Wix shares rose in premarket trading after the Israeli website-building firm reported second-quarter results that beat analyst expectations.

Revenue reached US$489.8 million, up 12% from a year earlier and ahead of the US$487 million forecast.

Adjusted profit for the quarter came in at US$136.2 million, or US$2.44 per share, compared to analyst estimates of US$1.76 per share.

Customer bookings increased 11% year-over-year to US$509.9 million.

Wix raised its full-year outlook, now projecting 2025 bookings between US$2.040 billion and US$2.075 billion, and revenue between US$1.975 billion and US$2.00 billion.

The company’s market capitalization now exceeds US$7 billion.

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🔗 Source: Calcalist

🧠 Food for thought

1️⃣ AI tools are accelerating Wix’s customer acquisition beyond traditional growth patterns

Wix’s earnings reveal how artificial intelligence is becoming a key driver of growth in the website building industry.

The company’s Creative Subscriptions revenue, which includes AI-powered tools, reached $345.5 million and now represents 70% of total revenue1. This focus on AI appears to be benefiting customer acquisition, with new cohort bookings growing 14% year-over-year in Q2, then accelerating to over 20% growth by July2.

This growth suggests that AI features are appealing to new users, creating momentum that extends beyond typical seasonal trends.

The timing aligns with broader industry adoption of AI tools, where companies offering intuitive AI-powered website creation are seeing increased demand from small businesses and entrepreneurs seeking easier ways to establish an online presence.

2️⃣ Niche players can thrive despite competing against dominant platforms

Wix’s financial success demonstrates how focused positioning can drive strong results even in markets dominated by larger competitors.

While WordPress commands 43% of the website market compared to Wix’s 3.4% share3, Wix has built a profitable business by targeting users who prioritize ease of use over technical flexibility.

The company’s pricing strategy of $17 per month starting price4 positions it as a premium, user-friendly alternative to more technical platforms, allowing it to generate $489.9 million in quarterly revenue despite its smaller market share2.

This approach has proven effective for capturing users who need professional websites without technical expertise, showing how companies can build substantial businesses by serving specific customer segments rather than competing directly for overall market dominance.

Recent Wix developments

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