Wix, the Israeli company which offers customers free website services for their businesses, is now the most valuable company in the country. According to Globes, Wix is now worth $20 billion.
The share price of Wix, which is traded on the NASDAQ, rose 26% to a record high of $353. This leaves the company with a market cap of $19.646 billion. It set a share price of just $16.5 at the company’s IPO in 2013. The IPO gave Wix a $600 million total valuation. So in just seven years it has given its investors a total return of 2040%.
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The company reported earnings for Quarter 4, 2020, which exceeded expectations. Its revenue for that quarter was $282.5 million, compared to $204.6 million in the fourth quarter of 2019. This represents an increase of 38%. However, Wix reported a net loss of $62.8, or $1.13 per share, for the quarter. This is considerably greater than its net loss of $21.6 million, or $0.42 per share, for the fourth quarter of 2019. But this is to be expected considering what the Coronavirus pandemic has done to world economies.
Wix president and COO Nir Zohar said, “The potential is astronomical, there are so many activities moving onto the internet all the time. Wix solves the problem and concentrates everything in one place.”
Wix CEO and co-founder Avishai Abrahami said, “We have concluded the most successful year in our company’s history. In 2020, over 31 million new registered users joined Wix, we added nearly 1 million net new subscriptions, and we crossed $1 billion of annual collections for the first time. It was truly humbling to help lift millions of businesses through an extremely challenging year, and I am particularly proud of our team for maintaining focus and dedication throughout the year.”
“It is clear that we can now become a dominant player on the internet, and I expect us to strengthen this position significantly over the coming decade. Wix will now strive to become the main engine of the internet, democratizing access and providing a place where the majority of people will build their web presence. My goal and belief is that at this rate of growth, in the next 5-7 years, 50% of anything new built on the internet will be done on Wix.”
