Wix.com (NASDAQ: WIX) is a company that helps its users build an online presence with easy-to-use software tools. With over 210 million registered users, I believe it's fair to say the company's products are resonating with consumers. But there was a red flag in its most recent quarter. The tech company didn't attract as many new users as it anticipated.
In this video from Motley Fool Backstage Pass , recorded on Oct. 8 , Millionacres editor Deidre Woollard and Fool contributors Jason Hall and Jon Quast discuss what might be going on. Importantly, they note that this reduction in new users corresponded to a decrease in marketing spend. In the second quarter of 2020, Wix spent 43% of collections on marketing, whereas in the second quarter of this year, it spent just 33%.
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Why Isn't This Technology Company Attracting as Many New Users as It Expected?