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Is WIX's AI-Focused Strategy Heading in the Right Direction?
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Wix.com Ltd. (WIX - Free Report) is making significant strides in generative artificial intelligence (AI) to position itself as a key player in a rapidly evolving market. WIX is a cloud-based web development platform based in Tel Aviv, Israel. It offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms and grow the companies’ online presence.
Recognizing AI as a powerful catalyst for growth, the company has launched several innovative products. The AI-focused product strategy involves using intelligent AI tools to boost customer experience by simplifying web design and management.
WIX’s AI-Based Innovations
Recently, the company unveiled its latest AI Theme Assistant that provides users with personalized recommendations and real-time advice, allowing them to customize their website’s theme easily. This tool is part of a broader suite of innovations from Wix aimed at supporting users throughout every phase of their online journey, from initial ideas to final execution.
In June 2024, WIX introduced advanced AI capabilities for its mobile app builder, allowing users to effortlessly create professional applications. It also expanded AI Website Builder to support multiple languages, making web development more accessible. The flagship AI Website Builder, launched in March 2024, uses conversational AI to help users create tailored websites through an intuitive chat experience. Moreover, WIX has embedded 17 AI business assistants across its platform, enriching the user experience. The introduction of WIX Studio (August 2023) allows users to leverage cutting-edge AI technology for advanced web development.
WIX’s Strategy Boosts Top Line
The uptake of WIX Studio and the AI product suite has driven impressive financial results, with bookings of $458.4 million in the second quarter — up 15% year over year. Total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million.
This strong performance has led management to raise revenue expectations for 2024 to between $1,747 million and $1,761 million (previous projection: $1,738 million to $1,761 million). Total bookings are expected to be between $1,802 million and $1,822 million compared with a previous range of $1,796-$1,826 million.
Stiff Competition Dents WIX Prospects
Despite healthy AI traction, WIX faces stiff competition which could hinder its revenue growth. Overall, WIX’s AI-focused strategy appears to be on a promising path, but it needs to watch out for increasing competition to maintain its momentum.
The e-commerce software market space is highly competitive, with companies like BigCommerce Holdings, Inc. (BIGC - Free Report) , GoDaddy Inc. (GDDY - Free Report) and Shopify Inc. (SHOP - Free Report) scrambling to ensnare a bigger share of the lucrative market.
BigCommerce is a leading open Software as a Service and composable e-commerce platform that enables brands and retailers of all sizes to build and grow their online businesses. To capture the AI market, the company has launched initiatives such as BigAI Product Recommendations for personalized shopper suggestions and BigAI Copywriter for creating SEO-friendly product descriptions, along with developing AI-driven apps to enhance operational efficiency.
GoDaddy helps millions of small businesses globally accelerate their growth, giving entrepreneurs confidence at every stage of their business journey. Recently, it launched Airo, an intelligent experience that proactively builds and grows businesses with the power of AI. In the second quarter, the company passed an exciting milestone – more than 1 million new customers have discovered Airo and over half a million of them actively engaged with the experience.
Shopify is the leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market and run a retail business of any size. In April 2023, it launched Shopify Magic, a suite of free AI-enabled features integrated across Shopify’s products and workflows.
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Is WIX's AI-Focused Strategy Heading in the Right Direction?
Wix.com Ltd. (WIX - Free Report) is making significant strides in generative artificial intelligence (AI) to position itself as a key player in a rapidly evolving market. WIX is a cloud-based web development platform based in Tel Aviv, Israel. It offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms and grow the companies’ online presence.
Recognizing AI as a powerful catalyst for growth, the company has launched several innovative products. The AI-focused product strategy involves using intelligent AI tools to boost customer experience by simplifying web design and management.
WIX’s AI-Based Innovations
Recently, the company unveiled its latest AI Theme Assistant that provides users with personalized recommendations and real-time advice, allowing them to customize their website’s theme easily. This tool is part of a broader suite of innovations from Wix aimed at supporting users throughout every phase of their online journey, from initial ideas to final execution.
In June 2024, WIX introduced advanced AI capabilities for its mobile app builder, allowing users to effortlessly create professional applications. It also expanded AI Website Builder to support multiple languages, making web development more accessible. The flagship AI Website Builder, launched in March 2024, uses conversational AI to help users create tailored websites through an intuitive chat experience. Moreover, WIX has embedded 17 AI business assistants across its platform, enriching the user experience. The introduction of WIX Studio (August 2023) allows users to leverage cutting-edge AI technology for advanced web development.
WIX’s Strategy Boosts Top Line
The uptake of WIX Studio and the AI product suite has driven impressive financial results, with bookings of $458.4 million in the second quarter — up 15% year over year. Total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million.
This strong performance has led management to raise revenue expectations for 2024 to between $1,747 million and $1,761 million (previous projection: $1,738 million to $1,761 million). Total bookings are expected to be between $1,802 million and $1,822 million compared with a previous range of $1,796-$1,826 million.
Stiff Competition Dents WIX Prospects
Despite healthy AI traction, WIX faces stiff competition which could hinder its revenue growth. Overall, WIX’s AI-focused strategy appears to be on a promising path, but it needs to watch out for increasing competition to maintain its momentum.
The e-commerce software market space is highly competitive, with companies like BigCommerce Holdings, Inc. (BIGC - Free Report) , GoDaddy Inc. (GDDY - Free Report) and Shopify Inc. (SHOP - Free Report) scrambling to ensnare a bigger share of the lucrative market.
BigCommerce is a leading open Software as a Service and composable e-commerce platform that enables brands and retailers of all sizes to build and grow their online businesses. To capture the AI market, the company has launched initiatives such as BigAI Product Recommendations for personalized shopper suggestions and BigAI Copywriter for creating SEO-friendly product descriptions, along with developing AI-driven apps to enhance operational efficiency.
GoDaddy helps millions of small businesses globally accelerate their growth, giving entrepreneurs confidence at every stage of their business journey. Recently, it launched Airo, an intelligent experience that proactively builds and grows businesses with the power of AI. In the second quarter, the company passed an exciting milestone – more than 1 million new customers have discovered Airo and over half a million of them actively engaged with the experience.
Shopify is the leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market and run a retail business of any size. In April 2023, it launched Shopify Magic, a suite of free AI-enabled features integrated across Shopify’s products and workflows.