NEW YORK, Aug. 6, 2020 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the second quarter ended June 30, 2020, exceeding the high end of its
guidance ranges for both revenue and collections. In addition, the
Company provided its initial outlook for the third quarter of
2020.
"The trends that began in late March continued throughout the
second quarter, driving record-setting results," said Avishai Abrahami, Co-founder and CEO of Wix.
"The need for business owners to move online quickly, communicate
with customers, and deliver goods and services has never been more
imminent, and the Wix platform continues to provide millions of
users with the ability to thrive during these unprecedented times.
Our focus remains on the success of our users, and we continue to
deliver innovative products and technology, marked this quarter by
the public launch of Editor X and our expanded eCommerce
offering."
Nir Zohar, President and COO of Wix added, "Throughout the
second quarter, we continued to experience positive trends as a
result of continued economic disruption globally. Our results in
July tell us that these trends are continuing, potentially
indicating a new baseline of growth for our business. We will
continue to support our users in their needs so they can be
successful throughout the ongoing disruptions to their lives and
businesses."
Lior Shemesh, CFO of Wix said,
"Our business has seen an immense uplift in demand in recent
months, driven by the rapidly increasing importance of having an
online presence. We added a record 9.3 million users and 346,000
net premium subscriptions in the second quarter, reflecting this
strong demand and our ability to meet the needs of our users. We
are responding to this continued heightened demand by increasing
our investment in marketing, which based on our historical data,
will drive continued collections and revenue growth in the near
future."
Q2 2020 Financial Results
- Total revenue in the second quarter of 2020 was $236.1 million, compared to $185.4 million in the second quarter of 2019, an
increase of 27% y/y
-
- On a y/y constant currency basis, Q2 revenue would have been
$237.9 million, up 28% y/y
- Creative Subscriptions revenue in the second quarter of 2020
was $190.2 million, compared to
$157.0 million in the second quarter
of 2019, an increase of 21% y/y
- Business Solutions revenue in the second quarter of 2020 was
$45.9 million, compared to
$28.4 million in the second quarter
of 2019, an increase of 62% y/y
- Creative Subscriptions ARR was $790.9
million in the second quarter of 2020, compared to
$648.2 million in the second quarter
of 2019, an increase of 22% y/y
- Total collections in the second quarter of 2020 were
$265.9 million, compared to
$199.6 million in the second quarter
of 2019, an increase of 33% y/y
-
- On a y/y constant currency basis, Q2 collections would have
been $269.8 million, up 35% y/y
- Creative Subscriptions collections in the second quarter of
2020 were $217.7 million, compared to
$170.5 million in the second quarter
of 2019, an increase of 28% y/y
- Business Solutions collections in the second quarter of 2020
was $48.2 million, compared to
$29.1 million in the second quarter
of 2019, an increase of 66% y/y
- Our Q2 user cohort generated $10
million in revenue and $38
million in collections in Q2, which are 66% higher than the
year ago cohort. Users purchased Business and eCommerce
subscription packages and annual and multi-year packages at a
higher frequency
- Total gross margin on a GAAP basis in the second quarter of
2020 was 70%, compared to 75% in the second quarter of 2019. Total
GAAP gross margin declined y/y due to incremental investments in
Customer Care and sequentially due to the faster revenue growth of
the Business Solutions segment
-
- Creative Subscriptions gross margin on a GAAP basis was 80%,
compared to 81% in the second quarter of 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization
- Business Solutions gross margin on a GAAP basis was 30%
compared to 39% in the second quarter of 2019. The decline was
related primarily to the growth of Wix Payments and the expansion
of Customer Care
- Total non-GAAP gross margin in the second quarter of 2020,
calculated as non-GAAP gross profit as a percent of revenue, was
71%, compared to 76% in the second quarter of 2019. Total non-GAAP
gross margin declined y/y due to incremental investments in
Customer Care and sequentially due to the faster revenue growth of
the Business Solutions segment
-
- Creative Subscriptions gross margin on a non-GAAP basis was
81%, compared to 82% in the second quarter of 2019. The y/y decline
was related to the investment in expanding our Customer Care
organization
- Business Solutions gross margin on a non-GAAP basis was 32%,
compared to 40% in the second quarter of 2019. The decline was
related primarily to the growth of Wix Payments and the expansion
of Customer Care
- GAAP net loss in the second quarter of 2020 was $(57.7) million, or $(1.06) per share, compared to a net loss of
$(16.7) million, or $(0.33) per share, for the second quarter of
2019
- Non-GAAP net loss in the second quarter of 2020 was
$(14.2) million, or $(0.26) per share, compared to non-GAAP net
income of $17.0 million, or
$0.34 per share for the second
quarter of 2019
- Net cash provided by operating activities in the second quarter
of 2020 was $50.0 million, while
capital expenditures totaled $3.3
million, leading to free cash flow of $46.7 million, compared to $30.8 million of free cash flow in the second
quarter of 2019, a 52% year-over-year increase
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$47.1 million, up 53% y/y
- Added 346,000 net premium subscriptions in the second quarter
of 2020 to reach 5.0 million as of June 30,
2020, a 17% increase over the total number of premium
subscriptions at the end of the second quarter of 2019
- Added 9.3 million registered users in the second quarter of
2020. Registered users as of June 30,
2020 were 182 million, representing a 18% increase compared
to the end of the second quarter of 2019
Recent Business Highlights
- Launched extended eCommerce solution, offering merchants access
to advanced online business tools, such as dropshipping, automated
sales tax calculations, streamlined order and fulfillment, and
integrated sales channels, including social media and
marketplaces
- Announced the official launch of a new brand and innovative
website creation platform, Editor X. Previously available in a
closed beta program and now open to the public, Editor X caters to
web designers and agencies who are looking for advanced design
capabilities
- Launched eCommerce solution for U.S. based merchants selling
hemp-derived cannabidiol (CBD) products online, enabling these
merchants to create an eCommerce website, process payments online,
manage and ship inventory and grow their CBD businesses where
government and state regulations permit
- Expanded Customer Care team to a new office in Denver, Colorado to bolster existing efforts
to provide best-in-class service to millions of users
- Conducted the third annual Wix Playground Academy, a three
month intensive web design program taught by Wix professionals and
award-winning designers, in a completely online format for the
first time. The students participated in the Social Good Project,
building websites for 14 non-profits
Financial Outlook
Our outlook for Q3 reflects continued momentum of new registered
users as well as the growth in monetization of our user cohorts. We
believe these behaviors will drive y/y collections growth above 31%
in Q3.
During Q2, we increased advertising investment by approximately
90% y/y, and we acquired the largest user cohort in our history,
which we expect will return future collections that are
approximately 90% higher than the previous year's Q2 cohort. This
return supports our decision to be more aggressive with our
marketing investment. We plan to continue the increased investment
in advertising as long as positive returns continue.
Our Marketing team responded to the surge in demand quickly and
aggressively, a testament to the strength of our team. We believe
this level investment will drive higher revenue and collections
over the coming years and will expand profitability and free cash
flow over time as well.
We are introducing Q3 guidance as follows:
|
Q3 2020 Outlook
|
|
Y/Y growth
|
Revenue
|
$247 - 250
million
|
|
26 - 27%
|
Collections
|
$270 - 275
million
|
|
31 - 34%
|
Free Cash
Flow
|
$15 - 17
million
|
|
(42) -
(49)%
|
Free Cash Flow
(excluding ~$1 million in
capex for future Wix
HQ office build out)
|
$16 - 18
million
|
|
(38) -
(45)%
|
This guidance assumes FX rates as of today. We continue to
experience trends that are tailwinds to our top line growth.
However, given the uncertainty related to COVID-19 and
macroeconomic conditions, it is difficult to predict how long and
to what degree these trends will remain; therefore, we are only
providing guidance for the third quarter at this time.
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Thursday, August 6, 2020 to answer questions
about the financial and operational performance of the business for
the second quarter ended June 30,
2020. 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 +1-888-771-4371 (US/ Canada)
or +1-847-585-4405 (US Toll) at least ten minutes prior to the
start time of the call. A telephonic replay of the call will be
available through August 13, 2020 at
11:59 p.m. ET at
https://onlinexperiences.com/Launch/QReg/ShowUUID=D0DBA6CF-E305-452B-976E-19713D114599&LangLocaleID=1033
with passcode 49852245.
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 (loss),
non-GAAP net income (loss), non-GAAP
net income (loss) per share, free
cash flow, free cash flow, as adjusted, free cash flow
margins, non-GAAP R&D expenses, non-GAAP S&M expenses,
non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP
cost of revenue expense, non-GAAP tax expense (collectively the
"Non-GAAP financial measures"). Measures presented on a constant
currency or FX neutral basis have been adjusted to exclude the
effect of y/y changes in foreign currency exchange rate
fluctuations. 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 (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. Free cash
flow, as adjusted, represents free cash flow further adjusted to
exclude capital expenditures associated with our new headquarters.
Free cash flow margins represent free cash flow divided by revenue.
Non-GAAP cost of revenue represents cost of revenue calculated in
accordance with GAAP as adjusted for the impact of share-based
compensation expense, acquisition-related expenses and
amortization. Non-GAAP R&D expenses represent R&D expenses
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, acquisition-related expenses and
amortization. Non-GAAP S&M expenses represent S&M expenses
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, acquisition-related expenses and
amortization. Non-GAAP G&A expenses represent G&A expenses
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, acquisition-related expenses and
amortization. Non-GAAP operating expenses represent operating
expenses calculated in accordance with GAAP as adjusted for the
impact of share-based compensation expense, acquisition-related
expenses and amortization.
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 is
unable to provide reconciliations of free cash flow, free cash
flow, as adjusted, cumulative cohort collections, non-GAAP gross
margin, and non-GAAP tax expense to their most directly comparable
GAAP financial measures on a forward-looking basis without
unreasonable effort because items that impact those GAAP financial
measures are out of the Company's control and/or cannot be
reasonably predicted. Such information may have a
significant, and potentially unpredictable, impact on our future
financial results.
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 our Wix Partner Program;
uncertainty surrounding the duration and severity of COVID-19 and
its effects on our business, including changes in consumer dynamics
shifting to online and increased GMV on our platform; 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
2019 annual report on Form 20-F filed with the Securities and
Exchange Commission on April 2, 2020.
Any forward-looking statement made by us in this press release
speaks only as of the date hereof. Factors or events that could
cause our actual results to differ may emerge from time to time,
and it is not possible for us to predict all of them. We undertake
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
Investor Relations:
Maggie O'Donnell
ir@wix.com
914-267-7390
Media Relations:
pr@wix.com
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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
$
157,012
|
|
$
190,169
|
|
$
308,376
|
|
$
366,715
|
Business
Solutions
|
28,407
|
|
45,890
|
|
51,333
|
|
85,331
|
|
185,419
|
|
236,059
|
|
359,709
|
|
452,046
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
29,296
|
|
38,510
|
|
55,943
|
|
73,900
|
Business
Solutions
|
17,366
|
|
31,972
|
|
30,434
|
|
58,652
|
|
46,662
|
|
70,482
|
|
86,377
|
|
132,552
|
|
|
|
|
|
|
|
|
Gross
Profit
|
138,757
|
|
165,577
|
|
273,332
|
|
319,494
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
61,486
|
|
75,464
|
|
119,669
|
|
146,180
|
Selling and
marketing
|
71,329
|
|
119,333
|
|
157,047
|
|
215,489
|
General and
administrative
|
20,103
|
|
24,531
|
|
38,569
|
|
49,967
|
Total operating
expenses
|
152,918
|
|
219,328
|
|
315,285
|
|
411,636
|
Operating
loss
|
(14,161)
|
|
(53,751)
|
|
(41,953)
|
|
(92,142)
|
Financial expenses,
net
|
(580)
|
|
(3,339)
|
|
(2,310)
|
|
(2,194)
|
Other income
(expenses)
|
8
|
|
28
|
|
32
|
|
59
|
Loss before taxes on
income
|
(14,733)
|
|
(57,062)
|
|
(44,231)
|
|
(94,277)
|
Taxes on
income
|
2,001
|
|
674
|
|
3,243
|
|
2,612
|
Net loss
|
$
(16,734)
|
|
$
(57,736)
|
|
$
(47,474)
|
|
$
(96,889)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.33)
|
|
$
(1.06)
|
|
$
(0.95)
|
|
$
(1.82)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
50,273,017
|
|
54,695,477
|
|
49,917,692
|
|
53,266,895
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
June 30,
|
|
2019
|
|
2020
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
268,103
|
|
$
173,950
|
Short term
deposits
|
294,096
|
|
406,033
|
Restricted
cash and deposit
|
1,149
|
|
925
|
Marketable
securities
|
164,301
|
|
174,624
|
Trade
receivables
|
16,987
|
|
18,830
|
Prepaid
expenses and other current assets
|
19,211
|
|
49,888
|
Total current
assets
|
763,847
|
|
824,250
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
31,706
|
|
32,926
|
Marketable
securities
|
177,298
|
|
245,211
|
Prepaid
expenses and other long-term assets
|
9,926
|
|
13,243
|
Intangible
assets and goodwill, net
|
37,641
|
|
44,509
|
Operating
lease assets
|
79,249
|
|
81,112
|
Total long-term
assets
|
335,820
|
|
417,001
|
|
|
|
|
Total
assets
|
$
1,099,667
|
|
$
1,241,251
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
37,687
|
|
$
73,059
|
Employees and
payroll accruals
|
41,938
|
|
66,306
|
Deferred
revenues
|
289,148
|
|
344,515
|
Accrued
expenses and other current liabilities
|
56,464
|
|
65,036
|
Operating
lease liabilities
|
18,949
|
|
17,372
|
Total current
liabilities
|
444,186
|
|
566,288
|
|
|
|
|
Long term
deferred revenues
|
21,969
|
|
29,265
|
Long term
deferred tax liability
|
1,585
|
|
1,574
|
Convertible
senior notes
|
358,715
|
|
369,664
|
Long term
loan
|
1,219
|
|
1,219
|
Long term
operating lease liabilities
|
64,244
|
|
68,402
|
Total long term
liabilities
|
447,732
|
|
470,124
|
|
|
|
|
Total
liabilities
|
891,918
|
|
1,036,412
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
94
|
|
104
|
Additional
paid-in capital
|
611,083
|
|
695,412
|
Other
comprehensive loss
|
1,357
|
|
10,997
|
Accumulated
deficit
|
(404,785)
|
|
(501,674)
|
Total shareholders'
equity
|
207,749
|
|
204,839
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,099,667
|
|
$
1,241,251
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(16,734)
|
|
$
(57,736)
|
|
$
(47,474)
|
|
$
(96,889)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,927
|
|
3,537
|
|
5,585
|
|
7,109
|
Amortization
|
738
|
|
566
|
|
1,470
|
|
1,132
|
Share based
compensation expenses
|
27,565
|
|
34,967
|
|
52,472
|
|
65,685
|
Amortization
of debt discount and debt issuance costs
|
5,194
|
|
5,516
|
|
10,311
|
|
10,949
|
Decrease in
accrued interest and exchange rate on short term and long term
deposits
|
105
|
|
15
|
|
594
|
|
62
|
Amortization
of premium and discount and accrued interest on marketable
securities, net
|
(10)
|
|
438
|
|
41
|
|
717
|
Deferred
income taxes, net
|
402
|
|
(55)
|
|
533
|
|
(1,721)
|
Changes in
operating lease right-of-use assets
|
-
|
|
5,158
|
|
-
|
|
9,446
|
Changes in
operating lease liabilities
|
-
|
|
(4,588)
|
|
-
|
|
(9,817)
|
Decrease
(increase) in trade receivables
|
161
|
|
(1,765)
|
|
(4,532)
|
|
(1,617)
|
Increase in
prepaid expenses and other current and long-term assets
|
(3,942)
|
|
(6,931)
|
|
(11,141)
|
|
(21,605)
|
Increase
(decrease) in trade payables
|
(3,222)
|
|
26,172
|
|
1,328
|
|
34,974
|
Increase in
employees and payroll accruals
|
4,223
|
|
11,585
|
|
12,235
|
|
23,694
|
Increase in
short term and long term deferred revenues
|
14,144
|
|
29,792
|
|
40,233
|
|
62,663
|
Increase in accrued
expenses and other current liabilities
|
5,629
|
|
3,287
|
|
10,599
|
|
10,203
|
Net cash provided by
operating activities
|
37,180
|
|
49,958
|
|
72,254
|
|
94,985
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
55,000
|
|
9,225
|
|
81,775
|
|
26,225
|
Investment in
short-term deposits and restricted deposits
|
-
|
|
(49,000)
|
|
(26,000)
|
|
(138,000)
|
Investment in
marketable securities
|
(108,693)
|
|
(100,867)
|
|
(136,616)
|
|
(230,168)
|
Proceeds from
marketable securities
|
21,601
|
|
65,656
|
|
29,056
|
|
154,911
|
Purchase of
property and equipment
|
(6,235)
|
|
(3,264)
|
|
(11,065)
|
|
(8,207)
|
Capitalization
of software development costs
|
(191)
|
|
-
|
|
(389)
|
|
(132)
|
Investment in other
short and long-term assets
|
(2,800)
|
|
(643)
|
|
(2,800)
|
|
(5,643)
|
Payment for
Businesses acquired
|
-
|
|
-
|
|
-
|
|
(6,626)
|
Purchases of
investments in privately-held companies
|
-
|
|
(685)
|
|
-
|
|
(785)
|
Net cash used in
investing activities
|
(41,318)
|
|
(79,578)
|
|
(66,039)
|
|
(208,425)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
7,512
|
|
12,312
|
|
14,190
|
|
19,287
|
Net cash
provided by financing activities
|
7,512
|
|
12,312
|
|
14,190
|
|
19,287
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
3,374
|
|
(17,308)
|
|
20,405
|
|
(94,153)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
348,088
|
|
191,258
|
|
331,057
|
|
268,103
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
351,462
|
|
$
173,950
|
|
$
351,462
|
|
$
173,950
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
157,012
|
|
190,169
|
|
308,376
|
|
366,715
|
Business
Solutions
|
28,407
|
|
45,890
|
|
51,333
|
|
85,331
|
Total
Revenue
|
$
185,419
|
|
$
236,059
|
|
$
359,709
|
|
$
452,046
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
170,493
|
|
217,696
|
|
347,387
|
|
426,493
|
Business
Solutions
|
29,070
|
|
48,155
|
|
52,555
|
|
88,216
|
Total
Collections
|
$
199,563
|
|
$
265,851
|
|
$
399,942
|
|
$
514,709
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
30,754
|
|
$
46,694
|
|
$
60,800
|
|
$
86,646
|
Creative
Subscriptions ARR
|
$
648,176
|
|
$
790,916
|
|
$
648,176
|
|
$
790,916
|
Number of registered
users at period end (*)
|
154,039
|
|
181,585
|
|
154,039
|
|
181,585
|
Number of premium
subscriptions at period end (*)
|
4,295
|
|
5,007
|
|
4,295
|
|
5,007
|
|
|
|
|
|
|
|
|
(*) 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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
185,419
|
|
$
236,059
|
|
$
359,709
|
|
$
452,046
|
Change in deferred
revenues
|
14,144
|
|
29,792
|
|
40,233
|
|
62,663
|
Collections
|
$
199,563
|
|
$
265,851
|
|
$
399,942
|
|
$
514,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
157,012
|
|
$
190,169
|
|
$
308,376
|
|
$
366,715
|
Change in deferred
revenues
|
13,481
|
|
27,527
|
|
39,011
|
|
59,778
|
Creative
Subscriptions Collections
|
$
170,493
|
|
$
217,696
|
|
$
347,387
|
|
$
426,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
28,407
|
|
$
45,890
|
|
$
51,333
|
|
$
85,331
|
Change in deferred
revenues
|
663
|
|
2,265
|
|
1,222
|
|
2,885
|
Business Solutions
Collections
|
$
29,070
|
|
$
48,155
|
|
$
52,555
|
|
$
88,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES AND COLLECTIONS EXCLUDING FX IMPACT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
185,419
|
|
$
236,059
|
|
$
359,709
|
|
$
452,046
|
FX impact on Q2/20
using Q2/19 rates
|
-
|
|
1,824
|
|
-
|
|
3,335
|
Revenue excluding FX
impact
|
$
185,419
|
|
$
237,883
|
|
$
359,709
|
|
$
455,381
|
|
|
|
|
|
|
|
|
Y/Y%
|
|
|
28%
|
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Collections
|
$
199,563
|
|
$
265,851
|
|
$
399,942
|
|
$
514,709
|
FX impact on Q2/20
using Q2/19 rates
|
-
|
|
3,922
|
|
-
|
|
6,271
|
Collections excluding
FX impact
|
$
199,563
|
|
$
269,773
|
|
$
399,942
|
|
$
520,980
|
|
|
|
|
|
|
|
|
Y/Y%
|
|
|
35%
|
|
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
1,436
|
|
$
1,869
|
|
$
2,747
|
|
$
3,500
|
Research and
development
|
14,119
|
|
18,216
|
|
26,375
|
|
34,401
|
Selling and
marketing
|
4,506
|
|
5,395
|
|
9,254
|
|
9,963
|
General and
administrative
|
7,504
|
|
9,487
|
|
14,096
|
|
17,821
|
Total share based
compensation expenses
|
27,565
|
|
34,967
|
|
52,472
|
|
65,685
|
(2)
Amortization
|
738
|
|
566
|
|
1,470
|
|
1,132
|
(3) Acquisition
related expenses
|
53
|
|
1,697
|
|
53
|
|
2,636
|
(4) Amortization of
debt discount and debt issuance costs
|
5,194
|
|
5,516
|
|
10,311
|
|
10,949
|
(5) Sales tax accrual
and other G&A expenses (income)
|
-
|
|
(485)
|
|
-
|
|
1,489
|
(6) Non-operating
foreign exchange expenses (income)
|
140
|
|
1,305
|
|
1,592
|
|
432
|
Total adjustments of
GAAP to Non GAAP
|
$
33,690
|
|
$
43,566
|
|
$
65,898
|
|
$
82,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
138,757
|
|
$
165,577
|
|
$
273,332
|
|
$
319,494
|
Share based
compensation expenses
|
1,436
|
|
1,869
|
|
2,747
|
|
3,500
|
Acquisition related
expenses
|
-
|
|
305
|
|
-
|
|
305
|
Amortization
|
141
|
|
-
|
|
283
|
|
-
|
Non GAAP Gross
Profit
|
140,334
|
|
167,751
|
|
276,362
|
|
323,299
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
76%
|
|
71%
|
|
77%
|
|
72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
127,716
|
|
$
151,659
|
|
$
252,433
|
|
$
292,815
|
Share based
compensation expenses
|
1,226
|
|
1,485
|
|
2,375
|
|
2,807
|
Non GAAP Gross Profit
- Creative Subscriptions
|
128,942
|
|
153,144
|
|
254,808
|
|
295,622
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
82%
|
|
81%
|
|
83%
|
|
81%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
11,041
|
|
$
13,918
|
|
$
20,899
|
|
$
26,679
|
Share based
compensation expenses
|
210
|
|
384
|
|
372
|
|
693
|
Acquisition related
expenses
|
-
|
|
305
|
|
-
|
|
305
|
Amortization
|
141
|
|
-
|
|
283
|
|
-
|
Non GAAP Gross Profit
- Business Solutions
|
11,392
|
|
14,607
|
|
21,554
|
|
27,677
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Business Solutions
|
40%
|
|
32%
|
|
42%
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
(LOSS)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(14,161)
|
|
$
(53,751)
|
|
$
(41,953)
|
|
$
(92,142)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
27,565
|
|
34,967
|
|
52,472
|
|
65,685
|
Amortization
|
738
|
|
566
|
|
1,470
|
|
1,132
|
Sales tax accrual and
other G&A expenses (income)
|
-
|
|
(485)
|
|
-
|
|
1,489
|
Acquisition related
expenses
|
53
|
|
1,697
|
|
53
|
|
2,636
|
Total
adjustments
|
$
28,356
|
|
$
36,745
|
|
$
53,995
|
|
$
70,942
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss)
|
$
14,195
|
|
$
(17,006)
|
|
$
12,042
|
|
$
(21,200)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS)
PER SHARE
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(16,734)
|
|
$
(57,736)
|
|
$
(47,474)
|
|
$
(96,889)
|
Share based
compensation expense and other Non GAAP adjustments
|
33,690
|
|
43,566
|
|
65,898
|
|
82,323
|
Non-GAAP net income
(loss)
|
$
16,956
|
|
$
(14,170)
|
|
$
18,424
|
|
$
(14,566)
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income (loss) per share
|
$
0.34
|
|
$
(0.26)
|
|
$
0.37
|
|
$
(0.27)
|
Weighted average
shares used in computing basic Non GAAP net income (loss) per
share
|
50,273,017
|
|
54,695,477
|
|
49,917,692
|
|
53,266,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
37,180
|
|
$
49,958
|
|
$
72,254
|
|
$
94,985
|
Capital expenditures,
net
|
(6,426)
|
|
(3,264)
|
|
(11,454)
|
|
(8,339)
|
Free Cash
Flow
|
$
30,754
|
|
$
46,694
|
|
$
60,800
|
|
$
86,646
|
|
|
|
|
|
|
|
|
Capex related to
future Wix HQ office build-out
|
-
|
|
408
|
|
-
|
|
891
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
30,754
|
|
$
47,102
|
|
$
60,800
|
|
$
87,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
50,273,017
|
|
54,695,477
|
|
49,917,692
|
|
53,266,895
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
7,744,708
|
|
4,906,490
|
|
7,744,708
|
|
4,906,490
|
Restricted share
units
|
2,289,069
|
|
2,190,991
|
|
2,289,069
|
|
2,190,991
|
Convertible
Notes (if-converted)
|
3,104,251
|
|
3,104,251
|
|
3,104,251
|
|
3,104,251
|
|
63,411,045
|
|
64,897,209
|
|
63,055,720
|
|
63,468,627
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Revenues
|
$
196,791
|
|
|
|
|
|
|
Change in deferred
revenues
|
9,069
|
|
|
|
|
|
|
Collections
|
$
205,860
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
September 30,
2020
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected
revenues
|
247,000
|
|
250,000
|
|
|
|
|
Projected change in
deferred revenues
|
23,000
|
|
25,000
|
|
|
|
|
Projected
Collections
|
$
270,000
|
|
$
275,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
COHORT COLLECTIONS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 Cohort
revenues
|
6
|
|
10
|
|
|
|
|
Q2 Change in deferred
revenues
|
17
|
|
28
|
|
|
|
|
Q2 Cohort
Collections
|
$
23
|
|
$
38
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/wix-reports-outstanding-second-quarter-2020-results-301107315.html
SOURCE Wix.com Ltd.