Wix ends 2023 with first-ever GAAP net profit

Israeli website building platform company Wix.com Ltd. (Nasdaq: WIX) marked a major milestone in 2023 by ending the year with its first-ever GAAP net profit, two years ahead of the target it set for itself. The positive trend is expected to continue in 2024 with Wix also forecasting GAAP operational profitability.

Wix beat the analysts in the fourth quarter of 2023 with non-GAAP earnings per share of $1.22, while the analysts’ consensus was $0.95. Revenue in the fourth quarter was $404 million, up 13.7% from the corresponding quarter of 2022. Revenue was in line with Wix’s guidance and slightly higher than the analysts’ forecasts.

In the fourth quarter, Wxix reported GAAP net profit of $3 million, compared with a net loss of $74 million in the corresponding quarter.

In 2023 GAAP net profit was $33.1 million compared with a net loss of $268 million in 2022. Non-GAAP net profit in 2023 was $268 million, or earnings per share of $4.39, compared with a net loss of $10 million in 2022.

In the past two years Wix has fired hundreds of employees

At the end of 2023, Wix had 5,302 employees, down 4% from the previous year. Over the past two years the company has laid off hundreds of employees in measures that it explained were due to the macroeconomic situation. Wix president Nir Zohar was asked in the press conference after publication of the financial results whether the situation with employees had stabilized after the layoffs. He answered, “For the most part yes. There will be changes from quarter to quarter as part of the natural life of the business, but the trend is stable.”

At the end of the 2023, Wix had $1.03 billion in cash and a bond debt of $570 million.

Wix’s share price is currently 7.37% higher on Nasdaq at $135, giving a market cap of $7.87 billion.

Published by Globes, Israel business news – en.globes.co.il – on February 21, 2024.

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