(Adds details, President’s comments, shares reaction)
By Steven Scheer
JERUSALEM, May 17 (Reuters) – Wix.com, which helps small businesses build and operate websites, said on Wednesday that the company posted first-quarter net income and raised its full-year outlook despite an uncertain economic climate .
Helped by cost cuts, including an 18% drop in headcount last year, the Israeli company said it earned 91 cents a share excluding one-time items, compared with a loss of 72 cents a share a year earlier.
Revenue increased 10% to $374 million, led by a 9% increase in Creative Solutions and an 11% increase in Business Solutions.
Wix, which has begun to incorporate artificial intelligence into its products, beat forecasts of 14 cents on a non-recurring basis and $369 million in revenue, data from Refinitiv I/B/E/S showed.
Citing “outperformance” in the first quarter, Wix raised its 2023 revenue estimate to a range of $1.522 billion to $1.543 billion from $1.51 billion to $1.535 billion — a growth of 10-11%.
Still, Wix.com remained cautious and kept estimates conservative.
“It’s a little unclear where the economy is headed – are we still facing a possible recession or are we on the way out of this crisis and the economy will bounce back in the United States and globally over the next few quarters? Chief Operating Officer and President Nir Zohar told reporters.
He noted that other e-commerce companies like Shopify were also reporting better metrics, but still haven’t fully recovered from the pandemic.
Wix.com forecasts Q2 revenue of between $380 million and $385 million and annual growth of up to 12%.
The company said it continues to repurchase its own stock and has so far acquired $250 million from a $300 million plan.
Shares listed on the Nasdaq are up 8.4% in premarket trading at $88.25.
JP Morgan raised its price target on Wix.com to $89 from $84 on Wednesday, while Jefferies raised its price target to $120 from $110.
(Reporting by Steven Scheer; Editing by Jason Neely)
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