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The logo of web design company is seen at a high-tech park in Beer Sheva, southern Israel on August 28, 2017. REUTERS / Amir Cohen

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JERUSALEM, Nov.11 (Reuters) – (WIX.O), which helps businesses build and operate websites, said on Thursday it was converting more customers from free to premium services as it increased his income outlook for the year.

Wix said its activity is returning to normal after a drop during the COVID-19 pandemic.

“There is always uncertainty. But over time people are getting more and more normal,” CFO Lior Shemesh told Reuters after releasing better-than-expected third quarter results.

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“We hope this will continue, but it’s really encouraging.”

After lowering the 2021 estimate in August, Wix upped them again and now forecasts 2021 revenue of $ 1.265 billion to $ 1.274 billion, down from a previous forecast of $ 1.255 billion to $ 1.270 billion. Analysts are forecasting average revenue of $ 1.266 billion, according to I / B / E / S data from Refinitiv.

Shemesh said Wix is ​​adding features that convert more customers from free services to premium services, thus increasing its average revenue per user (ARPU). “More than anything, this is a good sign for next year,” he said.

The Israeli company reported a lower than expected quarterly net loss excluding one-time items of 21 cents per share, down from 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.

The company said it expects fourth-quarter revenue of $ 324 million to $ 333 million, in line with analysts’ expectations of $ 329 million.

Shemesh said Wix, whose Nasdaq-listed shares have fallen about 20% so far in 2021, was partially impacted by the strong shekel, which stands at a 25-year high against the dollar. and so the company lowered its free cash flow estimate for 2021 to $ 22-27 million from $ 35 to $ 40 million to reflect that.

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Reporting by Steven Scheer Editing by Ari Rabinovitch, Elaine Hardcastle

Our standards: Thomson Reuters Trust Principles.


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