Wix.com (NASDAQ:WIX) raised its full-year bookings outlook on Wednesday after reporting strong third-quarter results and increased demand tied to Base44, the AI coding platform it acquired earlier this year. Shares, however, fell more than 14% intra-day.

The company now expects 2025 bookings of $2.06 billion to $2.08 billion, up from a prior range of $2.04 billion to $2.08 billion. Wix also raised its full-year revenue forecast to $1.99 billion to $2.00 billion, compared with previous guidance of $1.98 billion to $2.00 billion.

For the fourth quarter, Wix projected revenue of $521 million to $531 million, representing 13% to 15% year-over-year growth. The company said its non-GAAP gross margin for the year was expected to be 68% to 69%, reflecting increased AI-related costs associated with Base44 usage. Non-GAAP operating expenses were projected to total approximately 50% of revenue, and free cash flow was expected to reach about $600 million, or around 30% of revenue.

Wix reported third-quarter revenue of $505.2 million, while total bookings rose to $514.5 million. Creative Subscriptions revenue increased 12% to $356.2 million, and Business Solutions revenue grew 18% to $149 million.

Creative Subscriptions annual recurring revenue reached $1.48 billion, up 11% year over year. Business Solutions transaction revenue rose 20% to $65.3 million, and Partners revenue increased 24% to $192.1 million.