SMB website maker Wix soars in Q3, revenues up 75 percent

The Israeli web development platform provider marked its first year as a publicly traded company with growth across the board, including its full-year revenue forecast.

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Example of a Wix website. Credit: Wix marked its first year as a publicly traded company on Wednesday, and posted strong quarterly earnings to set the occasion.

The Israeli web development platform provider posted Q3 revenue of $37.5 million on a loss of 24 cents per share. That's a 75 percent increase from the year prior. Analysts were expecting a loss of 32 cents per share on revenue of $35 million.

GAAP net loss was $12.8 million or 34 cents per share, up from $7.7 million and a loss of $1.19 per share the year prior.

In light of the strong quarter, the company raised its full-year revenue forecast to $139-$140 million from $136-$138 million.

Wix said it added 3.9 million new registered users in Q3 to reach approximately 54.1 million as of Sept. 30, a 39 percent increase over the previous year. Premium subscriptions were also up by 106,000.

Avishai Abrahami, CEO and co-founder of Wix, said the quarter surpassed the company’s expectations, and credits new platform features for helping to grow the company’s user base:

In the past year, we were able to take the Wix platform to new heights and give our users a rich menu of significant new tools to manage their business online. All of this was made possible by the strength and innovation of our extensive R&D and product teams, and we will continue to push forward.

The hallmark of Wix's web-dev tools is that users don't have to learn the coding in order to create a site that works across several different sorts of web clients. Keeping with that mantra, the company threw several platform additions and upgrades in with its earnings results. Most notable is a new website loading technology called WixJet, which the company says is a complete restructuring of the platforms codebase that will make Wix websites load faster than 95 percent of websites currently online. The technology is currently being rolled out to Wix users, with completion slated for year-end.

There’s also plans for a revamped e-commerce platform, WixStores. Wix says it redesigned the platform’s software architecture to give online merchants more tools when creating online storefronts, such as payment processing, inventory management and shipping.

Abrahami noted:

When designing WixStores, we focused on the needs of online retailers and came up with a complete solution that provides a visually appealing store front that is seamlessly packaged with advanced back-end tools. With the other products released this year, ranging from CRM database capabilities to e-mail marketing tools, we have created an ecosystem – an end-to-end online solution for the needs of small business owners everywhere.