What happened
Shares of Wix.com (WIX 0.11%) climbed 12% on Wednesday after the website-development platform said it expects to hit its profitability goals ahead of schedule.
So what
Wix's revenue grew by 6% year over year to $355 million in the fourth quarter, driven by higher demand for its website-building tools.
"We released hundreds of new products and features throughout 2022 to improve our platform for creators and partners," CEO Avishai Abrahami said in a press release.
Cost-cutting initiatives are also helping to improve the company's profitability. Layoffs and a more efficient marketing campaign helped to reduce Wix's operating expenses.
"In the face of a dynamic macroeconomic environment this year, we shifted our focus toward tightening spending and becoming more efficient in the execution of our priorities," Abrahami said.
All told, Wix's adjusted net income checked in at nearly $36 million, up from a loss of $19 million in the prior-year period. Better yet, Wix's adjusted free cash flow rose to a record $52 million.
Now what
Management expects revenue to grow by as much as 11% to $1.5 billion in 2023. The company also projects that it will produce over $100 million in adjusted operating income next year, which would be roughly a year ahead of schedule.
"2022 certainly was a challenging year, but I'm happy to say that we finished on a strong note," Abrahami said during a conference call with analysts. "And we are entering 2023 a more efficient company with a clear path to increasing profitability."
