Wix.com revenues neared $1 billion in 2020, company ups 2021 outlook

The Israeli company recorded a 30% boost in revenues, concludes the year with a $216.5 million net loss

Sophie Shulman 11:2917.02.21
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Tel Aviv-based website building company Wix.com Ltd. (Nasdaq: WIX) is concluding an impressive year courtesy of the Covid-19 pandemic that had everyone creating a website, many using the platform that it built. The company’s 2020 annual revenues closed in on a billion dollars, reporting $989 million in earnings, up 30% from 2019.

 

Though the company is still not profitable, its net cash provided by operating activities for the full year was at $148.0 million, while capital expenditures, mostly related to the construction of new headquarters totaled $18.9 million, leading to a free cash flow of $129.2 million, compared to $127.5 million of free cash flow for the full year 2019.

 

The entrance to Wix's offices in Tel Aviv. Photo Reuters. The entrance to Wix's offices in Tel Aviv. Photo Reuters.
Wix reported a $216.5 million GAAP net loss for the full year or $3.98 per share, nearly double its net loss of $86.4 million, or $1.71 per share, for the full year of 2019. Non-GAAP net loss for the full year 2020 was $24.2 million, or $0.44 per share, compared to non-GAAP net income of $59.1 million, or $1.17 per share in the previous year.

 

The company’s profitability was impaired mainly due to investment in new service solutions and accelerated growth in the Wix Payments platform. Wix Payments generated $5.4 billion in Gross Payments Volume (GPV) in 2020, a 126% increase over $2.4 billion in 2019 as the number of online commerce businesses and their sales volume grew throughout the year. The company expects GPV will reach $10 billion in 2021. Wix Payments collections and revenue was $53.6 million in 2020, a 382% increase over $11.1 million in 2019.

 

“We have concluded the most successful year in our company’s history. In 2020, over 31 million new registered users joined Wix, we added nearly 1 million net new subscriptions, and we crossed $1 billion of annual collections for the first time,” Wix co-founder and CEO Avishai Abrahami, said in a statement. “My goal and belief is that at this rate of growth, in the next 5-7 years, 50% of anything new built on the internet will be done on Wix.”

 

Against the backdrop of the positive results, Wix predicts that it will be able to maintain its 30% growth rate and conclude 2021 with revenues ranging from $1.27 billion to $1.28 billion and a free cash flow of $90 million to $100 million. The company said it plans to make incremental investments of approximately $60 million in 2021, mostly in its payments platform, and recruit 600 new employees.

 

Wix’s 2021 Q1 outlook anticipates revenues of $291-296 million, a 5% increase on 2020 Q4’s $282.5 million. The company onboarded 7.4 million new registered users in the fourth quarter of 2020, reaching a total of 196.7 million, a 19% increase from 2019. The number of premium users who pay for Wix services climbed by 22% over the year, reaching a total of 5.5 million.