Wix Misses Earnings Estimates As Volatility and Uncertainty Cause Headwinds
2022.05.16 18:21
By Sam Boughedda
Investing.com — Wix.com Ltd. (NASDAQ:WIX) reported earnings before the open Monday, missing earnings estimates but reporting higher than expected revenue.
The website builder posted a loss of $0.72 per share, wider than the expected $0.60 loss per share. Revenue came in at $341.6 million above the $340.44 million forecasts.
The company said that volatility and uncertainty remain elevated and created headwinds to its overall revenue growth. In addition, Wix explained that it continues to experience a high level of volatility in demand due to macroeconomic headwinds and global uncertainty.
Revenue rose 14% year-over-year, while total bookings in the first quarter were $393 million, up 12%.
“Wix has remained focused on executing on our long-term opportunities, our product and marketing roadmaps, and concentrating on what we can control despite the recent months of instability and volatility,” said Avishai Abrahami, Wix co-founder and CEO.
Wix sees revenue for the second quarter between $342 million and $346 million, representing 8% to 10% year-over-year growth. The company said this takes into account the negative impact of around $0.6 million due to the closure of its activities in Russia and certain regions in Ukraine and headwinds of approximately $4 million due to changes in FX rates.
For 2022, they expect revenue growth between 10% and 13% year-over-year, if they do not see further deterioration in the macro environment. The range includes the negative impact of the Russia-Ukraine war, which is estimated to account for around $3 million in revenue in 2022 and approximately $20 million in FX-related headwinds.
Wix shares are down 1.28% Monday.
