Wix.com Q2 Marks 'Step Forward' as Guidance Maintained, Wedbush Says

MT Newswires Live08-05

Wix.com's (WIX) Q2 results marked a "step forward" as the company maintained its full-year outlook and margins showed signs of stabilizing, Wedbush Securities said in a report Tuesday.

Revenue of $563 million was about 2% above the firm's and Wall Street estimates, while free cash flow of $53 million topped the firm's $37 million forecast. Operating and adjusted earnings before interest, taxes, depreciation, and amortization margins, however, were "modestly" below expectations, according to the report.

The firm said improving AI computing efficiency is expected to lift Base44's gross margin to about 60% in the second half from zero earlier in the year, although higher marketing spending may offset some of those gains.

Self-creator revenue growth accelerated to 14% from 12%, partly reflecting a shift toward AI-based web development and away from agency channels. Wix's unchanged full-year outlook was encouraging but left some "uncertainty" because of rapid changes in AI-driven web development and competition in so-called "vibe coding," according to the report.

Shares of Wix.com were up nearly 12% in Tuesday afternoon trading.

Price: 63.43, Change: +6.59, Percent Change: +11.59

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