Website builder Wix saw its stock price jump nearly 7% on Friday after reporting strong earnings, showing the coronavirus pandemic is increasing demand for its products.
Why is this important: The earnings report shows that you can add website builder tools to the list of industries that are benefiting from the virus and could point to a new area of long-term growth.
What they say : “The current crisis has amplified the importance of having an online presence like never before,” said CEO Avishai Abrahami. said in a press release.
- He added that demand “exploded in early April” (after the quarter closed), with new users registered up 63% to a record 3.2 million in the month and the net total of premium subscriptions. has more than tripled.
In numbers : The company’s stock has risen 65% year-to-date, beating the S&P 500’s overall decline of 11.4% and the S&P tech sector’s gains of 2%, according to Dow Jones.
- Total revenue rose 24% year-on-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).
And after: Wix also offered an optimistic second quarter forecast, forecasting revenue between $ 231 and $ 233 million, ahead of Wall Street’s forecast of $ 227.5 million, and expects growth in the second quarter. semester of 2020 is stronger than expected.