Israeli website construction tools company Wix.com (Nasdaq: WIX) has reported results for the fourth quarter of 2020 and the full year that exceed its guidance. Total revenue in the fourth quarter of 2020 was $282.5 million, which compares with $204.6 million in the fourth quarter of 2019, representing an increase of 38%.
On a GAAP basis, the company posted a net loss of $62.8, or $1.13 per share, for the quarter, which compares with a net loss of $21.6 million, or $0.42 per share, for the fourth quarter of 2019. On a non-GAAP basis, the net loss was $1.6 million, or $0.03 per share, and compares with a net profit of $19.9 million, or $0.39 per share, for the fourth quarter of 2019. The average analysts' estimate was for a non-GAAP loss per share of $0.11 on revenue of 270.22 million.
For 2020 as a whole, revenue was $988.8 million, 30% more than the $761.1 million for 2019. On a GAAP basis, Wix posted net loss of $216.5 million, or $(3.98) per share for 2020, which compares with a net loss of $86.4 million, or $1.71 per share, for 2019. On a non-GAAP basis, the net loss for 2020 was $24.2 million, or $0.44 per share, and compares with a profit of $59.1 million, or $1.17 per share, for 2019.
Net cash provided by operating activities for the full year 2020 was $148.0 million, while capital expenditures totaled $18.9 million, leading to free cash flow of $129.2 million, 1.3% more than the $127.5 million free cash flow for 2019.
Wix added 185,000 net premium subscriptions in the fourth quarter of 2020, to reach 5.5 million at the end of the quarter. 22% more than at the end of 2019. It added 7.4 million registered users in the fourth quarter of 2020, to reach 196.7 million at the end f the quarter, 19% increase more than at the end of 2019.
Wix CEO and co-founder Avishai Abrahami said, "We have concluded the most successful year in our company’s history. In 2020, over 31 million new registered users joined Wix, we added nearly 1 million net new subscriptions, and we crossed $1 billion of annual collections for the first time. It was truly humbling to help lift millions of businesses through an extremely challenging year, and I am particularly proud of our team for maintaining focus and dedication throughout the year.
"It is clear that we can now become a dominant player on the internet, and I expect us to strengthen this position significantly over the coming decade. Wix will now strive to become the main engine of the internet, democratizing access and providing a place where the majority of people will build their web presence. My goal and belief is that at this rate of growth, in the next 5-7 years, 50% of anything new built on the internet will be done on Wix."
Wix recently launched its Editor X product out of beta and introduced a new suite of collaboration tools that enable concurrent editing, which it claims makes it the only fully collaborative web creation platform in the world. It says that Editor X already has more than 200,000 users.
For 2021, Wix forecasts revenue of $1.27-1,29 billion, representing growth of 29-30% over 2020. The current average analysts' estimate is for revenue of $1.26 billion in 2021, and that the company will break even on a non-GAAP basis.
Wix has a market cap of $15.56 billion. Its share price rose sharply between the end of March and the end of June last year, and since then has been reasonably steady. It closed at $279.46 yesterday, down 4.56% on the day.
Published by Globes, Israel business news - en.globes.co.il - on February 17, 2021
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