Wix
Tel Aviv, Israel
Industry: Technology/Website Builder
Region: Israel 🇮🇱
Year Founded: 2006
IPO Date: 11-06-2013
Market Cap: $12 billion (2021)
Number of Employees: Approx. 5,000
Revenue: $989.8 million (2020)
Net Income: -$280.2 million (2020)
Wix.com Ltd.
Wix.com IPO
Wix.com went public on November 6, 2013, with its initial public offering (IPO) on the NASDAQ stock exchange.
The company offered 7.7 million shares at a price of $16 per share, raising approximately $122 million.
The IPO marked a significant milestone for Wix.com, as it provided the company with the necessary capital to expand its operations and further develop its website building platform.
Company Overview & History
Wix.com is a leading cloud-based web development platform that enables individuals and businesses to create stunning and professional websites.
Founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan, the company has grown rapidly and gained recognition for its user-friendly interface and powerful website customization tools.
The idea for Wix.com was born out of the founders’ frustration with the complexities and limitations of existing website building solutions.
They set out to create a platform that would democratize web design and make it accessible to everyone, regardless of their technical expertise.
With this vision in mind, they developed Wix.com as an intuitive drag-and-drop website builder that empowers users to create visually appealing websites without the need for coding skills.
Over the years, Wix.com has experienced tremendous growth and has become a global leader in the website building industry.
The platform caters to a wide range of users, including small businesses, freelancers, artists, and entrepreneurs, offering them the tools and features they need to establish a strong online presence.
Wix.com’s user-friendly interface, extensive template library, and robust customization options have made it a popular choice for millions of users worldwide.
Financial Performance
| Year | Revenue($M) | Net Income($M) | EBITDA($M) | Operational Cash Flow($M) |
|---|---|---|---|---|
| 2022 | 1387.666 | -424.863 | - | 82.2 |
| 2021 | 1387.666 | -424.863 | -439.773 | 92.37 |
| 2020 | 1269.657 | -117.209 | - | 163.86 |
| 2019 | 988.760 | -216.520 | - | 164.94 |
Business Model
Wix.com operates under a freemium business model, offering users both free and premium subscription plans. The free plan provides basic website building functionality and includes Wix branding on the user’s site.
To unlock additional features and remove Wix branding, users can upgrade to one of the premium plans.
The premium plans offered by Wix.com are designed to cater to different needs and budgets. They provide users with access to advanced features, such as custom domains, e-commerce capabilities, priority customer support, and more. The pricing of premium plans varies based on the features and resources included.
In addition to subscription plans, Wix.com generates revenue through various upsells and add-on services.
These include domain name registrations, professional email accounts, and additional applications and integrations available through the Wix App Market.
The company also offers specialized solutions for specific industries, such as Wix Stores for e-commerce businesses and Wix Bookings for service-based professionals.
Wix.com’s business model has proven successful, with a large and growing user base and consistent revenue growth.
By providing a user-friendly platform and a range of pricing options, the company has been able to attract and retain customers, driving its expansion and establishing itself as a prominent player in the website building industry.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2020 | 14.00 |
| 2019 | 6.31 |
| 2018 | 4.45 |
| 2017 | 2.67 |
| 2016 | 1.97 |
| 2015 | 0.916 |
| 2014 | 0.807 |
| 2013 | 1.01 |
Risk Factors
Wix.com, a leading website development platform, operates in a highly competitive and rapidly evolving market. While the company has experienced significant growth and success, it also faces several risk factors that could impact its future prospects. One major risk factor is the intense competition within the website development industry.
As more companies enter the market, Wix.com must continue to innovate and differentiate itself to maintain its market share and attract new customers.
Another risk factor for Wix.com is technological disruption.
The company’s success relies on its ability to adapt to changes in technology, user preferences, and industry trends. Failure to anticipate and respond effectively to these changes could result in a loss of customers and a decline in revenue.
Additionally, as the company expands globally, it faces regulatory and legal risks associated with operating in different jurisdictions, including compliance with data protection and privacy laws.
Wix.com also faces risks related to cybersecurity and data breaches. As a platform that hosts websites for millions of users, the company must prioritize the security of its infrastructure and protect user data from unauthorized access or attacks.
Any breach of security could damage the company’s reputation, lead to legal liabilities, and result in financial losses.
Market Opportunity
Wix.com operates in a market with a significant growth opportunity. The demand for websites and online presence has been rapidly increasing, driven by the growing importance of digital marketing and e-commerce.
Small businesses, entrepreneurs, and individuals are seeking user-friendly and affordable solutions to create and manage their online presence, and Wix.com offers an intuitive platform that addresses these needs.
With its drag-and-drop website builder and a wide range of customizable templates, Wix.com enables users with little to no coding skills to create professional-looking websites.
The company’s platform also provides additional features such as e-commerce capabilities, SEO tools, and integrations with third-party applications, making it a comprehensive solution for individuals and businesses of all sizes.
Furthermore, Wix.com has been successful in targeting international markets, expanding its presence beyond its Israeli roots.
The global market for website development is vast, and Wix.com has the opportunity to tap into new customer segments in different countries and regions.
As internet penetration and digital literacy continue to grow worldwide, the market for website development platforms is expected to expand further, presenting a favorable environment for Wix.com’s growth.
Competitors
- WordPress.com
- Shopify
- Squarespace
- Weebly
- GoDaddy Website Builder
- Jimdo
- 1&1 IONOS Website Builder
- Webflow
Key/Fun Company Facts
- Wix.com was founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan. The idea for the company came from their frustration with the complexity of building websites and their vision to make website creation accessible to everyone.
- The company’s headquarters are located in Tel Aviv, Israel, but it has a global presence with offices in cities such as New York, San Francisco, and Kyiv.
- Wix.com went public in 2013 and is listed on the NASDAQ stock exchange under the ticker symbol WIX.
- As of 2022, Wix.com has millions of users worldwide and hosts millions of websites on its platform.
- The company has received numerous industry awards and recognition for its innovative platform and contributions to the website development industry.
- Wix.com is known for its creative marketing campaigns, including Super Bowl commercials and partnerships with celebrities and influencers.
- In addition to its website development platform, Wix.com offers a suite of business tools, such as Wix Stores, Wix Bookings, and Wix Ascend, to help users manage and grow their online businesses.