Activist Investor Fund Starboard Procures Stake In Wix

Starboard Value LP disclosed a 9% stake in the website development platform Wix.com Ltd (NASDAQ:WIX).
Starboard had been building the stake and spoke to Wix about how it could improve operations, Reuters reports.
Wix battled losses since the fourth quarter of 2021 amid a slowdown in e-commerce driven by rampant inflation and lower online spending in the wake of the pandemic.
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Wix reported second-quarter FY22 revenue growth of 9% year-on-year to $345.2 million, beating the consensus of $344.4 million. Non-GAAP EPS loss was $(0.14) versus $(0.28) a year ago.
Wix sees Q3 revenue to grow 7% - 8% Y/Y to $341 million - $345 million (consensus $354.53 million). The company cut the FY22 revenue growth rate to 8% - 10% Y/Y from 10% - 13% Y/Y.
Wix adopted a three-year cost-cutting program to boost its ailing stock price.
Starboard supports Wix's bid to become profitable and believes the company has a significant opportunity to improve its margins and grow further.
Price Action: WIX shares traded higher by 5.92% at $78.05 in the premarket on the last check Monday.
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Benzinga