Wix increased its guidance on revenue and free cash flow for 2017 as it announced strong third-quarter results, including revenues of $111 million, which beat the high-end of its previous guidance.
The company added 188,000 net premium subscriptions, a 33 percent year-over-year increase to 3.1 million customers, according to the Wednesday announcement. The increases led to a 101 percent year-over-year growth in free cash flow, to $18.9 million. Along with year-over-year revenue growth of 47 percent in the quarter, collections grew 38 percent to over $120 million.
The release of Wix ADI (Artificial Design Intelligence) has had a material impact on the rate at which the company’s registered users have converted to paid subscriptions, Wix says.
“New product releases and continued improvements to existing products drove increases in conversion to the highest levels ever, leading to strong results this quarter,” Avishai Abrahami, co-founder and CEO of Wix said in a statement. “Most notably, ongoing development of the Wix Editor and Wix ADI contributed meaningfully to conversion improvements. With future improvements to and the localization of Wix ADI, the continued development of the Wix Editor and the upcoming public release of Wix Code, we have built a complete web development platform for any type of user that will continue to drive growth in our business.”
While growth in premium subscriptions drove revenue gains in the quarter, Wix also picked up 5.2 million registered users, giving it 114 million, a 23 percent increase from a year ago. GAAP net loss for the quarter was $14.5 million, or $0.32 per share, compared to a loss of $9.6 million or $0.23 per share in Q3 2016.
The company updated its guidance in light of the strong quarterly performance, and is now anticipating revenues of $423-$424 million, a 46 percent year-over-year improvement, up from previous guidance of $421-$423 million.
Among the company’s initiatives in 2017, Wix launched personalized SEO plans to help small businesses improve their Google ranking.