Wix.com Ltd. Q4 FY2025 earnings call

• 2026 is a defining year with AI proving real-world value. Wix's vision is to be the go-to platform for online creation. • Wix Harmony is a website creation platform blending visual editing and vibe coding, launched in English in January and expanding globally, showing good conversion and monetization metrics. • Base44 is a leading vibe coding platform with rapid user base scaling, reaching $100 million ARR one year after founding and nine months after acquisition, with adoption from businesses and enterprise-sized organizations. • Q4 user cohort trends showed strong momentum in core Wix business and accelerated growth when including Base44. • 2025 ended with strong cohort momentum, and 2026 is poised for continued growth with category-defining innovations.

In the core Wix business, new cohort bookings maintained double-digit growth in Q4 2025, fueled by healthy top-of-funnel, higher conversion from free to paid subscriptions in key markets, and increased monetization per user. When including Base44, new cohort bookings growth accelerated significantly quarter over quarter, driven by robust demand for vibe coding capabilities. Base44 finished 2025 with approximately $59 million of ARR and recently reached approximately $100 million of ARR. GPV grew 11% year-over-year to $3.7 billion in Q4 and 11% year-over-year to $14.3 billion for the full year. Transaction revenue grew 18% in Q4 and 19% in the full year. Partners' revenue grew 21% year-over-year to $203 million in Q4. Fourth quarter total non-GAAP gross margin ticked down to 68%, and total non-GAAP operating income was 15% of revenue. For 2026, bookings and revenue growth are expected to accelerate, with mid-teens percentage growth anticipated for consolidated business bookings and revenue, and free cash flow margin in the low to mid 20% range for full year 2026, with core Wix business expected to have solid performance with flat to expanding free cash flow margin.

• For full year 2026, expect consolidated business bookings and revenue to grow at mid-teens percentage year-over-year. • First quarter 2026 expected to have mid-teens percentage revenue growth. • Full year 2026 free cash flow margin in low to mid 20% range, wider range due to Base44's hypergrowth. • Core Wix business expects solid bookings and revenue performance with flat to expanding free cash flow margin, accounting for currency headwind and AI infrastructure optimization.

Q: Can you lay out contributors to organic growth in full year bookings guide between payment volumes, subscriber mix shift or pricing?

A: Don't assume significant change in pricing, guidance reflects growth in core Wix and Base44.

Q: What types of businesses or applications are users setting up with Base44 and crossover with Wix core platform?

A: Users build various applications, no competition seen as usages are mostly different.

Q: Do you see segmentation trends persisting for Base44 and Harmony, and conversion of free to paid users for Base44?

A: Harmony for self-creators, Base44 has wide usage, conversion of free to paid users is increasing.

Q: Can you give sense for what accelerated Base44 growth sequentially and base ARR bookings in 26?

A: Base44 growth is organic with synergy with Wix, ARR reaching $100 million reflects acceleration.

Q: Color on core legacy-based business in Q4?

A: Saw acceleration in Q4 core Wix business, with some GPV softness compensated by better subscription growth.

Q: Thoughts on Base44 LTV, payback period and acquisition costs in 2026?

A: Base44 has less than one year TROI, acquisition costs to be higher in 2026.

Q: On Harmony users and OpenAI partnership benefits?

A: Harmony used by various users, OpenAI partnership creates opportunities for website creation with intelligence.

Q: Premium subs decline and growth composition between self-creator and partner in 26?

A: Focus on higher value subscriptions, self-creator business stable with Harmony impact on new cohorts.

Q: Harmony early cohort KPIs and LLM partnerships economics?

A: Harmony has good conversion, ARPU, attach rate, details of LLM partnership economics not disclosed.

Q: What accelerated Base44 growth from 60 million ARR to over 100 million and tokens for trial users?

A: Growth due to brand awareness, marketing, product improvement; tokens allow trial and monetization over time.