Wix.com Ltd. (NASDAQ: WIX) fell hard on Wednesday after the company announced mixed fourth-quarter results.
The web development platform posted non-GAAP earnings of $0.59 per share on revenue of $246 million, which was up 32% year over year but fell shy of Wall Street’s estimates for earnings of $0.60 per share on revenue of $247.5 million.
Wix’s billings — a key metric for the company — were also up 32% year over year to $321 million, but again missed expectations for $322 million.
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So what
The biggest issue appears to be Wix’s guidance for the first quarter, as the company expects revenue in the range of $235-$240 million, which would represent growth of 26%-28% year over year but falls short of analysts’ estimates for revenue of $241 million. Wix also sees first-quarter billings in the range of $310-$315 million, which would be growth of 28%-30% year over year but also misses expectations for $317 million.
Now what
Wix CEO Avishai Abrahami said that the company is off to a strong start in 2019, with billings and revenue both outpacing expectations so far this quarter. He also noted that Wix is seeing healthy growth in its average revenue per user (ARPU), which was up 11% year over year in the fourth quarter to $15.70.
Looking ahead, Abrahami said that Wix is focused on driving even more engagement and monetization from its users through its artificial intelligence (AI) technology. The company is also working on new products and features, including an upcoming launch of a new product called Wix Ascend that will help businesses automate their online operations.
Why Did Wix Stock Drop?
The web development platform posted non-GAAP earnings of $0.
Wix’s billings — a key metric for the company — were also up 32% year over year to $321 million, but again missed expectations for $322 million.
The biggest issue appears to be Wix’s guidance for the first quarter, as the company expects revenue in the range of $235-$240 million, which would represent growth of 26%-28% year over year but falls short of analysts’ estimates for revenue of $241 million.
