WIX, the popular web design CMS, is a quiet achiever, although from recently released annual results, spending an excess of 68% of revenues on marketing certainly makes the NASDAQ-listed business a cash burner.
WIX, which completes with the likes of Joomla and Weebly in the "do it yourself" web design market, first listed on the NASDAQ in 2013, the first in its niche to go public. Since then, it's been a rollercoaster of more ups than downs, and the stock that first listed for $17 now sits around $23 (at November 2015), with highs and lows of $31 and $31 along the way.
WIX's financials show us that it's also very committed to something else - R&D. In 2013 and 2014, an average of 90% of total gross margin went into improving the web development product. With R&D so high and marketing eating up cash, WIX investors can take comfort in a 50%+ growth in revenue.
WIX has a simple fee structure - and the business is built on the idea of recurring revenue, given the high cost of a sale when engaging a single client looking to build a website. Despite the margins and invariable losses ($50m+ in 2014), WIX is committed to reasonable fees and has avoided price increases since listing.
One thing is for sure, WIX is a product that has surged in popularity and remains strong in many countries.
Do you use WIX? Let us know your thoughts!
Source: NASDAQ WIX 20F