Wix.com: Takeaways from Virtual NDR with CFO

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Wix.com: Takeaways from Virtual NDR with CFO

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Wix.com

Takeaways from Virtual NDR with CFO

Reiterate Rating: BUY | PO: 77.00 USD | Price: 54.67 USD

No quick fix for Core Wix in competition vs. AI… 19 May 2026

Today, we hosted Lior Shemesh, CFO of Wix, for a virtual meeting with investors. Client Equity

questions focused on competition vs. AI, Base44 momentum/margins, & FX pressure on

opex. For core Wix, there’s no quick fix for the decel in Creative Subs ex-Base (we would

Key Changesestimate approx. 7% growth), but mgmt still believes a meaningful portion of AI-driven

growth in website building is expansion of the TAM. In an upside scenario, AI-native (US$) Previous Current

builders like Base44 become the primary entry point for creation, with Wix increasingly Price Obj. 95.00 77.00

monetizing its combined stack where Base44’s agent-led front end sits on top of Wix’s 2026E EPS 5.81 4.65

backend infrastructure & distribution. Mgmt was positive that an outcome of AI-led 2027E EPS 10.30 8.22

creation can coexist with classic drag-and-drop models, due to user differentiation. 2028E EPS 15.76 11.88

…but Base44 still seeing rapid growth & cost improvement Michael McGovern

Wix’s vibecoding acquisition Base44 continues to gain share (larger than Lovable in US) ResearchBofAS Analyst

but the growth & lower margin drives a level of uncertainty (mgmt. noted “95% of the +1 415 676 3520 mmcgovern@bofa.com

unknown” within guidance). That said, looking at Bookings instead of Revenue,

hypothetical Base44 fully loaded gross margins (including free-token inference cost in

S&M) would be “nicely positive”. In other words, if you start with bookings & subtract

the full AI compute burden, the hypothetical fully loaded gross margin for Base44 is Stock Data

already approx.