Wix.com swings to Q2 profit, raises revenue forecast for 2018

Check Point second-quarter profit up, doubles share buyback plan

Wix.com, which helps small businesses build and operate websites, swung to a profit in the second quarter on higher revenue and raised its revenue forecast for 2018.

It posted on Wednesday a quarterly profit of 29 cents a share excluding one-time items, compared with a loss of 2 cents a year earlier. Revenue grew 41% to $146.1 million.

Analysts had forecast an adjusted profit of 15 cents per share on revenue of $144.7m., according to Thomson Reuters I/B/E/S.

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.

The company has 131m. registered users. During the quarter it added 205,000 paid users to reach 3.7m. premium customers, up 28% from a year earlier.

In June and July, Wix raised $443m. in a private offering of convertible bonds.

Chief Financial Officer Lior Shemesh said the fund-raising was meant to strengthen the company’s balance sheet.

“We don’t have any specific plan to use the money, but we want to keep the flexibility if something comes up in the future,” Shemesh told Reuters.

Wix projects 2018 revenue of $597m.-$599m., up from a previous estimate of $594-$597m. for a 40-41% gain from 2017. Analysts were forecasting 2018 revenue of $596.7m.

For the third quarter it estimates revenue of $152-$153m., up 37-38% from a year earlier.

Shemesh said the company raised its estimates in part due to the strong performance of new products, including ADI, a web design product aimed at less tech-savvy users, now offered in additional languages, as well as Wix Code, aimed at professional web designers and developers.

Network security provider Check Point Software Technologies reported quarterly net profit that beat expectations, and said it was doubling its overall share repurchase program to $2 billion.

Check Point earned $1.37 per diluted share excluding onetime items in the second quarter, up from $1.26 a year earlier. Revenue grew 2% to $468m., the Israel-based company said on Wednesday.

It was forecast to earn $1.30 a share on revenue of $461.6m., according to Thomson Reuters I/B/E/S.

The company said its board has authorized the expansion of its ongoing share repurchase plan by 30% quarterly, up to $325m., and the overall program by 100% to $2b. in total.

The company has repurchased $7.3b. worth of shares since 2003. The updated plan expands the existing plan announced last August that provided for buying back up to $250m. each quarter for up to $1b., which is expected to be completed in the third quarter of 2018. (Reuters)