Website platform Wix expecting massive rise in income
The Israeli-based website creation platform, Wix.com, recently announced a series of predictions regarding record expected incomes for the second quarter of 2014.
The company, founded in Tel Aviv and traded in the United States, earned $28.8 million in the first quarter of the year, up 86% from the same period last year. Now, coming up to the middle of the year, it expects quarterly income to stand at $32 million, a 72% rise from last year’s income.
Wix was founded in 2006 by three Israeli entrepreneurs: Avishai Avrahami, now CEO of the company; Nadav Avrahami, now vice-CEO of development; and Giora Kaplan, vice-CEO of technology. The three met on the beach in Tel Aviv, and came up with the idea of a free web platform enabling people to build complex websites with no knowledge of HTML or other internet coding. Since then, the site has registered 46 million users, with an average of 45,000 new pages being created using the Wix platform daily. The company employs approximately 550 staff, in offices located in Tel Aviv, San Francisco, New York, Vilnius and Dnepropetrovsk.
In March 2014, Wix announced that it was cancelling its long-awaited second stock issue, claiming that the “market conditions are not yet ripe” for the secondary floatation of $86 million worth of shares. In the first stock issue on NASDAQ, the company managed to raise $127 million, and the founders sold a portion of their shares, quickly becoming millionaires in doing so.
The company also recently announced that it was purchasing another Israeli startup, Appaxia, its first acquisition since going public. Appaxia is a startup developed in the Microsoft Ventures Accelerator, and provides a mobile platform for creating smartphone apps for individual users and small businesses.
The sale price was not announced, but according to Wix’s original claim after raising $127 million last November, it planned to invest much of that sum in “acquisitions or investments in complementary companies or technologies.”