Wix Q3 beats estimates amid strong customer growth

Wix CEO Avishai Abrahami said demand for an online presence remained at high levels during the quarter, with the company adding 7.8 million registered users.

Website-development platform provider Wix delivered better-than-expected third quarter results on Thursday. The Tel Aviv, Israel-based company said it had a net loss of $56.8 million, or $1.03 per share. Adjusted losses came to 14 cents per share on revenue of $254.2 million.

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Wall Street was expecting a net loss of 15 cents per share on revenue of $249.9 million.

Wix CEO Avishai Abrahami said demand for an online presence remained at high levels during the quarter, noting that "businesses are using Wix more than ever before" and doing more with the platform than basic website creation. 

The company said its business services revenue was up 60% year over year to $51.2 million, while its creative subscriptions business -- which includes website creation -- was $203 million.

The company said it added 7.8 million registered users in the third quarter, bringing its total customer base to 189 million, up 19% from a year ago. Wix also said it added 302,000 net subscriptions in Q3 for its premium plan, which offers additional features like custom domain name, extra storage and traffic analytics.

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"Our strong results in Q3 were driven by continued high levels of demand from new users for our website creation products and business solutions as well as the ongoing monetization of users who joined Wix over the most recent quarters," said Wix CFO Lior Shemesh. "Users that joined Wix during Q3 purchased subscriptions at higher rates that we have seen in several years and at higher prices. This significant growth in new users, as well as our continued execution in product development and marketing, position us well to drive growth in 2021 and beyond."

For the current quarter, Wix said it expects revenue in the range of $266 million to $271 million. Analysts are looking for Wix to report Q4 revenue of $265.2 million. The company expects full-year revenue in the range of $972 million to $977 million, which is above current analyst expectations.