Wix.com told investors it expects to become profitable in 2023 and maintain that position in 2024 as it raised its outlook after delivering third-quarter earnings ahead of expectations.
The Israeli cloud-based website developer reported revenue of $393.8 million for the September 2023 quarter, up 14% from a year earlier. Revenue earned from its Partners program jumped 38% to $119.4 million, as more Partners joined the company, increasing monetization.
Diluted adjusted earnings per share amounted to $1.10, above the $0.77 average estimate of analysts polled by Zacks Investment Research.
“Wix's performance in the third quarter exceeded both growth and profitability expectations for another consecutive quarter, as we successfully executed on our strategic priorities while remaining diligent with managing expenses," Wix co-founder and CEO Avishai Abrahami commented in a statement.
"The strength in our Partners business is especially noteworthy with our team firing on all cylinders and revenue growth continuing to accelerate.
The company said it expects an extended growth period ahead for its business as it increases its penetration of the professionals market with higher monetization, and as adoption of the Wix Studio continues to gain traction.
It said it is also making progress with artificial intelligence (AI) following the recent launch of Conversational AI Chat Experience for Business, the first step in completely automating business management with AI to get businesses online more quickly and efficiently.
The company increased its full-year revenue outlook to between $1.558 billion and $1.563 billion, reflecting growth of between 12% and 13%.
Despite the positive outlook, the company’s shares fell 3.8% to $86.52 by 1pm in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com