What happened
Shares of Wix.com (WIX 0.59%) rocketed 70% higher last month, according to data from S&P Global Market Intelligence, after the website building platform delivered strong first-quarter results.
So what
Wix's revenue rose 24% year over year to $216 million. Its free cash flow, meanwhile, climbed 33% to $40 million.
Notably, Wix's registered user base grew 16% to 172 million, while the total number of its premium subscriptions increased by 12%, to 4.7 million.
"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 press release.
Wix helps business owners build their own websites. Image source: Getty Images.
Now what
The coronavirus pandemic and corresponding stay-at-home directives have driven many businesses to establish an online presence. Wix, with its easy-to-use website-building tools, has been a major beneficiary of this trend. Its growth, in turn, is accelerating; management expects its revenue and free cash flow to rise by as much as 26% and 40%, respectively, in the second quarter.
"Entrepreneurs and business owners will do everything in their power to adapt and keep their business going," President and Chief Operating Officer Nir Zohar said. "It is gratifying for us to offer them a platform on which they can expand their business, or even completely reinvent themselves online, so they can continue running their businesses and supporting their families."
