The Top 5 Analyst Questions From Wix's Q1 Earnings Call

Wix’s first quarter results for 2025 were met with a sharply negative market reaction, despite management citing robust new user bookings and notable product innovation. CEO Avishai Abrahami credited the quarter’s performance to continued demand across key geographies, the successful rollout of new AI-powered tools, and a stronger-than-expected new user cohort. Management was cautious in tone, acknowledging macroeconomic uncertainty could impact the durability of recent growth.

Is now the time to buy WIX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Wix’s Q1 Earnings Call

• Ygal Arounian (Citigroup) asked about the monetization potential and market reach for Wixel. CEO Avishai Abrahami explained that Wixel is a separate subscription product targeting both Wix users and a broader creative audience, but he emphasized it is early in its adoption cycle.

• Ken Wong (Oppenheimer) sought clarity on the conservatism in guidance despite strong April and May trends. CFO Lior Shemesh responded that macro factors outside of Wix’s control prompted a cautious approach to outlook, even as core business metrics remain strong.

• John Byun (Jefferies) questioned the deceleration in Partners revenue growth and the distribution approach for Wixel. Shemesh cited foreign exchange and GPV trends as reasons for slower growth, while Abrahami outlined a multi-channel marketing strategy for Wixel’s launch.

• Elizabeth Porter (Morgan Stanley) probed what differentiates Wixel from established design software and the rationale for its pricing. Abrahami highlighted Wixel’s AI-first approach and unique user interface, designed for the future of content editing rather than replicating existing tools.

• Brad Erickson (RBC Capital Markets) inquired about the impact of AI agents on website structure and the future mix between Partners and self-creators. Abrahami suggested current buyer behavior remains steady, with AI likely to increase complexity but not fundamentally alter the split in the near term.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will be closely watching (1) the pace of adoption and monetization for Wixel and Astro, (2) whether strong new user cohort trends continue through the rest of the year, and (3) the resilience of the Business Solutions segment as economic conditions evolve. Progress on AI-powered product rollouts, as well as the effectiveness of expanded marketing efforts, will also serve as key indicators of execution.

Wix currently trades at $163.66, down from $182.01 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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