Israeli Internet company Wix.com Ltd. (Nasdaq: WIX) finished the second quarter by outperforming the analysts' forecasts and upgrading its forecasts for the rest of the year. Wix has developed a platform facilitating easy construction of websites, which is aimed primarily at small businesses. The company held its Nasdaq IPO in late 2013.
Wix finished the second quarter with $33.4 million in revenue, up 82.5%, compared with the corresponding quarter last year, and 17.8%, compared with the preceding quarter. The company thereby beat its previous forecast of $31-32 million in revenue and the analysts' forecast of $31.8 million. Collections totaled $39.9 million. Wix's revenue in the first half of the years totaled $62.8 million, 84% more than in the corresponding period last year.
Wix is still not making a profit. It posted a $13.8 million second quarter loss, or a $10.4 million non-GAAP loss. The non-GAAP loss per share was $0.27, while the market expected a bigger loss - $0.31 per share. The company's net loss in the first half of the year totaled $21.7 million, or $0.58 per share.
Wix expects $42-43 million in collections in the third quarter and revenue totaling $35-36 million (compared with analysts' expectations of $34.6 million): higher than 60% growth in both parameters. Collections for the entire year are projected to reach $163-166 million, with revenue of $136-138 million. Wix is thereby raising its year-long forecasts for the second time.
"We realized two major milestones during the period, as we surpassed 50 million registered users and one million premium subscriptions," said Wix CEO and cofounder Avishai Abrahami. "Our exceptional growth is a direct result of our constant expansion of offerings on the Wix platform. By developing more products and solutions that cater to the needs of our users, we are providing them with the technology to easily build a professional-looking website, as well as with business management capabilities that deliver a complete solution for their digital presence beyond website creation."
Wix has $101 million in the bank and a market cap of $654 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2014
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