Wix Names Nir Zohar Co-CEO; Base44 Approaches $250 Million Revenue Run Rate

In depth

Wix reported third-quarter revenue of $570 million, a 13% increase, and adjusted profit of about $69 million. The quarter ended with a loss of $13.7 million. Revenue grew thanks to the Base44 business, which grew over a year and a half from 6 employees to 300.

The Base44 business is approaching an annual recurring revenue run rate of $250 million. AI costs fell and gross profitability rose, but Base44 relies on marketing expenses that pushed Wix into a loss. The company cut its annual free cash flow forecast due to the marketing investments.

Alongside the results, the company announced that Nir Zohar, the company's president since 2013, will be named co-CEO alongside founder Avishai Abrahami. Zohar will focus on product, technology and AI, and the reports state that the company will rely on the performance of Base44, which was acquired from Maor Shlomo. Wix believes the race for market share of Base44 will translate into profits later on.