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 .
âWe have seen improvements in the business environment. Our users are still navigating with great uncertainty, but we believe the impacts have diminished, âsaid 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.
âThe outperformance this quarter is due to better-than-expected new user additions, conversion of new users to subscriptions and average collections per subscription,â 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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