Wix.com (WIX) Tops Q1 EPS by 2c; Guides Q2 Revs Above Views

Wix.com (NASDAQ: WIX) reported Q1 EPS of ($0.01), $0.02 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $216 million versus the consensus estimate of $216.2 million.

"The current crisis has magnified the importance of having an online presence like never before, and we are very fortunate to offer a product that provides businesses, brands and individuals an opportunity to build and grow despite the increasing hardships that they are facing," said Avishai Abrahami, Co-founder and CEO of Wix. "As demand for an online presence increases, we remain focused on providing best-in-class free and paid products and delivering improvements to our offering in response to our users' needs."

Abrahami continued, "The COVID-19 crisis has forced a massive change upon our users. The need for SMBs, entrepreneurs and brands to move online quickly, to communicate with their customers and to deliver goods and services has never been clearer. Demand for our platform offerings boomed at the beginning of April, and I am extremely proud to say that our team responded quickly to make sure we can deliver the best service to our users across the globe."

Nir Zohar, President and COO of Wix added, "The changes we have seen in the market, starting at the end of Q1, have demonstrated the strength, adaptability and resilience of our business. It is easy to think of SMBs as particularly vulnerable to change and crises, but when it comes down to it, we see that entrepreneurs and business owners will do everything in their power to adapt and keep their business going. It is gratifying for us to offer them a platform on which they can expand their business, or even completely reinvent themselves online, so they can continue running their businesses and supporting their families."

Lior Shemesh, CFO of Wix said, "As data from April shows, our business has remained steadfast, even as this pandemic has shut down most of the world. The strong performance from recent cohorts, combined with the boost in demand for our platform, has convinced us to double down on what we do best - using the strength of our balance sheet to invest in marketing to grow our business even further. We believe combining this incremental investment with the increasing demand will allow us to make faster headway in capturing more market share." Shemesh continued, "This immense demand uplift, coupled with the marketing investment to support it, has already driven us to a significantly higher outlook for Q2 than we originally expected. We expect collections growth of 28-30% y/y in the second quarter."

GUIDANCE:

Wix.com sees Q2 2020 revenue of $231-233 million, versus the consensus of $227.5 million.

For earnings history and earnings-related data on Wix.com (WIX) click here.

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