On Thursday, Wix, a company that helps businesses create and manage websites, said it was converting more clients from free to premium services, raising its revenue forecast for the year.
Following a downturn during the COVID-19 outbreak, Wix stated that business was back to normal.
"There is still a lot of uncertainty. However, as time passes, individuals are returning to their normal routines "After reporting third-quarter earnings that above expectations, Lior Shemesh, the company's chief financial officer, told a major Newswire.
"We hope this trend continues, but it's reassuring."
Wix boosted its revenue forecast for 2021 after lowering it in August. The company now expects revenue of $1.265-$1.274 billion, up from $1.255-$1.270 billion previously. According to Refinitiv's I/B/E/S statistics, analysts expect revenue of $1.266 billion on average.
Wix was adding features that were converting more users from free to premium services, according to Shemesh, resulting in a higher average income per user (ARPU). "It's a good sign for next year more than anything," he remarked.
The Israeli company posted a lower-than-expected quarterly net loss of 21 cents per share, excluding one-time factors, compared to a loss of 14 cents a year ago. Revenue increased by 26% to $321 million.
Wix was expected to lose 42 cents per share ex-items on revenue of $315 million, according to analysts.
The company said it anticipated revenue of $324-$333 million in the fourth quarter, which is in line with analyst projections of $329 million.
Shemesh added that the strong shekel, which is at a 25-year high versus the dollar, has had an impact on Wix, whose Nasdaq listed shares are down around 20% so far in 2021, and that the firm has decreased its 2021 free cash flow estimate to $22-$27 million from $35-$40 million to reflect that.