Wix Names Nir Zohar Co-CEO as Base44 Approaches $250 Million in Recurring Revenue

Wix appointed Nir Zohar co-CEO alongside Avishai Abrahami on November 10 as the company reported third quarter revenue of $570.2 million and said its Base44 application platform was approaching $250 million in annualized recurring revenue.

The appointment took effect immediately. Zohar will oversee business strategy, bringing products to market and operations, while Abrahami will lead product development, artificial intelligence and technology. The division of responsibilities accompanies a larger commitment of marketing money to Base44, even as its operating economics improve.

The revenue increase comes with a lower cash target

In the results release filed with the US Securities and Exchange Commission, Wix reported revenue growth of 13% from a year earlier and bookings of $573 million, up 11%. Total annualized recurring revenue at the end of the quarter was $2.021 billion, an increase of 15%.

The company maintained its full year revenue and bookings growth outlook. It nevertheless reduced its expected free cash flow margin, excluding acquisition and restructuring costs, to approximately 16%, from a previous expectation in the high teens.

Management attributed that reduction primarily to accelerated sales and marketing investment in Base44. The release says further improvements in gross margin are expected to be directed back into marketing in the fourth quarter. Faster growth and a smaller near term cash margin are both part of the plan management presented.

Base44 grows as the cost of serving users falls

Wix reported a Base44 gross margin of 58% on its adjusted, non-GAAP measure in the third quarter, compared with close to zero in the first quarter. It attributed much of the improvement to lower AI inference costs delivered by its proprietary Base 1 model.

Inference is the computing work needed to run an AI model when users request an output. Reducing that cost changes how much of a subscription payment remains after the service is delivered. Wix expects Base44’s adjusted gross margin to exceed 60% as the year ends; that remains management’s forecast.

The nearly $250 million Base44 ARR figure refers to the position described on November 10. ARR expresses recurring subscription activity at an annualized rate. Revenue in the quarterly accounts is recognized over the relevant accounting period, so the headline figures measure different aspects of the business.

Longer subscriptions and renewals support the expansion

Chief Financial Officer Lior Shemesh said renewal rates among early Base44 users had exceeded initial expectations, with subsequent groups of subscribers showing improving retention. Wix also reported a change in the plans selected by newly arriving users.

Annual plans accounted for more than 20% of subscriptions purchased by the September 2026 group of new Base44 customers, compared with approximately 5% for the September 2025 group. Those percentages describe those particular groups and their purchases.

Most Base44 subscriptions were still billed monthly, the company said. Wix expects the growth in annualized recurring revenue to translate progressively into bookings and recognized revenue over coming quarters.

The main businesses and the accounting result

Creative Subscriptions generated $406.7 million in quarterly revenue, up 14%, while Business Solutions generated $163.5 million, up 10%. Those two amounts add to the company’s $570.2 million revenue total.

Wix also reported $212.4 million of revenue associated with partners such as agencies and resellers. Its definition places that activity across the two businesses, including Base44 within Creative Subscriptions. Partner revenue is consequently already represented in the company total.

Under US generally accepted accounting principles, Wix recorded a net loss of $13.7 million. Its adjusted, non-GAAP calculation showed net income of $69.3 million. The company’s adjustments include items such as share compensation and acquisition related expenses, so both measures remain relevant to the results it published.

Cash generation and the next quarter

Operating cash flow was $78.3 million and capital expenditure was $3.8 million, producing free cash flow of $74.5 million. Excluding restructuring costs, Wix put free cash flow at $99.6 million, or 17% of revenue.

For the fourth quarter, management expects revenue growth in the low double digits and bookings growth to lag revenue growth because weakness among partners affects bookings more immediately. It also expects an approximately $10 million working capital headwind from prepaying for graphics processors to run its models over the next several years.

The leadership change assigns Zohar responsibility for executing the commercial expansion while Abrahami concentrates on the product and AI work. Wix also said it had launched Studio Two during the previous week, combining AI generation, visual editing and React code. Its next reported quarter will show how those product investments and the heavier Base44 marketing spending flow into recognized revenue and cash generation.