Wix said it now expects full-year revenue to be between $758 million to $763 million, up from its prior view of $755 million to $761 million. Collections are expected between $822 million to $830 million, up from $817 million to $827 million.
"Strong top line growth highlights the early success of our strategy to increase collections per subscription, as the trend that we began to see last quarter is continuing as expected," said Lior Shemesh, Wix's chief financial officer.
Meanwhile, the company expects full-year free cash flow of $122 million to $126 million, down from $135 million to $140 million. Wix attributed the decline in its cash flow guidance to the expansion of its customer service operations, which it pegged at $15 million for this year. Excluding the investment, the guidance would have been between $137 million to $141 million, it added.
"Wix expects the investment to boost 2020 collections growth by 5% (3x the investment) as it can better convert users and upsell products," Wedbush Securities said in a note, referring the the company's customer-service plans. "We see this as a smart investment as Wix becomes more of a products suite than simply a web builder."
For the March quarter, Wix reported $174.3 million in revenue, up from $137.8 million in the prior-year quarter and above Capital IQ's expectation for $173 million. Its non-GAAP earnings per share swung to $0.03 from a prior-year loss of $0.06, but that was below Capital IQ's view of $0.08.
Wix was down nearly 6% early trading.
"The results this quarter indicate a strong start to the year," Wix Chief Executive Avishai Abrahami. "It is clear that there continues to be substantial demand for creating an online prescience as evidenced by the more than six and a half million new users that registered with Wix in the quarter. "
Collections in the first quarter rose to $200.4 million from $159.7 million last year. Free cash flow rose to $30.1 million, up from $21.4 million. Capital IQ expected $33.5 million.
Wix said it added 180,000 net premium subscribers in the first quarter, up 21% from last year, to reach 4.2 million. Registered users rose 6.6 million, up 19%, to 148 million.
For the second quarter, Wix said it expects revenue between $182 million and $184 million, up 25% to 26% from the year before with collections gaining 23% to 24% to $197 million to $199 million.
Price: $ 133.62, Change: $ -8.47, Percent Change: -5.96%
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