Wix Says Base44 Nears $250 Million ARR as Its AI Model Lowers Inference Costs

Wix said on November 10 that Base44, its no-code application platform, was approaching $250 million in annual recurring revenue. The company linked the platform’s growth to new users and improving retention, while reporting that its proprietary Base 1 AI model had helped reduce inference costs. Base44’s non-GAAP gross margin reached 58% in the third quarter, compared with close to zero in the first quarter. Chief financial officer Lior Shemesh attributed the decline in inference costs to Base 1. Wix expects the platform’s gross margin to exceed 60% in the fourth quarter and plans to put further improvements back into marketing. The company said renewal rates for the earliest cohort of customers who joined under Wix ownership had exceeded expectations, with later cohorts improving further. Annual plans accounted for more than 20% of subscriptions purchased by September’s new customer cohort, up from approximately 5% a year earlier. Co-founder and CEO Avishai Abrahami said, “Base44, our biggest bet, continues to outperform expectations…” Wix acquired Base44 in 2025. Alongside the platform update, it lowered its full-year adjusted free-cash-flow margin outlook to approximately 16%. Planned GPU prepayments are expected to create an approximately $10 million working-capital headwind in the fourth quarter. The company scheduled its results call for 8:30 a.m. Eastern time on November 10, or 3:30 p.m. in Israel.