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Wix.com Ltd. (WIX) stock was little changed in premarket trading Tuesday after falling 8.33% in the previous session.
The Israel-based website-building software company reported better-than-expected third-quarter results and reaffirmed its full-year revenue outlook.
Wix reported adjusted earnings of $1.42 per share, beating the Wall Street estimate of $1.39.
Revenue rose 13% year over year to $570.17 million, topping the analyst estimate of $565.98 million.
Total bookings increased 11% to $573 million. Annual recurring revenue climbed 15% to $2.02 billion.
Creative Subscriptions revenue grew 14% to $406.7 million, while Business Solutions revenue rose 10% to $163.5 million. Partners revenue increased 11% to $212.4 million.
Adjusted gross margin held steady at 69%, supported by Wix's proprietary AI model, Base 1.
Operating cash flow reached $78.3 million, while free cash flow totaled $74.5 million.
Wix ended September with approximately $1.05 billion in cash, short-term deposits and marketable securities, alongside $1.63 billion in debt.
CEO Avishai Abrahami said Base44 continues to outperform expectations as Wix expands its AI investments.
He also highlighted Wix Studio Two, which combines AI-powered website creation, visual design and React coding.
CFO Lior Shemesh said Base44's annual recurring revenue is approaching $250 million, supported by customer growth and improving retention.
Wix expects Base44's adjusted gross margin to exceed 60% by year-end as AI costs decline.
The company also named Nir Zohar co-CEO. Zohar will oversee strategy and operations, while Abrahami focuses on AI, products and technology.
Wix expects fourth-quarter revenue to grow by a low-double-digit percentage.
The company reaffirmed its 2026 outlook, forecasting revenue growth in the low- to mid-teens and bookings growth in the low teens.
However, Wix lowered its free cash flow margin forecast to approximately 16%, excluding acquisition-related and restructuring costs, from its previous high-teens forecast.
The reduction reflects higher sales and marketing spending to accelerate Base44's growth.
WIX Price Action: Wix.com shares were up 0.29% at $69.95 during premarket trading on Tuesday, according to market data.
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