Record-setting Q2 thanks to Covid — Wix has

Firm nearly doubles its marketing spend as businesses move online.

Image of an explosion with the words "Demand for websites and domain names is booming as businesses respond to COVID-19"

Website builder Wix (NASDAQ: WIX) noted second quarter earnings today, setting records thanks to the pandemic-induced rush to get online.

The firm noted a remarkable 64% year-over-year increase in sign-ups with 9.3 million. Most of the fresh registrations use the free service or don’t convert, but the firm grew its paid userbase to over 5 million by adding a net 346,000 subscribers during the quarter. That’s regarding double the number it added in the first quarter.

Collections—which other firms called bookings—were up 35% year-over-year.

“The need for business owners to move online quickly, communicate with clients, and deliver goods and services has never been more imminent,” stated Wix CEO Avishai Abrahami.

Wix nearly doubled its advertising spend to take advantage of the situation. It plans to continue with elevated ad spend as long as it converts. This will suppress free cash flow but ought to pay long-term dividends.

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