NEW YORK, July 24, 2019 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the second quarter ended June 30, 2019, exceeding its prior guidance. In
addition, the Company provided its initial outlook for the third
quarter 2019 and raised its outlook for the full year, reflecting
accelerating collections growth for the second half of the
year.
"Our ongoing strong top line performance reflects success across
multiple growth drivers, including vast improvements to our
overall product offering and increasing adoption of complementary
products. These results validate the increasing value we provide to
our evolving user base. We have made tremendous progress with
multiple new initiatives, and I believe these will drive growth in
the second half of this year and beyond," said Avishai Abrahami, Co-founder and CEO of Wix.
Lior Shemesh, CFO of Wix, said,
"We continue to grow the value of our user base through new product
offerings and increasing monetization. We now expect future
collections of existing user cohorts to be $5.9 billion over the next eight years,
which is an increase of 28% Y/Y. Our results continue to show the
strength of our financial model and our ability to drive profitable
growth, which we believe will continue through this year and for
many years to come."
Commenting on the recently announced initiative to expand
Customer Solutions, Nir Zohar, President and COO of Wix, said, "Our
expanding Customer Solutions organization is ramping quickly as we
have added resources and are implementing many new processes to
enable personalized support for users. Initial data is very
positive, and we continue to believe this initiative will fuel
additional growth."
Q2 2019 Financial Summary
|
Three months
ended
June 30,
|
|
$ in
thousands
|
2018
|
2019
|
|
Y/Y growth
|
|
Prior Q2 2019
Outlook
|
Revenue
|
$146,132
|
$185,419
|
|
27%
|
|
$182,000 –
184,000
|
Collections
|
$159,895
|
$199,563
|
|
25%
|
|
$197,000 –
199,000
|
Operating
(Loss)
|
$(6,507)
|
$(14,161)
|
|
NA
|
|
|
Non-GAAP Operating
Income
|
$12,939
|
$14,195
|
|
10%
|
|
|
Net Cash Provided
by
Operating Activities
|
$27,268
|
$37,180
|
|
36%
|
|
|
Free Cash
Flow
|
$23,857
|
$30,754
|
|
29%
|
|
|
|
|
|
|
|
|
|
Additional Q2 2019 Results and Highlights
- Gross margin on a GAAP basis in the second quarter of 2019 was
75%, compared to 79% in the second quarter of 2018
- Non-GAAP gross margin in the second quarter of 2019, calculated
as non-GAAP gross profit as a percent of revenue, was 76%, compared
to 80% in the second quarter of 2018
- GAAP net loss in the second quarter of 2019 was $(16.7) million, or $(0.33) per share, compared to a net loss of
$(5.6) million, or $(0.12) per share, for the second quarter of
2018
- Non-GAAP net income in the second quarter of 2019 was
$17.0 million, or $0.34 per share, compared to non-GAAP net income
of $13.8 million, or $0.29 per share for the second quarter of
2018
- Net cash provided by operating activities in the second quarter
of 2019 was $37.2 million, while
capital expenditures totaled $6.4
million, leading to free cash flow of $30.8 million, compared to $23.9 million of free cash flow in the second
quarter of 2018, a 29% year-over-year increase
- Added 132,000 net premium subscriptions in the second quarter
of 2019 to reach 4.3 million as of June 30,
2019, a 17% increase over the total number of premium
subscriptions at the end of the second quarter of 2018
- Added 5.7 million registered users in the second quarter of
2019. Registered users as of June 30,
2019 were 154 million, representing an 18% increase compared
to the end of the second quarter of 2018
Recent Business Highlights
- Multiple new initiatives indicating strong future growth
potential: The progress of several new initiatives under
development at Wix are demonstrating the ability to contribute
growth in the future. To highlight a few:
- When we launched Corvid by Wix, we did so to expand our
addressable market to professionals - this expansion is happening
as more professionals are coming to Wix than ever before
- Gaining momentum with Agency Partners - tens of
thousands use Wix today
- Significant progress in expanding Customer Support
organization - now providing 24/7 support globally and
implementing procedures to provide personalized support
- Share of Wix Payments of total GMV rapidly
increasing as total GMV continues to climb, demonstrating strong
momentum as global rollout continues
- Over 500,000 Wix users with premium subscriptions have used at
least one component of Ascend by Wix in the last 30
days, illustrating this product's enormous market potential
- Announced new operations in Japan: We announced expanded
operations in Japan with the
opening of an office in Tokyo in
order to drive further growth in this market. Through the
development of partnerships, targeted marketing and dedicated
customer support, these new operations will improve our ability to
serve this fast-growing market.
- Acquired Gefen Team to form a new creative group within
Wix: In May, we completed an acquihire of the Tel Aviv-based creative agency in support of
our goal to become a top 100 brand globally. The Gefen Team, an
award-winning creative agency, joined the Wix marketing team
full time, and Founder Eran Gefen is
now the Vice President of Creative at Wix.
- Launched global partnership with eSports and entertainment
organization FaZe Clan: As part of our brand strategy, we have
partnered with FaZe Clan to connect with current and future
customers through integrated social and digital content. Wix will
become FaZe Clan's official website development and design partner.
Wix branding will also be featured on the official FaZe Clan team
shirt, and Wix will serve as an official supporter of FaZe Clan's
Professional Fortnite team. This is our first eSports partnership
and part of our ongoing sports marketing efforts.
- Hosting the second annual Wix Design Playground: We
are hosting a three-month design program in New York in which participants develop and
hone their web design skills. A major initiative over the course of
the program is the Social Good Project in which each designer helps
a local non-profit to build an online presence and manage the
outreach to their communities using the Wix platform.
Financial Outlook
Wix is introducing its outlook for the third quarter 2019:
|
Q3 2019
Outlook
|
|
Y/Y growth
|
Revenue
|
$196 -
$198 million
|
|
26% - 27%
|
Collections
|
$204 -
$206 million
|
|
25% - 27%
|
|
|
|
|
Wix is also updating its outlook for the full year 2019:
|
Updated
FY 2019
Outlook
|
|
Y/Y growth
|
|
Prior
FY 2019
Outlook
|
Revenue
|
$761 -
$765 million
|
|
26% - 27%
|
|
$758 - $763
million
|
Collections
|
$825 -
$831 million
|
|
25% - 26%
|
|
$822 - $830
million
|
Free Cash
Flow
|
$123 -
$126 million
|
|
21% - 24%
|
|
$122 - $126
million
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Wednesday, July 24, 2019 to answer questions
about the financial and operational performance of the business for
the second quarter ended June 30,
2019. 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
July 31, 2019 at 11:59 p.m. ET by dialing +1-877-344-7529 and
providing Conference ID 10133234.
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 150 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 Corvid by Wix
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, Tokyo 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 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 and non-operating
foreign exchange expenses (income). 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 "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, including, but not limited to revenue,
collections and free cash flow, 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 2018 annual report on
Form 20-F filed with the Securities and Exchange Commission on
April 9, 2019. 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
investors.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
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
146,132
|
|
$
185,419
|
|
$
283,907
|
|
$
359,709
|
Cost of
revenue
|
30,437
|
|
46,662
|
|
59,481
|
|
86,377
|
Gross
Profit
|
115,695
|
|
138,757
|
|
224,426
|
|
273,332
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
48,492
|
|
61,486
|
|
94,994
|
|
119,669
|
Selling and
marketing
|
58,855
|
|
71,329
|
|
125,866
|
|
157,047
|
General and
administrative
|
14,855
|
|
20,103
|
|
28,525
|
|
38,569
|
Total operating
expenses
|
122,202
|
|
152,918
|
|
249,385
|
|
315,285
|
Operating
loss
|
(6,507)
|
|
(14,161)
|
|
(24,959)
|
|
(41,953)
|
Financial expenses,
net
|
1,532
|
|
(580)
|
|
1,403
|
|
(2,310)
|
Other income
(expenses)
|
63
|
|
8
|
|
84
|
|
32
|
Loss before taxes on
income
|
(4,912)
|
|
(14,733)
|
|
(23,472)
|
|
(44,231)
|
Taxes on
income
|
728
|
|
2,001
|
|
1,979
|
|
3,243
|
Net loss
|
$
(5,640)
|
|
$
(16,734)
|
|
$
(25,451)
|
|
$
(47,474)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.12)
|
|
$
(0.33)
|
|
$
(0.54)
|
|
$
(0.95)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
47,689,337
|
|
50,273,017
|
|
47,258,381
|
|
49,917,692
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
June 30,
|
|
2018
|
|
2019
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
331,057
|
|
$
351,462
|
Short term
deposits
|
349,619
|
|
293,250
|
Restricted cash and
deposit
|
1,149
|
|
1,149
|
Marketable
securities
|
22,992
|
|
104,863
|
Trade
receivables
|
13,528
|
|
18,230
|
Prepaid expenses and
other current assets
|
11,939
|
|
25,774
|
Total current
assets
|
730,284
|
|
794,728
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
21,947
|
|
27,079
|
Marketable
securities
|
47,225
|
|
73,858
|
Prepaid expenses and
other long-term assets
|
3,065
|
|
2,623
|
Intangible assets and
goodwill, net
|
42,229
|
|
41,459
|
Operating lease
assets
|
-
|
|
57,327
|
Total long-term
assets
|
114,466
|
|
202,346
|
|
|
|
|
Total
assets
|
$
844,750
|
|
$
997,074
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
45,567
|
|
$
46,074
|
Employees and payroll
accruals
|
32,036
|
|
45,452
|
Deferred
revenues
|
227,226
|
|
262,259
|
Accrued expenses and
other current liabilities
|
35,564
|
|
42,972
|
Operating lease
liabilities
|
-
|
|
15,259
|
Total current
liabilities
|
340,393
|
|
412,016
|
|
|
|
|
Long term deferred
revenues
|
12,494
|
|
17,694
|
Long term deferred tax
liability
|
602
|
|
570
|
Convertible senior
notes
|
337,777
|
|
348,089
|
Long term
loan
|
1,219
|
|
1,219
|
Other long term
liabilities
|
-
|
|
2,074
|
Long term operating
lease liabilities
|
-
|
|
42,784
|
Total long term
liabilities
|
352,092
|
|
412,430
|
|
|
|
|
Total
liabilities
|
692,485
|
|
824,446
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
88
|
|
93
|
Additional paid-in
capital
|
472,239
|
|
537,799
|
Other comprehensive
loss
|
(1,691)
|
|
581
|
Accumulated
deficit
|
(318,371)
|
|
(365,845)
|
Total shareholders'
equity
|
152,265
|
|
172,628
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
844,750
|
|
$
997,074
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(5,640)
|
|
$
(16,734)
|
|
$
(25,451)
|
|
$
(47,474)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,196
|
|
2,927
|
|
4,093
|
|
5,585
|
Amortization
|
731
|
|
738
|
|
1,319
|
|
1,470
|
Share based
compensation expenses
|
17,769
|
|
27,565
|
|
33,443
|
|
52,472
|
Amortization of debt
discount and debt issuance costs
|
-
|
|
5,194
|
|
-
|
|
10,311
|
Decrease (increase) in
accrued interest and exchange rate on short term and long term
deposits
|
(545)
|
|
105
|
|
(897)
|
|
594
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
45
|
|
(10)
|
|
12
|
|
41
|
Deferred income taxes,
net
|
(307)
|
|
402
|
|
(405)
|
|
533
|
Decrease (increase) in
trade receivables
|
2,536
|
|
161
|
|
2,724
|
|
(4,532)
|
Increase in prepaid
expenses and other current and long-term assets
|
(8,277)
|
|
(3,942)
|
|
(17,549)
|
|
(11,141)
|
Increase (decrease) in
trade payables
|
3,826
|
|
(3,222)
|
|
3,382
|
|
1,328
|
Increase in employees
and payroll accruals
|
4,978
|
|
4,223
|
|
13,431
|
|
12,235
|
Increase in short term
and long term deferred revenues
|
13,763
|
|
14,144
|
|
35,643
|
|
40,233
|
Increase (decrease) in
accrued expenses and other current liabilities
|
(3,807)
|
|
5,629
|
|
2,302
|
|
10,599
|
Net cash provided by
operating activities
|
27,268
|
|
37,180
|
|
52,047
|
|
72,254
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
5,337
|
|
55,000
|
|
19,111
|
|
81,775
|
Investment in
short-term deposits and restricted deposits
|
(125,001)
|
|
-
|
|
(151,780)
|
|
(26,000)
|
Investment in
marketable securities
|
(11,576)
|
|
(108,693)
|
|
(14,979)
|
|
(136,616)
|
Proceeds from
marketable securities
|
11,496
|
|
21,601
|
|
14,436
|
|
29,056
|
Purchase of property
and equipment
|
(3,296)
|
|
(6,235)
|
|
(6,507)
|
|
(11,065)
|
Capitalization of
software development costs
|
(115)
|
|
(191)
|
|
(262)
|
|
(389)
|
Investment in other
long-term assets
|
(500)
|
|
-
|
|
(500)
|
|
-
|
Payment for Businesses
acquired
|
-
|
|
(2,800)
|
|
-
|
|
(2,800)
|
Net cash used in
investing activities
|
(123,655)
|
|
(41,318)
|
|
(140,481)
|
|
(66,039)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
11,587
|
|
7,512
|
|
21,891
|
|
14,190
|
Proceeds from issuance
of convertible senior notes
|
385,000
|
|
-
|
|
385,000
|
|
-
|
Payments of debt
issuance costs
|
(10,010)
|
|
-
|
|
(10,010)
|
|
-
|
Purchase of capped
call
|
(39,424)
|
|
-
|
|
(39,424)
|
|
-
|
Net cash provided by
financing activities
|
347,153
|
|
7,512
|
|
357,457
|
|
14,190
|
INCREASE IN CASH AND
CASH EQUIVALENTS
|
250,766
|
|
3,374
|
|
269,023
|
|
20,405
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
103,487
|
|
348,088
|
|
85,230
|
|
331,057
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
354,253
|
|
$
351,462
|
|
$
354,253
|
|
$
351,462
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
146,132
|
|
$
185,419
|
|
$
283,907
|
|
$
359,709
|
Collections
|
$
159,895
|
|
$
199,563
|
|
$
319,550
|
|
$
399,942
|
Free
Cash Flow
|
$
23,857
|
|
$
30,754
|
|
$
45,278
|
|
$
60,800
|
Number of registered
users at period end (*)
|
131,027
|
|
154,039
|
|
131,027
|
|
154,039
|
Number of premium
subscriptions at period end (*)
|
3,659
|
|
4,295
|
|
3,659
|
|
4,295
|
|
|
|
|
|
|
|
|
(*) Excludes users
and subscriptions of DeviantArt
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
146,132
|
|
$
185,419
|
|
$
283,907
|
|
$
359,709
|
Change in deferred
revenues
|
13,763
|
|
14,144
|
|
35,643
|
|
40,233
|
Collections
|
$
159,895
|
|
$
199,563
|
|
$
319,550
|
|
$
399,942
|
|
|
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
1,087
|
|
$
1,436
|
|
$
2,166
|
|
$
2,747
|
Research and
development
|
9,470
|
|
14,119
|
|
17,955
|
|
26,375
|
Selling and
marketing
|
2,352
|
|
4,506
|
|
4,394
|
|
9,254
|
General and
administrative
|
4,860
|
|
7,504
|
|
8,928
|
|
14,096
|
Total share based
compensation expenses
|
17,769
|
|
27,565
|
|
33,443
|
|
52,472
|
(2)
Amortization
|
731
|
|
738
|
|
1,319
|
|
1,470
|
(3) Acquisition
related expenses
|
946
|
|
53
|
|
2,374
|
|
53
|
(4) Amortization of
debt discount and debt issuance costs
|
-
|
|
5,194
|
|
-
|
|
10,311
|
(5) Non-operating
foreign exchange expenses (income)
|
-
|
|
140
|
|
-
|
|
1,592
|
Total adjustments of
GAAP to Non GAAP
|
$
19,446
|
|
$
33,690
|
|
$
37,136
|
|
$
65,898
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
115,695
|
|
$
138,757
|
|
$
224,426
|
|
$
273,332
|
Share based
compensation expenses
|
1,087
|
|
1,436
|
|
2,166
|
|
2,747
|
Amortization
|
142
|
|
141
|
|
284
|
|
283
|
Non GAAP Gross
Profit
|
116,924
|
|
140,334
|
|
226,876
|
|
276,362
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
80%
|
|
76%
|
|
80%
|
|
77%
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING INCOME
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(6,507)
|
|
$
(14,161)
|
|
$
(24,959)
|
|
$
(41,953)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
17,769
|
|
27,565
|
|
33,443
|
|
52,472
|
Amortization
|
731
|
|
738
|
|
1,319
|
|
1,470
|
Acquisition related
expenses
|
946
|
|
53
|
|
2,374
|
|
53
|
Total
adjustments
|
$
19,446
|
|
$
28,356
|
|
$
37,136
|
|
$
53,995
|
|
|
|
|
|
|
|
|
Non GAAP operating
income
|
$
12,939
|
|
$
14,195
|
|
$
12,177
|
|
$
12,042
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
LOSS TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER
SHARE
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(5,640)
|
|
$
(16,734)
|
|
$
(25,451)
|
|
$
(47,474)
|
Share based
compensation expense and other Non GAAP adjustments
|
19,446
|
|
33,690
|
|
37,136
|
|
65,898
|
Non-GAAP net
income
|
$
13,806
|
|
$
16,956
|
|
$
11,685
|
|
$
18,424
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income per share
|
$
0.29
|
|
$
0.34
|
|
$
0.25
|
|
$
0.37
|
Weighted average
shares used in computing basic Non GAAP net income per
share
|
47,689,337
|
|
50,273,017
|
|
47,258,381
|
|
49,917,692
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
27,268
|
|
$
37,180
|
|
$
52,047
|
|
$
72,254
|
Capital expenditures,
net
|
(3,411)
|
|
(6,426)
|
|
(6,769)
|
|
(11,454)
|
Free Cash
Flow
|
$
23,857
|
|
$
30,754
|
|
$
45,278
|
|
$
60,800
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
47,689,337
|
|
50,273,017
|
|
47,258,381
|
|
49,917,692
|
The following items
have been excluded from the diluted weighted average number of
shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
8,040,188
|
|
7,744,708
|
|
8,040,188
|
|
7,744,708
|
Restricted share
units
|
2,117,774
|
|
2,289,069
|
|
2,117,774
|
|
2,289,069
|
|
57,847,299
|
|
60,306,794
|
|
57,416,343
|
|
59,951,469
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
YearEnding
|
|
September 30,
2019
|
|
December 31,
2019
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
196,000
|
|
198,000
|
|
761,000
|
|
765,000
|
Projected change in
deferred revenues
|
8,000
|
|
8,000
|
|
64,000
|
|
66,000
|
Projected
collections
|
$
204,000
|
|
$
206,000
|
|
$
825,000
|
|
$
831,000
|
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SOURCE Wix.com Ltd.