Israel's fourth-quarter loss narrows, sees slower 2016 revenue growth

Reuters News
Posted: Feb 10, 2016 3:57 AM

JERUSALEM (Reuters) -, which helps small businesses build and operate websites, reported on Wednesday a smaller-than-expected loss in the fourth quarter, as the number of paid subscribers jumped 43 percent.

It posted a quarterly loss of 13 cents a share excluding one-time items, compared with a 25 cent loss a year earlier.

Revenue grew 37 percent to $56.8 million, or $59.8 million excluding currency effects.

It was forecast to lose 17 cents a share on revenue of $55.8 million, according to Thomson Reuters I/B/E/S.

Israel-based Wix offers free basic features for setting up websites but users must pay for extra services such as shopping carts, individual web addresses and site traffic analysis.

During the quarter it added 4.7 million registered users for a total of 77 million. Of that, it added 125,000 paid subscribers to reach 1.77 million.

Wix projects 2016 revenue of $270-$274 million, up 33-35 percent from 2015, and earnings before interest, tax, depreciation and amortization of $27-$30 million for an annual gain of as much as 104 percent. Revenue in 2015 grew 43 percent.

"It is clear that our focus on innovative product development and impactful marketing is driving significant growth and returns," said chief executive Avishai Abrahami.

(Reporting by Steven Scheer)