By Martin Mou
Wix.com Ltd.'s third-quarter net loss widened from a year earlier, mainly as rising operating expenses offset higher revenue.
The website-building platform reported a quarterly net loss of $56.8 million, or $1.03 per share, compared to a net loss of $17.4 million, or $0.34 per share, in the year-ago period.
Revenue rose 29% to $254.2 million, exceeding the higher end of the company's guidance of $250 million.
Wix Chief Executive Avishai Abrahami said demand for an online presence continues to remain at high levels, adding that "businesses are using Wix more than ever before."
The company said it added 7.8 million registered users in the third quarter, bringing its total user base to 189 million as of September, an increase of 19% from the prior year.
However, the Tel Aviv-based company's operating expenses rose sharply in the third quarter, mainly due to a surge in spending on selling and marketing.
Wix projects fourth-quarter revenue to range between $266 million to $271 million, which would represent a 32% increase at the guidance's top end.
Wix's Nasdaq-listed shares surged 10% on Wednesday ahead of its earnings release. The share price has more than doubled year to date, as businesses ramp up their digital operations due to the coronavirus pandemic.
Write to Martin Mou at email@example.com