Wix faces uphill battle despite AI success
Wix's successful cross-sell of its Base 44 AI product is insufficient to offset the terminal decline of its core customer base.
The argument
The speakers debated Wix's performance, noting that while generating $100 million in AI revenue is impressive, their core paid customer base declined by 1.2%. To move the needle for a company of Wix's scale, the AI business must grow exponentially to hundreds of millions of dollars very quickly.
The thesis, stress-tested
✓ What validates it
- ✓Base 44 revenue reaching $300 million to $600 million within the next fiscal year
- ✓Stabilization or growth in Wix's core paid customer count
▸ Risks discussed
- ▸If Wix successfully cross-sells Base 44 to its 6.1 million customer base, growth could reaccelerate to over 30%
Hear it yourself
"And so I wouldn't want to be running Wix because a 100,000,000 from base 44, it's great. And it shows you can cross sell. Right? And it shows a lot of new things, but their their larger customer count is flat to down. So they've got the gravity of the decline of the core business."
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