JERUSALEM, May 12 (Reuters) – Israel’s Wix.com (WIX.O) network on Wednesday forecasts more than $ 14 billion in revenue from its existing customers over the next 10 years, saying the COVID crisis has led further of small businesses to use its services to build and operate websites.
After higher than expected revenue in the first quarter, Wix has also raised its outlook slightly for 2021.
“The growth we experienced last year continues this year,” Lior Shemesh, chief financial officer of Wix, told Reuters. Due to the coronavirus, “traders have changed their behavior. We are not going to go back.”
He said the projected $ 14 billion in revenue stems from Wix’s major marketing campaigns which are currently eating into its profits but helping to grow its market share. The revenues would be even higher for future customers, Shemesh said.
“Marketing is for future customers,” he added.
As of this quarter, Wix stopped publishing how many users it has, but as of February, it had 200 million worldwide, with 5.5 million premium customers at the end of 2020.
The company, which operates on a “freemium” model, noted that conversions from free to paid services are increasing as Wix adds more tools to help businesses run their businesses following acquisitions.
Wix – whose Nasdaq-listed shares have risen 16% so far this year – has raised its outlook for 2021 and expects revenue of $ 1.28 billion to $ 1.29 billion for growth annual rate of 29 to 30% compared to an estimate of $ 1.272 billion to $ 1.286 billion made in February.
“As businesses increasingly need e-commerce capabilities, we believe our growth will continue throughout the year,” the company said.
In the first quarter, it lost 54 cents per share excluding one-time items versus a loss of 1 cent per share a year earlier due to higher financial, research and development and other spending.
Revenue increased 41% to $ 304.1 million.
Analysts had forecast a loss of 66 cents per share on revenue of $ 295.2 million, according to I / B / E / S data from Refinitiv.
For the second quarter, Wix is forecasting revenue of $ 308 million to $ 312 million, up 30 to 32 percent from a year ago. Analysts predict that Wix will post revenue of $ 312.3 million in the April-June period.
Reporting by Steven Scheer; edited by Jason Neely
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