Wix.com (NASDAQ:WIX) stock fell as much as 10.5% in pre-market trading after the company reported mixed first-quarter results and provided guidance that disappointed the Street. Wix’s software enables customers to develop and manage websites.
The Israel-based firm reported a per-share loss of 72 cents, excluding certain items, versus analysts’ mean outlook of a loss per share of 61 cents. Its revenue, however, came in slightly above analysts’ average estimate.
Wix.com now anticipates that its sales will be between $1.396 billion and $1.434 billion this year. Analysts expect revenue of $1.45 billion.
On April 25, Piper Sandler cut its rating on WIX to “underweight” from “neutral,” citing macroeconomic challenges. Piper Sandler slashed its price target on WIX stock to $78 from $105.
WIX Stock Trims Losses on Path to Profitability
On a positive note, however, Wix expects to become profitable in the near term. “We are not going to do the same investments that we have done in the past so you can definitely expect more profitability in the near future,” Wix CFO Lior Shemesh said.
In March, the company announced that its board had approved “a program to repurchase up to $500 million of its securities from time to time.” Wix noted that it had to obtain approval for the move from Israeli authorities.
On the date of publication, Larry Ramer did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.