Website Builder Wix.com Less Than Expected Q3 Loss | Invest News

JERUSALEM (Reuters) – Wix.com, which helps small businesses build and operate websites, reported a larger third-quarter loss on Thursday, but said uncertainty from the COVID-19 pandemic was diminishing .

“We have seen improvements in the business environment. Our users are still navigating with great uncertainty, but we believe the impacts have diminished, ”said CEO Avishai Abrahami.

The Israeli company reported a lower than expected quarterly net loss, excluding special items, of 21 cents per share, compared to a loss of 14 cents a year earlier. Revenue increased 26% to $ 321 million.

Analysts had predicted that Wix would lose 42 cents per ex-items share on revenue of $ 315 million, according to I / B / E / S data from Refinitiv.

“The outperformance this quarter is due to better-than-expected new user additions, conversion of new users to subscriptions and average collections per subscription,” said CFO Lior Shemesh.

The company said it expects fourth quarter revenue of $ 324 million to $ 333 million.

It also raised its revenue forecast for the full year to $ 1.265-1.274 billion from a previous forecast of $ 1.255-1.270 billion, but lowered its free cash flow estimate to $ 45-50 million from $ 60-65 million due to the strong shekel against the dollar which has “become a bigger headwind for our operating expenses.” “

(Reporting by Steven Scheer; Editing by Ari Rabinovitch)

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