Wix.com Unveils AI Chat Tool To Enhance Customer Engagement
Wix.com Ltd. WIX has introduced an innovative artificial intelligence (AI) Site-Chat feature, aimed at transforming customer interactions for businesses online. This virtual assistant operates around the clock, providing immediate responses to customer inquiries, sharing accurate information, and recommending relevant products and services.
The AI Site-Chat seamlessly integrates with a website’s internal systems, offering “up-to-the-minute information” and tailored recommendations by understanding user intent. This tool not only helps businesses capture leads and improve offerings based on customer questions but also aids in developing targeted sales strategies. Importantly, it is fully customizable, ensuring it reflects brand identity and adheres to specific business guidelines.
WIX emphasized that this feature empowers small and medium-sized businesses (SMBs) with an enterprise-level solution for customer support, sales, and engagement, ultimately enhancing conversion rates and reducing friction in the customer experience.
A Commitment to AI and Business Growth
Wix is firmly investing in AI, underlining their focus on the AI-powered solutions as key growth drivers. In the third quarter, WIX Studio, their premium platform for agencies and professionals, represented 75% of new partner bookings, highlighting a notable uptrend from the previous quarter. Its appealing features make it a preferred choice for larger projects.
Moreover, the company continues to introduce generative AI across its services, recently launching 29 AI business assistants, which are enhancing operational efficiency and boosting customer conversion rates.
The commerce platform has also exhibited impressive numbers, with Gross Payment Volume (GPV) growing by 14% year over year. This increase, along with a consistent take rate, produced a 23% rise in transaction revenues to $54 million. Notably, partners contributed over 50% of GPV during the latest quarter.
Active engagement in the commerce sector has propelled bookings and revenue, with expectations that ongoing advancements in AI and Studio offerings will further bolster growth. AI-driven solutions promise to enhance user experiences while creating direct monetization opportunities, serving as a strong advantage for 2025 and beyond.
Wix.com Ltd. Price and Consensus
Wix.com Ltd. price-consensus-chart | Wix.com Ltd. Quote
Additionally, Wix has updated its full-year projections. For 2024, they expect bookings to reach between $1,822 million and $1,832 million, an increase from the previous forecast of $1,802 million to $1,822 million. The anticipated revenue range of $1,757 million to $1,764 million signifies a 13% rise compared to the prior year’s figures. For the fourth quarter, revenues are anticipated to be between $457 million and $464 million, representing a year-over-year increase of 13-15%, with bookings growth projected to reach 18% by year-end.
Current Stock Position and Market Performance
WIX is currently assigned a Zacks Rank #3 (Hold). Over the past year, the company’s shares have surged by 96.2%, significantly outpacing the broader industry’s 13.1% growth.
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Stocks Worth Considering
Investors may also look at better-performing stocks within the technology sector, including Shopify Inc. SHOP, Amazon.com, Inc. AMZN, and C3.ai, Inc. AI, all currently holding a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Shopify’s 2024 earnings per share (EPS) stands at $1.25, consistent with the forecasts from a week prior. Shopify has consistently surpassed earnings expectations over the last four quarters, averaging a 24.5% surprise. The company has enjoyed a long-term earnings growth rate of 42.6%, with shares climbing 59% in the past year.
Amazon’s consensus for 2024 EPS is $5.19, maintaining consistency with past estimates. Amazon has also beaten earnings expectations each of the last four quarters, averaging a 25.85% surprise, and its long-term growth rate is at 28.3%, with shares rising by 54.7% over the past year.
C3.ai has consistently exceeded earnings estimates in prior quarters, with an impressive average surprise of 60.53%. The company is forecasted to see long-term earnings growth of 26%, and its stock has gained 35.7% in the last year.
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