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Israel's moves to profit, raises 2015 outlook
November 4, 2015 / 11:20 AM / 2 years ago

Israel's moves to profit, raises 2015 outlook

* Q3 adjusted EBITDA $4.7 mln vs $2.8 mln loss

* Revenue up 43 pct to $53.6 mln

* Raises 2015 adjusted EBITDA view to $12-$13 mln

TEL AVIV, Nov 4 (Reuters) -, which helps small businesses build and operate websites, reported a quarterly adjusted profit on Wednesday and raised its 2015 forecast as more customers convert to paid services.

A third-quarter profit of $4.7 million in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) compared to a loss of $2.8 million loss a year earlier.

Revenue jumped 43 percent to $53.6 million, $1 million more than forecast by analysts.

Revenue would have been $56.3 million excluding the decline of the Brazilian real and Russian rouble.

Israel-based Wix offers free basic features for setting up websites but users must pay for extra services such as shopping carts, individual web addresses and site traffic analysis.

During the quarter Wix launched a redesigned version of its web-editing software for the first time since introducing the do-it-yourself product in 2012.

“People are able to build the websites they envisioned in their minds and take their business online,” President Nir Zohar told Reuters.

Wix raised its 2015 adjusted EBITDA estimate to $12-$13 million from a $10-$12 million forecast it made in August.

It expects 2015 revenue of $202-$203 million.

Wix had 72 million registered users at the end of September and added a record 140,000 premium paid subscriptions in the quarter to reach 1.64 million.

Wix also continued its mobile growth, surpassing 11 million mobile sites created on the Wix platform to date.

For the fourth quarter, Wix expects an adjusted EBITDA of $5-$6 million on revenue of $55-$56 million.

Wix is not yet guiding towards net profit, Zohar said.

“We are still investing into growth. It will come at some point but now we’re not talking about anything beyond 2015,” he said. (Reporting by Tova Cohen; editing by Jason Neely)

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