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Wix
said its business was returning to normal following a dip during
the COVID-19 pandemic.
"There still is uncertainty. But as time passes people are going
more and more back to normal," chief financial officer Lior
Shemesh told Reuters after issuing third-quarter results that
beat estimates.
"We hope that will continue, but it's really encouraging."
After trimming 2021 estimates in August, Wix raised them again
and now projects 2021 revenue of $1.265-$1.274 billion, up from
a previous outlook of $1.255-$1.270 billion. Analysts on average
forecast revenue of $1.266 billion, according to I/B/E/S data
from Refinitiv.
Shemesh said Wix was adding features that were converting more
customers from free to premium services, raising its average
revenue per user (ARPU). "More than anything it's a good sign
for next year," he said.
The Israeli company reported a less-than-expected quarterly net
loss excluding one-time items of 21 cents per share, compared
with a loss 14 cents a year earlier. Revenue grew 26% to $321
million.
Analysts had forecast Wix would lose 42 cents a share ex-items
on revenue of $315 million.
The company said it expects fourth-quarter revenue of $324-$333
million, in line with analysts' expectations of $329 million.
Shemesh said that Wix, whose Nasdaq listed shares are down some
20% so far in 2021, has been partly impacted by the strong
shekel, which stands at a 25-year high versus the dollar and so
the firm lowered its 2021 free cash flow estimate to $22-$27
million from $35-$40 million to reflect that.
(Reporting by Steven Scheer; Editing by Ari Rabinovitch, Elaine
Hardcastle)
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