Crisis boosts Wix Q1 results, share at record high

Avishai Abrahami
Avishai Abrahami

Wix CEO: The Covid-19 crisis have forced a massive change on our users.

The Covid-19 crisis and the trend pushing activities online has benefitted Israel DIY website developer Wix.com Ltd. (Nasdaq: WIX), which today reported its first quarter financial results including net loss narrower than the analysts expectations.

Revenue in the first quarter of 2020 was $216.0 million, up 24% from $174.3 million in the first quarter of 2019.

GAAP net loss in the first quarter of 2020 was $39.2 million ($0.76 per share), compared with a net loss of $30.7 million ($0.62 per share), for the first quarter of 2019. Non-GAAP net loss in the first quarter of 2020 was $0.4 million ($0.01 per share), compared with non-GAAP net profit of $1.5 million ($0.03 per share) for the first quarter of 2019.

Commenting on the Covid-19 crisis, Wix noted, "Demand for creating an online presence is accelerating as businesses around the globe adapt to the current environment. During the month of April, over 3.2 million new users registered with Wix to create an online presence, an increase of 63% year on year and an all-time monthly high.

Wix cofounder and CEO Avishai Abrahami said, "As demand for an online presence increases, we remain focused on providing best-in-class free and paid products and delivering improvements to our offering in response to our users' needs. The Covid-19 crisis has forced a massive change upon our users. The need for SMBs, entrepreneurs and brands to move online quickly, to communicate with their customers and to deliver goods and services has never been clearer. Demand for our platform offerings boomed at the beginning of April, and I am extremely proud to say that our team responded quickly to make sure we can deliver the best service to our users across the globe."

Wix's share price rose 0.37% on Wall Street yesterday to a record $166.20, giving a market cap of $8.626 billion.

Published by Globes, Israel business news - www.globes-online.com - on May 14, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Avishai Abrahami
Avishai Abrahami
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