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Wix.com Idea Proposal (WIX)

Wix.com Idea Proposal (WIX)
 

Will Wix Code spur a major spike in Wix’s paid subscription base or revenue per user?

 

Report Available: September 12, 2018

 

Blueshift’s initial research found WIX improving its 2018 revenue forecast after a strong Q2. The company is banking on new tools like Wix Code to expand its addressable market and improve conversion rates from its free service to paid subscriptions. However, do-it-yourself website building is a competitive field that includes market leader WordPress, an open source and effectively free platform.

 

Observations

  1. WIX, a platform for do-it-yourself website building, had a stellar Q2 as revenues jumped 41% year-over-year. Its number of premium subscribers – who pay $5 to $25 a month for additional tools, storage, and support beyond the free service – rose 28% in the quarter to 3.7 million. Average revenue per subscription hit $157 in Q2. WIX boosted its full-year guidance, forecasting 40% revenue growth to nearly $600 million.
  2. WIX has rolled out a number of new products in the last two years aimed at converting more of its 131 million registered users to paying customers. New releases include a mobile website builder and its ADI function, which uses artificial intelligence to automatically generate a website based on information provided by the user. WIX is pinning its latest hopes for adding subscribers and revenue on Wix Code, which launched in December 2017 and offers professional web developers the tools to customize websites beyond drag-and-drop templates. The Company hopes Wix Code expands its potential customer base to include developers that rely on platforms like WordPress to add complex or unique functionality to websites. WIX executives said activity in their online community for Code users is ramping up and they are already seeing some improvement in conversion rates attributable to Wix Code.
  3. Do-it-yourself website building is a competitive field that includes a series of both free and paid options from platforms like Squarespace, GDDY, SHOP and the open source WordPress. Payment software developer SQ entered the fray in April with its $365 million acquisition of Weebly. Weebly only has about 625,000 paid subscribers but the backing of SQ could help it reach more small business owners and ecommerce operations.
  4. Blueshift’s Sept. 27, 2017, report on GDDY concluded that the platform is in great position to boost its market share among amateur website builders. GDDY’s website building tools—including its new, mobile-friendly GoCentral platform—are easy to use and inexpensive. Blueshift’s March 14 report revealed that SHOP’s growth is expected to continue as the company controls the SMB segment and has gained some upmarket traction with its Shopify Plus platform. Blueshift’s April 18 report update said FB’s data sharing restrictions pose a temporary challenge for SHOP but will not doom the company.

 

How do professional website developers feel about Wix Code? Will WordPress users be attracted to the speed and customizability of Wix Code? Will Code help WIX improve its ARPU? How easily could competitors replicate Wix Code? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Website developers, Competitors, and Industry specialists.

 

Companies: Wix.com Ltd. (WIX), GoDaddy Inc. (GDDY), Shopify Inc. (SHOP), Square Inc. (SQ)

 

Research Begins: August 27, 2018

 

Are you aware Intro-act, our corporate access solution, is part of the Blueshift Research ecosystem? To learn more, go to Intro-act.com or check out our video suite.