JERUSALEM (Reuters) – Wix.com, which helps small businesses build and operate websites, expects revenue growth of nearly a third this year amid an increase in demand from companies to have a presence on online in the coronavirus pandemic.
Even as economies emerge from locksmiths, companies remain committed to creating and strengthening their websites, said Wir president Nir Zohar.
“We’ve had a five-year acceleration in just a few months,” Zohar told Reuters on Wednesday after Wix posted its fourth-quarter results. “There’s a huge shift in how people think about themselves and … how they can be more efficient as a business. ”
Wix projects revenue growth of 29-30% in 2021 to $ 1.272- $ 1.286 million, after a 30% increase to $ 988.8 million in 2020. Analysts have forecast $ 1.261 billion for 2021, according to I / B / E / S data from Refinitiv.
Wix has 196.7 million fans after 7.4 million entered the fourth quarter for a 27% year-over-year increase. It raised its high 185,000 membership, up 107%, to 5.5 million.
The Israeli company plans $ 60 million of investments in 2021, including more than 600 employees.
Its shares rose 4.4% at $ 12.23 in pre-Nasdaq trading. They are up 12% so far in 2021 after jumping 104% last year.
Wix reported a net loss in the fourth quarter excluding one-time items of 3 cents per share, compared to a profit of 39 cents per share a year earlier. Revenue grew 38% to $ 282.5 million.
Analysts had predicted that Wix would lose 11 cents ex-items on revenue of $ 270.2 million, according to I / B / E / S data from Refinitiv.
Much of Wix ‘s loss comes from significant research and development and marketing spending. Officials say such investments are needed as growth accelerates and higher incomes turn into higher returns.
“It is clear that we can now become a major player on the internet, and I expect us to strengthen this position significantly in the next decade,” said CEO Avishai Abrahami. “My goal and belief, at this stage of growth, is that over the next 5-7 years, 50% of anything new will be built on the internet on Wix.”
Zohar added that Wix has a strong balance sheet with $ 1.6 billion in cash.
For the first quarter, Wix sees revenue of $ 291- $ 296 million, up 35% -37% from a year earlier. Analysts are currently forecasting $ 287.5 million.
Reporting by Steven Scheer; Edited by Jason Neely and Mark Potter