Benzinga | May 12, 2021 07:24AM EDT

Wix Beats On Q1 Earnings, Raised FY21 Guidance Falls Short Of Consensus

* Wix.com Ltd (NASDAQ: WIX) reported first-quarter FY21 revenue growth of 41% year-on-year to $304.1 million, beating the analyst consensus of $295.24 million.

* Creative Subscriptions revenue rose 28% Y/Y to $226.4 million, and Business Solutions revenue rose 97% Y/Y to $77.7 million.

* Creative Subscriptions collections rose 28% Y/Y to $268.1 million, while Business Solutions collections rose 107% Y/Y to $83.1 million.

* Non-GAAP gross margin of Creative Subscriptions were 77%, and Business Solutions were 24%.

* Non-GAAP net loss was ($30.2) million, or EPS of ($0.54), beating the analyst consensus ($0.66) loss.

* Wix generated $18.5 million in operating cash flow and held $415.8 million in cash and equivalents.

* Guidance: Wix sees a Q2 revenue outlook of $308 million - $312 million, below the analyst consensus of $312.26 million.

* FY21 revenue outlook was raised from the previous $1.272 billion - 1.286 billion, to 1.280 billion - 1.290 billion, versus the analyst consensus of $1.29 billion.

* Wix's investments in product development, marketing, and support have driven an increase in conversion and collections per subscription, illustrated by the strength of the collections from the Q1 2021 user cohort, which was 32% higher than the Q1 2020 user cohort generated in its first quarter, CFO Lior Shemesh said.

* Shemesh expects future collections from existing cohorts to be around $14.2 billion over the next ten years, leading to the FY21 guidance raise.

* Price action: WIX shares closed higher by 2.95% at $289.9 on Tuesday.