Israeli website building platform company Wix.com Ltd. (Nasdaq: WIX) reported strong results for the second quarter while a rise in orders for its improved products builds positive momentum for the second half of 2024 and the company has raised its guidance accordingly.
Wix enables its customers to set up and manage websites and online stores on its platform. The company’s share price was down 2% in early trading today, giving a market cap of $8.8 billion, after rising 4.80% yesterday.
Second quarter revenue was $435.7 million, up 12% from the corresponding quarter of 2023. The rise was due to a rise in the number of business partners. GAAP net profit was $39.5 million ($0.70 per share) and non-GAAP net profit was $99.60 million ($1.80 per share).
Wix also slightly raised guidance for 2024 and now expects revenue of $1.747-1.761 billion from $1.738-1.761 billion. The company has revised expected cash flow up to $460-470 million from $445-455 million.
Wix CFO Lior Shemesh said, "Strong execution of our key growth initiatives and solid business fundamentals drove incredible growth momentum and additional margin expansion this quarter. Year-over-year bookings growth accelerated to 15% in Q2 from 10% in Q1 as a result of our growth initiatives as well as the price increase implemented earlier this year. Notably, this growth was underpinned by bookings growth acceleration across both self Creators and partners businesses. These key product initiatives paired with solid user behavior are expected to drive continued bookings growth acceleration to 16% in 2H at the high end of our expectations."
Wix president Nir Zohar told the press conference that any global slowdown is not particularly threatening for Wix. He said, ""Our growth has come mainly from the things that are under our control, such as the new products and services we launched, and we haven't seen anything dramatic at the company level here. Are we immune? I don't know, we've seen difficult times in the past where platforms like ours were a solution for those who were laid off and saw us as an opportunity."
Wix, which has 5,200 employees, bought back shares for $225 million in the second quarter and since 2021 has bought back shares for $1 billion.