NEW YORK, Feb. 20, 2020 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the fourth quarter and full year ended
December 31, 2019. In addition, the
Company provided its initial outlook for the first quarter and full
year 2020.
"The fourth quarter was the culmination of a phenomenal year at
Wix. We continue to evolve from a website builder to a
comprehensive web creation and business solutions platform," said
Avishai Abrahami, Co-founder and CEO
of Wix. "The unveiling of Editor X was a major milestone for Wix
and has laid the groundwork for expanding our reach in the
professional market in 2020. We believe that we have never been
better positioned for the future."
Lior Shemesh, CFO of Wix, said,
"Our results in the fourth quarter closed out a record year of
revenue, collections and free cash flow generation for Wix. The
guidance we are providing reflects that momentum continuing into
2020 and our confidence in our ability to continue to deliver
strong growth for years to come."
New Financial Disclosures
For increased transparency,
beginning this quarter we will present revenue, collections and
cost of revenue in two segments: Creative Subscriptions and
Business Solutions.
In addition, for the first time we are providing Annualized
Recurring Revenue (ARR)1 as the primary KPI for the
growth of our Creative Subscriptions segment. We believe this new
financial reporting provides improved clarity regarding our top
line growth and gross margins and is a better metric for modeling
our business.
ARR for Creative Subscriptions Revenue as of December 31, 2019 was $707.2 million, up 21% Y/Y
___________________
|
1Annualized Recurring Revenue (ARR) is
calculated as Monthly Recurring Revenue (MRR) multiplied by 12. MRR
is calculated as all active Creative Subscriptions in effect on the
last day of the period, multiplied by the monthly revenue of such
Creative Subscriptions, as well as monthly revenue from
agreements with partners
|
FY 2019 Financial Summary
|
Twelve months
ended
December
31,
|
|
|
|
|
$ in
thousands
|
2018
|
2019
|
|
Y/Y
growth
|
|
Prior FY 2019
Outlook
|
Creative
Subscriptions Revenue
|
$525,350
|
$644,491
|
|
23%
|
|
|
Business Solutions
Revenue
|
$78,354
|
$116,597
|
|
49%
|
|
|
Total
Revenue
|
$603,704
|
$761,088
|
|
26%
|
|
$761 - $763
million
|
|
|
|
|
|
|
|
Creative
Subscriptions Collections
|
$580,119
|
$711,763
|
|
23%
|
|
|
Business Solutions
Collections
|
$78,266
|
$120,722
|
|
54%
|
|
|
Total
Collections
|
$658,385
|
$832,485
|
|
26%
|
|
$828 - $831
million
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$115,709
|
$149,564
|
|
29%
|
|
|
Free Cash
Flow
|
$101,633
|
$127,498
|
|
25%
|
|
$124 - $126
million
|
Q4 2019 Financial Summary
|
Three months
ended
December
31,
|
|
|
$ in
thousands
|
2018
|
2019
|
|
|
Y/Y
growth
|
|
Prior Q4 2019
Outlook
|
Creative
Subscriptions Revenue
|
$143,621
|
$171,355
|
|
|
19%
|
|
|
Business Solutions
Revenue
|
$20,576
|
$33,233
|
|
|
62%
|
|
|
Total
Revenue
|
$164,197
|
$204,588
|
|
|
25%
|
|
$204 - $206
million
|
|
|
|
|
|
|
|
|
Creative
Subscriptions Collections
|
$155,668
|
$190,805
|
|
|
23%
|
|
|
Business Solutions
Collections
|
$20,390
|
$35,878
|
|
|
76%
|
|
|
Total
Collections
|
$176,058
|
$226,683
|
|
|
29%
|
|
$222 - $225
million
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$36,055
|
$41,237
|
|
|
14%
|
|
|
Free Cash
Flow
|
$32,664
|
$37,471
|
|
|
15%
|
|
|
Additional FY 2019 Results and Highlights
- Currency was a headwind to top line growth throughout the year.
Had FX rates remained constant year over year, revenue would have
been ~$8 million higher, or
$768.9 million, up 27% y/y and
collections would have been ~$12
million higher, or $844.5
million, up 28% y/y
- Total gross margin on a GAAP basis for the full year 2019 was
74%, compared to 79% in 2018
-
- Creative Subscriptions gross margin on a GAAP basis for the
full year 2019 was 81%, compared to 84% in 2018
- Business Solutions gross margin on a GAAP basis for the full
year 2019 was 35%, compared to 46% in 2018
- Total gross margin on a non-GAAP basis for the full year 2019
was 75%, compared to 80% in 2018
-
- Creative Subscriptions gross margin on a non-GAAP basis for the
full year 2019 was 82%, compared to 85% in 2018
- Business Solutions gross margin on a non-GAAP basis for the
full year 2019 was 37%, compared to 48% in 2018
- GAAP net loss for the full year 2019 was $(86.4) million, or $(1.71) per share, compared to a net loss of
$(37.1) million, or $(0.77), per share in 2018
- Non-GAAP net income for the full year 2019 was $59.1 million, or $1.17 per share, compared to a non GAAP net
income of $51.3 million, or
$1.07 per share in 2018
- Net cash provided by operating activities for the full year
2019 was $149.6 million, while
capital expenditures totaled $22.1
million, leading to free cash flow of $127.5 million, compared to $101.6 million of free cash flow in 2018, a 25%
year-over-year increase
Additional Q4 2019 Results and Highlights
- Total gross margin on a GAAP basis in the fourth quarter of
2019 was 72%, compared to 79% in the fourth quarter of 2018
-
- Creative Subscriptions gross margin on a GAAP basis was 80%,
compared to 84% in the fourth quarter of 2018
- Business Solutions gross margin on a GAAP basis was 28%,
compared to 46% in the fourth quarter of 2018
- Total non-GAAP gross margin in the fourth quarter of 2019,
calculated as non-GAAP gross profit as a percent of revenue, was
74%, compared to 80% in the fourth quarter of 2018
-
- Creative Subscriptions gross margin on a non-GAAP basis was
81%, compared to 84% in the fourth quarter of 2018
- Business Solutions gross margin on a non-GAAP basis was 34%,
compared to 47% in the fourth quarter of 2018
- GAAP net loss in the fourth quarter of 2019 was $(21.6) million, or $(0.42) per share, compared to a net loss of
$(5.8) million, or $(0.12) per share, for the fourth quarter of
2018
- Non-GAAP net income in the fourth quarter of 2019 was
$19.9 million, or $0.39 per share, compared to non-GAAP net income
of $20.8 million, or $0.42 per share for the fourth quarter of
2018
- Net cash provided by operating activities in the fourth quarter
of 2019 was $41.2 million, while
capital expenditures totaled $3.8
million, leading to free cash flow of $37.5 million, compared to $32.7 million of free cash flow in the fourth
quarter of 2018, a 15% year-over-year increase
- Added 89,000 net premium subscriptions in the fourth quarter of
2019 to reach 4.5 million as of December 31,
2019, a 13% increase over the total number of premium
subscriptions at the end of the fourth quarter of 2018
- Added 5.8 million registered users in the fourth quarter of
2019. Registered users as of December 31,
2019 were 165 million, representing a 16% increase compared
to the end of the fourth quarter of 2018
Recent Business Highlights
- Unveiled website creation platform, Editor X: In
February, Wix introduced Editor X, a new website creation platform
that offers advanced design and layouting capabilities specifically
targeted to designers and web agencies. The wide, flexible new
canvas allows the use of modern CSS technologies, including Flexbox
and Grid, all with precise drag and drop, so designers and web
creators can control the exact position and styling of elements at
every viewport.
- Opened a new expanded office space in New York City: The new location will house
sales team members and agency relations for the Wix Partner
Program, product and marketing teams, as well as HR and operations
staff. Additionally, the Wix Playground Academy will hold its
annual design academy at this address as well as hosting classes,
workshops, lectures and partner events.
Financial Outlook
Wix is introducing
its outlook for the full year 2020:
|
|
|
FY 2020
Outlook
|
|
Y/Y growth
|
Revenue
|
$946 - $956
million
|
|
24% - 26%
|
Collections
|
$1,020 - $1,035
million
|
|
23% - 24%
|
Free Cash
Flow
|
$155 - $162
million
|
|
22% - 27%
|
Free Cash Flow
(excluding $8-9M in
capex for future Wix HQ office build out)
|
$163 - $171
million
|
|
28% - 34%
|
|
Wix is also
introducing its outlook for the first quarter 2020:
|
|
|
Q1 2020 Outlook
|
|
Y/Y growth
|
Revenue
|
$215 -
$217 million
|
|
23% - 25%
|
Collections
|
$247 - $249
million
|
|
23% - 24%
|
|
|
|
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Thursday, February 20, 2020 to answer
questions about the financial and operational performance of the
business for the fourth quarter ended December 31, 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 3793195. A telephonic replay of the call will be
available through February 27, 2020
at 11:30 a.m. ET by dialing +1-855-859-2056 and providing
Conference ID 3793195.
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.
Learn more: Wix.com, in our Press Room and on our Investor
Relations site
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 ,
non-GAAP net income ,
non-GAAP net income per share
and free cash flow (collectively the "Non-GAAP
financial measures"). Collections represent 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 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
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 per share
represents non-GAAP net income divided by the weighted average
number of shares used in computing GAAP loss per share. Free cash
flow represents net cash provided by (used in) operating activities
less capital expenditures.
The presentation of this financial information
is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in
accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational
decision making and as a means to
evaluate period-to-period comparisons. The
Company believes that these measures
provide useful information about operating results,
enhance the overall understanding of past financial
performance and future prospects, and
allow for greater transparency with respect to
key metrics used by management in its financial and operational
decision making.
For more information on the non-GAAP financial
measures, please see the reconciliation tables
provided 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, and our
ability to successfully enter into partnership agreements; 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:
Rona
Davis
Wix Press Room
ronadt@wix.com
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
$
143,621
|
|
$
171,355
|
|
$
525,350
|
|
$
644,491
|
Business
Solutions
|
20,576
|
|
33,233
|
|
78,354
|
|
116,597
|
|
164,197
|
|
204,588
|
|
603,704
|
|
761,088
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
23,302
|
|
33,420
|
|
84,752
|
|
120,905
|
Business
Solutions
|
11,187
|
|
23,815
|
|
42,195
|
|
76,002
|
|
34,489
|
|
57,235
|
|
126,947
|
|
196,907
|
|
|
|
|
|
|
|
|
Gross
Profit
|
129,708
|
|
147,353
|
|
476,757
|
|
564,181
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
54,558
|
|
66,634
|
|
198,912
|
|
250,791
|
Selling and
marketing
|
61,065
|
|
74,809
|
|
249,178
|
|
307,718
|
General and
administrative
|
16,258
|
|
23,602
|
|
59,297
|
|
85,922
|
Total operating
expenses
|
131,881
|
|
165,045
|
|
507,387
|
|
644,431
|
Operating
loss
|
(2,173)
|
|
(17,692)
|
|
(30,630)
|
|
(80,250)
|
Financial expenses,
net
|
(1,688)
|
|
(2,553)
|
|
(2,794)
|
|
(3,621)
|
Other income
(expenses)
|
(590)
|
|
(94)
|
|
(489)
|
|
55
|
Loss before taxes on
income
|
(4,451)
|
|
(20,339)
|
|
(33,913)
|
|
(83,816)
|
Taxes on
income
|
1,302
|
|
1,234
|
|
3,207
|
|
2,598
|
Net loss
|
$
(5,753)
|
|
$
(21,573)
|
|
$
(37,120)
|
|
$
(86,414)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.12)
|
|
$
(0.42)
|
|
$
(0.77)
|
|
$
(1.71)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
49,053,599
|
|
51,321,155
|
|
48,017,188
|
|
50,504,698
|
|
|
|
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
331,057
|
|
$
268,103
|
Short term
deposits
|
349,619
|
|
294,096
|
Restricted cash and
deposit
|
1,149
|
|
1,149
|
Marketable
securities
|
22,992
|
|
164,301
|
Trade
receivables
|
13,528
|
|
16,987
|
Prepaid expenses and
other current assets
|
11,939
|
|
20,859
|
Total current
assets
|
730,284
|
|
765,495
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and equipment,
net
|
21,947
|
|
31,706
|
Marketable
securities
|
47,225
|
|
177,298
|
Prepaid expenses and
other long-term assets
|
3,065
|
|
8,278
|
Intangible assets and
goodwill, net
|
42,229
|
|
37,641
|
Operating lease
assets
|
-
|
|
79,249
|
Total long-term
assets
|
114,466
|
|
334,172
|
|
|
|
|
Total
assets
|
$
844,750
|
|
$
1,099,667
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
45,567
|
|
$
37,687
|
Employees and payroll
accruals
|
32,036
|
|
41,938
|
Deferred
revenues
|
227,226
|
|
289,148
|
Accrued expenses and
other current liabilities
|
35,564
|
|
56,464
|
Operating lease
liabilities
|
-
|
|
18,949
|
Total current
liabilities
|
340,393
|
|
444,186
|
|
|
|
|
Long term deferred
revenues
|
12,494
|
|
21,969
|
Long term deferred tax
liability
|
602
|
|
1,585
|
Convertible senior
notes
|
337,777
|
|
358,715
|
Long term
loan
|
1,219
|
|
1,219
|
Other long term
liabilities
|
-
|
|
-
|
Long term operating
lease liabilities
|
-
|
|
64,244
|
Total long term
liabilities
|
352,092
|
|
447,732
|
|
|
|
|
Total
liabilities
|
692,485
|
|
891,918
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
88
|
|
94
|
Additional paid-in
capital
|
472,239
|
|
611,083
|
Other comprehensive
loss
|
(1,691)
|
|
1,357
|
Accumulated
deficit
|
(318,371)
|
|
(404,785)
|
Total shareholders'
equity
|
152,265
|
|
207,749
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
844,750
|
|
$
1,099,667
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(5,753)
|
|
$
(21,573)
|
|
$
(37,120)
|
|
$
(86,414)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,418
|
|
3,347
|
|
8,724
|
|
12,126
|
Amortization
|
732
|
|
2,385
|
|
2,784
|
|
4,588
|
Share based
compensation expenses
|
20,127
|
|
28,473
|
|
72,330
|
|
109,337
|
Amortization of debt
discount and debt issuance costs
|
5,039
|
|
5,353
|
|
10,004
|
|
20,938
|
Decrease (increase) in
accrued interest and exchange rate on short term and long term
deposits
|
807
|
|
17
|
|
(583)
|
|
748
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
(185)
|
|
(247)
|
|
(99)
|
|
(346)
|
Deferred income taxes,
net
|
(213)
|
|
748
|
|
(959)
|
|
935
|
Changes in operating
lease right-of-use assets
|
-
|
|
18,225
|
|
-
|
|
18,225
|
Changes in operating
lease liabilities
|
-
|
|
(15,376)
|
|
-
|
|
(15,376)
|
Decrease (increase) in
trade receivables
|
877
|
|
(956)
|
|
(2,128)
|
|
(3,459)
|
Decrease (increase) in
prepaid expenses and other current and long-term assets
|
6,372
|
|
7,656
|
|
(3,665)
|
|
(5,168)
|
Increase (decrease) in
trade payables
|
5,367
|
|
(11,166)
|
|
10,933
|
|
(7,560)
|
Increase (decrease) in
employees and payroll accruals
|
(3,220)
|
|
(4,563)
|
|
2,843
|
|
7,781
|
Increase in short term
and long term deferred revenues
|
11,861
|
|
22,095
|
|
54,681
|
|
71,397
|
Increase (decrease) in
accrued expenses and other current liabilities
|
(8,174)
|
|
6,819
|
|
(2,036)
|
|
21,812
|
Net cash provided by
operating activities
|
36,055
|
|
41,237
|
|
115,709
|
|
149,564
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
88,999
|
|
103,000
|
|
204,125
|
|
348,775
|
Investment in
short-term deposits and restricted deposits
|
(113,200)
|
|
(93,000)
|
|
(437,979)
|
|
(296,100)
|
Investment in
marketable securities
|
(6,306)
|
|
(138,191)
|
|
(58,963)
|
|
(402,774)
|
Proceeds from
marketable securities
|
5,261
|
|
71,603
|
|
21,054
|
|
132,905
|
Purchase of property
and equipment
|
(3,312)
|
|
(3,650)
|
|
(13,684)
|
|
(21,427)
|
Capitalization of
software development costs
|
(79)
|
|
(116)
|
|
(392)
|
|
(639)
|
Investment in other
long-term assets
|
-
|
|
(191)
|
|
(500)
|
|
(891)
|
Purchases of
investments in privately-held companies
|
(1,250)
|
|
(3,600)
|
|
(1,250)
|
|
(3,862)
|
Net cash used in
investing activities
|
(29,887)
|
|
(64,145)
|
|
(287,589)
|
|
(244,013)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
4,923
|
|
7,853
|
|
32,896
|
|
31,495
|
Proceeds from issuance
of convertible senior notes
|
-
|
|
-
|
|
442,750
|
|
-
|
Payments of debt
issuance costs
|
-
|
|
-
|
|
(12,601)
|
|
-
|
Purchase of capped
call
|
-
|
|
-
|
|
(45,338)
|
|
-
|
Net cash provided by
financing activities
|
4,923
|
|
7,853
|
|
417,707
|
|
31,495
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
11,091
|
|
(15,055)
|
|
245,827
|
|
(62,954)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
319,966
|
|
283,158
|
|
85,230
|
|
331,057
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
331,057
|
|
$
268,103
|
|
$
331,057
|
|
$
268,103
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
143,621
|
|
171,355
|
|
525,350
|
|
644,491
|
Business
Solutions
|
20,576
|
|
33,233
|
|
78,354
|
|
116,597
|
Total
Revenue
|
$
164,197
|
|
$
204,588
|
|
$
603,704
|
|
$
761,088
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
155,668
|
|
190,805
|
|
580,119
|
|
711,763
|
Business
Solutions
|
20,390
|
|
35,878
|
|
78,266
|
|
120,722
|
Total
Collections
|
$
176,058
|
|
$
226,683
|
|
$
658,385
|
|
$
832,485
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
32,664
|
|
$
37,471
|
|
$
101,633
|
|
$
127,498
|
Number of registered
users at period end (*)
|
142,439
|
|
165,341
|
|
142,439
|
|
165,341
|
Number of premium
subscriptions at period end (*)
|
3,983
|
|
4,499
|
|
3,983
|
|
4,499
|
|
|
|
|
|
|
|
|
(*) 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,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
164,197
|
|
$
204,588
|
|
$
603,704
|
|
$
761,088
|
Change in deferred
revenues
|
11,861
|
|
22,095
|
|
54,681
|
|
71,397
|
Collections
|
$
176,058
|
|
$
226,683
|
|
$
658,385
|
|
$
832,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
143,621
|
|
$
171,355
|
|
$
525,350
|
|
$
644,491
|
Change in deferred
revenues
|
12,047
|
|
19,450
|
|
54,769
|
|
67,272
|
Creative
Subscriptions Collections
|
$
155,668
|
|
$
190,805
|
|
$
580,119
|
|
$
711,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
20,576
|
|
$
33,233
|
|
$
78,354
|
|
$
116,597
|
Change in deferred
revenues
|
(186)
|
|
2,645
|
|
(88)
|
|
4,125
|
Business Solutions
Collections
|
$
20,390
|
|
$
35,878
|
|
$
78,266
|
|
$
120,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
1,150
|
|
$
1,582
|
|
$
4,418
|
|
$
5,854
|
Research and
development
|
11,090
|
|
14,900
|
|
39,417
|
|
56,161
|
Selling and
marketing
|
2,779
|
|
4,614
|
|
9,770
|
|
18,458
|
General and
administrative
|
5,108
|
|
7,377
|
|
18,725
|
|
28,864
|
Total share based
compensation expenses
|
20,127
|
|
28,473
|
|
72,330
|
|
109,337
|
(2)
Amortization
|
732
|
|
2,385
|
|
2,784
|
|
4,588
|
(3) Acquisition
related expenses
|
125
|
|
1,868
|
|
2,760
|
|
2,485
|
(4) Amortization of
debt discount and debt issuance costs
|
5,039
|
|
5,353
|
|
10,004
|
|
20,938
|
(5) Sales tax
accrual
|
-
|
|
2,135
|
|
-
|
|
5,309
|
(6) Non-operating
foreign exchange expenses (income)
|
-
|
|
1,257
|
|
-
|
|
2,905
|
(6) Loss on
investment in other long term assets
|
500
|
|
-
|
|
500
|
|
-
|
Total adjustments of
GAAP to Non GAAP
|
$
26,523
|
|
$
41,471
|
|
$
88,378
|
|
$
145,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
129,708
|
|
$
147,353
|
|
$
476,757
|
|
$
564,181
|
Share based
compensation expenses
|
1,150
|
|
1,582
|
|
4,418
|
|
5,854
|
Amortization
|
142
|
|
1,526
|
|
568
|
|
1,951
|
Non GAAP Gross
Profit
|
131,000
|
|
150,461
|
|
481,743
|
|
571,986
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
80%
|
|
74%
|
|
80%
|
|
75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
120,319
|
|
$
137,935
|
|
$
440,598
|
|
$
523,586
|
Share based
compensation expenses
|
1,018
|
|
1,334
|
|
3,904
|
|
4,994
|
Amortization
|
-
|
|
-
|
|
-
|
|
-
|
Non GAAP Gross Profit
- Creative Subscriptions
|
121,337
|
|
139,269
|
|
444,502
|
|
528,580
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
84%
|
|
81%
|
|
85%
|
|
82%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
9,389
|
|
$
9,418
|
|
$
36,159
|
|
$
40,595
|
Share based
compensation expenses
|
132
|
|
248
|
|
514
|
|
860
|
Amortization
|
142
|
|
1,526
|
|
568
|
|
1,951
|
Non GAAP Gross Profit
- Business Solutions
|
9,663
|
|
11,192
|
|
37,241
|
|
43,406
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
47%
|
|
34%
|
|
48%
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING INCOME
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(2,173)
|
|
$
(17,692)
|
|
$
(30,630)
|
|
$
(80,250)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
20,127
|
|
28,473
|
|
72,330
|
|
109,337
|
Amortization
|
732
|
|
2,385
|
|
2,784
|
|
4,588
|
Sales tax
accrual
|
-
|
|
2,135
|
|
-
|
|
5,309
|
Acquisition related
expenses
|
125
|
|
1,868
|
|
2,760
|
|
2,485
|
Total
adjustments
|
$
20,984
|
|
$
34,861
|
|
$
77,874
|
|
$
121,719
|
|
|
|
|
|
|
|
|
Non GAAP operating
income
|
$
18,811
|
|
$
17,169
|
|
$
47,244
|
|
$
41,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(5,753)
|
|
$
(21,573)
|
|
$
(37,120)
|
|
$
(86,414)
|
Share based
compensation expense and other Non GAAP adjustments
|
26,523
|
|
41,471
|
|
88,378
|
|
145,562
|
Non-GAAP net
income
|
$
20,770
|
|
$
19,898
|
|
$
51,258
|
|
$
59,148
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income per share
|
$
0.42
|
|
$
0.39
|
|
$
1.07
|
|
$
1.17
|
Weighted average
shares used in computing basic Non GAAP net income per
share
|
49,053,599
|
|
51,321,155
|
|
48,017,188
|
|
50,504,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
36,055
|
|
$
41,237
|
|
$
115,709
|
|
$
149,564
|
Capital expenditures,
net
|
(3,391)
|
|
(3,766)
|
|
(14,076)
|
|
(22,066)
|
Free Cash
Flow
|
$
32,664
|
|
$
37,471
|
|
$
101,633
|
|
$
127,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
49,053,599
|
|
51,321,155
|
|
48,017,188
|
|
50,504,698
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
7,676,713
|
|
7,447,519
|
|
7,676,713
|
|
7,447,519
|
Restricted share
units
|
2,090,512
|
|
2,125,440
|
|
2,090,512
|
|
2,125,440
|
|
58,820,824
|
|
60,894,114
|
|
57,784,413
|
|
60,077,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ending
|
|
March 31,
2020
|
|
December 31,
2020
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
215,000
|
|
217,000
|
|
946,000
|
|
956,000
|
Projected change in
deferred revenues
|
32,000
|
|
32,000
|
|
74,000
|
|
79,000
|
Projected
Collections
|
$
247,000
|
|
$
249,000
|
|
$
1,020,000
|
|
$
1,035,000
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/wix-reports-fourth-quarter-and-full-year-2019-results-301008009.html
SOURCE Wix.com Ltd.