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Israel cloud-based Wix.com Second Quarter Profit rises

Wix.com lifts its 2019 2nd quarter profit surpassing estimates.

Wix.com Ltd. is an Israeli cloud-based web development platform that allows users to create HTML5 websites and mobile sites through the use of online drag and drop tools. Users may also add functionality like social plug-ins to their web sites using a variety of Wix-developed and third-party applications.

On July 24, Wix reported a higher profit in the 2nd quarter surpassing earnings and revenues estimates. The report shows that the company shares surged up to 3.2% to $150.81 (34 cents per share) beating Zacks Consensus Estimate of 17 cents.

Wix’s total revenues also rose 27% to $185.4 million surpassing the $184 million of Zack Consensus Estimate.

“With the stock up 62% year to date, we expect Wix to continue to grind higher as it turns into a platform play for website solutions,” said Brent Thill, Managing Director at Jefferies Technology Team.

Wix is currently offering free basic features for setting up a website. For premium users, they have the ability to use their own domain and use newly launched apps. “We are starting to see a good sign of monetization of these products… that enables us to generate higher growth in the future,” said Lior Shemesh, Chief Financial Officer of Wix.

Wix expects revenues ranging from $196 million to $198 million for the third quarter. The Zacks Consensus Estimate for revenues is currently fixed at $196.3 million. Furthermore, the company expects free cash in the range of $123-$126 million.