Shares of online hosting company Wix.com (NASDAQ:WIX) were falling today after the company posted lower-than-expected earnings in its second-quarter report.
As of 12:55 p.m. EDT, the stock had given up 13.5%.
Wix showed off another strong quarter of revenue growth as sales increased 51% from the year before to $103.5 million, exceeding management's own guidance for $101 million to $102 million. On the bottom line, adjusted earnings per share improved from a loss of $0.09 a year ago to breakeven, but that missed analyst estimates of a profit of $0.09.
CEO Avishai Abrahami said the company exceeded the high end of its guidance on all key metrics and that the launch of Wix Code "significantly expands our addressable market to those who want to build complex web applications that can be tailored for any business need."
Wix came into today's report red-hot, with the stock having gained more than 70% so far this year and more than tripling since the beginning of 2016 -- so today's slide may just be a sign that shares had gotten overheated.
The company continued to call for full-year revenue of $421 million to $423 million, up 45% to 46% from last year. Free cash flow is also expected to nearly double for the year, and the company continues to add new registered users, posting its second-best quarter with 5.5 million additions.
While the bottom-line miss may be disappointing, I wouldn't change my investing thesis based on today's news.