Israeli website building platform company Wix.com Ltd. (Nasdaq: WIX) has reported $445 million revenue in the third quarter of 2024, up 12.9% from the corresponding quarter of 2023, and non-GAAP net profit of $89.3 million ($1.50 per share) up 37% from the corresponding quarter. GAAP net profit was $26.8 million, almost fourfold the amount in the corresponding quarter.
The company, managed by cofounder and CEO Avishai Abrahami, has also raised its 2024 guidance and now expects annual revenue of $1.757-1.764 billion in 2024, 13% higher than 2023, and up from the previous guidance of $1.747-1.761 billion. In the fourth quarter of 2024, Wix expects to see revenue growth of 13%-15% over the corresponding quarter of 2023. Wix also expects to generate free cash flow of $483-488 million, which is higher than the previous forecast.
Wix makes it easy for users to build their own websites and its customers include small businesses and professionals who build websites for others. Wix president Nir Zohar told journalists today, "We set ourselves a goal two and a half years ago to move to higher and clearer profitability. We have clearly met that goal, and the third quarter is another example of that. In the past year, after many difficulties, many of which stem from the global economy, we have placed emphasis on renewing acceleration in the rate of growth. The environment is not so easy, but we are succeeding."
Zohar said that one of the things pushing the company forward at the moment at a time when small businesses in the world are struggling, is business with partners -- the professional layer that use Wix.
Wix CFO Lior Shemesh said that the acceleration in growth in the third quarter was very important and has allowed the company to increase cash flow while its cost structure has remained unchanged. "As a result of innovation and new products that we issued, the two sectors of activity are marked out for accelerated growth in the coming years."
Share price has risen 50% since the start of the year
Before the start of trading on Nasdaq today, Wix’s share price had risen 49.5% since the start of 2024. Following publication of the third quarter results, the share price is currently 13.4% higher, giving a market cap of $11.466 billion.
Published by Globes, Israel business news - en.globes.co.il - on November 20, 2024.
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