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This article was published on October 1, 2013

DIY website builder files for its $100m US IPO

DIY website builder files for its $100m US IPO
Ken Yeung
Story by

Ken Yeung

Ken Yeung is a reporter for The Next Web based in San Francisco, CA. He carries around a big camera & likes to write about tech, startup Ken Yeung is a reporter for The Next Web based in San Francisco, CA. He carries around a big camera & likes to write about tech, startups, parties, and interesting people. Follow him on Twitter, on Facebook, and Google+.

Do-it-yourself website production platform has filed a registration statement with the US Security and Exchange Commission (SEC) for its IPO. It plans on trading shares on the New York Stock Exchange under the symbol “WIX”. According to the company’s statement, the exact number of shares and the price range for its offering have “not yet been determined”. However, it has set the proposed maximum offering price at $100 million.

What is known is that J.P. Morgan Securities LLC and Bank of America Merrill Lynch have been named as the lead joint bookrunners for the IPO.

Israeli-based Wix is a website development platform that allows anyone to easily build their own online presence. To date, it counts more than 38 million registered users in more than 190 countries. As of August 31, 2013, it had 679,536 premium subscriptions, with customers paying between $4 to $16 per month for yearly plans.

In its F-1 filing, the company lists that it has achieved 14 consecutive quarters of sequential growth in the number of premium subscriptions, along with revenue and collections. At the end of 2012, it says that revenues totaled $43.7 million with a net loss of $15 million. In the first six months of 2013, revenues were $34.1 million with net losses of $10.1 million.

What are some clear challenges that Wix faces and needs to address in the eyes of potential shareholders? It says that the possible reality of decreased subscriptions, history of operating losses, and disruption in search engine indexing could very well affect business performance.

Let’s also not forget about Wix’s competitors, specifically the likes of Y Combinator alumnus Weebly, Jimdo, SnapPages, and Moonfruit.

Today’s news comes just months after it filed its draft registration statement with the SEC for its IPO. In the seven years since its launch, the company has been continuously making updates to its product to help not only businesses but individual consumers get set up on the Internet. Wix has been integrating multiple services, including integration of Google Apps for Business and even launched an app marketplace for third-party developers so site creators could add Google Maps, LiveChat, PayPal widgets, and more to their site.

Recognizing the swing in technology, Wix has also evolved its product so that it no longer relies on Flash, giving users an HTML5 site builder and also tools to ensure that webpages are optimized for not only browsers, but mobile devices.

Wix has raised $58.5 million in funding from investors like Bessemer Venture Partners, Mangrove Capital Partners, Benchmark, Insight Venture Partners, and DAG Ventures.

Photo credit: Spencer Platt/Getty Images