Cloud Stocks: Wix Goes On An Acquisition Spree

Israel-based (Nasdaq: WIX) has seen significant expansion due to the recent COVID crisis. The company recently reported its first-quarter results that surpassed market expectations. During the quarter, Wix continued to add capabilities through acquisitions.

Wix’s Financial

First-quarter revenues grew 41% to $304.1 million, surpassing the market’s estimates of $295.2 million. Adjusted net loss of $0.54 per share was better than the market’s forecast of a loss of $0.64 per share. During the quarter, Wix grew its marketing spending to $113.1 million from $75.9 million a year ago.

By segment, revenues from creative subscriptions grew 28% to $226.4 million. Business Solutions revenues grew 97% to $77.7 million for the quarter.

Among key metrics, Creative Subscriptions ARR grew 25% to $926.1 million. Total collections in the first quarter of the year grew 41% to $351.1 million. During the quarter, Wix added 302,000 net premium subscriptions to end with 5.3 million premium subscribers. It added 7.8 million registered users in quarter to end with 189 million total subscribers.

For the current quarter, Wix expects revenues of $308-$312 million, while the market forecast revenues of $312.34 million. For the year, Wix expects revenues of $1.28-$1.29 billion versus the analyst forecast of $1.29 billion.

Wix’s Acquisitions

Recently, Wix announced the acquisition of Israel-based Founded in 2015 by Yair Miron, is an AI re-engagement solution that gives brands and retailers a unique currency and assists merchants in growing by retaining customers and increasing their average spending. Wix plans to leverage the acquisition to extend its e-commerce platform and give merchants a complete solution that allows them to manage customer re-engagement activities that are meant to increase customer spending and repurchases, such as gift cards, loyalty programs, rewards, and referrals. . Prior to the acquisition, raised $454,000 in two rounds of funding from Peregrine Ventures.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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