Wix reports higher Q1 revenue, lower profit

Avishai Abrahami  / Photo: Shlomi Yosef , Globes

Wix CEO: We are starting off 2021 in a very strong position and are making strides in achieving these goals.

Israeli cloud-based website development SaaS platform company Wix.com Ltd. (Nasdaq: WIX) today reported higher revenue and lower profits for the first quarter of 2021, although beating the analysts' expectations on both.

Revenue in the first quarter was $304 million, up 41% from the corresponding quarter of 2020. GAAP net loss was $122 million, triple the loss in the corresponding quarter of 2020 due to much higher operating and market and sales expenditure. Non-GAAP net loss in the first quarter of 2021 was $30.2 million ($0.54 per share) compared with breaking even in the corresponding quarter of 2020 (a loss of $0.01 per share).

Wix has raised its revenue guidance slightly for 2021 to $1.28-1.29 billion, growth of 29-30% over 2020.

Wix cofounder and CEO Avishai Abrahami said, "Three months ago I stated my belief that Wix is becoming the main engine of the internet, and that in the next 5-7 years, 50% of anything new built on the internet will be done on Wix. We are starting off 2021 in a very strong position and are making strides in achieving these goals. Wix is taking a leading role in facilitating the global shift online and changing the way web presences are built. We strive to be a horizontal platform that offers the best solution for any type of user and any type of business to not only create but also grow and succeed online. Many types of businesses are relying on Wix today, and we expect that our diversified approach to online commerce will benefit Wix as global economies reopen."

Wix CFO Lior Shemesh added, "Our first quarter 2021 results build on the growth we experienced in 2020 and serve as evidence of the positive returns we are generating from our investments in product development, marketing and support. These investments have driven an increase in conversion and collections per subscription, illustrated by the strength of the collections from the Q1 2021 user cohort, which were 32% higher than the Q1 2020 user cohort generated in its first quarter. We now expect that future collections from existing cohorts will be approximately $14.2 billion over the next 10 years. We are raising our full year guidance to reflect the conviction we have in our position as the best platform for any type or user and any type of business to move online."

Wix's share price was down 2.38% in pre-market trading at $283, giving a market cap of $16.352 billion.

Published by Globes, Israel business news - en.globes.co.il - on May 12, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Avishai Abrahami  / Photo: Shlomi Yosef , Globes
Avishai Abrahami / Photo: Shlomi Yosef , Globes
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