Website Creator’s Q4 Loss Widens, Unable to Predict 2022

FILE PHOTO – Web design company is shown in Tel Aviv, Israel July 4, 2016. Picture taken July 4, 2016. REUTERS/Baz Ratner/File Photo

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JERUSALEM, Feb 16 (Reuters) – (WIX.O), which helps small businesses build and operate websites, reported a bigger fourth-quarter loss on Wednesday and said it could not provide estimates for 2022 due to uncertainty caused by the COVID-19 pandemic.

“We have experienced a much higher level of volatility in demand for online services over the past year and a half due to COVID,” Wix said. “As a result, we are not able to forecast our business with the same level of confidence that we have always been able to pre-COVID, although the fundamentals remain strong.

“While we are in a period of heightened volatility, we will not provide annual guidance for bookings, revenue or free cash flow,” he said, noting that he would still provide quarterly guidance. as well as expectations in the publications of quarterly results.

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The Israeli company reported a quarterly net loss excluding one-time items of 37 cents per share, compared with a loss of 3 cents a year earlier. Revenue increased 16% to $328.3 million.

Analysts had expected Wix to lose 38 cents per share on revenue of $331 million, according to I/B/E/S data from Refinitiv.

For all of 2021, Wix posted a net loss excluding items of $1.39 per share, compared to a loss of 48 cents in 2020 and expectations of a loss of $1.41. Revenue rose 29% to $1.27 billion.

“We left 2021 with our business fundamentals at levels far higher than when we entered the pandemic, positioning us for success in the years to come, and we are clear on what needs to be done to maintain this momentum.” , CEO Avishai Abrahami said.

The company said it expects first-quarter revenue of $338 million to $343 million, up 11 to 13 percent from the same period in 2021.

At the end of 2021, Wix had 222 million registered users, up 13% from 2020. It added 478,000 net premium subscriptions to reach 6 million, an annual gain of 9%.

Shares of the company are down 27% so far this year after falling 37% in 2021.

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Reporting by Steven Scheer Editing by Mark Potter

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