NEW YORK, Feb. 20, 2019 /PRNewswire/ -- Wix.com Ltd.
(Nasdaq: WIX) today reported financial results for the fourth
quarter and full year ended December 31,
2018. In addition, the Company provided its initial outlook
for the first quarter and full year 2019.
"Wix's ability to develop a best-in-class product experience
drove strong results in 2018," said Avishai
Abrahami, Co-founder and CEO of Wix. "In 2018 we rolled out
more products than ever before, and in 2019 we are looking forward
to delivering these products to users and expanding our reach into
new and exciting markets. We believe that these new products and
markets will drive growth in the coming years. I'm thrilled with
the progress we have made in giving our users even more tools to
create without limits and look forward to an exciting 2019."
Lior Shemesh, CFO of Wix, added,
"2018 marked our fifth consecutive year of greater than 40% revenue
growth since our IPO in combination with record margin expansion,
driving free cash flow of over $100
million. This combination of growth and profitability
highlights our ability to generate positive returns on investments
in our business. Our 2019 outlook reflects continued growth from
existing and new products as we plan to make additional investments
this year to bring these new products to market and expand into new
markets. Additionally, the strategic change we initiated last year
of a greater focus on generating higher value from our user cohorts
is producing early signs of success. We believe this new initiative
along with new products and the expansion of our addressable market
will continue to deliver strong growth for years to come."
Q4 2018 and Full Year 2018 Financial Summary
|
Three months
ended
December
31,
|
|
|
$ in
thousands
|
2017
|
2018
|
|
Y/Y
growth
|
|
Prior Q4 2018
Outlook
|
Revenue
|
$118,545
|
$164,197
|
|
39%
|
|
$161,000 –
162,000
|
Collections
|
$132,203
|
$176,058
|
|
33%
|
|
$176,000 –
178,000
|
Operating
(Loss)
|
$(7,523)
|
$(2,173)
|
|
NA
|
|
|
Non-GAAP Operating
Income
|
$9,703
|
$18,811
|
|
94%
|
|
|
Net Cash Provided by
Operating Activities
|
$24,941
|
$36,055
|
|
45%
|
|
|
Free Cash
Flow
|
$19,555
|
$32,664
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
December
31,
|
|
|
$ in
thousands
|
2017
|
2018
|
|
Y/Y
growth
|
|
Prior FY 2018
Outlook
|
Revenue
|
$425,636
|
$603,704
|
|
42%
|
|
$601,000 –
602,000
|
Collections
|
$483,989
|
$658,385
|
|
36%
|
|
$658,000 –
660,000
|
Operating
(Loss)
|
$(50,011)
|
$(30,630)
|
|
NA
|
|
|
Non-GAAP
Operating
Income
|
$9,099
|
$47,244
|
|
419%
|
|
|
Net Cash Provided by
Operating Activities
|
$83,052
|
$115,709
|
|
39%
|
|
|
Free Cash
Flow
|
$70,683
|
$101,633
|
|
44%
|
|
$101,000 –
103,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Q4 2018 Results and Highlights
- Gross margin on a GAAP basis in the fourth quarter of 2018 was
79%, compared to 85% in the fourth quarter of 2017; non-GAAP gross
margin in the fourth quarter of 2018, calculated as non-GAAP gross
profit as a percent of revenue, was 80%, compared to 85% in the
fourth quarter of 2017
-
- Under ASC 605, fourth quarter 2018 GAAP gross margin as a
percent of revenue would have also been 79%
- Results in the fourth 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
early last year. As previously stated, the initial impact is an
approximately $30 million benefit to
FY 2018 revenue and collections. This impact also has resulted in a
year-over-year decrease in our GAAP and non-GAAP gross margins
- GAAP net loss in the fourth quarter of 2018 was $(5.8) million, or $(0.12) per share, compared to a net loss of
$(6.6) million, or $(0.14) per share, for the fourth quarter of
2017
- Non-GAAP net income in the fourth quarter of 2018 was
$20.8 million, or $0.42 per share, compared to a non-GAAP net
income of $7.2 million, or
$0.16 per share for the fourth
quarter of 2017
- Net cash provided by operating activities in the fourth quarter
of 2018 was $36.1 million, while
capital expenditures totaled $3.4
million, leading to free cash flow of $32.7 million, compared to $19.6 million of free cash flow in the fourth
quarter of 2017, a 67% year over year increase
- Added 147,000 net premium subscriptions in the fourth quarter
of 2018 to reach 4.0 million as of December
31, 2018, a 24% increase over the total number of
subscriptions at the end of 2017
- Added 5.9 million registered users in the fourth quarter of
2018. Registered users as of December 31,
2018 were 142 million, representing a 19% increase compared
to the end of the fourth quarter of 2017
Additional Full Year 2018 Results and Highlights
- Revenue for the full year 2018 was $603.7 million, or 42% y/y growth. Collections
for the full year 2018 was $658.4
million, or 36% y/y growth
-
- Had foreign exchange rates remained constant from when we
provided our initial full year 2018 guidance in February,
collections would have been approximately $10.2 million higher, or $668.6 million, 38% higher than the prior
year
- Gross margin on a GAAP basis for the full year 2018 was 79%,
compared to 84% in 2017; non-GAAP gross margin in the full year
2018 was 80%, compared to 85% in 2017
-
- Under ASC 605, full year 2018 GAAP gross margin as a percent of
revenue would have also been 79%
- Results in 2018 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 early last
year as described above
- GAAP net loss for the full year 2018 was $(37.1) million, or $(0.77) per share, compared to a net loss of
$(56.3) million, or $(1.24), per share in 2017
- Non-GAAP net income for the full year 2018 was $51.3 million, or $1.07 per share, compared to a non-GAAP net loss
of $(0.5) million, or $(0.01) per share, in 2017
- Net cash provided by operating activities for the full year
2018 was $115.7 million, while
capital expenditures totaled $14.1
million, leading to free cash flow of $101.6 million, compared to $70.7 million of free cash flow in 2017, a 44%
year-over-year increase
Recent Business Highlights
- Launched Ascend by Wix: In December, we launched Ascend
by Wix, a suite of 20 products that allows businesses to easily
connect with and manage their customer base, as well as promote and
grow their brand and business online. Ascend is now open to users
in all languages.
- Introduce Wix Turbo: We plan to announce Wix Turbo, a
platform-wide performance boost that improves speeds across all Wix
websites. With Wix Turbo, the Wix platform has been supercharged to
ensure Wix sites are faster than ever.
- Began Roll Out of Wix Payments: We recently introduced
Wix Payments to users in the U.S. Wix Payments users benefit from
being able to manage their entire business, from orders to
payments, on one platform, including reviewing transaction and
payout details in the Wix Payments Dashboard. We plan to launch Wix
Payments in the U.K. in Q1 and other countries in Europe and in Asia throughout the year.
- Wix Answers Closes Agreement with MyHeritage: We
recently signed an agreement with MyHeritage, which will be
utilizing the Wix Answers Knowledge Base, ticketing system, and
call center tools. This is one of the first enterprise class
clients to use the full Wix Answers product. We are in the process
of hiring a team to expand the reach of this product.
- Wix Partners with Universities: Our Academic
Partnerships team has been working with schools and universities
all over the U.S. to make Wix a part of their curriculum. These
partnerships are aimed at helping students establish an online
presence and learn why it's such a critical part of any career
path. For example, Wix partnered with the University of South Carolina and is now integrated
into several different courses that form part of the school's
Internet Retailing program. We also have launched a Wix for
Students program where we offer discounted premium plans to
verified current students and various schools.
Financial Outlook
Wix is introducing its outlook for the first quarter 2019:
|
Q1 2019
Outlook
|
|
Y/Y growth
|
Revenue
|
$172 - $173
million
|
|
25-26%
|
Collections
|
$196 - $197
million
|
|
23%
|
|
|
|
|
Wix is also introducing its outlook for the full year 2019. This
full year guidance reflects incremental investment of approximately
$15-20 million to support new growth
initiatives. The positive impact to collections and revenue growth
that we believe will result from this investment is not fully
incorporated into our 2019 collections and revenue guidance.
Excluding this incremental investment, our FCF guidance would be
$150 – $155
million, or 18-19% of the midpoint of 2019 collections
guidance.
|
|
|
|
FY 2019
Outlook
|
|
Y/Y growth
|
Revenue
|
$755 - $761
million
|
|
25% – 26%
|
Collections
|
$817 - $827
million
|
|
24% – 26%
|
Free Cash
Flow
|
$135 - $140
million
|
|
33% – 38%
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30 a.m. ET on Wednesday, February 20, 2019 to answer questions
about the financial and operational performance of the business for
the fourth quarter and full year ended December 31, 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 +1-877-270-2148 (US/ Canada),
+1-412-902-6510 (International) or 1-809-212-373 (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
February 27, 2019 at 11:59 p.m. ET by dialing +1-877-344-7529 and
providing Conference ID 10128095.
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 website
development platform for over 147 million registered users
worldwide today. The Wix website builder 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, Ascend by Wix 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 and Pinterest
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), non-GAAP net income
(loss), non-GAAP net income (loss) per share , non-GAAP research
and development, non-GAAP selling and marketing, non-GAAP general
and administrative and free cash flow (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.
Non-GAAP research and development represents research and
development expenses calculated in accordance with GAAP as adjusted
for the impact of share-based compensation expense,
acquisition-related expenses and amortization. Non-GAAP selling and
marketing represents selling and marketing expenses calculated in
accordance with GAAP as adjusted for the impact of share-based
compensation expense, acquisition-related expenses and
amortization. Non-GAAP general and administrative represents
general and administrative expenses calculated in accordance with
GAAP as adjusted for the impact of share-based compensation expense
and acquisition-related expenses. 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 "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
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 document 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 document,
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 create
new and higher monetization opportunities from our premium
subscriptions; our ability to enter into new markets and attract
new customer segments; our ability to maintain and enhance our
brand and reputation; our prediction of the future collections
generated by our user cohorts; our share repurchases made pursuant
to our share repurchase plan; 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; the
success of our sales efforts; customer acceptance and satisfaction
of new products and other challenges inherent in new product
development; changes to technologies used in our solutions; or
changes 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
Wix.com
ir@wix.com
415-223-2624
Media Relations:
Vivian
Hernandez
Wix.com
pr@wix.com
415-517-6539
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
118,545
|
|
$
164,197
|
|
$
425,636
|
|
$
603,704
|
Cost of
revenue
|
17,676
|
|
34,489
|
|
69,391
|
|
126,947
|
Gross
Profit
|
100,869
|
|
129,708
|
|
356,245
|
|
476,757
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research
and development
|
43,965
|
|
54,558
|
|
153,635
|
|
198,912
|
Selling
and marketing
|
50,906
|
|
61,065
|
|
204,435
|
|
249,178
|
General
and administrative
|
13,521
|
|
16,258
|
|
48,186
|
|
59,297
|
Total operating
expenses
|
108,392
|
|
131,881
|
|
406,256
|
|
507,387
|
Operating
loss
|
(7,523)
|
|
(2,173)
|
|
(50,011)
|
|
(30,630)
|
Financial expenses, net
|
(1,142)
|
|
(1,688)
|
|
(5,015)
|
|
(2,794)
|
Other
income (expenses)
|
79
|
|
(590)
|
|
76
|
|
(489)
|
Loss before taxes on
income
|
(8,586)
|
|
(4,451)
|
|
(54,950)
|
|
(33,913)
|
Taxes on
income
|
(1,981)
|
|
1,302
|
|
1,323
|
|
3,207
|
Net loss
|
$
(6,605)
|
|
$
(5,753)
|
|
$
(56,273)
|
|
$
(37,120)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.14)
|
|
$
(0.12)
|
|
$
(1.24)
|
|
$
(0.77)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
46,267,701
|
|
49,053,599
|
|
45,552,199
|
|
48,017,188
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
85,230
|
|
$
331,057
|
Short term
deposits
|
115,382
|
|
349,619
|
Restricted cash and
deposit
|
949
|
|
1,149
|
Marketable
securities
|
32,730
|
|
22,992
|
Trade
receivables
|
11,400
|
|
13,528
|
Prepaid expenses and
other current assets
|
19,246
|
|
11,939
|
Total current
assets
|
264,937
|
|
730,284
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
16,201
|
|
21,947
|
Marketable
securities
|
-
|
|
47,225
|
Prepaid expenses and
other long-term assets
|
3,823
|
|
3,065
|
Intangible assets and
goodwill, net
|
45,052
|
|
42,229
|
Total long-term
assets
|
65,076
|
|
114,466
|
|
|
|
|
Total
assets
|
$
330,013
|
|
$
844,750
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
34,240
|
|
$
45,567
|
Employees and payroll
accruals
|
28,067
|
|
32,036
|
Deferred
revenues
|
202,482
|
|
227,226
|
Accrued expenses and
other current liabilities
|
37,592
|
|
35,564
|
Total current
liabilities
|
302,381
|
|
340,393
|
|
|
|
|
Long term deferred
revenues
|
14,329
|
|
12,494
|
Long term deferred
tax liability
|
764
|
|
602
|
Convertible senior
notes
|
-
|
|
337,777
|
Long term
loan
|
1,219
|
|
1,219
|
Total long term
liabilities
|
16,312
|
|
352,092
|
|
|
|
|
Total
liabilities
|
318,693
|
|
692,485
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
80
|
|
88
|
Additional
paid-in capital
|
311,107
|
|
472,239
|
Other
comprehensive loss
|
(286)
|
|
(1,691)
|
Accumulated
deficit
|
(299,581)
|
|
(318,371)
|
Total shareholders'
equity
|
11,320
|
|
152,265
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
330,013
|
|
$
844,750
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(6,605)
|
|
$
(5,753)
|
|
$
(56,273)
|
|
$
(37,120)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
1,560
|
|
2,418
|
|
5,654
|
|
8,724
|
Amortization
|
341
|
|
732
|
|
2,753
|
|
2,784
|
Share based
compensation expenses
|
13,704
|
|
20,127
|
|
47,700
|
|
72,330
|
Amortization of debt
discount and debt issuance costs
|
-
|
|
5,039
|
|
-
|
|
10,004
|
Decrease (increase)
in accrued interest and exchange rate on short term and long term
deposits
|
(395)
|
|
807
|
|
(555)
|
|
(583)
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
(77)
|
|
(185)
|
|
(77)
|
|
(99)
|
Deferred income
taxes, net
|
(2,278)
|
|
(213)
|
|
(2,719)
|
|
(959)
|
Decrease (increase)
in trade receivables
|
138
|
|
877
|
|
(1,936)
|
|
(2,128)
|
Decrease (increase)
in prepaid expenses and other current and long-term
assets
|
905
|
|
6,372
|
|
(1,824)
|
|
(3,665)
|
Increase (decrease)
in trade payables
|
(7,145)
|
|
5,367
|
|
11,834
|
|
10,933
|
Increase (decrease)
in employees and payroll accruals
|
5,955
|
|
(3,220)
|
|
5,627
|
|
2,843
|
Increase in short
term and long term deferred revenues
|
13,658
|
|
11,861
|
|
58,353
|
|
54,681
|
Increase (decrease)
in accrued expenses and other current liabilities
|
5,180
|
|
(8,174)
|
|
14,515
|
|
(2,036)
|
Net cash provided by
operating activities
|
24,941
|
|
36,055
|
|
83,052
|
|
115,709
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
1,869
|
|
88,999
|
|
52,311
|
|
204,125
|
Investment in
short-term deposits and restricted deposits
|
(32,056)
|
|
(113,200)
|
|
(88,706)
|
|
(437,979)
|
Investment in
marketable securities
|
(33,189)
|
|
(6,306)
|
|
(33,189)
|
|
(58,963)
|
Proceeds from
marketable securities
|
245
|
|
5,261
|
|
245
|
|
21,054
|
Purchase of property
and equipment
|
(5,269)
|
|
(3,312)
|
|
(11,649)
|
|
(13,684)
|
Capitalization of
software development costs
|
(117)
|
|
(79)
|
|
(720)
|
|
(392)
|
Purchases of
investments in privately-held companies
|
-
|
|
(1,250)
|
|
-
|
|
(1,250)
|
Investment in other
long-term assets
|
-
|
|
-
|
|
-
|
|
(500)
|
Acquisition of
Intangible assets
|
(75)
|
|
-
|
|
(75)
|
|
-
|
Payment for
Businesses acquired
|
-
|
|
-
|
|
(33,091)
|
|
-
|
Net cash used in
investing activities
|
(68,592)
|
|
(29,887)
|
|
(114,874)
|
|
(287,589)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
4,978
|
|
4,923
|
|
24,158
|
|
32,896
|
Proceeds from
issuance of convertible senior notes
|
-
|
|
-
|
|
-
|
|
442,750
|
Payments of debt
issuance costs
|
-
|
|
-
|
|
-
|
|
(12,601)
|
Purchase of capped
call
|
-
|
|
-
|
|
-
|
|
(45,338)
|
Credit line
repayment
|
-
|
|
-
|
|
(170)
|
|
-
|
Net cash provided by
financing activities
|
4,978
|
|
4,923
|
|
23,988
|
|
417,707
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(38,673)
|
|
11,091
|
|
(7,834)
|
|
245,827
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
123,903
|
|
319,966
|
|
93,064
|
|
85,230
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
85,230
|
|
$
331,057
|
|
$
85,230
|
|
$
331,057
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
118,545
|
|
$
164,197
|
|
$
425,636
|
|
$
603,704
|
Collections
|
$
132,203
|
|
$
176,058
|
|
$
483,989
|
|
$
658,385
|
Free Cash
Flow
|
$
19,555
|
|
$
32,664
|
|
$
70,683
|
|
$
101,633
|
Number of registered
users at period end (*)
|
119,264
|
|
142,439
|
|
119,264
|
|
142,439
|
Number of premium
subscriptions at period end (*)
|
3,223
|
|
3,983
|
|
3,223
|
|
3,983
|
|
|
|
|
|
|
|
|
(*) Excludes users
and subscriptions of DeviantArt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
118,545
|
|
$
164,197
|
|
$
425,636
|
|
$
603,704
|
Change in deferred
revenues
|
13,658
|
|
11,861
|
|
58,353
|
|
54,681
|
Collections
|
$
132,203
|
|
$
176,058
|
|
$
483,989
|
|
$
658,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
946
|
|
$
1,150
|
|
$
2,930
|
|
$
4,418
|
Research
and development
|
7,725
|
|
11,090
|
|
26,227
|
|
39,417
|
Selling
and marketing
|
1,562
|
|
2,779
|
|
6,585
|
|
9,770
|
General
and administrative
|
3,471
|
|
5,108
|
|
11,958
|
|
18,725
|
Total
share based compensation expenses
|
13,704
|
|
20,127
|
|
47,700
|
|
72,330
|
(2)
Amortization
|
379
|
|
732
|
|
2,753
|
|
2,784
|
(3) Acquisition
related expenses
|
3,143
|
|
125
|
|
8,657
|
|
2,760
|
(4) Amortization of
debt discount and debt issuance costs
|
-
|
|
5,039
|
|
-
|
|
10,004
|
(5) Loss on
investment in other long term assets
|
-
|
|
500
|
|
-
|
|
500
|
(6) Taxes on
income
|
(3,386)
|
|
-
|
|
(3,386)
|
|
-
|
Total adjustments of
GAAP to Non GAAP
|
$
13,840
|
|
$
26,523
|
|
$
55,724
|
|
$
88,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
100,869
|
|
$
129,708
|
|
$
356,245
|
|
$
476,757
|
Share based
compensation expenses
|
946
|
|
1,150
|
|
2,930
|
|
4,418
|
Amortization
|
(1,292)
|
|
142
|
|
505
|
|
568
|
Acquisition related
expenses
|
-
|
|
-
|
|
28
|
|
-
|
Non GAAP Gross
Profit
|
100,523
|
|
131,000
|
|
359,708
|
|
481,743
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
85%
|
|
80%
|
|
85%
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING INCOME
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(7,523)
|
|
$
(2,173)
|
|
$
(50,011)
|
|
$
(30,630)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
13,704
|
|
20,127
|
|
47,700
|
|
72,330
|
Amortization
|
379
|
|
732
|
|
2,753
|
|
2,784
|
Acquisition related
expenses
|
3,143
|
|
125
|
|
8,657
|
|
2,760
|
Total
adjustments
|
$
17,226
|
|
$
20,984
|
|
$
59,110
|
|
$
77,874
|
|
|
|
|
|
|
|
|
Non GAAP operating
income
|
$
9,703
|
|
$
18,811
|
|
$
9,099
|
|
$
47,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(6,605)
|
|
$
(5,753)
|
|
$
(56,273)
|
|
$
(37,120)
|
Share based
compensation expense
and other Non GAAP adjustments
|
13,840
|
|
26,523
|
|
55,724
|
|
88,378
|
Non-GAAP net
income/(loss)
|
$
7,235
|
|
$
20,770
|
|
$
(549)
|
|
$
51,258
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income/(loss) per share
|
$
0.16
|
|
$
0.42
|
|
$
(0.01)
|
|
$
1.07
|
Weighted average
shares used in computing
basic Non GAAP net income/(loss) per share
|
46,267,701
|
|
49,053,599
|
|
45,552,199
|
|
48,017,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
24,941
|
|
$
36,055
|
|
$
83,052
|
|
$
115,709
|
Capital expenditures,
net
|
(5,386)
|
|
(3,391)
|
|
(12,369)
|
|
(14,076)
|
Free Cash
Flow
|
$
19,555
|
|
$
32,664
|
|
$
70,683
|
|
$
101,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number
of shares outstanding
|
46,267,701
|
|
49,053,599
|
|
45,552,199
|
|
48,017,188
|
The following items
have been excluded from
the diluted weighted average number of shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
8,212,554
|
|
7,676,713
|
|
8,212,554
|
|
7,676,713
|
Restricted share
units
|
2,081,646
|
|
2,090,512
|
|
2,081,646
|
|
2,090,512
|
|
56,561,901
|
|
58,820,824
|
|
55,846,399
|
|
57,784,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
YearEnding
|
|
March 31,
2019
|
|
December 31,
2019
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
172,000
|
|
173,000
|
|
755,000
|
|
761,000
|
Projected change in
deferred revenues
|
24,000
|
|
24,000
|
|
62,000
|
|
66,000
|
Projected
collections
|
$
196,000
|
|
$
197,000
|
|
$
817,000
|
#
|
$
827,000
|
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - GAAP
|
2018 RECONCILIATION
OF ASC 606 TO ASC 605
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December
31,
|
|
2018
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
ASC 606
|
|
ASC 605
|
|
Impact
|
|
|
|
|
|
|
Revenues
|
$
603,704
|
|
$
596,827
|
|
$
6,877
|
y/y%
|
42%
|
|
40%
|
|
|
Cost of
revenues
|
126,947
|
|
123,257
|
|
3,690
|
Gross
Profit
|
476,757
|
|
473,570
|
|
3,187
|
GM%
|
79%
|
|
79%
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
198,912
|
|
198,912
|
|
-
|
Marketing
|
249,178
|
|
249,178
|
|
-
|
General and
administrative
|
59,297
|
|
59,297
|
|
-
|
Total operating
expenses
|
507,387
|
|
507,387
|
|
-
|
|
|
|
|
|
|
Operating
loss
|
(30,630)
|
|
(33,817)
|
|
3,187
|
Financial income
(expenses), net
|
(2,794)
|
|
(2,794)
|
|
-
|
Other
expenses
|
(489)
|
|
(489)
|
|
-
|
|
|
|
|
|
|
Loss before taxes on
income
|
(33,913)
|
|
(37,100)
|
|
3,187
|
Taxes on
income
|
3,207
|
|
3,207
|
|
-
|
Net loss
|
(37,120)
|
|
(40,307)
|
|
3,187
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.77)
|
|
$
(0.84)
|
|
$
0.08
|
Basic and diluted
weighted-average shares
used to compute net loss per share
|
48,017,188
|
|
48,017,188
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Non
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Total
Adjustments
|
$
88,378
|
|
$
88,378
|
|
$
-
|
Non GAAP operating
income
|
$
47,244
|
|
$
44,057
|
|
$
3,187
|
Non-GAAP net
income
|
$
51,258
|
|
$
48,071
|
|
$
3,187
|
Basic Non GAAP net
income per share
|
$
1.07
|
|
$
1.00
|
|
$
0.06
|
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SOURCE Wix.com Ltd.