Wix Reports Strong Base44 Growth and Appoints Nir Zohar as Co-CEO
Wix reports improved financial results driven by the rapid growth of its vibe coding division Base44, while appointing Nir Zohar as co-CEO alongside founder Avishai Abrahami. Despite strong revenues reaching $2 billion annually, heavy AI computing costs and recent restructuring led to a Q3 net loss.
Wix.com has released its financial results, highlighting a significant surge in the performance of Base44, its vibe coding division, and the appointment of longtime President Nir Zohar as co-CEO alongside founder Avishai Abrahami. The AI programming platform, acquired by Wix roughly a year and a half ago, is outpacing expectations, fast approaching an annual run rate of $250 million.
However, rapid expansion initially presented operational hurdles due to high computing demands, temporarily returning Wix to a net loss. Base44 has now achieved a 58% gross margin, projected to hit 60% by year-end. Management attributed this to strong user acquisition and retention rates, alongside lower operational costs for AI models driven by an independent in-house development. Meanwhile, Wix's core revenues grew by 13% to $570 million, pushing annual sales to $2 billion. Despite a net loss of $13.7 million in the third quarter, adjusted profit reached $69 million, generating $78 million in cash flow.
Cash flow was impacted by restructuring costs following the layoff of 1,000 employees over the summer to adapt to an AI-driven market, reducing staff to 4,121 workers. Looking ahead, Wix forecasts slower core growth of around 10% in the fourth quarter and revised its 2026 cash flow forecast down to 16% of revenue due to heavy investments in Base44 and high GPU chip costs.
