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Investing.com - Wix.com has lifted its outlook for annual bookings thanks to increased demand for its artificial intelligence-enhanced platform, sending shares in the group higher by 10% in premarket U.S. trading on Wednesday.
The Israeli company, which helps smaller businesses design and manage their websites, has noted in recent months a boost from its AI tools and Studio offerings.
Earlier this year, Wix (NASDAQ:WIX) said this trend will underpin a spike in revenues to as much $2 billion in 2025, even as it anticipates no contribution from new products.
In a statement, President Nir Zohar said Wix has been bolstered by "robust top of funnel demand, better conversion across our largest markets and improved monetization" due in large large part to its recently-released AI tools.
New user cohort bookings growth in the second quarter grew faster than in the prior three-month period, Zohar noted, adding that the acceleration has extended into the current quarter. At the end of July, the figure had risen by more than 20% versus a year ago, "a level of strength" not seen since a surge in demand during the COVID-19 pandemic, Zohar said.
As a result, Wix lifted its outlook for full-year bookings to $2.04 billion to $2.075 billion, implying an uptick of 11%-13% year-over-year. Previously, the number was predicted to be between $2.025 billion and $2.060 billion.
Revenue growth is also tipped to pick up the pace in the second half, with total full-year sales now anticipated to stand at $1.98 billion to $2 billion. A prior outlook had called for $1.97 billion to $2 billion.
Second-quarter revenue jumped by 12% to $489.9 million, compared with Bloomberg consensus estimates of $487.3 million.