By Steven Scheer
JERUSALEM (Reuters) – Wix.com beat second-quarter net profit expectations on Wednesday boosted by price hikes and its artificial intelligence (AI) and Studio products for designing advanced websites.
The Israeli company posted earnings of $1.67 per diluted share, excluding one-time items, up from $1.26 cents per share a year earlier. Revenue for the April-June quarter grew 12% to $436 million.
Analysts expected Wix to earn $1.35 per share excluding one-time items on revenue of $434 million, LSEG data showed.
Wix raised its full-year revenue outlook to $1.747-$1.761 billion, for annual growth of up to 13%. It expects third-quarter revenue of $440-$445 million, up 12-13%.
Analysts are currently forecasting revenue of $443 million in the third quarter and $1.75 billion in 2024.
Wix also said it would achieve the Rule of 40 – where its combined sales growth and profit margin exceeds 40% – later in 2024.
Chief Financial Officer Lior Shemesh said he expects revenue growth of about 16% in the second half, driven by its Studio product, which is being used by an increasing number of web design agencies.
“We see existing agencies and partners keep on building… second, third and fourth websites, which obviously provide us with a kind of compounding effect on the revenue coming from partners,” he also told a news conference.
Price increases earlier in the year have not hurt the company since Wix also launched new features and products, Shemesh said, noting that AI offerings were boosting customer numbers.
“This is what provides us with the confidence that we see a further acceleration in the second half of the year,” he said.
Wix’s Nasdaq-listed shares were up 5% at $164.90 in pre-market trading. They have risen 28% so far in 2024.
(Reporting by Steven Scheer; editing by Jason Neely, Kirsten Donovan)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.