Posted on Thursday, May 20th 2021
Israel-based Wix.com (Nasdaq:WIX) has seen significant expansion due to the recent Covid crisis. The company recently reported its first quarter results that surpassed market expectations. During the quarter, Wix continued to add capabilities through acquisitions.
Wix’s Financials First quarter revenues grew 41% to $304.1 million, surpassing the market’s estimates of $295.2 million. Adjusted net loss of $0.54 per share was better than the market’s forecast of a loss of $0.64 per share. During the quarter, Wix grew its marketing spending to $113.1 million from $75.9 million a year ago.
By segment, revenues from creative subscriptions grew 28% to $226.4 million. Business solutions revenues grew 97% to $77.7 million for the quarter.
Among key metrics, Creative Subscriptions ARR grew 25% to $926.1 million. Total collections in the first quarter of the year grew 41% to $351.1 million. During the quarter, Wix added 302,000 net premium subscriptions to end with 5.3 million premium subscribers. It added 7.8 million registered users in quarter to end with 189 million total subscribers.
For the current quarter, Wix expects revenues of $308-$312 million, while the market forecast revenues of $312.34 million. For the year, Wix expects revenues of $1.28-$1.29 billion versus the analyst forecast of $1.29 billion.
Wix’s Acquisitions Recently, Wix announced the acquisition of Israel-based Rise.ai. Founded in 2015 by Yair Miron, Rise.ai is an AI re-engagement solution that gives brands and retailers a unique currency and assists merchants in growing by retaining customers and increasing their average spending. Wix plans to leverage the acquisition to extend its e-commerce platform and give merchants a complete solution that allows them to manage customer re-engagement activities that are meant to increase customer spending and repurchases, such as gift cards, loyalty programs, rewards, and referrals. . Prior to the acquisition, Rise.ai raised $454,000 in two rounds of funding from Peregrine Ventures.
Wix also announced the acquisition of Florida-based SpeedETab. Founded in 2013 by Adam Garfield and Ed Glimore, SpeedETab allows users to order and pay for drinks from their smartphone. The acquisition will broaden Wix’s full-service restaurant platform by creating a fully online experience for restaurant owners and ensuring their online success. Wix Restaurants’ global user base has expanded significantly in the recent past. Within the last two years, the number of Wix restaurants selling online grew by 143%, the number of online orders grew by 378%, and their GPV grew by 449%. Wix plans to continue to drive this growth through the acquisition. Prior to SpeedETab’s acquisition, it had raised $650,000 in a round of funding from Kris Singh.
Besides acquisitions, Wix is also expanding its integrations. It
recently anounced an expanded integration with Google to allow users to create and manage their Business Profile on Google Search and Maps directly from Wix’s platform. This is part of Wix’s advanced SEO capabilities to ensure users can attain maximum site traffic.
Its stock is trading at $234.67 with a market capitalization of $13.2 billion. It hit a 52-week high of $362.07 in February and a 52-week low of $190.24 in June last year.
Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article. This segment is a part in the series : Cloud Stocks . Smartsheet Acquiring Bootstrapped Startups to Drive Growth . Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups . Netflix Price Hike Ruffles Competition . How Will Carbon Black Differentiate? . 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