B2B Partners, User Additions Drive Wix.com's Q3 Beat, Raises FY21 Revenue Outlook

Wix.com Ltd WIX reported third-quarter FY21 revenue growth of 26% year-on-year to $320.8 million, beating the consensus of $315.2 million.
Segments: Creative Subscriptions revenue increased 19% Y/Y to $241.3 million. The Creative Subscriptions collections climbed 28% Y/Y to $292.7 million.
Creative Subscriptions ARR as of the end of Q3 was $992.3 million, up 18% Y/Y.
Business Solutions' revenue rose 55% to $79.5 million, and the collections jumped 53% Y/Y to $80.6 million.
The non-GAAP gross margin contracted 700 bps to 63%.
Non-GAAP EPS loss of $(0.21) beat the consensus loss of $(0.42).
Wix.com generated $4.3 million in operating cash flow and held $1.03 billion in cash and equivalents.
"This quarter we recorded collections from several new B2B partnerships, most notably the technology alliance with Vistaprint that we announced in August," COO Nir Zohar said.
"Outperformance this quarter was driven by better than expected new user additions, conversion of new users to subscriptions and average collections per subscription," noted CFO Lior Shemesh.
Outlook: Wix.com sees Q4 revenue of $324 million - $333 million versus the consensus of $329.3 million.
Wix.com raised the FY21 revenue guidance from $1.255 billion - $1.270 billion to $1.265 billion - $1.274 billion versus the consensus of $1.27 billion.
Price Action: WIX shares closed lower by 1.33% at $198.22 on Wednesday.

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