What happened
Shares of Wix (WIX 2.92%) have jumped today, up by 9% as of 12:45 p.m. EDT, after the company reported first-quarter earnings. The COVID-19 pandemic is increasing demand for Wix's website-building tools.
So what
Revenue in the first quarter rose 24% to $216 million, mostly in line with the consensus estimate of $216.2 million. On a constant currency basis, revenue would have been $217.5 million. That led to an adjusted net loss of $400,000, or $0.01 per share, which was better than the $0.03 per share in adjusted net losses that analysts were expecting.
Image source: Getty Images.
"The current crisis has magnified the importance of having an online presence like never before, and we are very fortunate to offer a product that provides businesses, brands and individuals an opportunity to build and grow despite the increasing hardships that they are facing," CEO Avishai Abrahami said in a statement. "As demand for an online presence increases, we remain focused on providing best-in-class free and paid products and delivering improvements to our offering in response to our users' needs."
Now what
Abrahami added that demand really started to soar in April (after the quarter closed). New registered users jumped 63% to a record 3.2 million during the month. Total net premium subscription additions more than tripled.
Wix offered rosy guidance for the second quarter, driven by the acceleration of businesses moving online. Revenue in Q2 should be in the range of $231 million to $233 million, ahead of Wall Street's forecast of $227.5 million. The tech company expects growth in the back half of 2020 to be stronger than previously anticipated.
