Wix.com: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 10, 2026, Wix (NASDAQ:WIX) announced that Base44, its artificial intelligence application development platform, reached nearly $250 million in annual recurring revenue (ARR), which represents the annualized value of active subscription contracts.

For long-term investors, the company's expansion into new software categories while increasing profit margins demonstrates an ability to scale efficiently without sacrificing underlying profitability. Three things management said on the call stand out.

1. Base44 Replaces Legacy Development Tools to Drive ARR Near $250 Million

Base44 scaled to nearly $250 million in ARR less than two years post-acquisition, boosted by cohort retention rates that surpassed internal targets. Management is plowing expanding gross margins, which reached nearly 60% in the third quarter for Base44, straight back into aggressive marketing to capture market share in vibe coding, the creation of software applications through natural language prompts.

Demand in the second half of the year has run ahead of what we modeled. The flywheel here is working, where paid marketing and brand investment build recognition, and recognition drives organic sign-ups.
-- Avishai Abrahami, Co-CEO and Co-Founder

2. Studio Two Opens Infrastructure to External AI Tools and Enterprise Partners

Wix historically restricted external integration to protect platform security, but Studio Two, its flagship website editing software for design professionals, now operates as an open platform. This architecture allows agencies and corporate clients to connect outside artificial intelligence tools directly into their design workflows while hosting projects behind corporate firewalls.

The benefit of that is, of course, that it allows you to build almost any website on Wix now. And because also you can export projects, it allows us to have a substantially better enterprise offering, especially for larger companies that they need to do the hosting themselves behind their firewall or on their own service.
-- Avishai Abrahami, Co-CEO and Co-Founder

3. Proprietary AI Models Slash Token Costs While Headcount Shrinks

The company operated in the third quarter with 25% fewer employees than at the end of 2022 while accelerating its major product releases. By routing user prompts through Base 1, its proprietary artificial intelligence model infrastructure, management reduced free user token generation costs by over half in a single quarter.

With the launch of Base 1, we have structurally improved the margin profile of the business. The proof is in the results. Our non-GAAP gross margin for Base44 was 58% in the third quarter, and I currently expect an even higher margin in the fourth quarter.
-- Lior Shemesh, Chief Financial Officer

Looking Ahead

Product demand is accelerating across new platforms, and leadership is asserting its position against emerging software rivals with quiet confidence. Wix relies on decades of accumulated small business workflow data and established payment integrations to defend its core platform while monitoring target return on investment (TROI), a metric measuring marketing efficiency, as it builds a dedicated enterprise sales organization.

We also bring a distinct advantage: 20 years of small business data, workflows, and payment relationships sitting underneath our agents, a foundation that is difficult to replicate.
-- Avishai Abrahami, Co-CEO and Co-Founder

By focusing executive oversight on separate core competencies, leadership expects to maintain operational efficiency while aggressively funding expanding product lines.

Healthy renewal and monetization trends, combined with a more favorable duration mix, give us confidence that Base44 will be able to deliver durable growth over the long term. Given the strong historical data we are beginning to see, as well as outstanding top-of-funnel demand volume today, we expect sales and marketing investments to support Base44 acceleration.
-- Nir Zohar, Co-CEO and Co-Founder

The Motley Fool recommends Wix.com. The Motley Fool has a disclosure policy.