It has been a year of mixed fortunes for Wix.com (NASDAQ: WIX). After rallying in the first half of the year, it lost momentum and has been bearish for the better part of the second half. However, it has started picking upside momentum again. This follows a series of positive news in November.
Mid-November, the company released its Q3 results and they were much better than analysts’ expectations. The company reported a Q3 EPS of $0.46, an amount that beat analyst expectations by over 45%. The company’s bottom-line also improved significantly compared to a similar quarter last year.
The company’s revenues shot up by 26% compared to a year ago to hit $196.8 million. While this was lower than what analysts were expecting, it was within what the company’s management was expecting. The company’s management had already offered revenue guidance $196 – $198 million for the quarter. The company’s management attributed this growth to a wide product offering, and increased sales in complementary products.
Besides the revenue figures, the company noted that its retention of customer cohorts had improved significantly. For context, net premium subscriptions were up by 15% in the quarter to hit 114k. Year-over-year, the company registered an increase of 5.5 million users to hit a registered user base of 160 million. These numbers are indicative of the company’s growth potential in the near term. That’s because, with higher user numbers comes more revenues. In the quarter, the company recorded growth in revenues per subscriber. The numbers grew by 8% compared to a similar period last year to hit $175.
Looking at the charts, WIX is currently trading on a support level. In Friday’s session, the stock was trading in a narrow range between $123.03 and $120.50 before closing the day at $120.89. Volumes were low too and stood at 174.23k in the day.
About Wix.com Ltd
Wix.com Ltd is a provider of internet services, and enables users to create web content. The company has its headquarters in Tel Aviv, Israel.