SaaS website builder platform Wix.com (NASDAQ:WIX) stock gained after it reported its fiscal second-quarter 2025 results on Wednesday.
The quarterly revenue grew 12% year-over-year (Y/Y) to $489.93 million, topping the analyst consensus estimate of $487.47 million. Adjusted EPS of $2.28 beat the analyst consensus estimate of $1.74.
Creative Subscription revenue increased 11% Y/Y to $345.5 million. Creative Subscriptions bookings climbed 11% Y/Y to $364.9 million. Creative Subscriptions Annualized Recurring Revenue (ARR) was $1.41 billion, up 10% Y/Y.
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Partners revenue in the quarter was $183.3 million, up 24% Y/Y. Business Solutions’ revenue rose 17% Y/Y to $144.5 million, and bookings jumped 12% Y/Y to $145.1 million.
The adjusted gross margin grew by 200 bps to 70%. During the quarter, Wix.com generated $150.3 million in operating cash flow and held $1.00 billion in cash and equivalents.
Wix co-founder and CEO Avishai Abrahami said accelerating demand for AI-powered content creation continues to drive momentum across the platform, with users building more advanced projects at faster speeds.
This growth pushed new cohort bookings to their highest levels since the pandemic peak. Abrahami noted that Wix is expanding beyond websites into new AI-driven markets like vibe coding.
He highlighted the Base44 acquisition as a key strategic move, giving Wix immediate access to the application development space.
Outlook
“Our strong first-half performance reinforces our confidence in accelerating growth throughout the remainder of 2025, supported by a stable and positive macroeconomic environment. Strong momentum in the core Wix business, driven by new cohort outperformance, is further bolstered by our entry into a new rapidly-growing TAM through our recent acquisition of Base44,” the company said in a press release.
Wix.com revised its fiscal 2025 revenue outlook to $1.975 billion-$2.000 billion (prior $1.97 billion-$2.00 billion) versus the analyst consensus estimate of $1.987 billion and bookings of $2.040 billion-$2.075 billion (prior $2.03 billion-$2.06 billion).
The company reiterated free cash flow outlook, excluding headquarters costs, of $595 million-$610 million.
Wix.com expects third-quarter fiscal 2025 revenue of $498.00 million-$504.00 million versus the analyst consensus estimate of $502.33 million.
For the full year 2025, the company now expects an adjusted total gross margin of ~69% and adjusted operating expenses to be ~49% of revenue. This reflects higher cost of revenue and operating expenses than previously anticipated as a result of incremental ongoing AI, marketing, and headcount investments the company plans to make to operate, integrate, and grow Base44.
The stock plunged over 40% year-to-date as it failed to reach the revenue analyst estimate in three out of the last four quarters.
Price Action: WIX stock is trading higher by 10.9% to $142 premarket at last check Wednesday.
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