- Starboard value LP disclosed 9% Participation in the website development platform Wix.com Ltd WIX.
- Starboard built the stake and spoke to Wix about how it could improve operations Reuters reported.
- Wix has struggled since the fourth quarter of 2021 amid an e-commerce slowdown caused by rampant inflation and lower online spending amid the pandemic.
- Also read: EXCLUSIVE: Wix introduces Wix Portfolio to create and manage a professional online portfolio
- wix reported second quarter FY22 revenue grew 9% year over year to $345.2 million, beating consensus of $344.4 million. Non-GAAP EPS loss was $(0.14) compared to $(0.28) a year ago.
- Wix expects third-quarter revenue to grow 7% to 8% year over year to $341 million to $345 million (consensus $354.53 million). The company lowered the revenue growth rate in FY22 from 10%-13% y/y to 8%-10% y/y.
- Wix launched a three-year cost-cutting program to boost its ailing share price.
- Starboard supports Wix’s quest to become profitable and believes the company has a significant opportunity to improve its margins and continue to grow.
- Price promotion: WIX shares traded up 5.92% at $78.05 premarket on the most recent check Monday.
- Photo via company
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