Wix Q2 Revenue Beats at $563M, EPS $1.39; AI Cost Cuts Ahead
WIX sits 47% above its 52-week low of $40.16.
Summary
Wix delivered a strong Q2 with revenue of $563M, beating the $554M consensus, and adjusted EPS of $1.39, well above the $1.16 estimate. The beat was driven by Base44, the company's AI-powered website builder, which is gaining traction. Management also announced the launch of Base 1, a proprietary LLM expected to lower AI compute costs and improve margins, allowing more aggressive marketing spend. The company maintained its full-year revenue growth outlook of low- to mid-teens percent and guided Q3 revenue growth at low-double-digits. This follows a turbulent period marked by a 20% workforce reduction in May and a securities class action filed in July, making the earnings beat and cost-cutting AI initiative a potential turning point. The stock, which closed at $56.84, may see relief as the results counter recent negative sentiment.
Updates
· dpa-AFX — GAAP net loss was $76.4M, or $1.78 per share, including $27.1M in restructuring costs. Shares rose 7% after hours.
At the time of this announcement, WIX was trading at $59.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $40.16 to $190.93. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.