Wix narrows loss, confirms layoffs

Wix Photo: Nasdaq OMX
Wix Photo: Nasdaq OMX

Key aspects of the $150 million cost reduction plan include "right-sizing our workforce and future hiring targets."

Israeli website building platform Wix.com Ltd. (Nasdaq: WIX) has published its financial results for the second quarter of 2022. Revenue rose, net loss narrowed and the company announced a $150 million cost reduction plan, including "right-sizing our workforce."

Wix's revenue for the second quarter of 2022 was $345.2 million, up 9% from the corresponding quarter of 2021, and in line with analysts' expectations. Non-GAAP net loss earnings per share was $0.14, much better than the analysts' expectations of $0.39 per share and a major improvement from the second quarter of 2021 when net loss earnings per share were $0.28. In the first half of 2022, net loss earnings per share was $0.85, similar to the first half of 2021.

Wix also unveiled its new cost reduction plan. "Today we are announcing a set of comprehensive cost reduction measures that will result in approximately $150 million of annualized cost savings. These savings are not one-time in nature and will continue to be realized on a run-rate basis. Approximately 20% of the annualized savings are expected to be realized already in 2022. Further, these cost savings do not include any reduction to our user acquisition marketing investments that we adjust to match our TROI thresholds, which we have not changed."

While the company did not confirm reports that it is laying off 100 employees, Wix speaks generally about the impact on staffing levels. "Key aspects of the plan include right-sizing our workforce and future hiring targets across multiple functions to realign with the operating environment today and optimizing additional operating costs that are not revenue generating."

Wix's share price fell 5.12% on Nasdaq yesterday to $68.77, giving a market cap of $3.952 billion, but rose 1.48% in after-hours trading.

Published by Globes, Israel business news - en.globes.co.il - on August 10 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Wix Photo: Nasdaq OMX
Wix Photo: Nasdaq OMX
 
 
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