TEL AVIV (Reuters) – Wix.com that helps small businesses build and operate websites, reported a higher-than-expected earnings in the second quarter and raised its revenue forecast for the 2019 to be in the middle of a strong growth in sales of a host of new products.
FILE PHOTO: Employees work at the site, the designer and the company Wix.com with offices in Tel-Aviv, Israel, July 4, 2016. REUTERS/Baz Ratner/
It is reported on Wednesday quarterly net profit of 34 cents a share, excluding one-time items, compared with 29 cents a year earlier. Revenue rose 27% to $185.4 million.
Ite had been forecast to earn 18 cents a share, excluding one-time items, on revenue of $184 million, according to I/B/E/S data from the Refinitiv.
The Israel office provides a free of charge basis functions for the creation of web pages, but users will have to pay for additional services, such as shopping carts, individual web addresses of the site, and an analysis of the flow of traffic.
It has launched a number of new products and services for companies to manage their businesses, including the development of a tool Corvid, an all-in-one business platform will Increase, and Wix, Payments, which allows businesses to manage their income.
“We see it as a good sign for the generation of revenue from these products will… which allows us to generate higher growth in the future,” Chief Financial Officer Lior Shemesh told Reuters.
The growth in these products resulted in Wix to increase its to 2019 outlook, the second half is expected to be better than the first one, Shemesh said.
“It puts us in a good momentum for next year,” he said, adding a trio of new products will be our main drivers of growth in the coming years.
From the Wix has more than 150 million registered users, and 4.5 million to pay for a subscription by the number of conversions from free to paid is an increase of 29% in the last couple of quarters, Shemesh will be added.
Wix raised its 2019 and estimated revenues of $761-$765 million euros, from a previous forecast of $ 758-$763 million, or 26 and 27% from 2018 onwards. Analysts had expected $762 million.
For the third quarter, forecasting revenue of $196-$198 million, an increase of 26% and 27% from a year earlier.
Shemesh said Wix, in cash, of $30 million in the quarter, pushing its cash and cash reserves of $850 million. He said that the company was looking at acquisitions for now, it’s best to focus on organic growth.
Wix’s shares have jumped 62% this year, following a 57% increase in 2018.
– Additional reporting by Tova Cohen; Editing by Jan Harvey