Buoyant Wix beats analysts and raises guidance

Wix Photo: Baz Ratner Reuters

The Israeli DIY website company's share price has already risen 66% since the start of 2019, giving it a market cap of $7.3 billion.

Israeli DIY website company Wix.com Ltd. (Nasdaq: WIX) has reported higher revenue and non-GAAP net profit in the second quarter, beating the analysts predictions, and has raised its revenue forecast for 2019.

Wix reported second quarter revenue of $185.4 million, up 27% from the corresponding quarter of 2018. GAAP net loss in the second quarter of 2019 was $16.7 million ($0.33 per share) compared with a GAAP net loss of $5.6 million ($0.12 per share) in the second quarter of 2018. Non-GAAP net profit in the second quarter of 2019 was $17.0 million ($0.34 per share) compared with non-GAAP net profit of $13.8 million ($0.29 per share) for the second quarter of 2018.

Wix provides free basic services for setting up websites but customers must pay for extra features such as shopping carts, individual web addresses and site traffic analysis.

Wix raised its 2019 revenue guidance to $761-$765 million up 26-27% from its previous forecast of $758-$763 million. Revenue guidance for the third quarter is $196-$198 million, up 26-27% from the corresponding quarter of 2018.

Wix hopes revenue will be further boosted by the opening of its new office in Tokyo and the launch of operations in Japan.

Wix added 132,000 net premium subscriptions in the second quarter of 2019 to reach 4.3 million as of June 30, 2019 up 17% from the number of premium subscriptions at the end of the second quarter of 2018 The company also added 5.7 million registered users in the second quarter of 2019. Registered users as of June 30, 2019 were 154 million, up 18% from the end of the second quarter of 2018.

Tel Aviv based Wix was founded in 2006 by CEO Avishai Abrahami, VP client development Nadav Abrahami, and CTO Giora Kaplan. The company's share price rose 0.40% on Nasdaq yesterday to $146.10, giving a market cap of $7.285 billion. the share price has risen 66% since the start of 2019.

Published by Globes, Israel business news - en.globes.co.il - on July 24, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Wix Photo: Baz Ratner Reuters
Wix Photo: Baz Ratner Reuters
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