The pandemic has forced companies to expedite their transition online.
Wix (NASDAQ: WIX) is one of the largest website builder platforms. The company sent a letter to shareholders (pdf) today explaining the impact Covid-19 is having on its business.
Like GoDaddy, it sees both positive and negative effects.
There are positive impacts as more offline businesses find a way to offer their services online. Many businesses are doubling down on e-commerce, adding online services, etc.
On the other hand, usage by events companies and hotels is down.
The net-net so far is that, although cancellations are up, so are new sign-ups. Wix said its Q1 results for revenue and collections will be in line with its forecast, but it’s too early to tell what impact it will have in Q2.
GoDaddy, which also offers web presences solutions for small businesses, said its Q1 will land within $5 million of guidance. It expects Q2 to take about a $25-$30 million revenue hit. GoDaddy expects strength from businesses going online but some negative impact from aftermarket domain sales and lost productivity from its employees working from home.
As many readers know, I run a service connecting podcasters to guests. I’ve had some paid members cancel, citing the economic uncertainty. But that has been far outstripped by people signing up as they look for new ways to reach audiences when they can’t do it in person. My revenue on the site is up substantially since the world has been impacted by stay at home orders.
It’s hard to say how the pandemic will impact the industry overall as we are in unprecedented times. But we now have two relevant companies weighing in.