Wix.com (WIX 108.55, +1.85, +1.73%) has been quietly making new all-time highs in
the past week or so. With today being a fairly slow news day, we wanted to take
this opportunity to provide some color on what they do and what has been going
on at the company. Wix.com, which is based in Israel, offers a web development
software platform enabling small business owners and entrepreneurs, from wedding
photographers to bed and breakfast operators and from charities to aspiring
actors, to bring their businesses online. WIX offers some free products (to
registered users) with the hope that satisfied users will upgrade to paid subscriptions
eventually in order to enhance their hosting experience with increased storage
and bandwidth, free domains, and other features. Wix currently has over 130 mln registered
Its core product is the Wix Editor, a drag-and-drop website editing platform with templates, graphics, image galleries, and fonts. Users create websites that can be viewed across all major browsers and mobile devices. WIX has created templates designed to support several verticals (retail/online stores, hotel and property management, music and artist pages, restaurants, etc.) that can be set up with minimal effort via drag-and-drop tools and without the need to write code.
Its other major offering is its App Market, which allows users to easily install 250+ free and purchasable apps (social plug-ins, online marketing, CRM management, contact forms, payment processing, etc.). These apps add additional functionality and are easily integrated into WIX websites with one click and without any coding.
Another offering is Wix ADI, which is the world's first platform that combines website design and content creation with artificial intelligence to enable complete, custom websites suited to the site owner’s needs to be created in a matter of minutes. In December 2017, Wix officially launched Wix Code to all users, providing users with the support necessary to build sophisticated features quickly and easily. Wix Code greatly expands Wix's addressable market by bringing a cloud-hosted platform to creators and designers that allows them to take advantage of a serverless development environment to build SEO-compatible web applications and other interactive features.
On May 9, WIX reported strong Q1 results, with revenue jumping 49% year/year to $137.8 mln. WIX says that its continued focus on product development and efficient marketing drove the strong financial results. The company is encouraged by the continued adoption of Wix Code and is delighted by the creative ways by which developers around the world have put Wix Code to use.
Overall, the Q1 results exceeded internal expectations as conversion and retention outperformed expectations, contributing to the creation of WIX's largest user cohort ever. Equally impressive, WIX generated over $21 mln in free cash flow, a record for a single quarter. Looking ahead, WIX is set to report Q2 results on Wednesday, July 25 before the open. Based on the recent trading action (+18% since early June), it's clear that investors are expecting another strong earnings result when WIX reports next week.
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