Wix.com (NASDAQ:WIX), a cloud-based platform that allows businesses and individuals to easily build websites, released its full-year 2020 results on Feb. 17. The company got a nice boost in demand from the accelerated digital transition brought on by the COVID-19 pandemic, as it was prepared to bring an online presence to all types of businesses.
The stock price was up 8% the day of the release, bringing its total gains over the past 12 months to more than 100%, beating the S&P 500 by a wide margin during the same time span. Can Wix keep the momentum rolling in 2021 and beyond? Let’s investigate.
2020 earnings numbers were impressive
All of Wix’s headline numbers were solid. Total revenue in 2020 grew 30% to $989 million with cash generated by operating activities of $148 million. The ability to generate cash while also growing quickly and investing in numerous new product offerings is impressive and a testament to Wix’s asset-light subscription model.
Wix’s fastest-growing segment is what it calls business solutions. This segment grew sales 76% in 2020, driven by tremendous growth from its Wix Payments product. Gross payment volume (GPV), which is the total dollars flowing through Wix Payments, grew 126% to $5…