Wix.com (WIX) UBS’s 2025 Global Technology and AI Conference summary

Strategic initiatives and product development

• Acquisition of Base44 expands into AI-powered, no-code application building, targeting non-developers and small teams, with rapid user adoption and strong early results.

• Market share in AI application building grew from low single digits to around 10% post-acquisition, driven by product improvements and marketing investments.

• Marketing for Base44 leverages proven brand-building strategies, focusing on content and acquisition channels like YouTube.

• New self-creator product launch planned for next year, with moderate branding investment and continued use of efficient marketing ROI methodology.

• No immediate plans to increase pricing, but ongoing testing across product lines remains a focus.

Financial performance and outlook

• Base44 ARR grew from $3 million at acquisition to over $15 million expected by year-end, with a path toward $100 million in the near future.

• Core business margins are improving, with gross margin expected to expand in 2026 due to operational efficiencies and AI-driven productivity.

• Consolidated free cash flow margin projected in the mid-20% range or higher, with one-off working capital benefits expected to normalize over time.

• Base44 gross margin for paying users is currently 30%-40%, expected to improve as customer cohorts mature and AI costs decline.

• Corporate tax rate anticipated to be around 15% in 2026 due to OECD Pillar Two implementation.

Capital allocation and shareholder returns

• Over $1.5 billion spent on share repurchases since 2021, with continued buybacks planned to offset dilution and potentially reduce share count.

• Buyback strategy considers current share price and ongoing board discussions, viewing repurchases as a good investment.