Top website builder provider Wix.com has reported strong financial results for Q1 2021, and shed light on its expected performance in years to come.
For the first quarter of this year, the Israeli-based firm saw revenues of $304 million, up 41% year-on-year.
After providing its initial outlook for the second quarter, Wix also raised its outlook for the full year of 2021 in light of recent success. The company also went on to forecast $14 billion in revenue from existing customers over the next ten years.
Higher than expected results
Amid the Covid-19 pandemic, Wix creative subscriptions revenue in Q1 was up 28% year-on-year to $226.4 million, and business solutions revenue was $77.7 million, up 97% year-on-year.
Avishai Abrahami, co-founder and CEO, expressed his belief that Wix is becoming the main engine of the internet and predicted that half of all new websites built on the internet will be done on Wix in the next 5-7 years.
“We are starting off 2021 in a very strong position and are making strides in achieving these goals. Wix is taking a leading role in facilitating the global shift online and changing the way web presences are built,” he said.
“We strive to be a horizontal platform that offers the best solution for any type of user and any type of business to not only create but also grow and succeed online. Many types of businesses are relying on Wix today, and we expect that our diversified approach to online commerce will benefit Wix as global economies reopen.”
The website builder reported its net cash provided by operating activities for the first quarter of 2021 was $18.5 million, while capital expenditures totaled $3.8 million.
Lior Shemesh, CFO at Wix, added: “Our first quarter 2021 results build on the growth we experienced in 2020 and serve as evidence of the positive returns we are generating from our investments in product development, marketing and support.
“These investments have driven an increase in conversion and collections per subscription, illustrated by the strength of the collections from the Q1 2021 user cohort, which were 32% higher than the Q1 2020 user cohort generated in its first quarter.
“We now expect that future collections from existing cohorts will be approximately $14.2 billion over the next 10-years. We are raising our full year guidance to reflect the conviction we have in our position as the best platform for any type or user and any type of business to move online.”