WIX - Wix.com stock surges 10% on strong Q4 results outlook

Wix.com ( NASDAQ: WIX ) shares surged more than 10% in premarket trading on Wednesday as the web development company reported fourth-quarter results that handily beat Wall Street estimates and offered strong guidance.

Based in Tel Aviv, Israel, Wix.com ( WIX ) said it earned an adjusted 61 cents per share as revenue rose 6% year-over-year to $355M. Analysts were expecting earnings of 10 cents per share, excluding one-time items, on $351.88M in revenue.

Looking to the first-quarter, Wix.com ( WIX ) said it expects to generate revenue in a range of $367M to $371M, representing growth approximately between 7% and 9%. Full-year revenue is forecast to be between $1.51B and $1.535B, topping analysts expectations of $1.51B.

Wix.com ( WIX ) also said it expects to generate an additional $50M in cost savings in 2023, stemming from recent layoffs, as well as increased hosting efficiencies and a reduction in capital spending.

Competitor GoDaddy.com ( GDDY ) shares rose fractionally in premarket trading on back of the results.

Last week, investment firm Credit Suisse started coverage on Wix.com ( WIX ) with an outperform rating, citing the fact it has a number of other areas where it can see growth, including the intersection of software and payments.

Hedge fund Starboard Value, led by Jeffrey Smith, recently disclosed that it had trimmed its position in Wix.com ( WIX ), while making several other changes to its portfolio .

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