What happened
Shares of website building platform Wix.com (WIX 0.37%) fell on Thursday. The stock declined as much as 10.8% before the pullback moderated. As of 10:15 a.m. EST today, the stock was down 6.7%.
The Street's negative response to Wix's quarterly report Thursday morning likely reflects the company's slight underperformance on its top line when comparing the figure with analysts' average forecast for the metric.
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So what
Wix's fourth-quarter revenue rose 25% year over year to $204.6 million, bringing total fiscal 2019 revenue to $761.1 million -- up 26% year over year. Non-GAAP (adjusted) earnings per share were $0.39, down from $0.42 in the year-ago period.
Analysts on average were expecting revenue and adjusted EPS of $205.6 million and $0.31, respectively.
"Our results in the fourth quarter closed out a record year of revenue, collections, and free cash flow generation for Wix," CFO Lior Shemesh said in the company's earnings release.
Now what
Wix expects more strong growth in the first quarter of 2020 and for the full year. Management guided for first-quarter revenue to grow between 23% and 25% year over year. For the full year, management guided for revenue of $946 million to $956 million, translating to 24% to 26% growth.
"The guidance we are providing reflects that momentum continuing into 2020 and our confidence in our ability to continue to deliver strong growth for years to come," Shemesh said.
