Wix's future customer base will split into three groups: small businesses that stay with Wix's no-code platform, those who fully switch to vibe-coding via Base44, and a middle group that uses both.

12:02model or the year after's model? You know, I had Samman on the show and he said, "You have to build for the model of tomorrow or next year." >> Well, we are. That's B 44. That's why we invest so much into P 44 because if that will be something that happening that way, okay, that's why we have P 44. Essentially the way I look at it today

12:24is that there are three different options. One, the guy that built the pizza place. He said he want to build the website and the management tools for that. Okay, he's going to be staying a witch customer because he don't want to put their effort into that. His business in life is build he's making pizza, right? So that's option number one, right? So he's a lot of them will stay

12:44here. option number three and I'm going to say is that they're going to say well I'm actually really interested in that base 44 made it so easy for me to vibe code everything I need it's custommade for me so I'm going to use B 44 for that okay and and there is of course the middle ground which is like some people will be here some people will be there

13:03okay which is I'm guessing the more likely scenario to happen in the next five six years right not everybody will be in this side or in that side >> can I ask you when you think about like base 44's margin profile, a lot of the providers, you know, we've had lovable, we've had rap, we've had Mayor on the show. Um, and you know, their margin is is one that's hidden in a lot of cases

13:25and it leads to negativity and skepticism around whether they're actually good businesses. How does the margin profile of a base 44 compared to the margin profile of a Wix? >> Well, Wix is way way way more profitable, right? The cost of a Wix generating Wix website er is pretty much zero in comparison and hosting pretty much zero in comparison. So way more profitable on Wix than on base 44.

13:55Uh the margins are much better. The retention is also better because you start building something you need to put a lot of effort to finish it and and and so it's a way more challenging but we did get the cost to go. We're continuously seeing a decline in the cost uh in B 44. There's a brilliant team always leading that then and we just released our own AI model, right?