Website creator Wix.com, which helps small businesses build and operate websites, said it would soon start turning a profit in its bottom line, after reporting a wider-than-expected loss in the first quarter.
Since its founding in 2006, the Israeli company has been in the red, with company officials citing the need for large investments to build the company for long-term growth.
“Now we are going to see the fruits of it,” chief financial officer Lior Shemesh told Reuters.
“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.”
Shemesh declined to give a timetable at this time, noting the company will provide details of its three-year plan at an analysts’ day on Thursday. However, he said Wix expects its free cash flow margin to reach 20% by 2025, from about 5% now.
The company said on Monday it lost 72 cents per share excluding one-off items in the first quarter, compared with a loss of 56 cents a year earlier. Despite what Shemesh called headwinds from “volatility and uncertainty” from weaker global economic growth, revenue grew 14% to $342 million.
Reuters
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