Wix has reported strong Q4 2020 financial results to end what the firm calls its "most successful year in history."
On Wednesday, the website developer platform reported fourth-quarter earnings (statement) including revenues of $282.5 million, an increase of 38% year-over-year.
Creative Subscriptions revenue was boosted by 25%, reaching $213.7 million in comparison to $171.4 million in Q4 2019, with subscription collections reported as $236.4 million. Creative Subscriptions ARR (annualized recurring revenue) was $878 million in Q4 2020, in contrast to $707.2 million in Q4 2019.
Wix's Business Solutions reported revenues of $68.8 million, an improvement of 107% year-over-year. Collections came in at $70 million, and Business Solutions ARR was reported as $138.3 million, an increase of 95% and 46% year-over-year, respectively.
Total collections across the fourth quarter were $306.4 million, in comparison to $226.7 million in Q4 last year.
GAAP-based gross margin in Q4 2020 was 63%, or 65% non-GAAP. GAAP net loss was $62.8 million, or $1.13 per share. Non-GAAP net loss was $1.6 million, or $0.03 per share. Q3's net loss was $56.8 million, or $1.03 per share.
Net cash in Q4 2020 was $28.6 million with a free cash flow of $23.1 million.
The company added 185,000 net premium subscriptions during the quarter, a 107% boost year-over year and has now reached 5.5 million premium users. In addition, 7.4 million new users were registered during the quarter.
Over FY 2020, revenue was $988.8 million, an increase of 30% year-over-year from 2019's $761.1 million. Creative subscriptions revenue is reported as $783.5 million, an increase of 22% year-over-year, whereas Business solutions revenue improved by 76%, to $205.3 million, in contrast to FY 2019's $116.6 million.
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Total collections for FY 2020 were $1.102 billion, an increase of 32% year-over-year. Collections for FY 2019 were reported as $832.5 million. In total, Creative subscriptions collections accounted for $891.2 million and Business Solutions collections, $210.8 million.
Total gross margins (GAAP) for the full 2020 financial year was 68%, a reduction from 2019's 74%. However, Wix says this is due to company investments.
GAAP-based net loss for FY 2020 was $216.5 million, or $3.98 per share ($24.2 million, $0.44 non-GAAP). Net cash is reported as $148 million and a free cash flow of $129.2 million, a slight increase year-over-year.
Over 2021, Wix expects an increase in collections growth and intends to invest roughly $60 million this year in expanded customer care, the further development of the Wix Payments platform and Wix Point of Sale system, as well as increasing the account management team workforce.
"We have concluded the most successful year in our company's history," commented Wix CEO Avishai Abrahami. "It was truly humbling to help lift millions of businesses through an extremely challenging year, and I am particularly proud of our team for maintaining focus and dedication throughout the year. It is clear that we can now become a dominant player on the internet, and I expect us to strengthen this position significantly over the coming decade."
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