Wix.com Ltd. reported third-quarter FY21 revenue growth of 26 percent year-on-year to $320.8 million, beating the consensus of $315.2 million.
Segments
Creative Subscriptions revenue increased 19 percent Y/Y to $241.3 million. The Creative Subscriptions collections climbed 28 percent Y/Y to $292.7 million.Creative Subscriptions ARR as of the end of Q3 was $992.3 million, up 18 percent Y/Y.
Business Solutions’ revenue rose 55 percent to $79.5 million, and the collections jumped 53 percent Y/Y to $80.6 million.
The non-GAAP gross margin contracted 700 bps to 63 percent.
Non-GAAP EPS loss of $(0.21) beat the consensus loss of $(0.42).
Wix.com generated $4.3 million in operating cash flow and held $1.03 billion in cash and equivalents.
“This quarter we recorded collections from several new B2B partnerships, most notably the technology alliance with Vistaprint that we announced in August,” COO Nir Zohar said.
“Outperformance this quarter was driven by better than expected new user additions, conversion of new users to subscriptions and average collections per subscription,” noted CFO Lior Shemesh.
Outlook
Wix.com sees Q4 revenue of $324 million – $333 million versus the consensus of $329.3 million.Wix.com raised the FY21 revenue guidance from $1.255 billion – $1.270 billion to $1.265 billion – $1.274 billion versus the consensus of $1.27 billion.
Price Action
WIX shares closed lower by 1.33 percent at $198.22 on Wednesday.By Anusuya Lahiri
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