Why Isn't This Technology Company Attracting as Many New Users as It Expected?
Wix.com (NASDAQ: WIX) is a company that helps its users build an online presence with easy-to-use software tools. With over 210 million registered users, I believe it's fair to say the company's products are resonating with consumers. But there was a red flag in its most recent quarter. The tech company didn't attract as many new users as it anticipated.
In this video from Motley Fool Backstage Pass, recorded on Oct. 8, Millionacres editor Deidre Woollard and Fool contributors Jason Hall and Jon Quast discuss what might be going on. Importantly, they note that this reduction in new users corresponded to a decrease in marketing spend. In the second quarter of 2020, Wix spent 43% of collections on marketing, whereas in the second quarter of this year, it spent just 33%.
Source Fool.com
