Wix surprises with consistent double-digit growth, boosts annual forecast
Wix surprises with consistent double-digit growth, boosts annual forecast
The Israeli website-building company continues to demonstrate a double-digit growth rate, with the fastest-growing segment being revenue from business partners who create websites for their clients. Wix more than doubled its operating profit in the second quarter, and revenues increased by 12%.
Wix, the Israeli website-building company, has reported excellent results for the second quarter of 2024. The performance, which was at the upper end of forecasts, has led to an increase in the company’s annual forecast, continuing the positive trend that has characterized Wix in recent quarters.
Wix has consistently shown a double-digit growth rate while maintaining an efficient expense structure, enabling it to remain profitable for several quarters after years of losses.
The company’s revenues reached $437.5 million in the second quarter, marking a 12% increase compared to the same period last year. The studio platform, launched at the end of 2023 and designed to encourage repeat purchases, has again proven to be an important growth engine, with the company noting that it continues to perform better than expected.
Amid this accelerated growth, Wix more than doubled its operating profit to $28.6 million. Combined with income from financing high cash balances, the net profit for the second quarter stood at $39.5 million. The company’s operations generated a net cash flow of $120 million. Unlike in the past, when Wix expanded its workforce faster than its business growth, it has maintained stability, with the number of employees remaining unchanged at 5,242.
Buoyed by these strong results, Wix has once again raised its annual forecast, after doing so at the end of the previous quarter. The company now expects revenues of $1.74-1.76 billion, reflecting confidence that the annual growth rate will remain at 12-13%. This growth rate is also expected in the current quarter, which is projected to end with revenues of $440-445 million. On the operational side, cash flow is expected to approach half a billion dollars, reaching $460-470 million, or 26%-27% of revenues.
Despite recent market turmoil and declines in technology stocks, Wix’s stock has remained resilient, showing a positive return of 33% since the beginning of the year. The current stock price reflects a valuation of approximately $9 billion for the company.
