line after considering strong foreign-exchange headwinds. Shares were up around 3% in afterhours trading on Feb 18.

Wix shares were up 14% after reporting 16% bookings growth in the third quarter and expectations to exit fiscal 2024 with 18% bookings growth. Business solutions margins were also strong, leading to EPS beating FactSet consensus.

Wix.com offers a software-as-a-service, or SaaS, content management system, or CMS, for building websites. The company primarily earns revenue by selling subscriptions to its platform where users can easily build, host, and maintain a website. Wix’s core value proposition is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (“self-creators”). However, Wix is now moving upmarket by targeting agencies and freelancers (“partners”) who build websites on behalf of others, mainly midsize businesses. Furthermore, Wix has widened its product offering to include a variety of add-ons to a user’s website such as payment services, email marketing, paid ad campaigns, Google Workspace, and a collection of apps created by Wix and third parties.

Narrow-moat Wix reported second-quarter results that were in line with FactSet consensus revenue, but beat on EPS. Overall, results were broadly in line with our expectations, highlighted by continued strong revenue growth in its partners program business. Shares closed flat intraday. We don’t expect to make a material change to our $148 fair value estimate. At current levels, the shares look fairly valued.

We’re initiating coverage of Wix.com with a narrow moat rating and a $148 fair value estimate. Our fair value estimate implies a fiscal 2024 enterprise value/EBITDA multiple of 23 times and a P/E multiple of 25 times. At current levels, the shares look fairly valued, considering our High Morningstar Uncertainty Rating.

Wix.com offers a software-as-a-service, or SaaS, content management system, or CMS, for building websites. The company primarily earns revenue by selling subscriptions to its platform where users can easily build, host, and maintain a website. Wix’s core value proposition is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (“self-creators”). However, Wix is now moving upmarket by targeting agencies and freelancers (“partners”) who build websites on behalf of others, mainly midsize businesses. Furthermore, Wix has widened its product offering to include a variety of add-ons to a user’s website such as payment services, email marketing, paid ad campaigns, Google Workspace, and a collection of apps created by Wix and third parties.