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.