Wix Appoints Nir Zohar Co-CEO Amid Base44 Growth Surge
Translated & summarized from Calcalist by baba
Wix appointed Nir Zohar as co-CEO alongside founder Avishai Abrahami to divide responsibilities. The company's wave coding division, Base44, is nearing $250 million in annual revenue, achieving strong profit margins. Despite Base44's growth, Wix reported a net loss due to high computational costs, though its core business also grew. Wix forecasts slower Q4 growth and has lowered its 2026 cash flow projection due to increased investments in Base44 and AI infrastructure.
The story in 5 lines · by baba
- Nir Zohar appointed co-CEO of Wix alongside founder Avishai Abrahami.
- Wix's Base44 division nears $250 million annual revenue run rate with 58% gross profit.
- Wix reported a $13.7 million net loss in Q3 despite core business revenue growth.
- Company workforce reduced by 1,000 employees to 4,121 amid restructuring.
- Wix forecasts slower Q4 growth and lowers 2026 cash flow projection.
Wix has announced the appointment of its long-time President, Nir Zohar, as co-CEO alongside founder Avishai Abrahami, aiming to streamline responsibilities. Zohar will oversee business strategy, operations, marketing, and sales, while Abrahami will focus on product, technology, and AI. This move comes as Wix's wave coding division, Base44, acquired about 18 months ago, is experiencing significant growth, approaching an annual revenue run rate of $250 million. Despite this rapid expansion, Base44's high computational demands have led to Wix reporting a net loss. However, Base44 has achieved a gross profit margin of 58%, projected to reach 60% by year-end, attributed to increased user acquisition and retention, with a notable rise in annual subscription renewals.
Wix's core business also saw a 13% revenue increase, reaching $570 million with an annual sales run rate of $2 billion. The company reported a third-quarter net loss of $13.7 million, but adjusted profit was $69 million, with a cash flow of $78 million. This cash flow was impacted by restructuring costs, including the layoff of 1,000 employees earlier in the year to optimize operations and adapt to AI realities, reducing the workforce from approximately 5,200 to 4,121 employees.
Looking ahead, Wix maintains its annual revenue forecast but anticipates slower growth of around 10% in the fourth quarter due to a slight slowdown in its core activities. The company is also revising its cash flow forecast for 2026 downwards to 16% of revenue, from nearly 20%, due to higher-than-expected investments supporting Base44's growth. Additionally, Wix expects a $10 million impact on working capital in the fourth quarter from increased GPU chip costs for AI model operations.
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Centre 1Other 1
