May. 15 at 7:00 PM
$WIX Yes
Management view
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that i think same: WIX's investments are for future growth. They expect significant improvement in Base44 margins quarter after quarter in 2026 thanks to:
1. AI cost optimization (they have already deployed their first proprietary LLM for Harmony → reduces inference costs and third-party dependency).
2. Scaling of the user base (more users → diluted fixed costs).
3. Transition from acquisition/marketing to retention/maintenance.
Guidance confirmed: Mid-teens revenue and bookings growth for the whole of 2026 + high-teens Free Cash Flow margin (excluding acquisition costs).
The following are also positive on the AI front:
1. Base44 reached ~150M$ ARR in mid-May (strong momentum, new user cohort +46-50% YoY).
2. Wix Harmony over proprietary LLM → competitive advantages over speed, cost, and control.
3. Management very optimistic about AI as the main driver of future growth.
