The current global lockdown conditions have spelled a boom for cloud-based and web enabled services. One such company benefiting from this growth is Israel-based Wix (Nasdaq:WIX). Wix recently announced its first quarter results that helped push the stock to 52-week high levels.
For the quarter, Wix’s revenues grew 24% over the year to $216 million, in line with the market’s forecast. Adjusted net loss of $0.01 per share was better than the market’s forecast of a loss of $0.02 per share.
By segment, revenues from creative subscriptions grew from $151.4 million last year to $176.5 million. Business service revenues grew from $23 million to $39.4 million for the quarter.
Among key metrics, Creative Subscriptions ARR grew 19% to $739.5 million. Total collections in the first quarter of the year grew 24% to $248.9 million. During the quarter, Wix added 162,000 net premium subscriptions to end with 4.7 million premium subscribers. It added 6.9 million registered users in the quarter to end with 172 million total subscribers.
For the current quarter, Wix expects revenues of $231-$233 million.
Wix’s Product Expansion
Wix continued to add several new products and features to drive market growth especially in the current conditions. The lockdown conditions have forced smaller businesses that would not have migrated to online models to embrace technologies such as those offered by Wix. For instance, it is seeing grocery stores moving online and educational institutions using Wix to teach classes. To cater to this growing demand, it recently integrated Zoom with Wix Bookings, Wix Stores, and Wix Events. The integration allows businesses to bring their appointments and services online through Wix. Zoom is also now available in the Wix App Market.
With the focus on helping businesses launch their online service faster, Wix relaunched Wix Arena as Wix Marketplace. Wix Marketplace allows its partners to offer their services to Wix users to help them transition online. Users looking for help can search on the Marketplace for the service they need addressed and answer a few questions about the project. Wix can match the request with freelance professionals who can help the user, or the user can directly browse through the partner list to hire a professional. Services offered through the Marketplace include creation, management, and optimization of website, setting up an online e-commerce solution, or even addressing smaller tasks such as developing custom emails or conducting Google Analytics.
Besides third party professionals, Wix is also helping its customer base learn the tools surrounding digital transitions. Its Education Team has created a learning site focused on helping users learn how to create and grow a website.
Analysts believe that the current crisis will help Wix drive user retention for Wix and convert more of its freemium customers to paid subscribers. Given that the current conditions are here to stay for a few more months, Wix’s growth metrics would most likely continue.
Its stock is trading at $215.23 with a market capitalization of $11.2 billion. It hit a 52-week high of $231.76 earlier this week. In March this year, the stock had fallen to a 52-week low of $76.81 due to the crisis. Wix had gone public in November 2013 by raising $127 million at a valuation of $604 million. The stock had listed at a price of $17 apiece.