Wix president: Israel's risk profile is more significant

Nir Zohar  credit: Shlomi Yosef
Nir Zohar credit: Shlomi Yosef

Nir Zohar is concerned that political developments in Israel might erode liberal values.

Speaking to journalists after the company announced its fourth quarter results, Israeli cloud-based web development services company Wix.com Ltd. (Nasdaq: WIX) president and COO Nir Zohar was asked how would he respond to investors asking about the rise in risk in Israel.

He said, ""I hope we will not be asked about this, but if we are asked we will give an honest answer - the risk profile may be a little more significant than we knew, but we as a company will continue to be alert and try to manage in an optimal way to protect the shareholders. Where is the cash is one and immediate aspect that is easy to move and solve, I hope we don't reach deeper places. We are worried about what is happening right now and the effect of the moves in Israel on high-tech, and as a result on the economy as a whole. Significant damage to high-tech means damage to the Israeli economy, and as a result - to Israeli society. As citizens, we have an interest in the economy flourishing and growing."

Zohar was asked if Wix had anything to say about values on the issue, as a company that employs thousands of workers in Israel. He stressed that Wix employees are very diverse. "I don't know how many voted for whom, and I don't care. This is a home that allows people to work and manage themselves together. We have a value concept that society is an open and liberal place, these are values we believe in. My personal opinion can be seen in what I write on my personal profiles on social networks. I am very fearful.

"The concern is that the moves that are happening today will lead to the erosion of these values. If this happens in practice, we will clearly take a stand. Right now, we are sitting in a place that is very politically divisive and I don't think it is my place as a manager to decide on a stand for the employees. We will allow employees who want to act within the law to protest and demonstrate, and on a personal level I will continue to state my opinion clearly, but not on the company's platform."

Wix reported $355 million fourth quarter 2022 revenue, up 6% from the corresponding quarter of 2021. GAAP net loss in the fourth quarter was $39 million ($0.67 per share), while non-GAAP net profit was $35.6 million ($0.61 per share).

Revenue in 2022 was $1.39 billion, up 9% from 2021. GAAP net loss for 2022 was $424.9 million ($7.33 per share) and non-GAAP net loss was $10 million ($0.17 per share).

In guidance for 2023, Wix sees first quarter revenue of $367-371 million and full year revenue of $1.510-1.535 billion.

Wix's share price fell 5.3% to $80.87 yesterday, giving a market cap of $4.754 billion. The share price is up 9.43% in premarket trading.

Published by Globes, Israel business news - en.globes.co.il - on February 22, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Nir Zohar  credit: Shlomi Yosef
Nir Zohar credit: Shlomi Yosef
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