What happened

Shares of Wix.com Ltd. (NASDAQ:WIX) were down 12.8% as of 1:30 p.m. EST Wednesday after the cloud-based web development platform announced mixed third-quarter 2017 results.

More specifically, Wix's revenue climbed 47% year over year to just over $111 million -- above the company's previous outlook for sales in the range of $109 million to $110 million. Wix also saw collections rise 38% to $120.1 million, above expectations for $117 million to $118 million. On the bottom line, however, that translated to adjusted net income of $0.4 million, or $0.01 per share, compared to a net loss of $1.6 million, or $0.04 per share in the same year-ago period.

Analysts, on average, were looking for significantly higher adjusted earnings of $0.13 per share on revenue of $109.8 million.

Smiling Wix employees working on laptops


So what

That's not to say Wix management was disappointed. Co-founder and CEO Avishai Abrahami stated that new products and continued improvements to existing products drove conversation to the company's highest-ever levels, helping net premium subscriptions climb 33% year over year to 3.1 million.

Wix CFO Lior Shemesh also noted that operating leverage helped the company's free cash flow more than double on a year-over-year basis (to $18.9 million), and that the company is boosting its full-year outlook as its underlying business drivers remain intact.

Now what

For the fourth quarter, Wix expects revenue of $116 million to $117 million (up 38% to 39% year over year), with collections of $126 million to $127 million (up 29% to 30%). But keeping in mind Wix could be under-promising with the intention of once again over-delivering, Wall Street was anticipating fourth-quarter revenue slightly above the high end of Wix's outlook range.

Finally, Wix now sees full-year 2017 revenue arriving in the range of $423 million to $424 million (up 46% from 2016), an increase from its previous range of $421 million to $423 million. Wix also raised its guidance for collections to climb roughly 40% to a range of $478 million to $479 million (compared to $473 million-$477 million before), and for free cash flow to increase 88% to 91% to a range of $68 million to $69 million (compared to $67 million-$68 million before).

All things considered, it's no surprise to see Wix falling today in light of its bottom-line miss and conservative fourth-quarter guidance. But it's also encouraging to see the company continuing to plow resources into R&D to sustain its innovative roots, which should in turn allow Wix to keep gaining market share and drive top-line growth. As such, I think this drop could be a perfect opportunity for long-term investors to open or add to their positions.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.