Website builder Wix sees coronavirus-driven stock boom
Website builder Wix saw its stock price jump by nearly 7% on Friday after reporting strong earnings, showing that the coronavirus pandemic is increasing demand for its products.
Why it matters: The earnings report shows you can add website building tools to the list of sectors that are seeing benefits from the virus and could indicate a new area of long-term growth.
What they're saying: "The current crisis has magnified the importance of having an online presence like never before," CEO Avishai Abrahami said in a statement.
- He added that demand "boomed at the beginning of April" (after the quarter closed), with new registered users up 63% to a record 3.2 million during the month and total net premium subscription additions more than tripling.
By the numbers: The company’s stock has risen 65% year to date, outpacing the overall S&P 500's decline of 11.4% and the S&P tech sector's gains of 2%, according to Dow Jones.
- Total revenue rose 24% year over year to $216 million, but Wix still reported a non-GAAP loss of 1 cent per share (beating Wall Street estimates of -2 cents per share).
What's next: Wix also offered rosy guidance for the second quarter, projecting revenue between $231 million-$233 million, ahead of Wall Street's forecast of $227.5 million, and expects growth in the second half of 2020 to be stronger than previously anticipated.