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Israel’s Wix.com posts Q3 beat, says business as usual

The logo of website-designer firm Wix.com is seen at a high-tech park in Beersheba, southern Israel August 28, 2017. Picture taken August 28, 2017. REUTERS/Amir Cohen/File Photo

Wix.com (WIX.O), a company that assists small companies in building and operating websites, announced a jump in quarterly net profit that was greater than anticipated. The company also stated that Israel’s conflict with the Islamist terrorist organization Hamas in Gaza was not affecting its operations.

Compared to its earnings of 6 cents per share a year earlier, the Israeli firm reported $1.10 per diluted share when one-time factors were excluded from the calculation. The increase in revenue to $394 million for the quarter that covered July to September was 14%.

According to the data provided by LSEG, analysts anticipated that Wix would earn 67 cents a share, excluding one-time items on revenue of $383 million.

Although the percentage is more significant in Israel, President Nir Zohar stated that just 5% of the company’s worldwide staff had been called up to reserve service due to the conflict that started on October 7. The figure is higher in Israel.

“In terms of product and software development and progression, that obviously had some impact, especially in the first few weeks,” he told reporters.

“Luckily, because we have teams outside of Israel that also deal with development, we managed to counterbalance a lot of it in a way that I wouldn’t say nothing has been disrupted, but we deemed the disruption and the delays to be relatively insignificant.”

Zohar stated that “all of our services have been up and running as usual” because Wix is a service firm and most of its customer care and sales personnel are located outside of Israel. The business anticipated sales for the fourth quarter of between $400 million and $405 million, representing an annual increase of as much as 14%.

Wix increased its sales forecast for 2023 from a range of $1.543 billion to $1.558 billion to a new range of $1.558 billion to $1.563 billion, which represents a growth of 12–13%. The company cited “outperformance in the first three quarters” as the reason for the increase.

“Another quarter of results that exceeded expectations positions us well to achieve positive GAAP net income in full year 2023, with GAAP profitability achievable in 2024,” said Lior Shemesh, the chief financial officer.

He also mentioned that Wix had previously anticipated it would achieve profitability according to GAAP in 2025; nevertheless, revenue has been more significant than planned while costs have been lower, and the firm would conclude the year with excellent free cash flow.

Following a decline of 51% in the previous year, the price of its Nasdaq-listed shares has increased by 17% in 2023.

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