According to a report published earlier this year, the global Website Builder Software market is expected to grow at 9% CAGR to reach $13.6 billion by 2026. Israel-based Wix.com (Nasdaq: WIX) is seeing strong growth itself as it continues to support smaller businesses to expand their digital presence amid the current Covid crisis.

Wix’s Financials

Wix’s second-quarter revenues grew 34% to $316 million, surpassing the market’s estimates of $311.64 million. Adjusted net loss of $0.28 per share was better than the market’s forecast of a loss of $0.41 per share.

By segment, revenues from Creative Subscriptions grew 24% to $235.9 million. Business Solutions revenues grew 75% to $80.5 million.

Among key metrics, Creative Subscriptions ARR grew 22% to $967.3 million. Total collections in the first quarter had grown 29% to $342.9 million. Wix added 302,000 net premium subscriptions to end Q2 with 5.3 million premium subscribers. It added 7.8 million registered users in the quarter to end with 189 million total subscribers.

For the third quarter, Wix expects revenues of $311-$317 million, while the market forecast revenues of $325.95 million with a loss of $0.15 per share. For the year, Wix expects revenues of $1.255-$1.27 billion, while the market forecast revenues of $1.29 billion and a loss of $1.17 per share.

Wix’s Acquisitions and Partnerships

Recently, Wix announced the acquisition of San Franciso-based Modalyst. Founded in 2012 by Alain Miguel and Jill Sherman, Modalyst is a dropshipping automation software for eCommerce businesses. The acquisition will allow Wix to extend its Wix eCommerce platform and will connect its merchants to a larger supplier marketplace. Its merchants will be able to create scalable relationships with these suppliers while being able to source large amounts of high-quality products that are synced directly to the store to sell and fulfill online. The current pandemic has accelerated the growth of online shopping and merchants are seeing the need to expand their inventory and efficiently fulfill orders rapidly. Dropshipping marketplaces are helping both suppliers and retailers meet this demand. Wix believes that the acquisition will be helpful to its retailers as its survey revealed that Wix Stores that add dropshipping products increase their Average Order Value by 40% and sales revenues by 79% within the first four months.

Earlier last week, Wix also announced a partnership with Vistaprint, the leading small business solution for design, print, and marketing services providers. The partnership is aimed at integrating services and products for small businesses to accelerate the digital presence of both companies. As part of the tie-up, customers using Vistaprint will be able to use the Wix platform to create and manage a customizable and comprehensive online presence for their businesses. Users will have the ability to create a professional online presence either by themselves by leveraging all of the Wix creation products or hire an expert on creating Wix sites through 99designs by Vistaprint. Additionally, Vistaprint customers will be able to leverage the Wix eCommerce platform to grow their business, manage online workflows such as online marketing and communications, and even access online payments. The partnership will give Wix access to the pool of Vistaprint’s 17 million customers. Wix is hopeful that the partnership will help deliver hundreds of thousands of new subscriptions to Wix within five years.

Wix’s stock is trading at $202.16 with a market capitalization of $11.4 billion. It hit a 52-week high of $362.07 in February and a 52-week low of $198.33 in August.