Wix falls despite positive Q3 results

Wix Photo: Baz Ratner Reuters

Israeli cloud-based web development platform saw non-GAAP net profit climb substantially in the third quarter.

Israeli cloud-based web development platform Wix.com Ltd. (Nasdaq: WIX) has reported financial results for the third quarter of 2018.

Revenue in the third quarter of 2018 was $155.6 million, 40% up over the corresponding quarter last year. GAAP net loss in the third quarter of 2018 was $5.9 million ($0.12 per share) compared with a net loss of $14.5 million ($0.32 per share) for the third quarter of 2017. Non-GAAP net profit in the third quarter of 2018 was $18.8 million ($0.39 per share) compared with non-GAAP net profit of $0.4 million ($0.01 per share) for the third quarter of 2017.

Wix cofounder and CEO Avishai Abrahami said, "Our strong third quarter results demonstrate that we continue to develop a product experience on Wix that is best in class. Wix is in the midst of another substantial product release cycle to deliver even more value to our users - we recently introduced Wix Payments, as well as enhancements to Wix Code and the all new Wix Video Maker, and we have begun releasing the new DeviantArt platform to its community. We also plan to announce a new product in December that will elevate how small businesses are managed and grow online. With these new products, and the performance we have seen to date, we look forward to continuing our momentum throughout 2019."

Wix also provided its initial outlook for the fourth quarter of 2018 and updated its 2018 full year guidance. Wix sees $161-162 million revenue in the fourth quarter of 2018, up 36-37% from the corresponding quarter of 2017, and in line with the analysts' expectations. The company has also revised upwards its estimate for annual revenue to $601-602 million compared with its previous estimate of $597-599 million.

Wix's share price was down 5.5% in pre-market trading on Nasdaq after riding 3.06% yesterday to $91.31, giving a market cap of $4.451 billion. Wix's share price has fallen from a peak of $120, two months ago.

Published by Globes, Israel business news - en.globes.co.il - on November 14, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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