WIX.COM, which helps small businesses build and operate websites, beat fourth-quarter profit expectations on Wednesday (Feb 21) and forecast double-digit revenue growth in 2024.
Its earnings per diluted share excluding one-time items doubled to US$1.22 from 61 cents a year earlier and beat the 95 cents expected by analysts, LSEG data showed.
The Israeli company was boosted by its new Studio product to create more advanced websites.
Revenue for the October-to-December quarter grew 14 per cent to US$404 million versus the US$402 million expected by analysts.
Company officials said the war with Palestinian militants that began on Oct 7 was having no impact on its business or customers.
In 2023 its number of registered users rose 8 per cent to 263 million – 60 per cent of them in North America – while it added 189,000 net premium subscriptions to reach 6.3 million.
Its full-year revenue rose 13 per cent to US$1.56 billion, much of it from partners and generated through agencies and freelancers that build sites and applications for other users as well as other partnerships.
For 2024, Wix said it expected revenue to rise by 11 to 13 per cent to US$1.73 billion to US$1.76 billion and bookings to rise more significantly in the second half and a further acceleration in 2025.
In the first quarter, Wix expects revenue of US$415 million to US$419 million, up as much as 12 per cent.
“Studio is going to have much more impact on the top line in the second half of 2024 much more impact in 2025,” CFO Lior Shemesh told a news conference, adding it also foresees a similar growth path for its new artificial intelligence (AI) product.
“We expect Studio to be a significant growth driver for us.”
Wix this month completed a programme where it bought back US$300 million of its own shares and said it is seeking approvals for an addition US$225 million in buybacks.
Its Nasdaq-listed shares have gained 1.9 per cent in 2024 after a 60 per cent jump in 2023. REUTERS
