Often overlooked because of its larger and higher-growth peer Shopify, e-commerce enabler Wix.com (NASDAQ: WIX) had a great first quarter of 2020. Even as the economy took a nosedive into recession as efforts to combat the coronavirus took hold, Wix reported surging demand for its web page creation and management tools that offset cancellations in service.
The immediate-term prospects for the global economy only worsened after the first quarter ended, but the trend that lifted it to kick off 2020 has thus far remained intact: Physical interaction is on the wane, while the digital economy is waxing favorable.
As for the headline numbers, Wix's results were in line with management's expectations outlined at the beginning of 2020. Revenue grew 24% to $216 million, driven by a 17% increase in "Creative Subscriptions" (the basic cloud-based web designer platform) to $177 million, and a 72% increase in business solutions to $39.4 million. Free cash flow (revenue less cash operating and capital expenses) was 33% higher at $40.0 million -- also in line with expectations.