Israeli website creation company Wix.com Ltd. (Nasdaq: WIX) today announced its intention to raise $500 million in a private offering of convertible senior notes. The amount raised could reach $575 million if purchasers take up options to buy extra bonds. The move comes just over two years after Wix raised $443 million in a similar convertible bond offering.
At the end of the second quarter, Wix had $826 million in cash, a substantial sum but not especially high for a company with a market cap of $15.1 billion.
Wix, founded by CEO Avishai Abrahami, has flourished during the Covid-19 pandemic, benefitting from the shift to online services, as small and medium size businesses rush to create or improve their websites. Wix's revenue in the second quarter of 2020 was $231.6 million, up 27% from $185.4 million in the corresponding quarter of 2019, as the company added over 9.3 million registered users, up 64% from the corresponding quarter of 2019.
But investors are worried by widening losses. Non-GAAP net loss in the second quarter of 2020 was $14.2 million ($0.26 per share) compared with non-GAAP net profit of $17 million ($0.34 per share) in the second quarter of 2019. The share has slipped back since the financial results were published last week and is currently trading down 3.68% at $280.86, giving a market cap of $15.2 billion, down from $16.75 billion last week.
Published by Globes, Israel business news - en.globes.co.il - on August 10, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020