JERUSALEM (Reuters) – WIX), which helps small businesses build and run websites, reported a smaller-than-expected loss for the second quarter on Wednesday and said it would cut costs by $150 million a year.
The Israeli company said that, excluding one-time expenses, it had lost 14 cents per share, compared to 28 cents per share a year earlier. The income went up by 9% to $345,2 million.
Refinitiv I/B/E/S data showed that Wix was expected to lose 34 cents, excluding one-time items, on sales of $344 million.
“Even though the economy is in a bad spot right now, we are focusing on what we can change: improving operational efficiency to speed up our path to profitability.
“We are continuing to carry out plans for growth, “Avishai Abrahami, the CEO, said.
Wix said it would cut costs across the board, including in its workforce, as part of a three-year plan to boost free cash flow and speed up margin expansion. About 20% of the saved money per year is expected to
It said that this could already happen by 2022.
Wix’s stock has dropped 56% so far in 2022, and the company predicted that free cash flow would make up about 2% to 3% of revenue in 2022. By 2025, it wants to have a free cash flow margin of 20%.
Wix thought that its revenue for the third quarter would be between $341 million and $345 million, which would mean 7% to 8% annual growth. That would be less than what analysts expected, which was $354 million.
It thinks its sales will grow by 8% to 10% in 2022, which is less than the 10% to 13% it thought it would grow by in May.
Wix said that the estimates took into account the effects of closing down operations in Russia, the assumption that the market would stay tough for the rest of the year, and the effects of foreign exchange.
