Website creator Wix.com Q1 loss widens, revenue grows

JERUSALEM : Wix.com, which helps small businesses build and operate websites, reported a wider-than-expected quarterly loss, but said its businesses were showing steady growth despite ongoing volatility and uncertainty.

The Israeli company said on Monday it lost 72 cents per share excluding one-time items, compared with a loss 56 cents a year earlier.

Revenue grew 14 per cent to $342 million. "Volatility and uncertainty remain elevated creating headwinds to overall revenue growth," Chief Financial Officer Lior Shemesh said.

Wix, whose shares have slid 55 per cent so far in 2022, projected revenue growth of 10-13 per cent in 2022 as long as the macro environment does not deteriorate further.

It seeks to achieve a free cash flow margin of 20 per cent by 2025.

For the second quarter, Wix estimated revenue of $342-$346 million, representing annual growth of 8-10 per cent but below analysts' forecasts of $356 million.

Wix said the forecast included a negative impact of closing operations in Russia and certain regions of Ukraine as well as foreign exchange effects.