Wix.com Ltd. (Nasdaq:WIX), a leading global software platform
for small businesses to operate online, today reported another
strong quarter of financial results for the fourth quarter and full
year ended December 31, 2016. In addition, the Company
provided its initial outlook and expectations for its financial
performance in the first quarter and full year 2017.
“Our focused investment in technology and our
superior marketing execution continue to have a meaningful positive
impact on our growth and financial results,” said Avishai Abrahami,
Co-founder and CEO of Wix. “In the last twelve months, this
strategy delivered innovative products such as Wix ADI and the
mobile Wix App, as well as growth in our brand and successful
marketing execution, highlighted by our Super Bowl LI campaign.
This strategic approach will enable us to further extend our
technology leadership, acquire subscriptions efficiently and grow
our brand globally in 2017 and beyond.”
Lior Shemesh, CFO of Wix, commented, “The
re-acceleration in top line growth this quarter was exceptional --
a direct result of the improvement in conversion of registered
users to premium subscriptions and higher collections per new
subscriptions due to record adoption of our vertical solutions. The
stronger than expected inflection to Q4 non-GAAP profitability
highlights the flexibility and scalability of our low, fixed-cost
model. We expect to deliver continued top line growth and higher
free cash flow in 2017 and beyond by further leveraging our
investments in technology and marketing.”
Q4 2016 and Full Year 2016 Financial
Summary
|
|
|
Three months ended Dec 31, |
|
|
|
|
$ in thousands |
|
|
2016 |
|
2015 |
|
Y/Y growth |
|
Prior
Q4 2016 Outlook |
Revenue |
|
|
$84,176 |
|
$56,831 |
|
48% |
|
$81,000 - 82,000 |
Collections |
|
|
$97,652 |
|
$66,870 |
|
46% |
|
$93,000 - 94,000 |
Operating Loss |
|
|
$(4,742) |
|
$(10,163) |
|
NM |
|
|
Non-GAAP Operating
Profit (Loss) |
|
|
$3,879 |
|
$(4,417) |
|
NM |
|
|
Adjusted EBITDA |
|
|
$17,877 |
|
$7,025 |
|
154% |
|
$14,000 – 15,000 |
Free Cash Flow |
|
|
$18,683 |
|
$8,397 |
|
122% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended Dec 31, |
|
|
|
|
$ in thousands |
|
|
2016 |
|
2015 |
|
Y/Y growth |
|
Prior
2016 Outlook |
Revenue |
|
|
$290,103 |
|
$203,518 |
|
43% |
|
$287,000 - 288,000 |
Collections |
|
|
$342,069 |
|
$241,687 |
|
42% |
|
$337,000 - 338,000 |
Operating Loss |
|
|
$(44,032) |
|
$(48,635) |
|
NM |
|
|
Non-GAAP Operating
Loss |
|
|
$(12,529) |
|
$(29,266) |
|
NM |
|
|
Adjusted EBITDA |
|
|
$42,588 |
|
$14,721 |
|
189% |
|
$38,500 – 39,500 |
Free Cash Flow |
|
|
$36,158 |
|
$14,534 |
|
149% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016 Results and Highlights
- Revenue increased 48% to $84.2 million compared to $56.8
million for the fourth quarter last year
- Collections increased 46% to $97.7 million compared to $66.9
million for the fourth quarter last year
- Gross margin on a GAAP basis was 85% compared to 83% in the
fourth quarter of last year. Non-GAAP gross profit was 87% of
collections compared to 85% in the fourth quarter of last year
- GAAP operating loss was $4.7 million compared to loss of $10.2
million in the fourth quarter a year ago. On a non-GAAP basis,
operating income was $3.9 million compared to an operating loss of
$4.4 million in the fourth quarter last year
- GAAP net loss was $6.2 million, or $(0.14) per share, compared
to a net loss of $11.3 million, or $(0.28) per share for the fourth
quarter of 2015
- Non-GAAP net income was $2.7 million, or $0.06 per share,
compared to a non-GAAP net loss of $5.4 million, or $(0.13) per
share for the fourth quarter of 2015
- Adjusted EBITDA was $17.9 million compared to $7.0 million for
the fourth quarter of 2015
- Free cash flow was $18.7 million compared to $8.4 million for
the fourth quarter of 2015
- Added 171,000 net premium subscriptions in the period to reach
2.5 million as of December 31, 2016, a 39% increase over the fourth
quarter of 2015
- Added 5.0 million registered users in the fourth quarter.
Registered users as of December 31, 2016 were 97.0 million,
representing a 27% increase compared to the fourth quarter of
2015
Recent Business Highlights
- Acquired flok to Enhance CRM Technology: Wix
acquired flok, a customer loyalty and engagement platform. flok's
solutions are designed to increase customer value, generate organic
referrals and boost small and medium businesses' online presence
and reputation. The move supports Wix's strategic plan to increase
its portfolio of business technology solutions providing small and
medium businesses easy ways to engage and reward their
customers.
- Announced Integration with Square: Wix
announced a partnership with Square to give Wix merchants and
entrepreneurs in North America a new way to transact. The Square
integration improves payment processing and allows both online and
in-person payments via a mobile device based POS. In addition, a
user can create a stunning Wix Store and, with a few clicks, manage
its store and its catalog on the Wix App with the ability to accept
payments online or in-person with Square.
- Launched #DisruptiveWorld campaign around Super Bowl
LI: Wix launched its
#DisruptiveWorld campaign in mid-January on YouTube and Facebook
Live, the first company to launch a Super Bowl campaign using these
live video platforms. The global campaign, starring Jason Statham
and Gal Gadot, included numerous videos, user engagement
opportunities, contests and social activations and was highlighted
by a 30-second spot during the fourth quarter of Super Bowl
LI. According to Visible Measures, Wix videos garnered more
views online than any other brand prior to the airing of the Super
Bowl.
- Wix Mobile Growth: Wix
users have created over 22 million mobile sites to date, making Wix
one of the largest mobile site development platforms globally.
- Global E-commerce Platform: E-commerce
subscriptions reached 332,000 during the quarter. Growth of
e-commerce and transaction-enabled websites continues to exceed
overall subscriptions growth, highlighting Wix’s broad reach with
small businesses.
- Strong Platform Engagement: Continued
engagement with the Wix ecosystem is illustrated by 480 million
user contacts saved onto the Wix platform by users.
Leveraging Wix’s MyAccount CRM system, business owners track
customer activity data, manage relationships and communicate using
Wix ShoutOut, Wix’s email marketing solution.
Financial Outlook
The Company is introducing its outlook for the
first quarter of 2017 and for full year 2017 as follows:
- For the first quarter of 2017:
|
|
|
Q1
2017 Outlook |
|
Y/Y
growth |
Revenue |
|
|
$89 -
$90 million |
|
45% –
46% |
Collections |
|
|
$107 -
$109 million |
|
41% –
44% |
|
|
|
|
|
|
|
|
|
2017
Outlook |
|
Y/Y
growth |
Revenue |
|
|
$409 -
$411 million |
|
41% –
42% |
Collections |
|
|
$452 -
$458 million |
|
32% –
34% |
Free Cash Flow |
|
|
$71 -
$72 million |
|
96% –
100% |
|
|
|
|
|
|
As previously announced, in response to the U.S. Securities and
Exchange Commission’s May 2016 Compliance and Disclosure
Interpretations on non-GAAP financial measures, beginning with our
earnings release for Q1 2017, we do not intend to provide guidance
for or report adjusted EBITDA. We will continue to report
free cash flow as a key non-GAAP financial measure of our
business. We believe this change will assist investors in
evaluating our ongoing performance and increase the comparability
of our results with those of our peer companies. Please refer to
the Shareholder Update posted on our investor relations website for
a reconciliation of adjusted EBITDA to free cash flow.
Conference Call and Webcast Information
Wix.com will host a conference call at 8:30 a.m.
ET on Wednesday, February 15, 2017 to answer questions about the
financial and operational performance of the business during the
fourth 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 February 22, 2017 at 11:59 p.m.
ET by dialing 855-859-2056 (US/Canada) or 404-537-3406
(International) and providing Conference ID: 60437734.
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/.
Upcoming Investor Conferences
Joe Pollaro, General Manager, US, will present at Cantor
Fitzgerald’s 4th Annual Internet & Technology Services
Conference in New York on Thursday, February 23, 2017, at 9:50 a.m.
EST and at the JMP Securities Technology Conference in San
Francisco on Monday, February 27, 2017, at 3:00 p.m. PST.
Both events will be available via live audio webcast and
archived on Wix's investor relations website at
https://investors.wix.com/.
About Wix.com Ltd.
Wix.com is a leading global software platform
for small businesses to operate online with over 100 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.
Wix ADI, the Wix Editor and a 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 Be'er
Sheva, San Francisco, New York, Miami, Berlin, 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. Beginning with our Q1 2017
earnings release, we do not intend to report or provide guidance
for Adjusted EBITDA going forward. Adjusted EBITDA for 2016
and 2015 in this earnings release have been presented on the same
basis.
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, 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 "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 free cash flow 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, |
|
December 31, |
|
|
2015 |
|
2016 |
Assets |
|
(audited) |
|
(unaudited) |
Current Assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
39,226 |
|
|
$ |
93,064 |
|
Short
term deposits |
|
|
70,773 |
|
|
|
78,240 |
|
Restricted cash and deposit |
|
|
3,851 |
|
|
|
931 |
|
Trade
receivables |
|
|
6,461 |
|
|
|
8,279 |
|
Prepaid
expenses and other current assets |
|
|
11,989 |
|
|
|
17,346 |
|
Total
current assets |
|
|
132,300 |
|
|
|
197,860 |
|
Property, equipment and
software, net |
|
|
|
|
Long-Term Assets: |
|
|
|
|
Property
and equipment, net |
|
|
8,734 |
|
|
|
8,750 |
|
Prepaid
expenses and other long-term assets |
|
|
2,200 |
|
|
|
2,916 |
|
Intangible assets and goodwill, net |
|
|
6,199 |
|
|
|
5,452 |
|
Total
long-term assets |
|
|
17,133 |
|
|
|
17,118 |
|
|
|
|
|
|
Total assets |
|
$ |
149,433 |
|
|
$ |
214,978 |
|
|
|
|
|
|
Liabilities and
Shareholder's Deficiency |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Trade
payables |
|
$ |
12,280 |
|
|
$ |
20,709 |
|
Employees
and payroll accruals |
|
|
15,210 |
|
|
|
20,292 |
|
Deferred
revenues |
|
|
100,561 |
|
|
|
146,987 |
|
Accrued
expenses and other current liabilities |
|
|
20,281 |
|
|
|
18,963 |
|
Total
current liabilities |
|
|
148,332 |
|
|
|
206,951 |
|
|
|
|
|
|
Long term
deferred revenues |
|
|
4,206 |
|
|
|
9,746 |
|
Long term
deferred tax liability |
|
|
625 |
|
|
|
518 |
|
Other
long-term liabilities |
|
|
75 |
|
|
|
- |
|
Total
long-term liabilities |
|
|
4,906 |
|
|
|
10,264 |
|
|
|
|
|
|
Total liabilities |
|
|
153,238 |
|
|
|
217,215 |
|
|
|
|
|
|
Shareholders'
Deficiency |
|
|
|
|
Ordinary
shares |
|
|
64 |
|
|
|
64 |
|
Additional paid-in capital |
|
|
192,791 |
|
|
|
241,657 |
|
Other
comprehensive loss |
|
|
(248 |
) |
|
|
(389 |
) |
Accumulated deficit |
|
|
(196,412 |
) |
|
|
(243,569 |
) |
Total shareholders'
deficiency |
|
|
(3,805 |
) |
|
|
(2,237 |
) |
|
|
|
|
|
Total liabilities and
shareholders' deficiency |
|
$ |
149,433 |
|
|
$ |
214,978 |
|
|
|
|
|
|
Wix.com Ltd. |
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP |
(In thousands, except loss per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
56,831 |
|
|
$ |
84,176 |
|
|
$ |
203,518 |
|
|
$ |
290,103 |
|
Cost of revenue |
|
|
9,607 |
|
|
|
12,738 |
|
|
|
34,970 |
|
|
|
45,287 |
|
Gross
Profit |
|
|
47,224 |
|
|
|
71,438 |
|
|
|
168,548 |
|
|
|
244,816 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
|
21,901 |
|
|
|
28,877 |
|
|
|
77,647 |
|
|
|
105,368 |
|
Selling
and marketing |
|
|
30,330 |
|
|
|
40,022 |
|
|
|
120,010 |
|
|
|
156,512 |
|
General
and administrative |
|
|
5,156 |
|
|
|
7,281 |
|
|
|
19,526 |
|
|
|
26,968 |
|
Total operating
expenses |
|
|
57,387 |
|
|
|
76,180 |
|
|
|
217,183 |
|
|
|
288,848 |
|
Operating loss |
|
|
(10,163 |
) |
|
|
(4,742 |
) |
|
|
(48,635 |
) |
|
|
(44,032 |
) |
Financial
income (expenses), net |
|
|
(364 |
) |
|
|
(451 |
) |
|
|
77 |
|
|
|
246 |
|
Other
income (expenses) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(11 |
) |
|
|
(4 |
) |
Loss before taxes on
income |
|
|
(10,533 |
) |
|
|
(5,198 |
) |
|
|
(48,569 |
) |
|
|
(43,790 |
) |
Taxes on
income |
|
|
772 |
|
|
|
984 |
|
|
|
2,765 |
|
|
|
3,367 |
|
Net loss |
|
$ |
(11,305 |
) |
|
$ |
(6,182 |
) |
|
$ |
(51,334 |
) |
|
$ |
(47,157 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
|
$ |
(0.28 |
) |
|
$ |
(0.14 |
) |
|
$ |
(1.30 |
) |
|
$ |
(1.12 |
) |
Basic and diluted
weighted-average shares used to compute net loss per share |
|
|
40,116,511 |
|
|
|
43,907,388 |
|
|
|
39,408,928 |
|
|
|
42,032,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP STATEMENT
OF OPERATIONS |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share based
compensation expenses: |
|
(unaudited) |
|
(unaudited) |
Cost of
revenues |
|
$ |
380 |
|
|
$ |
429 |
|
|
$ |
1,353 |
|
|
$ |
1,798 |
|
Research
and development |
|
|
2,852 |
|
|
|
4,156 |
|
|
|
9,234 |
|
|
|
14,543 |
|
Selling
and marketing |
|
|
920 |
|
|
|
1,213 |
|
|
|
3,077 |
|
|
|
4,553 |
|
General
and administrative |
|
|
1,424 |
|
|
|
2,022 |
|
|
|
5,069 |
|
|
|
7,154 |
|
Total
share based compensation expenses |
|
|
5,576 |
|
|
|
7,820 |
|
|
|
18,733 |
|
|
|
28,048 |
|
(2) Amortization |
|
|
170 |
|
|
|
187 |
|
|
|
636 |
|
|
|
747 |
|
(3) Acquisition related
expenses |
|
|
- |
|
|
|
614 |
|
|
|
- |
|
|
|
2,708 |
|
(4)
Taxes on income |
|
|
162 |
|
|
|
258 |
|
|
|
611 |
|
|
|
838 |
|
Total adjustments of
GAAP to Non GAAP |
|
$ |
5,908 |
|
|
$ |
8,879 |
|
|
$ |
19,980 |
|
|
$ |
32,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME
(LOSS) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Operating loss |
|
$ |
(10,163 |
) |
|
$ |
(4,742 |
) |
|
$ |
(48,635 |
) |
|
$ |
(44,032 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Share
based compensation expenses |
|
|
5,576 |
|
|
|
7,820 |
|
|
|
18,733 |
|
|
|
28,048 |
|
Amortization |
|
|
170 |
|
|
|
187 |
|
|
|
636 |
|
|
|
747 |
|
Acquisition related expenses |
|
|
- |
|
|
|
614 |
|
|
|
- |
|
|
|
2,708 |
|
Total adjustments |
|
$ |
5,746 |
|
|
$ |
8,621 |
|
|
$ |
19,369 |
|
|
$ |
31,503 |
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss) |
|
$ |
(4,417 |
) |
|
$ |
3,879 |
|
|
$ |
(29,266 |
) |
|
$ |
(12,529 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP COST OF
REVENUES |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Gross
Profit |
|
$ |
47,224 |
|
|
$ |
71,438 |
|
|
$ |
168,548 |
|
|
$ |
244,816 |
|
Share
based compensation expenses |
|
|
380 |
|
|
|
429 |
|
|
|
1,353 |
|
|
|
1,798 |
|
Gross
Profit -Non GAAP |
|
|
47,604 |
|
|
|
71,867 |
|
|
|
169,901 |
|
|
|
246,614 |
|
|
|
|
|
|
|
|
|
|
Gross margin -Non
GAAP |
|
|
84 |
% |
|
|
85 |
% |
|
|
83 |
% |
|
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP
NET LOSS PER SHARE |
(In thousands, except loss per share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Net loss |
|
$ |
(11,305 |
) |
|
$ |
(6,182 |
) |
|
$ |
(51,334 |
) |
|
$ |
(47,157 |
) |
Share based
compensation expense and other Non GAAP adjustments |
|
|
5,908 |
|
|
|
8,879 |
|
|
|
19,980 |
|
|
|
32,341 |
|
Non-GAAP net income
(loss) |
|
$ |
(5,397 |
) |
|
$ |
2,697 |
|
|
$ |
(31,354 |
) |
|
$ |
(14,816 |
) |
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income (loss) per share |
|
$ |
(0.13 |
) |
|
$ |
0.06 |
|
|
$ |
(0.80 |
) |
|
$ |
(0.35 |
) |
Weighted average shares
used in computing basic Non GAAP net income(loss) per share |
|
|
40,116,511 |
|
|
|
43,907,388 |
|
|
|
39,408,928 |
|
|
|
42,032,818 |
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
KEY PERFORMANCE METRICS |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Revenues |
|
$ |
56,831 |
|
|
$ |
84,176 |
|
|
$ |
203,518 |
|
|
$ |
290,103 |
|
Collections |
|
$ |
66,870 |
|
|
$ |
97,652 |
|
|
$ |
241,687 |
|
|
$ |
342,069 |
|
Adjusted EBITDA |
|
$ |
7,025 |
|
|
$ |
17,877 |
|
|
$ |
14,721 |
|
|
$ |
42,588 |
|
Number of registered
users at period end |
|
|
76,965 |
|
|
|
97,359 |
|
|
|
76,965 |
|
|
|
97,359 |
|
Number of premium
subscriptions at period end |
|
|
1,767 |
|
|
|
2,465 |
|
|
|
1,767 |
|
|
|
2,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF REVENUES TO COLLECTIONS |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Revenues |
|
$ |
56,831 |
|
|
$ |
84,176 |
|
|
$ |
203,518 |
|
|
$ |
290,103 |
|
Change in deferred
revenues |
|
|
10,039 |
|
|
|
13,476 |
|
|
|
38,169 |
|
|
|
51,966 |
|
Collections |
|
$ |
66,870 |
|
|
$ |
97,652 |
|
|
$ |
241,687 |
|
|
$ |
342,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF COLLECTIONS EXCLUDING FX IMPACT |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
Collections |
|
$ |
66,870 |
|
|
$ |
97,652 |
|
|
|
|
|
F/X impact on Q4/16
using Q4/15 rates |
|
|
- |
|
|
|
957 |
|
|
|
|
|
Collections excluding
FX impact |
|
$ |
66,870 |
|
|
$ |
98,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y% |
|
|
|
|
47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
2016 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
Collections |
|
$ |
87,270 |
|
|
$ |
97,652 |
|
|
|
|
|
F/X impact on Q4/16
using Q3/16 rates |
|
|
- |
|
|
|
865 |
|
|
|
|
|
Collections excluding
FX impact |
|
$ |
87,270 |
|
|
$ |
98,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q/Q% |
|
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF NON-GAAP OPERATING LOSS TO ADJUSTED EBITDA
(NON-GAAP) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Non GAAP operating
loss |
|
$ |
(4,417 |
) |
|
$ |
3,879 |
|
|
$ |
(29,266 |
) |
|
$ |
(12,529 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Realized
gains on hedging transactions |
|
|
516 |
|
|
|
167 |
|
|
|
3,492 |
|
|
|
791 |
|
Depreciation |
|
|
1,399 |
|
|
|
890 |
|
|
|
4,999 |
|
|
|
4,538 |
|
Change in
deferred revenues |
|
|
10,039 |
|
|
|
13,476 |
|
|
|
38,169 |
|
|
|
51,966 |
|
Change in
prepaid domain registration costs |
|
|
(512 |
) |
|
|
(535 |
) |
|
|
(2,673 |
) |
|
|
(2,178 |
) |
Total adjustments |
|
$ |
11,442 |
|
|
$ |
13,998 |
|
|
$ |
43,987 |
|
|
$ |
55,117 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
7,025 |
|
|
$ |
17,877 |
|
|
$ |
14,721 |
|
|
$ |
42,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOW |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Net cash provided by
operating activities |
|
$ |
9,522 |
|
|
$ |
19,714 |
|
|
$ |
20,876 |
|
|
$ |
40,573 |
|
Capital expenditures,
net |
|
|
(1,125 |
) |
|
|
(1,031 |
) |
|
|
(6,342 |
) |
|
|
(4,415 |
) |
Free Cash Flow |
|
$ |
8,397 |
|
|
$ |
18,683 |
|
|
$ |
14,534 |
|
|
$ |
36,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED
COLLECTIONS |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ending |
|
|
March 31, 2017 |
|
December 31, 2017 |
|
|
Low |
|
High |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
Projected revenues |
|
$ |
89,000 |
|
|
$ |
90,000 |
|
|
$ |
409,000 |
|
|
$ |
411,000 |
|
Projected change in
deferred revenues |
|
|
18,000 |
|
|
|
19,000 |
|
|
|
43,000 |
|
|
|
47,000 |
|
Projected
collections |
|
$ |
107,000 |
|
|
$ |
109,000 |
|
|
$ |
452,000 |
|
|
$ |
458,000 |
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
$ |
(11,305 |
) |
|
$ |
(6,182 |
) |
|
$ |
(51,334 |
) |
|
$ |
(47,157 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation |
|
1,399 |
|
|
|
890 |
|
|
|
4,999 |
|
|
|
4,538 |
|
Amortization |
|
170 |
|
|
|
187 |
|
|
|
636 |
|
|
|
747 |
|
Share
based compensation expenses |
|
5,593 |
|
|
|
7,820 |
|
|
|
18,750 |
|
|
|
28,048 |
|
Tax
benefit related to exercise of share options |
|
160 |
|
|
|
644 |
|
|
|
609 |
|
|
|
1,224 |
|
Increase
in accrued interest and exchange rate on short term and long term
deposits |
|
(59 |
) |
|
|
(116 |
) |
|
|
(805 |
) |
|
|
(669 |
) |
Deferred
income taxes, net |
|
(29 |
) |
|
|
(537 |
) |
|
|
(111 |
) |
|
|
(611 |
) |
Decrease
(increase) in trade receivables |
|
396 |
|
|
|
(665 |
) |
|
|
(5,411 |
) |
|
|
(1,818 |
) |
Decrease
(increase) in prepaid expenses and other current and long-term
assets |
|
(1,251 |
) |
|
|
1,790 |
|
|
|
(2,597 |
) |
|
|
(6,284 |
) |
Increase
(decrease) in trade payables |
|
(395 |
) |
|
|
3,435 |
|
|
|
7,483 |
|
|
|
8,290 |
|
Increase
(decrease) in employees and payroll accruals |
|
2,575 |
|
|
|
(3,189 |
) |
|
|
1,565 |
|
|
|
3,018 |
|
Increase
in short term and long term deferred revenues |
|
10,039 |
|
|
|
13,476 |
|
|
|
38,169 |
|
|
|
51,966 |
|
Increase
(decrease) in accrued expenses and other current liabilities |
|
2,229 |
|
|
|
2,161 |
|
|
|
8,923 |
|
|
|
(719 |
) |
Net cash
provided by operating activities |
|
9,522 |
|
|
|
19,714 |
|
|
|
20,876 |
|
|
|
40,573 |
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds
from short-term deposits and restricted deposits |
|
9,346 |
|
|
|
13,881 |
|
|
|
60,162 |
|
|
|
49,392 |
|
Investment in short-term deposits and restricted deposits |
|
(19,965 |
) |
|
|
(3,863 |
) |
|
|
(82,038 |
) |
|
|
(53,270 |
) |
Purchase
of property and equipment |
|
(1,125 |
) |
|
|
(1,031 |
) |
|
|
(6,342 |
) |
|
|
(4,415 |
) |
Acquisition of Intangible assets |
|
(450 |
) |
|
|
(100 |
) |
|
|
(450 |
) |
|
|
(100 |
) |
Net cash
provided by (used in) investing activities |
|
(12,194 |
) |
|
|
8,887 |
|
|
|
(28,668 |
) |
|
|
(8,393 |
) |
FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds
from exercise of options and ESPP shares |
|
1,489 |
|
|
|
6,515 |
|
|
|
6,818 |
|
|
|
21,658 |
|
Net cash
provided by financing activities |
|
1,489 |
|
|
|
6,515 |
|
|
|
6,818 |
|
|
|
21,658 |
|
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
(1,183 |
) |
|
|
35,116 |
|
|
|
(974 |
) |
|
|
53,838 |
|
CASH AND CASH
EQUIVALENTS—Beginning of period |
|
40,409 |
|
|
|
57,948 |
|
|
|
40,200 |
|
|
|
39,226 |
|
CASH AND CASH
EQUIVALENTS—End of period |
$ |
39,226 |
|
|
$ |
93,064 |
|
|
$ |
39,226 |
|
|
$ |
93,064 |
|
|
|
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Wix.com Ltd. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
ADJUSTED EBITDA (NON-GAAP) |
(In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
Net cash
provided by operating activities |
$ |
9,522 |
|
|
$ |
19,714 |
|
|
$ |
20,876 |
|
|
$ |
40,573 |
|
Changes
in tax benefit related to exercise of share options |
|
(160 |
) |
|
|
(644 |
) |
|
|
(609 |
) |
|
|
(1,224 |
) |
Changes
in accrued interest and exchange rate on short term and long term
deposits |
|
59 |
|
|
|
116 |
|
|
|
805 |
|
|
|
669 |
|
Changes
in deferred income taxes, net |
|
29 |
|
|
|
537 |
|
|
|
111 |
|
|
|
611 |
|
Changes
in trade receivables |
|
(396 |
) |
|
|
665 |
|
|
|
5,411 |
|
|
|
1,818 |
|
Changes
in prepaid expenses and other current and long-term assets |
|
1,251 |
|
|
|
(1,790 |
) |
|
|
2,597 |
|
|
|
6,284 |
|
Changes
in trade payables |
|
395 |
|
|
|
(3,435 |
) |
|
|
(7,483 |
) |
|
|
(8,290 |
) |
Changes
in employees and payroll accruals |
|
(2,575 |
) |
|
|
3,189 |
|
|
|
(1,565 |
) |
|
|
(3,018 |
) |
Changes
in accrued expenses and other current liabilities |
|
(2,229 |
) |
|
|
(2,161 |
) |
|
|
(8,923 |
) |
|
|
719 |
|
Change in
prepaid domain registration costs |
|
(512 |
) |
|
|
(535 |
) |
|
|
(2,673 |
) |
|
|
(2,178 |
) |
Other
expenses |
|
6 |
|
|
|
5 |
|
|
|
11 |
|
|
|
4 |
|
Foreign
currency exchange income |
|
(17 |
) |
|
|
- |
|
|
|
(17 |
) |
|
|
- |
|
Taxes on
income |
|
772 |
|
|
|
984 |
|
|
|
2,765 |
|
|
|
3,367 |
|
Acquisition related expenses |
|
- |
|
|
|
614 |
|
|
|
- |
|
|
|
2,708 |
|
Interest,
bank charges & other financial expenses (income), net |
|
740 |
|
|
|
1,520 |
|
|
|
2,172 |
|
|
|
472 |
|
Unrealized gains on hedging transactions |
|
140 |
|
|
|
(902 |
) |
|
|
1,243 |
|
|
|
73 |
|
Total adjustments |
$ |
(2,497 |
) |
|
$ |
(1,837 |
) |
|
$ |
(6,155 |
) |
|
$ |
2,015 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
7,025 |
|
|
$ |
17,877 |
|
|
$ |
14,721 |
|
|
$ |
42,588 |
|
|
|
|
|
|
|
|
|
Investor Relations:
Ryan Gee
Wix.com
ir@wix.com
415-223-2610
Media Relations:
Vivian Hernandez
Wix.com
pr@wix.com
415-517-6539
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