Wix.Com Ltd (NASDAQ: WIX) stock fell over 2.5% on 13th May, 2021 (As of 11:19:15 UTC-4 · USD ; Source: Google finance) as the company posted lower than expected estimates for the first quarter of FY 21. WIX in the first quarter of FY 21 has reported the adjusted loss per share of 54 cents, beating the analysts’ estimates for the adjusted loss per share of 73 cents, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 41 percent to $304.1 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $295.4 million.
Creative Subscriptions revenues (74.5% of revenues) increased 28% year over year to $226.4 million, driven by increase in Creative Subscriptions Annualized Recurring Revenues (ARR). Business Solutions revenues (25.5% of revenues) surged 97% to $77.7 million, driven by robust adoption of applications like Ascend by Wix along with paid ads and other third-party applications (TPAs). In the first quarter, Creative Subscriptions ARR was $926.1 million, up 25% year over year. At the end of March, 2021, Wix had $1.6 billion in cash compared with $1.6 billion as of Dec 31, 2020. The company generated cash flow from operations of $18.5 million during the first quarter compared with $28.6 million in the previous quarter. The company generated free cash flow of $14.6 million compared with $23.2 million in the prior quarter.
For second-quarter 2021, revenues are expected to be between $308 million and $312 million, suggesting growth of 30-32% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $312.3 million.
For fiscal 2021, revenues are now expected to be between $1.28 billion and $1.29 billion, The Zacks Consensus Estimate for 2021 revenues is currently pegged at $1.29 billion. The company now anticipates free cash flow to be in the range of $62-$72 million.
On the other hand, the company has announced the acquisition of Rise.ai, the gift card and customer re-engagement solution for online brands. The acquisition will extend the Wix eCommerce platform, providing a full solution for merchants to manage customer re-engagement activities aimed at increasing customer spending and repurchases, including gift cards, loyalty programs, rewards and referrals. The acquisition of Rise.ai will offer Wix eCommerce merchants with its own fully native customer re-engagement solution. Wix eCommerce merchants will be able to easily access the full suite of tools for their Wix eCommerce stores.