Investors send shares into freefall after Wix shows slowing growth.
Website builder Wix (NASDAQ: WIX) reported earnings today, and the disappointment sent its stock and rival Squarespace’s (NYSE: SQSP) stock into a tailspin. Shares in Wix are down about 25%, and Squarespace is off nearly 20% as of 11:30 ET.
Total Wix revenue last year was $1.270 billion, an increase of 29% over 2020. Its fourth-quarter revenue was $328.3 million, up 16% year over year. That revenue number was slightly below analysts’ expectations.
Wix spooked the markets by suspending full-year guidance given the volatility of its business during the pandemic. Instead, it provided only Q1 guidance showing 11% to 13% year-over-year growth. Q1 last year saw 41% year-over-year growth as businesses rushed online during the pandemic.
Wix added nearly a half-million paid subscribers last year (after accounting for cancellations), ending the year with 6 million paying customers. This is out of 222 million total registered users.
GoDaddy (NYSE: GDDY), which competes with Wix and Squarespace but is much more diversified, is off about 4% this morning.