Benzinga | Nov 11, 2021 06:08AM EST

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

* Wix.com Ltd (NASDAQ: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.