- Exceeded High End of Guidance Across All Key Performance Metrics
- Delivered Record Quarterly Free Cash Flow
- Added 183,000 Net Subscriptions, Exceeding Last Quarter’s Record
- Second Straight Quarter Adding Over 5 Million New Registered Users
- Introduced Wix ADI – the First AI Solution for Design
- Raised Full Year 2016 Outlook Reflecting Continued Momentum into the Second Half of the Year
TEL AVIV, Israel, July 27, 2016 (GLOBE NEWSWIRE) -- Wix.com Ltd. (Nasdaq:WIX), a leading global software platform for small businesses operating online, today
reported stronger than expected financial results for the second quarter ended June 30, 2016. In addition, the Company
provided its initial outlook for the third quarter 2016 and once again raised its financial outlook for the full year 2016.
Q2 2016 Financial
Summary
| |
Three months ended Jun 30 |
|
|
|
|
| $ in thousands |
|
2016 |
|
|
2015 |
|
|
Y/Y growth |
|
Prior Q2 2016 Outlook |
| Revenue |
$ |
68,730 |
|
$ |
48,581 |
|
|
|
41 |
% |
|
$66,000 - 67,000 |
| Collections |
$ |
81,453 |
|
$ |
57,368 |
|
|
|
42 |
% |
|
$77,000 - 78,000 |
| Collections (FX neutral to Q2 2015) |
$ |
82,448 |
|
$ |
57,368 |
|
|
|
44 |
% |
|
$79,000 - 80,000 |
| |
|
|
|
|
|
|
| Operating Loss |
$ |
(10,490 |
) |
$ |
(10,774 |
) |
|
|
NA |
|
|
|
| Non-GAAP Operating Loss |
$ |
(2,980 |
) |
$ |
(6,831 |
) |
|
|
NA |
|
|
|
| |
|
|
|
|
|
|
| Adjusted EBITDA |
$ |
10,682 |
|
$ |
3,499 |
|
|
|
205 |
% |
|
$6,500 - 7,500 |
| Free Cash Flow |
$ |
10,185 |
|
$ |
3,397 |
|
|
|
200 |
% |
|
NA |
| |
|
|
|
|
|
|
|
|
|
|
|
|
“The incredible momentum in our business continued during the second quarter as we generated record growth in
net premium subscriptions,” said Avishai Abrahami, Co-founder and CEO of Wix. “We continue to generate an exceptional blend of
higher conversion of registered users to premium subscriptions, improved retention of subscriptions, and increased collections per
new subscription. We also raised the bar for website design with the introduction of Wix Artificial Design Intelligence, or
Wix ADI. The initial response to this ground breaking product has been overwhelmingly positive, and executing on the first AI
solution for design widens our technology leadership moat.”
Lior Shemesh, CFO of Wix, commented, “Our outperformance this quarter was our strongest as a public company and
continues a consistent trend of delivering higher than expected financial results. We re-accelerated our top line growth rate and
generated record free cash flow. Our existing user cohorts continue to generate significant value, stemming from the ongoing
conversion of existing registered users and the negative churn we highlighted at our analyst day in June. Our performance in the
first half of 2016 was well ahead of our expectations going into the year, and with new product introductions and improvements on
the horizon, we are excited about the second half of the year. As a result, we are once again increasing our full year outlook for
all of our key financial metrics.”
Q2 2016 Results and Highlights
- Revenue increased 41% to $68.7 million compared to $48.6 million for the second quarter last year
- Collections on a constant currency basis, which excludes the impact of approximately $1 million related to year-over-year
changes in foreign exchange rates, would have been $82.5 million, an increase of 44% versus the prior year
- Reported collections increased 42% to $81.5 million compared to $57.4 million for the second quarter last year
- Gross margin on a GAAP basis was 84% compared to 83% in the second quarter of last year. Non-GAAP gross profit was 86% of
collections compared to 85% in the second quarter of last year
- GAAP operating loss was $10.5 million compared to $10.8 million in the second quarter a year ago. On a non-GAAP basis,
operating losses were $3.0 million compared to $6.8 million in the second quarter last year
- GAAP net loss was $11.4 million, or $(0.28) per share, compared to a net loss of $12.3 million, or $(0.31) per share for the
second quarter of 2015
- Non-GAAP net loss was $3.7 million, or $(0.09) per share, compared to a non-GAAP net loss of $8.2 million, or $(0.21) per
share for the second quarter of 2015
- Adjusted EBITDA was $10.7 million compared to $3.5 million for the second quarter of 2015
- Free cash flow improved to $10.2 million compared to $3.4 million for the second quarter of 2015
- Added a record 183,000 net premium subscriptions in the period to reach 2.12 million as of June 30, 2016, a 41% increase over
the second quarter of 2015
- Added 5.1 million registered users in the second quarter. Registered users as of June 30, 2016 were 87 million, representing
a 29% increase compared to the second quarter of 2015
Recent Business Highlights
- Launched Wix ADI: Wix unveiled the first-ever AI solution for design and creation for desktop and
mobile websites worldwide. Wix ADI was designed to eliminate the most significant challenges of building websites – time, design
and content creation. Wix ADI instantly produces tailored websites by learning about the user through a few simple questions and
curates content to create a unique design. From billions of high-quality combinations and possibilities, Wix ADI selects the
perfect combination for each users' need.
- Wix Mobile Growth: Our users have created over 17.9 million mobile sites using our platform to date,
making Wix one of the largest mobile site development platforms globally.
- Global E-commerce Platform: E-commerce subscriptions surpassed 290,000 during the quarter.
- Increasing Platform Engagement: Continued engagement with the Wix ecosystem illustrated by over 355
million contacts saved onto the Wix platform. Leveraging Wix’s MyAccount CRM system, business owners track customer
activity data, manage relationships and communicate using WixShoutOut, Wix’s email marketing solution.
Financial Outlook
The Company is introducing its outlook for the third quarter of 2016 and increasing its prior outlook for full
year 2016 as follows:
- For the third quarter of 2016:
| |
|
Q3 2016 Outlook |
|
Y/Y growth |
| Revenue |
|
$72 - $73 million |
|
34% - 36% |
| Collections |
|
$83 - $84 million |
|
35% - 36% |
| Adjusted EBITDA |
|
$9 - $10 million |
|
NM |
| |
|
|
|
|
| |
|
FY 2016 Outlook |
|
|
| |
|
Prior |
|
Updated |
|
Y/Y growth |
| Revenue |
|
$274 - $277 million |
|
$278 - $280 million |
|
37% - 38% |
| Collections |
|
$320 - $324 million |
|
$327 - $330 million |
|
35% - 37% |
| Adjusted EBITDA |
|
$30 - $32 million |
|
$34 - $36 million |
|
131% - 145% |
| |
|
|
|
|
|
|
Changes in Financial Metric Reporting
We are aware of recent changes to the SEC’s reporting guidelines concerning non-GAAP financial metrics. As a
result, we will implement a change to our reporting of non-GAAP metrics. Beginning with our earnings release in Q1 2017, we
will no longer report adjusted EBITDA as a non-GAAP financial metric. Instead, we have commenced this quarter reporting
non-GAAP operating income and free cash flow as key non-GAAP financial measures of our business. We believe this change will
improve the transparency of our business and increase the comparability of our results with peers.
Conference Call and Webcast
Information
Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, July 27, 2016 to answer questions about the
financial and operational performance of the business during the second quarter 2016. The conference call will include a brief
statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion
of this call, the company has posted a shareholder update, supplemental data sheet and supporting slides to its Investor Relations
website at https://investors.wix.com/results.cfm. These materials provide shareholders and analysts with
additional detail for analyzing results in advance of the quarterly conference call.
To participate on the live call, analysts and investors should dial 866-393-4306 (US/Canada), 734-385-2616
(International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call. A telephonic replay of
the call will be available through August 3, 2016 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406
(International) and providing Conference ID: 40464581.
Wix will also offer a live and archived webcast of the conference call, accessible from the “Investor Relations”
section of the Company’s website at https://investors.wix.com/.
About Wix.com Ltd.
Wix.com (NASDAQ:WIX) is a leading global software platform for small businesses operating online with over 88
million registered users worldwide. Wix was founded on the belief that the Internet should be accessible to everyone to develop,
create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations,
professionals and individuals to take their businesses, brands and workflow online. The Wix Editor and highly curated App Market
enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices
in San Francisco, New York, Miami, Vilnius and Dnepropetrovsk.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S.
GAAP, Wix uses the following non-GAAP financial measures: collections, collections and revenue on a constant currency basis,
adjusted EBITDA, non-GAAP operating loss, free cash flow, non-GAAP net loss and non-GAAP net loss per share (collectively the
"Non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is
calculated by adding the change in deferred revenues for a particular period to revenues for the same period. We adjust collections
and revenue to measure them on a constant currency basis by assuming the same exchange rates as the prior period applied to the
reported figures in the current period. Non-GAAP operating loss represents operating loss calculated in accordance with GAAP as
adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss
represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense,
amortization, and acquisition-related costs. Non-GAAP net loss per share represents non-GAAP net loss divided by the weighted
average number of shares used in computing GAAP loss per share. Adjusted EBITDA is defined as cash flow from operations before
changes in working capital, prepaid domain registration costs, interest, bank charges and other financial expenses (income), net
unrealized losses (gains) on hedging transactions, other income (expenses), taxes on income, and other unusual or non-recurring
expenses. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.
The presentation of this financial information is not intended to be considered in isolation or as a substitute
for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP
financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The
Company believes that it provides useful information about operating results, enhances the overall understanding of past financial
performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its
financial and operational decision making.
For more information on the non-GAAP financial measures, please see the "Reconciliation of GAAP to Non-GAAP
Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are
most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The
Company has not reconciled its guidance as to adjusted EBITDA to cash flow from operations because it does not provide guidance for
cash flow from operations. As items that impact cash flow from operations are out of the Company's control and/or cannot be
reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to cash flow from operations is
not available without unreasonable effort.
Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include
projections regarding our future performance and may be identified by words like “anticipate,” “assume,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and
similar terms or phrases. The forward-looking statements contained in this press release are based on management’s current
expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which
are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the
forward-looking statements include, among others, our ability to grow our user base and premium subscriptions; our ability to
maintain and enhance our brand and reputation; our ability to manage the growth of our infrastructure effectively; changes to
technologies used in our solutions or in global, national, regional or local economic, business, competitive, market, regulatory
and other factors discussed under the heading “Risk Factors” in the Company’s 2015 annual report on Form 20-F filed with the
Securities and Exchange Commission on April 13, 2016. Any forward-looking statement made by us in this press release speaks only as
of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not
possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a
result of new information, future developments or otherwise.
| |
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
CONDENSED CONSOLIDATED BALANCE SHEET |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
| |
|
Period ended |
|
| |
|
December 31, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
| |
Assets |
(audited) |
|
(unaudited) |
|
| |
Current Assets: |
|
|
|
|
| |
Cash and cash equivalents |
$ |
39,226 |
|
|
$ |
52,779 |
|
|
| |
Short term deposits |
|
70,773 |
|
|
|
75,437 |
|
|
| |
Restricted cash and deposit |
|
3,851 |
|
|
|
1,649 |
|
|
| |
Trade receivables |
|
6,461 |
|
|
|
6,993 |
|
|
| |
Prepaid expenses and other current assets |
|
11,989 |
|
|
|
15,485 |
|
|
| |
Total current assets |
|
132,300 |
|
|
|
152,343 |
|
|
| |
Property, equipment and software, net |
|
|
|
|
| |
Long-Term Assets: |
|
|
|
|
| |
Property and equipment, net |
|
8,734 |
|
|
|
8,536 |
|
|
| |
Prepaid expenses and other long-term assets |
|
2,200 |
|
|
|
2,449 |
|
|
| |
Intangible assets and goodwill, net |
|
6,199 |
|
|
|
5,826 |
|
|
| |
Total long-term assets |
|
17,133 |
|
|
|
16,811 |
|
|
| |
|
|
|
|
|
| |
Total assets |
$ |
149,433 |
|
|
$ |
169,154 |
|
|
| |
|
|
|
|
|
| |
Liabilities and Shareholder's Deficiency |
|
|
|
|
| |
Current Liabilities: |
|
|
|
|
| |
Trade payables |
$ |
12,280 |
|
|
$ |
16,228 |
|
|
| |
Employees and payroll accruals |
|
15,210 |
|
|
|
20,130 |
|
|
| |
Deferred revenues |
|
100,561 |
|
|
|
125,856 |
|
|
| |
Accrued expenses and other current liabilities |
|
20,281 |
|
|
|
16,083 |
|
|
| |
Total current liabilities |
|
148,332 |
|
|
|
178,297 |
|
|
| |
|
|
|
|
|
| |
Long term deferred revenues |
|
4,206 |
|
|
|
5,742 |
|
|
| |
Long term deferred tax liability |
|
625 |
|
|
|
571 |
|
|
| |
Other long-term liabilities |
|
75 |
|
|
|
75 |
|
|
| |
Total long-term liabilities |
|
4,906 |
|
|
|
6,388 |
|
|
| |
|
|
|
|
|
| |
Total liabilities |
|
153,238 |
|
|
|
184,685 |
|
|
| |
|
|
|
|
|
| |
Shareholders' Deficiency |
|
|
|
|
| |
Ordinary shares |
|
64 |
|
|
|
64 |
|
|
| |
Additional paid-in capital |
|
192,791 |
|
|
|
212,189 |
|
|
| |
Other comprehensive loss |
|
(248 |
) |
|
|
(40 |
) |
|
| |
Accumulated deficit |
|
(196,412 |
) |
|
|
(227,744 |
) |
|
| |
Total shareholders' deficiency |
|
(3,805 |
) |
|
|
(15,531 |
) |
|
| |
|
|
|
|
|
| |
Total liabilities and shareholders' deficiency |
$ |
149,433 |
|
|
$ |
169,154 |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP |
|
| |
(In thousands, except loss per share data) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Revenue |
$ |
48,581 |
|
|
$ |
68,730 |
|
|
$ |
93,105 |
|
|
$ |
130,316 |
|
|
| |
Cost of revenue |
|
8,390 |
|
|
|
11,018 |
|
|
|
16,201 |
|
|
|
21,525 |
|
|
| |
Gross Profit |
|
40,191 |
|
|
|
57,712 |
|
|
|
76,904 |
|
|
|
108,791 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
| |
Research and development |
|
18,233 |
|
|
|
25,483 |
|
|
|
35,681 |
|
|
|
49,955 |
|
|
| |
Selling and marketing |
|
28,237 |
|
|
|
36,026 |
|
|
|
60,243 |
|
|
|
76,480 |
|
|
| |
General and administrative |
|
4,495 |
|
|
|
6,693 |
|
|
|
9,082 |
|
|
|
12,614 |
|
|
| |
Total operating expenses |
|
50,965 |
|
|
|
68,202 |
|
|
|
105,006 |
|
|
|
139,049 |
|
|
| |
Operating loss |
|
(10,774 |
) |
|
|
(10,490 |
) |
|
|
(28,102 |
) |
|
|
(30,258 |
) |
|
| |
Financial income (expenses), net |
|
(760 |
) |
|
|
(105 |
) |
|
|
1,097 |
|
|
|
400 |
|
|
| |
Other income (expenses) |
|
(2 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
| |
Loss before taxes on income |
|
(11,536 |
) |
|
|
(10,594 |
) |
|
|
(27,006 |
) |
|
|
(29,857 |
) |
|
| |
Taxes on income |
|
743 |
|
|
|
826 |
|
|
|
1,299 |
|
|
|
1,475 |
|
|
| |
Net loss |
$ |
(12,279 |
) |
|
$ |
(11,420 |
) |
|
$ |
(28,305 |
) |
|
$ |
(31,332 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Basic and diluted net loss per share |
$ |
(0.31 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.73 |
) |
|
$ |
(0.77 |
) |
|
| |
Basic and diluted weighted-average shares used to compute net loss per share |
|
39,155,148 |
|
|
|
41,166,589 |
|
|
|
38,895,219 |
|
|
|
40,772,744 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP
STATEMENT OF OPERATIONS |
|
| |
(In thousands, except loss per share data) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) Share based compensation expenses: |
(unaudited) |
|
(unaudited) |
|
| |
Cost of revenues |
$ |
250 |
|
|
$ |
475 |
|
|
$ |
545 |
|
|
$ |
903 |
|
|
| |
Research and development |
|
1,831 |
|
|
|
3,558 |
|
|
|
3,790 |
|
|
|
6,669 |
|
|
| |
Selling and marketing |
|
697 |
|
|
|
1,122 |
|
|
|
1,296 |
|
|
|
2,103 |
|
|
| |
General and administrative |
|
1,009 |
|
|
|
1,772 |
|
|
|
2,204 |
|
|
|
3,389 |
|
|
| |
Total share based compensation expenses |
|
3,787 |
|
|
|
6,927 |
|
|
|
7,835 |
|
|
|
13,064 |
|
|
| |
(2) Amortization |
|
156 |
|
|
|
186 |
|
|
|
311 |
|
|
|
373 |
|
|
| |
(3) Acquisition related expenses |
|
- |
|
|
|
397 |
|
|
|
- |
|
|
|
1,580 |
|
|
| |
(4) Taxes on income |
|
178 |
|
|
|
197 |
|
|
|
290 |
|
|
|
372 |
|
|
| |
Total adjustments of GAAP to Non GAAP |
$ |
4,121 |
|
|
$ |
7,707 |
|
|
$ |
8,436 |
|
|
$ |
15,389 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF OPERATING LOSS TO NON-GAAP
OPERATING LOSS |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015
|
|
|
|
2016
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
|
| |
Operating loss |
$ |
(10,774 |
) |
|
$ |
(10,490 |
) |
|
$ |
(28,102 |
) |
|
$ |
(30,258 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
|
| |
Share based compensation expenses |
|
3,787 |
|
|
|
6,927 |
|
|
|
7,835 |
|
|
|
13,064 |
|
|
| |
Amortization |
|
156 |
|
|
|
186 |
|
|
|
311 |
|
|
|
373 |
|
|
| |
Acquisition related expenses |
|
- |
|
|
|
397 |
|
|
|
- |
|
|
|
1,580 |
|
|
| |
Total adjustments |
$ |
3,943 |
|
|
$ |
7,510 |
|
|
$ |
8,146 |
|
|
$ |
15,017 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Non GAAP operating loss |
$ |
(6,831 |
) |
|
$ |
(2,980 |
) |
|
$ |
(19,956 |
) |
|
$ |
(15,241 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP
COST OF REVENUES |
|
| |
(In thousands, except loss per share data) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Gross Profit |
$ |
40,191 |
|
|
$ |
57,712 |
|
|
$ |
76,904 |
|
|
$ |
108,791 |
|
|
| |
Share based compensation expenses |
|
250 |
|
|
|
475 |
|
|
|
545 |
|
|
|
903 |
|
|
| |
Gross Profit - Non GAAP |
|
40,441 |
|
|
|
58,187 |
|
|
|
77,449 |
|
|
|
109,694 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Gross margin - Non GAAP |
|
83 |
% |
|
|
85 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND
NON-GAAP NET LOSS PER SHARE |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Net loss |
$ |
(12,279 |
) |
|
$ |
(11,420 |
) |
|
$ |
(28,305 |
) |
|
$ |
(31,332 |
) |
|
| |
Share based compensation expense and other Non GAAP adjustments |
|
4,121 |
|
|
|
7,707 |
|
|
|
8,436 |
|
|
|
15,389 |
|
|
| |
Non-GAAP net loss |
$ |
(8,158 |
) |
|
$ |
(3,713 |
) |
|
$ |
(19,869 |
) |
|
$ |
(15,943 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Basic and diluted Non GAAP net loss per share |
$ |
(0.21 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.39 |
) |
|
| |
Weighted average shares used in computing basic and diluted Non GAAP net loss per
share |
|
39,155,148 |
|
|
|
41,166,589 |
|
|
|
38,895,219 |
|
|
|
40,772,744 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
KEY PERFORMANCE METRICS |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Revenues |
$ |
48,581 |
|
|
$ |
68,730 |
|
|
$ |
93,105 |
|
|
$ |
130,316 |
|
|
| |
Collections |
$ |
57,368 |
|
|
$ |
81,453 |
|
|
$ |
113,237 |
|
|
$ |
157,147 |
|
|
| |
Adjusted EBITDA |
$ |
3,499 |
|
|
$ |
10,682 |
|
|
$ |
3,006 |
|
|
$ |
13,346 |
|
|
| |
Number of registered users at period end |
|
67,513 |
|
|
|
87,405 |
|
|
|
67,513 |
|
|
|
87,405 |
|
|
| |
Number of premium subscriptions at period end |
|
1,503 |
|
|
|
2,121 |
|
|
|
1,503 |
|
|
|
2,121 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF REVENUES TO COLLECTIONS |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Revenues |
$ |
48,581 |
|
|
$ |
68,730 |
|
|
$ |
93,105 |
|
|
$ |
130,316 |
|
|
| |
Change in deferred revenues |
|
8,787 |
|
|
|
12,723 |
|
|
|
20,132 |
|
|
|
26,831 |
|
|
| |
Collections |
$ |
57,368 |
|
|
$ |
81,453 |
|
|
$ |
113,237 |
|
|
$ |
157,147 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF COLLECTIONS EXCLUDING FX
IMPACT |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
June 30, |
|
|
|
|
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
|
|
|
|
| |
Collections |
$ |
57,368 |
|
|
$ |
81,453 |
|
|
|
|
|
|
| |
F/X impact on Q2/16 using Q2/15 rates |
|
- |
|
|
|
995 |
|
|
|
|
|
|
| |
Collections excluding FX impact |
$ |
57,368 |
|
|
$ |
82,448 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Y/Y% |
|
|
|
44 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
June 30, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
|
|
|
|
| |
Collections |
$ |
75,694 |
|
|
$ |
81,453 |
|
|
|
|
|
|
| |
F/X impact on Q2/16 using Q1/16 rates |
|
- |
|
|
|
(839 |
) |
|
|
|
|
|
| |
Collections excluding FX impact |
$ |
75,694 |
|
|
$ |
80,614 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Q/Q% |
|
|
|
6 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF NON-GAAP OPERATING LOSS TO ADJUSTED
EBITDA (NON-GAAP) |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Non GAAP operating loss |
$ |
(6,831 |
) |
|
$ |
(2,980 |
) |
|
$ |
(19,956 |
) |
|
$ |
(15,241 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
|
| |
Realized gains on hedging transactions |
|
1,030 |
|
|
|
242 |
|
|
|
2,156 |
|
|
|
559 |
|
|
| |
Depreciation |
|
1,203 |
|
|
|
1,206 |
|
|
|
2,128 |
|
|
|
2,450 |
|
|
| |
Change in deferred revenues |
|
8,787 |
|
|
|
12,723 |
|
|
|
20,132 |
|
|
|
26,831 |
|
|
| |
Change in prepaid domain registration costs |
|
(690 |
) |
|
|
(509 |
) |
|
|
(1,454 |
) |
|
|
(1,253 |
) |
|
| |
Total adjustments |
$ |
10,330 |
|
|
$ |
13,662 |
|
|
$ |
22,962 |
|
|
$ |
28,587 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA |
$ |
3,499 |
|
|
$ |
10,682 |
|
|
$ |
3,006 |
|
|
$ |
13,346 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES TO FREE CASH FLOW |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(unaudited) |
|
(unaudited) |
|
| |
Net cash provided by (used in) operating activities |
$ |
5,248 |
|
|
$ |
11,314 |
|
|
$ |
4,667 |
|
|
$ |
10,389 |
|
|
| |
Capital expenditures, net |
|
(1,851 |
) |
|
|
(1,129 |
) |
|
|
(3,932 |
) |
|
|
(2,338 |
) |
|
| |
Free Cash Flow |
$ |
3,397 |
|
|
$ |
10,185 |
|
|
$ |
735 |
|
|
$ |
8,051 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED
COLLECTIONS |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Year Ending |
|
| |
|
September 30, 2016 |
|
December 31, 2016 |
|
| |
|
Low |
|
High |
|
Low |
|
High |
|
| |
|
|
|
|
|
|
|
|
|
| |
Projected revenues |
$ |
72,000 |
|
|
$ |
73,000 |
|
|
$ |
278,000 |
|
|
$ |
280,000 |
|
|
| |
Projected change in deferred revenues |
|
11,000 |
|
|
|
11,000 |
|
|
|
49,000 |
|
|
|
50,000 |
|
|
| |
Projected collections |
$ |
83,000 |
|
|
$ |
84,000 |
|
|
$ |
327,000 |
|
|
$ |
330,000 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
|
June 30, |
|
June 30, |
|
| |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(unaudited) |
|
(unaudited) |
|
| |
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
| |
Net loss |
|
$ |
(12,279 |
) |
|
$ |
(11,420 |
) |
|
$ |
(28,305 |
) |
|
$ |
(31,332 |
) |
|
| |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
| |
Depreciation |
|
|
1,203 |
|
|
|
1,206 |
|
|
|
2,128 |
|
|
|
2,450 |
|
|
| |
Amortization |
|
|
156 |
|
|
|
186 |
|
|
|
311 |
|
|
|
373 |
|
|
| |
Share based compensation expenses |
|
|
3,787 |
|
|
|
6,927 |
|
|
|
7,835 |
|
|
|
13,064 |
|
|
| |
Tax benefit related to exercise of share options |
|
|
152 |
|
|
|
197 |
|
|
|
290 |
|
|
|
372 |
|
|
| |
Increase in accrued interest and exchange rate on short term and long term deposits |
|
|
(1,248 |
) |
|
|
(163 |
) |
|
|
(920 |
) |
|
|
(393 |
) |
|
| |
Deferred income taxes, net |
|
|
(27 |
) |
|
|
(21 |
) |
|
|
(55 |
) |
|
|
(47 |
) |
|
| |
Increase in trade receivables |
|
|
(1,289 |
) |
|
|
(1,510 |
) |
|
|
(3,389 |
) |
|
|
(532 |
) |
|
| |
Increase in prepaid expenses and other current and long-term assets |
|
|
(2,519 |
) |
|
|
(2,121 |
) |
|
|
(4,551 |
) |
|
|
(3,710 |
) |
|
| |
Increase (decrease) in trade payables |
|
|
(516 |
) |
|
|
(590 |
) |
|
|
5,607 |
|
|
|
4,034 |
|
|
| |
Increase in employees and payroll accruals |
|
|
4,754 |
|
|
|
3,089 |
|
|
|
1,455 |
|
|
|
3,311 |
|
|
| |
Increase in short term and long term deferred revenues |
|
|
8,198 |
|
|
|
12,723 |
|
|
|
19,892 |
|
|
|
26,831 |
|
|
| |
Increase in accrued expenses and other current liabilities |
|
|
4,876 |
|
|
|
2,811 |
|
|
|
4,369 |
|
|
|
(4,032 |
) |
|
| |
Net cash provided by operating activities |
|
|
5,248 |
|
|
|
11,314 |
|
|
|
4,667 |
|
|
|
10,389 |
|
|
| |
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
| |
Proceeds from short-term deposits and restricted deposits |
|
|
29,270 |
|
|
|
18,422 |
|
|
|
41,176 |
|
|
|
23,188 |
|
|
| |
Investment in short-term deposits and restricted deposits |
|
|
(39,670 |
) |
|
|
(18,257 |
) |
|
|
(41,356 |
) |
|
|
(25,257 |
) |
|
| |
Purchase of property and equipment |
|
|
(1,851 |
) |
|
|
(1,129 |
) |
|
|
(3,932 |
) |
|
|
(2,338 |
) |
|
| |
Net cash used in investing activities |
|
|
(12,251 |
) |
|
|
(964 |
) |
|
|
(4,112 |
) |
|
|
(4,407 |
) |
|
| |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
| |
Proceeds from exercise of options and ESPP shares |
|
|
1,157 |
|
|
|
4,250 |
|
|
|
2,937 |
|
|
|
7,571 |
|
|
| |
Net cash provided by financing activities |
|
|
1,157 |
|
|
|
4,250 |
|
|
|
2,937 |
|
|
|
7,571 |
|
|
| |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
359 |
|
|
|
- |
|
|
|
192 |
|
|
|
- |
|
|
| |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
(5,487 |
) |
|
|
14,600 |
|
|
|
3,684 |
|
|
|
13,553 |
|
|
| |
CASH AND CASH EQUIVALENTS—Beginning of period |
|
|
49,371 |
|
|
|
38,179 |
|
|
|
40,200 |
|
|
|
39,226 |
|
|
| |
CASH AND CASH EQUIVALENTS—End of period |
|
$ |
43,884 |
|
|
$ |
52,779 |
|
|
$ |
43,884 |
|
|
$ |
52,779 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Wix.com Ltd. |
|
| |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO ADJUSTED EBITDA (NON-GAAP) |
|
| |
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
|
June 30, |
|
June 30, |
|
| |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(unaudited) |
|
(unaudited) |
|
| |
Net cash provided by operating activities |
|
$ |
5,248 |
|
|
$ |
11,314 |
|
|
$ |
4,667 |
|
|
$ |
10,389 |
|
|
| |
Changes in tax benefit related to exercise of share options |
|
|
(152 |
) |
|
|
(197 |
) |
|
|
(290 |
) |
|
|
(372 |
) |
|
| |
Changes in accrued interest and exchange rate on short term and long term deposits |
|
|
1,248 |
|
|
|
163 |
|
|
|
920 |
|
|
|
393 |
|
|
| |
Changes in deferred income taxes, net |
|
|
27 |
|
|
|
21 |
|
|
|
55 |
|
|
|
47 |
|
|
| |
Changes in trade receivables |
|
|
1,289 |
|
|
|
1,510 |
|
|
|
3,389 |
|
|
|
532 |
|
|
| |
Changes in prepaid expenses and other current and long-term assets |
|
|
2,519 |
|
|
|
2,121 |
|
|
|
4,551 |
|
|
|
3,710 |
|
|
| |
Changes in trade payables |
|
|
516 |
|
|
|
590 |
|
|
|
(5,607 |
) |
|
|
(4,034 |
) |
|
| |
Changes in employees and payroll accruals |
|
|
(4,754 |
) |
|
|
(3,089 |
) |
|
|
(1,455 |
) |
|
|
(3,311 |
) |
|
| |
Changes in accrued expenses and other current liabilities |
|
|
(4,876 |
) |
|
|
(2,811 |
) |
|
|
(4,369 |
) |
|
|
4,032 |
|
|
| |
Change in prepaid domain registration costs |
|
|
(690 |
) |
|
|
(509 |
) |
|
|
(1,454 |
) |
|
|
(1,253 |
) |
|
| |
Other income (expenses) |
|
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
| |
Foreign currency exchange income |
|
|
589 |
|
|
|
- |
|
|
|
240 |
|
|
|
- |
|
|
| |
Taxes on income |
|
|
743 |
|
|
|
826 |
|
|
|
1,299 |
|
|
|
1,475 |
|
|
| |
Acquisition related expenses |
|
|
- |
|
|
|
397 |
|
|
|
- |
|
|
|
1,580 |
|
|
| |
Interest, bank charges & other financial expenses (income), net |
|
|
(286 |
) |
|
|
(195 |
) |
|
|
46 |
|
|
|
(782 |
) |
|
| |
Unrealized gains on hedging transactions |
|
|
2,076 |
|
|
|
542 |
|
|
|
1,013 |
|
|
|
941 |
|
|
| |
Total adjustments |
|
$ |
(1,749 |
) |
|
$ |
(632 |
) |
|
$ |
(1,661 |
) |
|
$ |
2,957 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA |
|
$ |
3,499 |
|
|
$ |
10,682 |
|
|
$ |
3,006 |
|
|
$ |
13,346 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Investor Relations: Joe Pollaro / Ryan Gee Wix.com ir@wix.com +1 415.449.4718 / +1 415.223.2610 Media Relations: Vivian Hernandez Wix.com pr@wix.com +1 415.517.6539
