NEW YORK, Nov. 13, 2018 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX), a leading cloud-based
web development platform, today reported financial results for the third quarter ended September 30,
2018. In addition, the Company provided its initial outlook for the fourth quarter of 2018 and updated its 2018 full year
guidance.
"Our strong third quarter results demonstrate that we continue to develop a product experience on Wix that is best in class,"
said Avishai Abrahami, Co-founder and CEO of Wix. "Wix is in the midst of another substantial
product release cycle to deliver even more value to our users – we recently introduced Wix Payments, as well as enhancements to
Wix Code and the all new Wix Video Maker, and we have begun releasing the new DeviantArt platform
to its community. We also plan to announce a new product in December that will elevate how small businesses are managed and grow
online. With these new products, and the performance we have seen to date, we look forward to continuing our momentum throughout
2019."
Lior Shemesh, CFO of Wix, added "Our business model is a unique combination of strong top line
growth and improving profitability, which was again demonstrated with our third quarter results. These results are also a
reflection of the strong returns we continue to realize on our investments in R&D and marketing as well as the consistency
and predictability of our business."
Q3 2018 Financial Summary
|
Three months ended
Sept 30,
|
|
$ in thousands
|
2017
|
2018
|
|
Y/Y growth
|
|
Prior Q3 2018
Outlook
|
Revenue
|
$111,031
|
$155,600
|
|
40%
|
|
$152,000 - 153,000
|
Collections
|
$120,119
|
$162,777
|
|
36%
|
|
$161,000 - 162,000
|
Operating Loss
|
($11,454)
|
($3,498)
|
|
NA
|
|
|
Non-GAAP Operating
Income
|
$3,418
|
$16,256
|
|
376%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$22,063
|
$27,607
|
|
25%
|
|
|
Free Cash Flow
|
$18,935
|
$23,691
|
|
25%
|
|
|
|
|
|
|
Additional Q3 2018 Results and Highlights
- Revenue in the third quarter of 2018 was $155.6 million, a 40% increase over the same period
last year. Under ASC 605, third quarter revenue would have been $153.6 million, a 38% increase
over last year
- Collections in the third quarter of 2018 were $162.8 million, a 36% increase over the prior
year period
- Gross margin on a GAAP basis in the third quarter of 2018 was 79%, compared to 83% for the third quarter of 2017; non-GAAP
gross margin in the third quarter of 2018, calculated as non-GAAP gross profit as a percent of revenue, was 80%, compared to
84% for the third quarter of 2017
-
- Under ASC 605, third quarter 2018 GAAP gross margin as a percent of revenue would have also been 79%
- Results in the third quarter include the impact of the change from net (agent) to gross (principal) accounting related
to the amended terms of our partnership agreement with Google announced earlier this year. As previously stated, this
impact is an approximately $30 million benefit to FY 2018 revenue and collections and
approximately $7-8 million each quarter in 2018. This impact also has resulted in a
year-over-year decrease in our GAAP and non-GAAP gross margins
- GAAP net loss in the third quarter of 2018 was $(5.9) million, or $(0.12) per share, compared to a net loss of $(14.5) million, or $(0.32) per share, for the third quarter of 2017. Under ASC 605, third quarter 2018 GAAP net loss would have
been $(7.0) million
- Non-GAAP net income in the third quarter of 2018 was $18.8 million, or $0.39 per share, compared to non-GAAP net income of $0.4 million, or
$0.01 per share for the third quarter of 2017. Under ASC 605, third quarter 2018 non-GAAP net
income would have been $17.7 million
- Net cash provided by operating activities in the third quarter of 2018 was $27.6 million,
while capital expenditures totaled $3.9 million, leading to free cash flow of $23.7 million, compared to $18.9 million of free cash flow in the third quarter
of 2017, a 25% year-over-year increase
- Added 177,000 net premium subscriptions in the third quarter of 2018 to reach 3.8 million as of September 30, 2018, a 26% increase over the total number of subscriptions at the end of the third quarter of
2017
- Added 5.5 million registered users in the third quarter of 2018. Registered users as of September
30, 2018 were 137 million, representing a 20% increase compared to the end of the third quarter of 2017
Recent Business Highlights
- Announcing Wix Payments: Wix recently launched Wix Payments, a comprehensive payments platform to help owners manage
and grow their business. Wix Payments allows users to set up and accept payments without the need to integrate third party
payment providers. Wix Payments also enables small businesses to manage their entire financial flow, from sales to payouts, in
a single place, solving a significant challenge with doing business online. Any type of business, including e-commerce
retailers, service providers, restaurants, hotels, musicians, photographers and many more, will be able to take advantage of
the efficiency, reliability and safety provided by Wix Payments. Wix Payments is available today in Brazil and will be available in the US and Europe in early 2019.
Additional markets in Latin America and Asia Pacific will
also gain access to Wix Payments throughout 2019.
- Momentum in Wix Code Adoption Continues: New functionalities have enabled users to create more complex and robust
websites with Wix Code than ever before on Wix, and we are seeing evidence that our strategy of
penetrating the professional market is succeeding ahead of our expectations. Users of Wix Code
who have purchased subscriptions are purchasing multiple subscriptions at a rate of more than four times non-Wix Code users, an indication that usage by professionals is increasing. Further, traffic of visitors to
sites built using Wix Code is five times more than traffic to non-Wix
Code sites, an indication that these sites are more robust. We believe this data indicates that Wix Code is opening us up to a new, more professional customer base.
- Launched the Wix Video Maker: To enable Wix users to market and grow their business through the use of video
content, we launched the Wix Video Maker. Wix users can now quickly create custom videos to showcase their business, products
or brand on their Wix website or other channels. This product solves the challenge small businesses face in creating engaging
video content for advertisements, allowing them to compete with larger businesses online.
- Began Testing the New DeviantArt: In October, we began testing the newly redesigned and modernized DeviantArt
platform with its most active community members. We are gathering and implementing feedback from this group and are on schedule
to launch the new platform to all users in the coming months, consistent with the timeline we established when we acquired
DeviantArt.
- Opened Customer Support Center in Dublin: Wix opened a Customer Support Center in
Dublin, Ireland to further enhance our global support infrastructure. The location will cater
to users in multiple languages, including English, French, Spanish, Portuguese, German and Italian.
- Announces Board Authorization of Share Repurchase Plan: The Wix Board of Directors has authorized a share repurchase
plan under which up to $100 million is available to purchase Wix's outstanding ordinary shares.
Wix intends to file a motion seeking court approval in Israel to extend the previously
approved right to repurchase shares granted in July 2018 that expires December 31, 2018. The extension requested would be for six months, commencing on the later of (i)
December 31, 2018 or (ii) the receipt of the required court approval. Wix intends to continue
filing extension requests on an ongoing basis as required. Subject to approval by the Israeli courts, under the board
authorized plan, shares may be repurchased from time to time in open market transactions at prevailing market prices, in
privately negotiated transactions or by other means in accordance with federal securities laws and regulations, and the
repurchase plan may be suspended or discontinued at any time. For all or a portion of the authorized repurchase amount, Wix may
enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934, as amended, that is
designed to facilitate these purchases. The actual timing, number and value of shares repurchased depend on a number of
factors, including the market price of Wix's common stock, general market and economic conditions and other corporate
considerations.
Financial Outlook
Wix is introducing its outlook for the fourth quarter of 2018 as follows:
|
Q4 2018 Outlook
|
|
Y/Y growth
|
Revenue
|
$161- $162 million
|
|
36% – 37%
|
Collections
|
$176 - $178 million
|
|
33% – 35%
|
|
|
|
|
Wix is updating its outlook for the full year 2018, which reflects the continued decline in foreign exchange rates since
guidance was last provided in July. Had FX rates stayed constant, we would have raised the collections and free cash flow outlook
by approximately $2 million, or $660-$662
million for collections and $103-$105 million for free cash
flow.
|
|
2018 Outlook
|
|
|
|
|
Prior
|
Updated
|
|
Y/Y growth
|
Revenue
|
|
$597 - $599 million
|
$601 - $602 million
|
|
41%
|
Collections
|
|
$656 - $660 million
|
$658 - $660 million
|
|
36%
|
Free Cash Flow
|
|
$101 - $103 million
|
$101- $103 million
|
|
43% – 46%
|
|
|
|
|
|
|
Conference Call and Webcast Information
Wix will host a conference call at 5:00 p.m. ET on Tuesday, November 13, 2018 to answer
questions about the financial and operational performance of the business during the third quarter of 2018. 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 and supporting slides to its Investor
Relations website at https://investors.wix.com/. 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 866-966-5335 (US/Canada),
+44-203-003-2666 (International) or 1-809-216-213 (Israel) at least ten minutes prior to the
start time of the call and reference Conference ID WIX. A telephonic replay of the call will be available through November 20, 2018 at 11:59 p.m. ET by dialing +44-(0)-208-196-1998 and providing
Conference ID 84853377.
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 is leading the way with a cloud-based development platform for over 139 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, artists, and individuals to take their businesses,
brands and workflow online. The Wix Editor, Wix ADI, a highly curated App Market, and Wix Code enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters
are in Tel Aviv with offices in Be'er Sheva, Berlin, Dnipro,
Dublin, Kiev, Los Angeles,
Miami, New York, San
Francisco, São Paulo, and Vilnius.
Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn, Pinterest and Google+
Download: Wix App is available for free on Google Play and in
the App Store
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, non-GAAP gross margin, non-GAAP operating income (loss), free cash flow,
non-GAAP net income (loss) and non-GAAP net income (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. Non-GAAP gross margin represents gross profit calculated in
accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and
amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance
with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related expenses.
Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based
compensation expense, amortization, amortization of debt discount and debt issuance costs, and acquisition-related expenses.
Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used
in computing GAAP loss per share. Free cash flow represents 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 these measures provide useful information about operating results, enhance the overall understanding of past
financial performance and future prospects, and allow 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 tables included with this press release. The
accompanying tables have 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 free cash flow
guidance to net cash provided by operating activities because net cash provided by operating activities is not accessible on a
forward-looking basis. Items that impact net cash provided by operating activities are out of the Company's control and/or cannot
be reasonably predicted. Accordingly, a reconciliation to net cash provided by operating activities 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, including, but not limited to revenue, collections and free cash flow, the
availability, merchantability or functionality of certain new products or features and their anticipated product demand and
customer satisfaction, 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, including the full year guidance, 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 prediction of the future collections generated
by our user cohorts; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our
initiatives to scale and improve our user support function; customer acceptance of new products and other challenges inherent in
new product development, 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 2017
annual report on Form 20-F filed with the Securities and Exchange Commission on March 29, 2018. 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.
Investor Relations:
Maggie O'Donnell
ir@wix.com
415-223-2624
Media Relations:
Vivian Hernandez
pr@wix.com
415-517-6539
Wix.com Ltd.
|
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$ 111,031
|
|
$ 155,600
|
|
$ 307,091
|
|
$ 439,507
|
Cost of revenue
|
18,827
|
|
32,977
|
|
51,715
|
|
92,458
|
Gross Profit
|
92,204
|
|
122,623
|
|
255,376
|
|
347,049
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
40,252
|
|
49,360
|
|
109,670
|
|
144,354
|
Selling and marketing
|
51,184
|
|
62,247
|
|
153,529
|
|
188,113
|
General and administrative
|
12,222
|
|
14,514
|
|
34,665
|
|
43,039
|
Total operating expenses
|
103,658
|
|
126,121
|
|
297,864
|
|
375,506
|
Operating loss
|
(11,454)
|
|
(3,498)
|
|
(42,488)
|
|
(28,457)
|
Financial expenses, net
|
(1,978)
|
|
(2,509)
|
|
(3,873)
|
|
(1,106)
|
Other income (expenses)
|
(4)
|
|
17
|
|
(3)
|
|
101
|
Loss before taxes on income
|
(13,436)
|
|
(5,990)
|
|
(46,364)
|
|
(29,462)
|
Taxes on income
|
1,083
|
|
(74)
|
|
3,304
|
|
1,905
|
Net loss
|
$ (14,519)
|
|
$ (5,916)
|
|
$ (49,668)
|
|
$ (31,367)
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
$
(0.32)
|
|
$
(0.12)
|
|
$ (1.10)
|
|
$ (0.66)
|
Basic and diluted weighted-average shares used to compute net loss per
share
|
45,843,390
|
|
48,498,392
|
|
45,309,940
|
|
47,671,718
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(In thousands)
|
|
|
|
|
|
Period ended
|
|
December 31,
|
|
September 30,
|
|
2017
|
|
2018
|
Assets
|
(audited)
|
|
(unaudited)
|
Current Assets:
|
|
|
|
Cash and cash equivalents
|
$ 85,230
|
|
$ 319,966
|
Short term deposits
|
115,382
|
|
326,425
|
Restricted cash and deposit
|
949
|
|
949
|
Marketable securities
|
32,730
|
|
69,237
|
Trade receivables
|
11,400
|
|
14,405
|
Prepaid expenses and other current assets
|
19,246
|
|
18,304
|
Total current assets
|
264,937
|
|
749,286
|
Property, equipment and software, net
|
|
|
|
Long Term Assets:
|
|
|
|
Property and equipment, net
|
16,201
|
|
20,638
|
Prepaid expenses and other long-term assets
|
3,823
|
|
1,724
|
Intangible assets and goodwill, net
|
45,052
|
|
42,961
|
Total long-term assets
|
65,076
|
|
65,323
|
|
|
|
|
Total assets
|
$ 330,013
|
|
$ 814,609
|
|
|
|
|
Liabilities and Shareholder's Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Trade payables
|
$ 34,240
|
|
$ 39,864
|
Employees and payroll accruals
|
28,067
|
|
31,101
|
Deferred revenues
|
202,482
|
|
219,555
|
Accrued expenses and other current liabilities
|
37,592
|
|
43,444
|
Total current liabilities
|
302,381
|
|
333,964
|
|
|
|
|
Long term deferred revenues
|
14,329
|
|
11,923
|
Long term deferred tax liability
|
764
|
|
642
|
Convertible senior notes
|
-
|
|
332,738
|
Long term loan
|
1,219
|
|
1,219
|
Total long term liabilities
|
16,312
|
|
346,522
|
|
|
|
|
Total liabilities
|
318,693
|
|
680,486
|
|
|
|
|
Shareholders' Equity
|
|
|
|
Ordinary shares
|
80
|
|
87
|
Additional paid-in capital
|
311,107
|
|
451,345
|
Other comprehensive loss
|
(286)
|
|
(1,072)
|
Accumulated deficit
|
(299,581)
|
|
(316,237)
|
Total shareholders' equity
|
11,320
|
|
134,123
|
|
|
|
|
Total liabilities and shareholders' equity
|
$ 330,013
|
|
$ 814,609
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
$ (14,519)
|
|
$ (5,916)
|
|
$ (49,668)
|
|
$ (31,367)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
1,451
|
|
2,213
|
|
4,094
|
|
6,306
|
Amortization
|
950
|
|
733
|
|
2,412
|
|
2,052
|
Share based compensation expenses
|
13,035
|
|
18,760
|
|
33,996
|
|
52,203
|
Amortization of debt discount and debt issuance costs
|
-
|
|
4,965
|
|
-
|
|
4,965
|
Increase in accrued interest and exchange rate on short term and long term
deposits
|
7
|
|
(493)
|
|
(160)
|
|
(1,390)
|
Amortization of premium and discount and accrued interest on marketable
securities, net
|
-
|
|
74
|
|
-
|
|
86
|
Deferred income taxes, net
|
(44)
|
|
(341)
|
|
(441)
|
|
(746)
|
Decrease in trade receivables
|
(2,834)
|
|
(5,729)
|
|
(2,074)
|
|
(3,005)
|
Decrease (increase) in prepaid expenses and other current and long-term
assets
|
441
|
|
7,512
|
|
(2,729)
|
|
(10,037)
|
Increase in trade payables
|
12,320
|
|
2,184
|
|
18,979
|
|
5,566
|
Increase (decrease) in employees and payroll accruals
|
(123)
|
|
(7,368)
|
|
(328)
|
|
6,063
|
Increase in short term and long term deferred revenues
|
9,088
|
|
7,177
|
|
44,695
|
|
42,820
|
Increase in accrued expenses and other current liabilities
|
2,291
|
|
3,836
|
|
9,335
|
|
6,138
|
Net cash provided by operating activities
|
22,063
|
|
27,607
|
|
58,111
|
|
79,654
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from short-term deposits and restricted deposits
|
17,392
|
|
96,015
|
|
50,442
|
|
115,126
|
Investment in short-term deposits and restricted deposits
|
(41,000)
|
|
(172,999)
|
|
(56,650)
|
|
(324,779)
|
Investment in marketable securities
|
-
|
|
(37,678)
|
|
-
|
|
(52,657)
|
Proceeds from marketable securities
|
-
|
|
1,357
|
|
-
|
|
15,793
|
Purchase of property and equipment
|
(3,128)
|
|
(3,865)
|
|
(6,983)
|
|
(10,372)
|
Capitalization of software development costs
|
-
|
|
(51)
|
|
-
|
|
(313)
|
Acquisition of Intangible assets
|
-
|
|
-
|
|
-
|
|
(500)
|
Payment for Businesses acquired
|
-
|
|
-
|
|
(33,091)
|
|
-
|
Net cash used in investing activities
|
(26,736)
|
|
(117,221)
|
|
(46,282)
|
|
(257,702)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from exercise of options and ESPP shares
|
4,444
|
|
6,082
|
|
19,180
|
|
27,973
|
Proceeds from issuance of convertible senior notes
|
-
|
|
57,750
|
|
-
|
|
442,750
|
Payments of debt issuance costs
|
-
|
|
(2,591)
|
|
-
|
|
(12,601)
|
Purchase of capped call
|
-
|
|
(5,914)
|
|
-
|
|
(45,338)
|
Credit line repayment
|
-
|
|
-
|
|
(170)
|
|
-
|
Net cash provided by financing activities
|
4,444
|
|
55,327
|
|
19,010
|
|
412,784
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(229)
|
|
(34,287)
|
|
30,839
|
|
234,736
|
CASH AND CASH EQUIVALENTS—Beginning of period
|
124,132
|
|
354,253
|
|
93,064
|
|
85,230
|
CASH AND CASH EQUIVALENTS—End of period
|
$ 123,903
|
|
$ 319,966
|
|
$ 123,903
|
|
$ 319,966
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
KEY PERFORMANCE METRICS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$ 111,031
|
|
$ 155,600
|
|
$ 307,091
|
|
$ 439,507
|
Collections
|
$ 120,119
|
|
$ 162,777
|
|
$ 351,786
|
|
$ 482,327
|
Free Cash Flow
|
$ 18,935
|
|
$ 23,691
|
|
$ 53,866
|
|
$ 68,969
|
Number of registered users at period end (*)
|
113,923
|
|
136,538
|
|
113,923
|
|
136,538
|
Number of premium subscriptions at period end (*)
|
3,053
|
|
3,836
|
|
3,053
|
|
3,836
|
|
|
|
|
|
|
|
|
(*) Excludes users and subscriptions of DeviantArt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF REVENUES TO COLLECTIONS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$ 111,031
|
|
$ 155,600
|
|
$ 307,091
|
|
$ 439,507
|
Change in deferred revenues
|
9,088
|
|
7,177
|
|
44,695
|
|
42,820
|
Collections
|
$ 120,119
|
|
$ 162,777
|
|
$ 351,786
|
|
$ 482,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ADJUSTMENTS OF GAAP TO NON-GAAP
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(1) Share based compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of revenues
|
$ 783
|
|
$ 1,102
|
|
$ 1,984
|
|
$ 3,268
|
Research and development
|
7,190
|
|
10,372
|
|
18,502
|
|
28,327
|
Selling and marketing
|
1,826
|
|
2,597
|
|
5,023
|
|
6,991
|
General and administrative
|
3,236
|
|
4,689
|
|
8,487
|
|
13,617
|
Total share based compensation expenses
|
13,035
|
|
18,760
|
|
33,996
|
|
52,203
|
(2) Amortization
|
948
|
|
733
|
|
2,374
|
|
2,052
|
(3) Acquisition related expenses
|
889
|
|
261
|
|
5,514
|
|
2,635
|
(4) Amortization of debt discount and debt issuance costs
|
-
|
|
4,965
|
|
-
|
|
4,965
|
Total adjustments of GAAP to Non-GAAP
|
$ 14,872
|
|
$ 24,719
|
|
$ 41,884
|
|
$ 61,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF GROSS PROFIT TO NON-GAAP GROSS PROFIT
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit
|
$ 92,204
|
|
$ 122,623
|
|
$ 255,376
|
|
$ 347,049
|
Share based compensation expenses
|
783
|
|
1,102
|
|
1,984
|
|
3,268
|
Amortization
|
757
|
|
142
|
|
1,797
|
|
426
|
Acquisition related expenses
|
-
|
|
-
|
|
28
|
|
-
|
Non-GAAP Gross Profit
|
93,744
|
|
123,867
|
|
259,185
|
|
350,743
|
|
|
|
|
|
|
|
|
Non-GAAP Gross margin
|
84%
|
|
80%
|
|
84%
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME
(LOSS)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Operating loss
|
$ (11,454)
|
|
$ (3,498)
|
|
$ (42,488)
|
|
$ (28,457)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based compensation expenses
|
13,035
|
|
18,760
|
|
33,996
|
|
52,203
|
Amortization
|
948
|
|
733
|
|
2,374
|
|
2,052
|
Acquisition related expenses
|
889
|
|
261
|
|
5,514
|
|
2,635
|
Total adjustments
|
$ 14,872
|
|
$ 19,754
|
|
$ 41,884
|
|
$ 56,890
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss)
|
$ 3,418
|
|
$ 16,256
|
|
$ (604)
|
|
$ 28,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET
INCOME (LOSS) PER SHARE
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$ (14,519)
|
|
$ (5,916)
|
|
$ (49,668)
|
|
$ (31,367)
|
Share based compensation expense and other Non GAAP adjustments
|
14,872
|
|
24,719
|
|
41,884
|
|
61,855
|
Non-GAAP net income (loss)
|
$ 353
|
|
$ 18,803
|
|
$ (7,784)
|
|
$ 30,488
|
|
|
|
|
|
|
|
|
Basic Non-GAAP net income (loss) per share
|
$ 0.01
|
|
$
0.39
|
|
$ (0.17)
|
|
$ 0.64
|
Weighted average shares used in computing basic Non-GAAP net income (loss)
per share
|
45,843,390
|
|
48,498,392
|
|
45,309,940
|
|
47,671,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by operating activities
|
$ 22,063
|
|
$ 27,607
|
|
$ 58,111
|
|
$ 79,654
|
Capital expenditures, net
|
(3,128)
|
|
(3,916)
|
|
(6,983)
|
|
(10,685)
|
DeviantArt acquisition costs
|
-
|
|
-
|
|
2,738
|
|
-
|
Free Cash Flow
|
$ 18,935
|
|
$ 23,691
|
|
$ 53,866
|
|
$ 68,969
|
Wix.com Ltd.
|
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND
THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average number of shares
outstanding
|
45,843,390
|
|
48,498,392
|
|
45,309,940
|
|
47,671,718
|
The following items have been excluded from the diluted weighted average
number of shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock options
|
8,336,919
|
|
7,714,715
|
|
8,336,919
|
|
7,714,715
|
Restricted share units
|
1,968,870
|
|
2,051,910
|
|
1,968,870
|
|
2,051,910
|
|
56,149,179
|
|
58,265,017
|
|
55,615,729
|
|
57,438,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
YearEnding
|
|
December 31, 2018
|
|
December 31, 2018
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected revenues (*)
|
161,000
|
|
162,000
|
|
601,000
|
|
602,000
|
Projected change in deferred revenues
|
15,000
|
|
16,000
|
|
57,000
|
|
58,000
|
Projected collections
|
$ 176,000
|
|
$ 178,000
|
|
$ 658,000
|
|
$ 660,000
|
|
|
|
|
|
|
|
|
(*) Guidance under ASC 606
|
|
|
|
|
|
|
|
View original content to download multimedia:http://www.prnewswire.com/news-releases/wix-reports-third-quarter-2018-results-300749609.html
SOURCE Wix.com Ltd.