Wix said its business was returning to normal following a dip during the COVID-19 pandemic.

"There still is uncertainty. But as time passes people are going more and more back to normal," chief financial officer Lior Shemesh told Reuters after issuing third-quarter results that beat estimates.

"We hope that will continue, but it's really encouraging."

After trimming 2021 estimates in August, Wix raised them again and now projects 2021 revenue of $1.265-$1.274 billion, up from a previous outlook of $1.255-$1.270 billion. Analysts on average forecast revenue of $1.266 billion, according to I/B/E/S data from Refinitiv.

Shemesh said Wix was adding features that were converting more customers from free to premium services, raising its average revenue per user (ARPU). "More than anything it's a good sign for next year," he said.

The Israeli company reported a less-than-expected quarterly net loss excluding one-time items of 21 cents per share, compared with a loss 14 cents a year earlier. Revenue grew 26% to $321 million.

Analysts had forecast Wix would lose 42 cents a share ex-items on revenue of $315 million.

The company said it expects fourth-quarter revenue of $324-$333 million, in line with analysts' expectations of $329 million.

Shemesh said that Wix, whose Nasdaq listed shares are down some 20% so far in 2021, has been partly impacted by the strong shekel, which stands at a 25-year high versus the dollar and so the firm lowered its 2021 free cash flow estimate to $22-$27 million from $35-$40 million to reflect that.

(Reporting by Steven Scheer; Editing by Ari Rabinovitch, Elaine Hardcastle)

By Steven Scheer