Wix Lifts Annual Forecast as AI Tools Drive Surge in Demand
Shares jump 10% after the website builder reports stronger-than-expected user growth and improved monetization from its new AI-enhanced platform.
NEW YORK – Wix.com (NASDAQ:WIX) significantly raised its outlook for annual bookings on Wednesday, citing a powerful surge in demand for its artificial intelligence-enhanced tools that is attracting new customers at a rate not seen since the pandemic-era boom. The positive forecast sent the company’s shares soaring by 10% in premarket U.S. trading.
The Israeli company, which provides a popular platform for small businesses to build and manage their online presence, reported that its recently released AI and Studio offerings are providing a major boost to performance.
In a statement, Wix President Nir Zohar credited the success to “robust top of funnel demand, better conversion across our largest markets and improved monetization” directly linked to the new AI tools.
The company is seeing a dramatic acceleration in new user growth. Zohar noted that new user cohort bookings grew faster in the second quarter than in the first, and the trend has continued into the third quarter. At the end of July, this growth figure had jumped by more than 20% compared to the previous year.
“This is a level of strength we have not experienced since the surge in demand during the COVID-19 pandemic,” Zohar added, highlighting the magnitude of the current momentum.
Fueled by this strong performance, Wix has lifted its full-year guidance. The company now expects total bookings to be between $2.04 billion and $2.075 billion, representing an impressive 11%-13% year-over-year increase. It also tightened its full-year revenue forecast to a range of $1.98 billion to $2 billion.
The optimistic outlook is built on a solid foundation, with second-quarter revenue climbing 12% to $489.9 million, beating analyst estimates and demonstrating the successful real-world impact of its innovation strategy.
