Investing.com -- Wix.com (NASDAQ:WIX) on Wednesday raised its full-year bookings outlook after reporting a 14% rise in third-quarter revenue and stronger demand tied to Base44, the artificial-intelligence coding platform it acquired earlier this year.
The company now expects 2025 bookings of $2.06 billion to $2.08 billion, compared with a prior range of $2.04 billion to $2.08 billion.
The company raised its full-year revenue forecast to $1.99 billion to $2 billion, compared with its prior view of $1.98 billion to $2 billion.
Wix expects fourth-quarter revenue of $521 million to $531 million, representing 13% to 15% year-on-year growth.
The company said non-GAAP gross margin for the year is expected to be 68% to 69%, reflecting increased AI-related costs tied to Base44 usage.
It expects non-GAAP operating expenses to be about 50% of revenue. Full-year free cash flow is projected to be about $600 million, or roughly 30% of revenue.
The company now expects 2025 bookings of $2.06 billion to $2.08 billion, compared with its earlier forecast of $2.04 billion to $2.08 billion.
The New York-based website-building firm posted third-quarter revenue of $505.2 million, while total bookings reached $514.5 million.
Creative Subscriptions revenue rose 12% to $356.2 million, and Business Solutions revenue increased 18% to $149 million.
Creative Subscriptions ARR grew 11% to $1.48 billion. Transaction revenue in Business Solutions was $65.3 million, up 20%, and Partners revenue rose 24% to $192.1 million.
Jefferies analysts said "Q3 delivered a ~1% beat to rev & bookings, similar to Q2, while mid-pt of FY25 rev & bookings guide were raised $7.5M & $11.5M respectively - driven by both healthy core and strong Base44."
They added that "Base44 adds another entry pt to the Wix ecosystem and blunts any AI threats."
The analysts also noted that "Rev $505M (+14% y/y; 13% ex-FX) was just above high end of guide $498-504M, while bookings $514M beat St. $509M by $5M."
Wix said the broader usage of Base44 contributed to the quarter's momentum. The platform's market share rose "from low-single digits to more than 10% since June," with "over 2 million users served and more than one thousand new paying subscribers joining everyday."
Chief executive Avishai Abrahami said, "With Base44, we're extending this mission by bringing the next generation of AI and natural-language development to applications." President Nir Zohar said bookings momentum reflected "healthy demand and robust business fundamentals."
The company reported a GAAP net loss of $0.6 million, or $0.01 per share, compared with net income of $26.8 million a year earlier. Non-GAAP net income was $100.2 million, or $1.80 per basic share.
Free cash flow totaled $127.3 million; excluding acquisition-related costs, free cash flow was $159.4 million, or 32% of revenue. Wix repurchased $175 million worth of shares in the quarter.
GAAP gross margin was 68%, with Creative Subscriptions at 83% and Business Solutions at 32%.
On a non-GAAP basis, gross margin was 69%, with Creative Subscriptions at 84% and Business Solutions at 34%. Non-GAAP operating income reached $89.9 million; GAAP operating loss was $7.4 million.