Wix Reports Strong Growth in Base44 AI Platform and Improved Profit Margins
During its third-quarter 2026 earnings call, Wix announced that its artificial intelligence application development platform, Base44, has reached nearly $250 million in annual recurring revenue (ARR) within two years of acquisition. The company is seeing significant margin expansion, with Base44's non-GAAP gross margins reaching approximately 60% in the third quarter. Wix is also pivoting its flagship software, Studio Two, into an open platform to better serve enterprise clients by allowing integration with external AI tools and hosting behind corporate firewalls. Additionally, the company has successfully utilized its proprietary 'Base 1' AI model infrastructure to reduce free user token costs by over 50% quarter-over-quarter, contributing to a more efficient margin profile even as headcount remains lower than in previous years.
Tickers: $WIX
Topics: AI Software Development Annual Recurring Revenue Gross Margin Q3 Earnings