Wix predicted that current customers would generate more than $14 billion in sales over the next ten years, citing the COVID crisis as a reason for more small businesses using its services to create and run websites.
Wix lifted its 2023 outlook after reporting higher-than-expected first-quarter sales.
“The growth that we experienced last year is actually continuing this year. Due to the coronavirus, merchants changed their behavior. We are not going to go back.”Wix CFO – Lior Shemesh
He explained that Wix’s revenue forecast of $14 billion is based on the company’s massive marketing campaigns, which eat into its profit margins but help it increase its market share. Future customers would bring in even more money, marketing is the future.
Wix has stopped disclosing the number of users it has, but it had 200 million globally in February, and 5.5 million paid customers by the end of 2020.
Conversions from free to paying Wix services are the as the company adds more resources to help businesses handle their businesses after acquisitions, according to the company, which operates on a “freemium” model.
“While businesses increasingly require online commerce capabilities, we believe our growth will continue throughout the year,” the company said.
Previous Earnings Report
Financial, research and development, and other expenditures increased in the first quarter, resulting in a loss of 54 cents per share except one-time products, compared to a loss of 1 cent per share a year ago.
Revenue increased by 41% to $304.1 million.
According to Refinitiv’s I/B/E/S numbers, analysts expected a loss of 66 cents per share on revenue of $295.2 million.
Wix expects sales of $308-$312 million in the second quarter, up 30-32 percent year over year. Wix is expected to generate $312.3 million in sales in the April-June season, according to analysts.