NEW YORK, Nov. 14, 2019 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the third quarter ended September 30, 2019. In addition, the Company
provided its outlook for the fourth quarter 2019 and updated its
outlook for the full year.
"The investment in marketing to professionals we announced
earlier this year is already showing positive returns as agencies
continue to increase their engagement with Wix," said Avishai Abrahami, Co-founder and CEO of Wix. "We
continue to build out the Wix platform to provide the ability to
create any website or application online, and I am excited about
our momentum as we head into 2020."
Nir Zohar, President and COO of Wix, said, "Our results
this quarter reflect strong growth in the lifetime value of our
user cohorts. This growth has been driven by a combination of
increasing subscriptions and monetization per subscription, which
demonstrates the high value of our products and success with our
recent pricing optimization efforts."
Lior Shemesh, CFO of Wix, said,
"Our worldwide reach provides us with a global user base; however,
it also subjects us to changes in foreign exchange rates. We have
experienced strong growth this year, but our growth would be even
stronger excluding changes in FX rates. Using constant currency
rates on a year over year basis, we expect our revenue
for the full year 2019 would be approximately $10 million higher and collections would be
roughly $12 million higher, which
would equate to 28% year over year growth. Despite this headwind,
we are ending 2019 on a strong note and are excited about
2020."
Q3 2019 Financial Summary
|
Three months
ended
September
30,
|
|
$ in
thousands
|
2018
|
2019
|
|
Y/Y growth
|
|
Prior Q3 2019
Outlook
|
Revenue
|
$155,600
|
$196,791
|
|
26%
|
|
$196,000 –
198,000
|
Collections
|
$162,777
|
$205,860
|
|
26%
|
|
$204,000 –
206,000
|
Operating Income
(Loss)
|
$(3,498)
|
$(20,605)
|
|
NA
|
|
|
Non-GAAP Operating Income
|
$16,256
|
$12,258
|
|
(25)%
|
|
|
Net Cash Provided by
Operating Activities
|
$27,607
|
$36,073
|
|
31%
|
|
|
Free Cash
Flow
|
$23,691
|
$29,227
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
Additional Q3 2019 Results and Highlights
- Revenue in the third quarter was impacted by changes in foreign
exchange (FX) rates since Q3 guidance was provided in July, as well
as a change in revenue mix in the quarter
- Collections in the third quarter were impacted by changes in FX
rates since Q3 guidance was provided in July. Assuming constant FX
rates since Q3 guidance was issued in July, Q3 collections were
$207.0M, up 27% y/y
- Gross margin on a GAAP basis in the third quarter of 2019 was
73%, compared to 79% in the third quarter of 2018
- Non-GAAP gross margin in the third quarter of 2019, calculated
as non-GAAP gross profit as a percent of revenue, was 74%, compared
to 80% in the third quarter of 2018
-
- The decline in non-GAAP gross margin is attributed to the
growth of Wix Payments since its launch in Q4 2018, as well as the
investment in expanding our Customer Solutions globally to provide
a more personalized support experience for our users. We believe
this investment and Wix Payments will drive incremental collections
and revenue growth in 2020 and beyond
- GAAP operating loss in the third quarter of 2019 was
$(20.6) million, compared to GAAP
operating loss of $(3.5) million in
the third quarter of 2018
-
- The y/y growth in GAAP operating loss is due to the decline in
gross margin as a result of the growth in Wix Payments, the
investment we made in Customer Solutions, the increase in stock
based compensation expenses as a result of increases in our share
price and the accrual of approximately $3.2
million in sales tax expense in GAAP G&A expenses in Q3
2019
- Non-GAAP operating income in the third quarter of 2019 was
$12.3 million compared to non-GAAP
operating income of $16.3 million in
the third quarter of 2018.
-
- The y/y decline in non-GAAP operating income is attributed to
the decline in gross margin as a result of the growth in Wix
Payments, as well as the investment we made in Customer
Solutions
- GAAP net loss in the third quarter of 2019 was
$(17.4) million, or $(0.34) per
share, compared to a net loss of $(5.9) million, or
$(0.12) per share, for the third
quarter of 2018
- Non-GAAP net income in the third quarter of 2019 was
$20.8 million, or $0.41 per share, compared to non-GAAP net
income of $18.8 million, or
$0.39 per share for the third
quarter of 2018
- Net cash provided by operating activities in the third quarter
of 2019 was $36.1 million, while
capital expenditures totaled $6.8 million, leading to free cash flow of
$29.2 million, compared to
$23.7 million of free cash flow
in the third quarter of 2018, a 23% year-over-year increase
- Added 114,000 net premium subscriptions in the third
quarter of 2019 to reach 4.4 million as of September 30, 2019, a 15% increase over the total
number of premium subscriptions at the end of the third quarter of
2018
- Added 5.5 million registered users in the third quarter of
2019. Registered users as of September 30,
2019 were 160 million, representing a 17% increase
compared to the end of the third quarter of 2018
Recent Business Highlights
- Introduced Wix Partner Program: This quarter, we began
the roll out of the Wix Partner Program, which offers agencies
professional resources to achieve their business goals and deliver
custom solutions to their clients. The initial phase of this
program includes extended support, access to the tailored
dashboard, forum, and product betas, as well as migration support
and a complimentary business website. Future products and offerings
for this program are planned for early 2020
- Announced a strategic partnership with NTT Town
Page: In September, we announced a partnership with NTT
Town Page, which provides a leading Japanese business directory,
offering "NTT Town Page Digital Lead Powered by Wix" to NTT Town
Page small business customers across Japan. The service will include a complete
suite of products including website creation, site management,
e-commerce and SEO capabilities to power online marketing and
promotion for small and medium-sized businesses. As a result of
this venture, Wix will serve as the exclusive website platform
provider to NTT Town Page, positioning Wix to become the leading
digital marketing solution for millions of businesses in
Japan
- Introduced enhanced payment options in Japan: In August, we announced a
partnership with GMO Epsilon to provide a local payment option for
Wix merchants in Japan. Wix
businesses in Japan are now able
to offer GMO-EP's payment solutions to customers through their
online businesses, enabling credit card payments with lower
processing fees, direct bank transfers, and additional features to
make growing a business on Wix even more convenient
- Renewing of the share repurchase authorization: As
previously disclosed, Wix is authorized by the Israeli District
Court to repurchase up to $100
million of its ordinary shares from time to time, until
December 31, 2019, when the current
court authorization expires. Wix plans to file in the coming days a
motion seeking a renewed court approval in Israel to re-authorize the Company to
repurchase up to $100 million of its
ordinary shares from time to time until December 31, 2020, or a shorter period as
approved by the court. Wix expects the motion to be re-approved
before the expiration of the current authorization. Wix did not
repurchase any shares in the quarter ended September 30, 2019
Financial Outlook
Wix is introducing its outlook for the fourth quarter 2019:
|
Q4 2019
Outlook
|
|
Y/Y growth
|
Revenue
|
$204 -
$206 million
|
|
24% - 25%
|
Collections
|
$222 - $225
million
|
|
26% - 28%
|
|
|
|
|
Wix is also updating its outlook for the full year 2019. The
updated full year guidance is inclusive of changes in FX rates
since we last provided full year guidance in July. Had FX rates
stayed constant since that time, we would have raised FY 2019
collections guidance from the prior range of $825-$831 million
by approximately $3.5 million at the
midpoint of the range to $830-$833 million,
and FY 2019 free cash flow guidance from the prior range of
$123-$126
million by approximately $2.5
million at the midpoint of the range to $126-$128
million.
|
|
|
|
|
|
|
|
Updated FY 2019
Outlook
|
|
Y/Y growth
|
|
Updated FY 2019
Outlook (FX neutral
to July 2019)
|
|
Prior FY 2019
Outlook
|
|
Revenue
|
$761 - $763
million
|
|
26%
|
|
$762 - $764
million
|
|
$761 - $765
million
|
|
Collections
|
$828 - $831
million
|
|
26%
|
|
$830 - $833
million
|
|
$825 - $831
million
|
|
Free Cash
Flow
|
$124 - $126
million
|
|
22%-24%
|
|
$126 - $128
million
|
|
$123 - $126
million
|
|
|
|
|
|
|
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30 a.m. ET on Thursday, November 14, 2019 to answer questions
about the financial and operational performance of the business for
the third quarter ended September 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 +1-877-667-0467 (US/ Canada), +1-346-354-0953 (International)
or 1-809-315-362 (Israel) at
least ten minutes prior to the start time of the call and reference
Conference ID 6392716. A telephonic replay of the call will be
available through November 21, 2019
at 11:30 a.m. ET by dialing +1-855-859-2056 and providing
Conference ID 6392716.
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 160 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, cumulative
cohort collections, collections on a constant currency basis,
revenue on a constant currency basis, 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, acquisition-related expenses and sales tax
expense accrual. Non-GAAP net income (loss) represents net loss
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, amortization, sales tax expense
accrual, 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. The Company has also not reconciled future
collections over the next eight years from existing user cohorts.
Items that impact future revenue and deferred revenue over an eight
year period cannot be reasonably predicted. Accordingly, a
reconciliation to revenue 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," "aim," "forecast," "indication,"
"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 including through the launch of our Wix Partner
Program; 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, for example
through our recent strategic partnership with NTT Town Page and our
partnership with a Japanese payment provider, intended to expand
our reach to customers in Japan;
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, including through the recent
expansion of our Customer Solutions organization by engaging
additional agents around the world to provide 24/7 support in nine
different languages; 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
914-267-7390
Media Relations:
Vivian
Hernandez
Wix Press Room
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,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
155,600
|
|
$
196,791
|
|
$
439,507
|
|
$
556,500
|
Cost of
revenue
|
32,977
|
|
53,295
|
|
92,458
|
|
139,672
|
Gross
Profit
|
122,623
|
|
143,496
|
|
347,049
|
|
416,828
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
49,360
|
|
64,488
|
|
144,354
|
|
184,157
|
Selling and
marketing
|
62,247
|
|
75,862
|
|
188,113
|
|
232,909
|
General and
administrative
|
14,514
|
|
23,751
|
|
43,039
|
|
62,320
|
Total operating
expenses
|
126,121
|
|
164,101
|
|
375,506
|
|
479,386
|
Operating
loss
|
(3,498)
|
|
(20,605)
|
|
(28,457)
|
|
(62,558)
|
Financial expenses,
net
|
(2,509)
|
|
1,242
|
|
(1,106)
|
|
(1,068)
|
Other income
(expenses)
|
17
|
|
117
|
|
101
|
|
149
|
Loss before taxes on
income
|
(5,990)
|
|
(19,246)
|
|
(29,462)
|
|
(63,477)
|
Taxes on
income
|
(74)
|
|
(1,879)
|
|
1,905
|
|
1,364
|
Net loss
|
$
(5,916)
|
|
$
(17,367)
|
|
$
(31,367)
|
|
$
(64,841)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.12)
|
|
$
(0.34)
|
|
$
(0.66)
|
|
$
(1.29)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
48,498,392
|
|
50,862,253
|
|
47,671,718
|
|
50,232,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Period
ended
|
|
|
December
31,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
Assets
|
(audited)
|
|
(unaudited)
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
331,057
|
|
$
283,158
|
|
Short term
deposits
|
349,619
|
|
304,113
|
|
Restricted cash and
deposit
|
1,149
|
|
1,149
|
|
Marketable
securities
|
22,992
|
|
187,451
|
|
Trade
receivables
|
13,528
|
|
16,201
|
|
Prepaid expenses and
other current assets
|
11,939
|
|
27,229
|
|
Total current
assets
|
730,284
|
|
819,301
|
|
|
|
|
|
|
Long Term
Assets:
|
|
|
|
|
Property and
equipment, net
|
21,947
|
|
30,634
|
|
Marketable
securities
|
47,225
|
|
87,406
|
|
Prepaid expenses and
other long-term assets
|
3,065
|
|
4,093
|
|
Intangible assets and
goodwill, net
|
42,229
|
|
40,726
|
|
Operating lease
assets
|
-
|
|
53,979
|
|
Total long-term
assets
|
114,466
|
|
216,838
|
|
|
|
|
|
|
Total
assets
|
$
844,750
|
|
$
1,036,139
|
|
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Trade
payables
|
$
45,567
|
|
$
48,214
|
|
Employees and payroll
accruals
|
32,036
|
|
40,725
|
|
Deferred
revenues
|
227,226
|
|
269,379
|
|
Accrued expenses and
other current liabilities
|
35,564
|
|
47,410
|
|
Operating lease
liabilities
|
-
|
|
14,267
|
|
Total current
liabilities
|
340,393
|
|
419,995
|
|
|
|
|
|
|
Long term deferred
revenues
|
12,494
|
|
19,643
|
|
Long term deferred
tax liability
|
602
|
|
425
|
|
Convertible senior
notes
|
337,777
|
|
353,362
|
|
Long term
loan
|
1,219
|
|
1,219
|
|
Other long term
liabilities
|
-
|
|
2,482
|
|
Long term operating
lease liabilities
|
-
|
|
40,246
|
|
Total long term
liabilities
|
352,092
|
|
417,377
|
|
|
|
|
|
|
Total
liabilities
|
692,485
|
|
837,372
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
shares
|
88
|
|
94
|
|
Additional paid-in
capital
|
472,239
|
|
580,519
|
|
Other comprehensive
loss
|
(1,691)
|
|
1,366
|
|
Accumulated
deficit
|
(318,371)
|
|
(383,212)
|
|
Total shareholders'
equity
|
152,265
|
|
198,767
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
844,750
|
|
$
1,036,139
|
|
|
|
|
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(5,916)
|
|
$
(17,367)
|
|
$
(31,367)
|
|
$
(64,841)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,213
|
|
3,194
|
|
6,306
|
|
8,779
|
Amortization
|
733
|
|
733
|
|
2,052
|
|
2,203
|
Share based
compensation expenses
|
18,760
|
|
28,392
|
|
52,203
|
|
80,864
|
Amortization of debt
discount and debt issuance costs
|
4,965
|
|
5,274
|
|
4,965
|
|
15,585
|
Decrease (increase)
in accrued interest and exchange rate on short term and long term
deposits
|
(493)
|
|
137
|
|
(1,390)
|
|
731
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
74
|
|
(140)
|
|
86
|
|
(99)
|
Deferred income
taxes, net
|
(341)
|
|
(346)
|
|
(746)
|
|
187
|
Decrease (increase)
in trade receivables
|
(5,729)
|
|
2,029
|
|
(3,005)
|
|
(2,503)
|
Decrease (increase)
in prepaid expenses and other current and long-term
assets
|
7,512
|
|
(1,683)
|
|
(10,037)
|
|
(12,824)
|
Increase in trade
payables
|
2,184
|
|
2,278
|
|
5,566
|
|
3,606
|
Increase (decrease)
in employees and payroll accruals
|
(7,368)
|
|
109
|
|
6,063
|
|
12,344
|
Increase in short
term and long term deferred revenues
|
7,177
|
|
9,069
|
|
42,820
|
|
49,302
|
Increase in accrued
expenses and other current liabilities
|
3,836
|
|
4,394
|
|
6,138
|
|
14,993
|
Net cash provided by
operating activities
|
27,607
|
|
36,073
|
|
79,654
|
|
108,327
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
96,015
|
|
164,000
|
|
115,126
|
|
245,775
|
Investment in
short-term deposits and restricted deposits
|
(172,999)
|
|
(175,000)
|
|
(324,779)
|
|
(203,100)
|
Investment in
marketable securities
|
(37,678)
|
|
(127,967)
|
|
(52,657)
|
|
(264,583)
|
Proceeds from
marketable securities
|
1,357
|
|
32,246
|
|
15,793
|
|
61,302
|
Purchase of property
and equipment
|
(3,865)
|
|
(6,712)
|
|
(10,372)
|
|
(17,777)
|
Capitalization of
software development costs
|
(51)
|
|
(134)
|
|
(313)
|
|
(523)
|
Investment in other
long-term assets
|
-
|
|
-
|
|
(500)
|
|
-
|
Purchases of
investments in privately-held companies
|
-
|
|
(262)
|
|
-
|
|
(262)
|
Payment for
Businesses acquired
|
-
|
|
-
|
|
-
|
|
(700)
|
Net cash used in
investing activities
|
(117,221)
|
|
(113,829)
|
|
(257,702)
|
|
(179,868)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
6,082
|
|
9,452
|
|
27,973
|
|
23,642
|
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)
|
|
-
|
Net cash provided by
financing activities
|
55,327
|
|
9,452
|
|
412,784
|
|
23,642
|
INCREASE IN CASH AND
CASH EQUIVALENTS
|
(34,287)
|
|
(68,304)
|
|
234,736
|
|
(47,899)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
354,253
|
|
351,462
|
|
85,230
|
|
331,057
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
319,966
|
|
$
283,158
|
|
$
319,966
|
|
$
283,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
KEY PERFORMANCE
METRICS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
$
155,600
|
|
$
196,791
|
|
$
439,507
|
|
$
556,500
|
|
Collections
|
$
162,777
|
|
$
205,860
|
|
$
482,327
|
|
$
605,802
|
|
Free Cash
Flow
|
$
23,691
|
|
$
29,227
|
|
$
68,969
|
|
$
90,027
|
|
Number of registered
users at period end (*)
|
136,538
|
|
159,543
|
|
136,538
|
|
159,543
|
|
Number of premium
subscriptions at period end (*)
|
3,836
|
|
4,410
|
|
3,836
|
|
4,410
|
|
|
|
|
|
|
|
|
|
|
(*) 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,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
$
155,600
|
|
$
196,791
|
|
$
439,507
|
|
$
556,500
|
|
Change in deferred
revenues
|
7,177
|
|
9,069
|
|
42,820
|
|
49,302
|
|
Collections
|
$
162,777
|
|
$
205,860
|
|
$
482,327
|
|
$
605,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
|
Cost of
revenues
|
$
1,102
|
|
$
1,525
|
|
$
3,268
|
|
$
4,272
|
|
Research and
development
|
10,372
|
|
14,886
|
|
28,327
|
|
41,261
|
|
Selling and
marketing
|
2,597
|
|
4,590
|
|
6,991
|
|
13,844
|
|
General and
administrative
|
4,689
|
|
7,391
|
|
13,617
|
|
21,487
|
|
Total share based
compensation expenses
|
18,760
|
|
28,392
|
|
52,203
|
|
80,864
|
|
(2)
Amortization
|
733
|
|
733
|
|
2,052
|
|
2,203
|
|
(3) Acquisition
related expenses
|
261
|
|
564
|
|
2,635
|
|
617
|
|
(4) Amortization of
debt discount and debt issuance costs
|
4,965
|
|
5,274
|
|
4,965
|
|
15,585
|
|
(5) Sales tax
accrual
|
-
|
|
3,174
|
|
-
|
|
3,174
|
|
(6) Non-operating
foreign exchange expenses (income)
|
-
|
|
56
|
|
-
|
|
1,648
|
|
Total adjustments of
GAAP to Non GAAP
|
$
24,719
|
|
$
38,193
|
|
$
61,855
|
|
$
104,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Gross
Profit
|
$
122,623
|
|
$
143,496
|
|
$
347,049
|
|
$
416,828
|
|
Share based
compensation expenses
|
1,102
|
|
1,525
|
|
3,268
|
|
4,272
|
|
Amortization
|
142
|
|
142
|
|
426
|
|
425
|
|
Non GAAP Gross
Profit
|
123,867
|
|
145,163
|
|
350,743
|
|
421,525
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
80%
|
|
74%
|
|
80%
|
|
76%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING INCOME
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Operating
loss
|
$
(3,498)
|
|
$
(20,605)
|
|
$
(28,457)
|
|
$
(62,558)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
18,760
|
|
28,392
|
|
52,203
|
|
80,864
|
|
Amortization
|
733
|
|
733
|
|
2,052
|
|
2,203
|
|
Sales tax
accrual
|
-
|
|
3,174
|
|
-
|
|
3,174
|
|
Acquisition related
expenses
|
261
|
|
564
|
|
2,635
|
|
617
|
|
Total
adjustments
|
$
19,754
|
|
$
32,863
|
|
$
56,890
|
|
$
86,858
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
income
|
$
16,256
|
|
$
12,258
|
|
$
28,433
|
|
$
24,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Net loss
|
$
(5,916)
|
|
$
(17,367)
|
|
$
(31,367)
|
|
$
(64,841)
|
|
Share based
compensation expense and other Non GAAP adjustments
|
24,719
|
|
38,193
|
|
61,855
|
|
104,091
|
|
Non-GAAP net
income
|
$
18,803
|
|
$
20,826
|
|
$
30,488
|
|
$
39,250
|
|
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income per share
|
$
0.39
|
|
$
0.41
|
|
$
0.64
|
|
$
0.78
|
|
Weighted average
shares used in computing basic Non GAAP net income per
share
|
48,498,392
|
|
50,862,253
|
|
47,671,718
|
|
50,232,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Net cash provided by
operating activities
|
$
27,607
|
|
$
36,073
|
|
$
79,654
|
|
$
108,327
|
|
Capital expenditures,
net
|
(3,916)
|
|
(6,846)
|
|
(10,685)
|
|
(18,300)
|
|
Free Cash
Flow
|
$
23,691
|
|
$
29,227
|
|
$
68,969
|
|
$
90,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
48,498,392
|
|
50,862,253
|
|
47,671,718
|
|
50,232,546
|
|
The following items
have been excluded from the diluted weighted average number of
shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
|
Stock
options
|
7,714,715
|
|
7,571,765
|
|
7,714,715
|
|
7,571,765
|
|
Restricted share
units
|
2,051,910
|
|
2,231,470
|
|
2,051,910
|
|
2,231,470
|
|
|
58,265,017
|
|
60,665,488
|
|
57,438,343
|
|
60,035,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
YearEnding
|
|
|
December 31,
2019
|
|
December 31,
2019
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
Projected
revenues
|
204,000
|
|
206,000
|
|
761,000
|
|
763,000
|
|
Projected change in
deferred revenues
|
18,000
|
|
19,000
|
|
67,000
|
|
68,000
|
|
Projected
collections
|
$
222,000
|
|
$
225,000
|
|
$
828,000
|
|
$
831,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS (FX NEUTRAL TO JULY
2019)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YearEnding
|
|
|
|
|
December 31,
2019
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
Projected
revenues
|
|
|
|
|
762,000
|
|
764,000
|
|
Projected change in
deferred revenues
|
|
|
|
|
68,000
|
|
69,000
|
|
Projected
collections
|
|
|
|
|
$
830,000
|
|
$
833,000
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS (FX NEUTRAL 2018 TO
2019)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YearEnding
|
|
|
|
|
December 31,
2019
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
Projected
revenues
|
|
|
|
|
771,000
|
|
773,000
|
|
Projected change in
deferred revenues
|
|
|
|
|
69,000
|
|
70,000
|
|
Projected
collections
|
|
|
|
|
$
840,000
|
|
$
843,000
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/wix-reports-third-quarter-2019-results-300957956.html
SOURCE Wix.com Ltd.