Wix sees swing to profit in 2015

Wix
Wix

CFO Lior Shemesh says the DIY website builder will be profitable this year.

DIY website builder Wix.com Ltd. (Nasdaq: WIX) today reported financial results for the fourth quarter and full year 2014 with net loss beating the analysts expectations.

CEO Avishai Abrahami said, "We concluded 2014 with a strong quarter and tremendous growth that once again surpassed our guidance. The year was highlighted by the introduction of dynamic new products, important new technologies and new partnerships that deepen our offering and expand our reach."

He added, "2015 is going to be an exciting year for Wix. We started it with a record breaking Super Bowl campaign, and we will continue to roll out what we believe will be significant and game changing developments, features and capabilities in the months to come. Our plans feed directly into our mission to provide an easy and affordable platform to create, manage and grow a business online."

CFO Lior Shemesh said, "We made significant investments in 2014 in R&D and marketing, growing our technical and engineering teams, extending our leadership position through technology innovation and growing our subscription base. We continue to realize operating leverage in our financial results, and we are excited about our prospects for 2015 as reflected in our financial outlook."

He added, "The market is trying to understand our business model and expecting us to be profitable and this is what we are telling them, we are going to be profitable in 2015. The risk factor to Wix's business model is minimal, it's less than what it used to be."

Fourth quarter revenue rose 67% to $41.6 million from $24.9 million for the fourth quarter of 2013. Net loss was $15.1 million ($0.39 per share), compared with a net loss of $10.9 million ($0.45 per share), for the fourth quarter of 2013. Non-GAAP net loss was $9.6 million ($0.25 per share), compared with a non-GAAP net loss of $7.0 million, ($0.29 per share), for the fourth quarter of 2013. New adjusted EBITDA, which includes changes in deferred revenue and changes in prepaid domain registration costs, was $(1.3) million compared to $(0.7) million for the fourth quarter of 2013.

In the fourth quarter of 2013, Wix added 108,000 net premium subscriptions to reach 1,233,000 as of December 31, 2014, 56% up from 790,000 premium subscriptions as of December 31, 2013 and 10% up from 1,125,000 as of September 30, 2014. The company added over 3.8 million new registered users to reach 57.9 million as of December 31, 2014, up 38% from 42.1 million registered users as of December 31, 2013 and 7% up from 54.1 million as of September 30, 2014.

Full Year 2014 saw Wix revenue up 76% to $141.8 million from $80.5 million in 2013. Net loss was $56.6 million, ($1.49 per share) compared with a net loss of $28.7 million, ($3.33 per share) in 2013. Non-GAAP net loss was $40.2 million, ($1.06 per share) compared with non-GAAP net loss of $21.0 million, ($2.64 per share) in 2013.

Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018