Wix grows strongly in Q2 as commerce moves online

Wix Photo: PR

The Israeli cloud-based web development company has seen its share price triple since April, and now has a market cap of over $16 billion.

Israeli cloud-based web development company Wix.com Ltd. (Nasdaq: WIX) has reported strong results for the second quarter of 2020. The company has been boosted by the Covid-19 pandemic and the urgent need for businesses and organizations to shift their activities online.

Wix's revenue in the second quarter of 2020 was $231.6 million, up 27% from $185.4 million in the corresponding quarter of 2019, meeting the analysts' expectations. GAAP net loss in the second quarter of 2020 was $57.7 million ($1.06 per share) compared with a GAAP net loss of $16.7 million ($0.33 per share) in the corresponding quarter of 2019. Non-GAAP net loss in the second quarter of 2020 was $14.2 million ($0.26 per share) compared with non-GAAP net profit of $17 million ($0.34 per share) in the second quarter of 2019.

In the second quarter of 2020, Wix added over 9.3 million registered users, up 64% from the corresponding quarter of 2019.

Wix cofounder and CEO Avishai Abrahami said, "The trends that began in late March continued throughout the second quarter, driving record-setting results. The need for business owners to move online quickly, communicate with customers, and deliver goods and services has never been more imminent, and the Wix platform continues to provide millions of users with the ability to thrive during these unprecedented times. Our focus remains on the success of our users, and we continue to deliver innovative products and technology, marked this quarter by the public launch of Editor X and our expanded eCommerce offering."

Wix said that third quarter outlook for revenue and collections reflects sustained momentum with the company expecting revenue growth of 26-27% year on year and collections growth of 31-34% year on year.

Wix is rapidly on the way to becoming Israel's most valuable publicly traded company, fast closing in on Check Point Software Technologies Ltd. (Nasdaq: CHKP), which has a market cap of $17.56 billion. Wix's share price closed up 1.65% on Nasdaq yesterday at a record high of $309.59, giving a market cap of $16.735 billion. In premarket trading the share price is currently down 2.23%. Wix's share price has doubled in the past three months and trebled since early April.

Published by Globes, Israel business news - en.globes.co.il - on August 6, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Wix Photo: PR
Wix Photo: PR
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