NEW YORK, Nov. 12, 2020 /PRNewswire/ -- Wix.com Ltd.
(Nasdaq: WIX) today reported strong financial results for the third
quarter ended September 30,
2020, exceeding the high end of its guidance ranges for
revenue, collections and free cash flow. In addition, the Company
provided its outlook for the fourth quarter of 2020.
"Demand for an online presence continues to remain at high
levels," said Avishai Abrahami,
Co-founder and CEO of Wix. "Businesses are using Wix more than ever
before, and we are seeing them utilize our platform to not only
help them create a website, but also to support them as they manage
their business and grow their brands. Our web creation products and
business solutions have enabled millions of our users to achieve
success despite the ongoing difficulties that they are facing."
Lior Shemesh, CFO of Wix, added,
"Our strong results in Q3 were driven by continued high levels of
demand from new users for our website creation products and
business solutions as well as the ongoing monetization of users who
joined Wix over the most recent quarters. Users that joined Wix
during Q3 purchased subscriptions at higher rates that we have seen
in several years and at higher prices. This significant growth in
new users, as well as our continued execution in product
development and marketing, position us well to drive growth in 2021
and beyond."
Nir Zohar, President and COO, said, "Throughout Q3, even as
parts of the world began re-opening economies, we experienced
strong growth, which demonstrates the new state of mind for people
and businesses about the need for an online presence. Our teams
across the globe continue to execute at their highest levels
throughout this tumultuous time, providing world class solutions
for those in need of an online presence. We remain focused on
meeting the needs of users who come to Wix to create, manage and
grow their businesses and brands online."
Q3 2020 Financial Results
- Total revenue in the third quarter of 2020 was $254.2 million, compared to $196.8 million in the third quarter of 2019, an
increase of 29% y/y
-
- Creative Subscriptions revenue in the third quarter of 2020 was
$203.0 million, compared to
$164.8 million in the third quarter
of 2019, an increase of 23% y/y
- Business Solutions revenue in the third quarter of 2020 was
$51.2 million, compared to
$32.0 million in the third quarter of
2019, an increase of 60% y/y
- Creative Subscriptions ARR was $840.5
million in the third quarter of 2020, compared to
$680.4 million in the third quarter
of 2019, an increase of 24% y/y
- Total collections in the third quarter of 2020 were
$280.9 million, compared to
$205.9 million in the third quarter
of 2019, an increase of 36% y/y
-
- Creative Subscriptions collections in the third quarter of 2020
were $228.3 million, compared to
$173.6 million in the third quarter
of 2019, an increase of 32% y/y
- Business Solutions collections in the third quarter of 2020
were $52.6 million, compared to
$32.3 million in the third quarter of
2019, an increase of 63% y/y
- Total gross margin on a GAAP basis in the third quarter of 2020
was 69%, compared to 73% in the third quarter of 2019. The y/y
decline was related to incremental investments in Customer Care,
hosting and the faster revenue growth of the Business Solutions
segment
-
- Creative Subscriptions gross margin on a GAAP basis was 79%,
compared to 81% in the third quarter of 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
- Business Solutions gross margin on a GAAP basis was 29%
compared to 32% in the third quarter of 2019. The y/y decline was
related primarily to the growth of Wix Payments, the expansion of
Customer Care and higher hosting costs to meet the increased number
of users
- Total non-GAAP gross margin in the third quarter of 2020,
calculated as non-GAAP gross profit as a percent of revenue, was
70%, compared to 74% in the third quarter of 2019. The y/y decline
was related to incremental investments in Customer Care, hosting
and the faster revenue growth of the Business Solutions
segment
-
- Creative Subscriptions gross margin on a non-GAAP basis was
80%, compared to 82% in the third quarter of 2019. The y/y decline
was related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
- Business Solutions gross margin on a non-GAAP basis was 31%,
compared to 33% in the third quarter of 2019. The y/y decline was
related primarily to the growth of Wix Payments, the expansion of
Customer Care and higher hosting costs to meet the increased number
of users
- GAAP net loss in the third quarter of 2020 was $(56.8) million, or $(1.03) per share, compared to a net loss of
$(17.4) million, or $(0.34) per share, for the third quarter of
2019
- Non-GAAP net loss in the third quarter of 2020 was $(8.0) million, or $(0.14) per share, compared to non-GAAP net
income of $20.8 million, or
$0.41 per share, for the third
quarter of 2019
- Net cash provided by operating activities in the third quarter
of 2020 was $24.5 million, while
capital expenditures totaled $5.1
million, leading to free cash flow of $19.4 million, compared to $29.2 million of free cash flow in the third
quarter of 2019, a (34)% y/y decrease
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$20.2 million, a decrease of (31)%
y/y
- Added 302,000 net premium subscriptions in the third quarter of
2020, a 164% increase y/y, to reach 5.3 million as of September 30, 2020, a 20% increase over the total
number of premium subscriptions at the end of the third quarter of
2019
- Added 7.8 million registered users in the third quarter of
2020, a 42% increase y/y. Registered users as of September 30, 2020 were 189 million, representing
a 19% increase compared to the end of the third quarter of
2019
Recent Business Highlights
- In August, Wix issued $575
million of 0% convertible senior notes due 2025. The size of
the offering was upsized from the initial base offering and
includes the over-allotment option that the initial purchasers
exercised in full. In connection with this offering, Wix entered
into negotiated capped call transactions that are expected
generally to reduce the potential dilution to the ordinary shares
of Wix upon any conversion of Notes and/or to offset any cash
payments Wix is required to make in excess of the principal amount
of converted Notes, as the case may be, with such reduction and/or
offset subject to a cap. Proceeds from the offering were partially
used to pay for the capped call transactions with the remaining net
proceeds to be used for potential acquisitions or general corporate
purposes
- Announced Wix Capital, an internal venture arm that invests in
technology innovators that are focused on the future of the web and
that look to accelerate how businesses operate in today's evolving
digital landscape
- Partnered with Vodafone to bring Wix to the Vodafone Business
Marketplace platform, enabling its customers to build an online
presence. The Vodafone partnership was a key milestone for the Wix
Channels initiative, which expands Wix's global growth by enabling
international service providers to sell Wix website subscriptions
and business solutions directly to their customers
- Announced the expansion of the Wix Playground Academy, an
intensive web design program, into Europe in January
2021. The Academy bridges the gap between design school and
the professional world and helps designers elevate their
multidisciplinary design experience
- Enabled merchants to offer their buyers installment payment
plans for purchases. Wix now offers Afterpay in the US,
Australia and New Zealand and Clearpay in the UK as well as
Laybuy in the UK, Australia and
New Zealand
Financial Outlook
Despite the continued uncertainty surrounding the pandemic, we
remain focused on being a destination for creators and businesses
to move and grow online. Our Q4 guidance reflects the new state of
mind of creators and businesses about the importance of an online
presence and the continuation of demand for our offering.
Our outlook is also underscored by continued gains from
investments in our business, including improving and growing our
Customer Care organization, bolstering our hosting infrastructure
and increasing marketing activities. We believe these investments
will continue to drive positive returns.
We are introducing Q4 guidance as follows:
|
Q4 2020 Outlook
|
|
Y/Y growth
|
|
Implied FY
2020
Outlook
|
|
Y/Y
growth
|
Revenue
|
$266 - 271
million
|
|
30 - 32%
|
|
$972 - 977
million
|
|
28%
|
Collections
|
$295 - 305
million
|
|
30 - 35%
|
|
$1,090 - 1,100
million
|
|
31 - 32%
|
Free Cash
Flow
|
$16 - 21
million
|
|
(57) -
(44)%
|
|
$122 - 127
million
|
|
(4) - 0%
|
Free Cash Flow
(excluding capex for future
Wix HQ office build out)
|
$17 - 22
million
|
|
(55) -
(41)%
|
|
$125 - 130
million
|
|
(2) - 2%
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Thursday, November 12, 2020 to answer
questions about the financial and operational performance of the
business for the third quarter ended September 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 +1-877-667-0467 (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 4409229. A
telephonic replay of the call will be available through
November 19, 2020 at 11:30 a.m. ET by dialing +1-855-859-2056 and
providing Conference ID 4409229.
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 189 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, Editor X, 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 Austin, Be'er Sheva, Berlin, Cedar Rapids, Denver, 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
For more about Wix please visit our Press Room
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 fourth quarter 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
$
164,761
|
|
$
202,996
|
|
$
473,137
|
|
$
569,711
|
Business
Solutions
|
32,030
|
|
51,184
|
|
83,363
|
|
136,515
|
|
196,791
|
|
254,180
|
|
556,500
|
|
706,226
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
31,542
|
|
43,361
|
|
87,485
|
|
117,261
|
Business
Solutions
|
21,753
|
|
36,479
|
|
52,187
|
|
95,131
|
|
53,295
|
|
79,840
|
|
139,672
|
|
212,392
|
|
|
|
|
|
|
|
|
Gross
Profit
|
143,496
|
|
174,340
|
|
416,828
|
|
493,834
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research
and development
|
64,488
|
|
84,473
|
|
184,157
|
|
230,653
|
Selling
and marketing
|
75,862
|
|
113,092
|
|
232,909
|
|
328,581
|
General
and administrative
|
23,751
|
|
26,515
|
|
62,320
|
|
76,482
|
Total operating
expenses
|
164,101
|
|
224,080
|
|
479,386
|
|
635,716
|
Operating
loss
|
(20,605)
|
|
(49,740)
|
|
(62,558)
|
|
(141,882)
|
Financial expenses, net
|
1,242
|
|
(7,298)
|
|
(1,068)
|
|
(9,492)
|
Other
income (expenses)
|
117
|
|
25
|
|
149
|
|
84
|
Loss before taxes on
income
|
(19,246)
|
|
(57,013)
|
|
(63,477)
|
|
(151,290)
|
Taxes on
income
|
(1,879)
|
|
(171)
|
|
1,364
|
|
2,441
|
Net loss
|
$
(17,367)
|
|
$
(56,842)
|
|
$
(64,841)
|
|
$
(153,731)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.34)
|
|
$
(1.03)
|
|
$
(1.29)
|
|
$
(2.85)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
50,862,253
|
|
55,356,961
|
|
50,232,546
|
|
53,963,584
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
September
30,
|
|
2019
|
|
2020
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
268,103
|
|
$
158,456
|
Short term
deposits
|
294,096
|
|
540,069
|
Restricted cash and
deposit
|
1,149
|
|
1,135
|
Marketable
securities
|
164,301
|
|
299,743
|
Trade
receivables
|
16,987
|
|
23,159
|
Prepaid expenses and
other current assets
|
19,211
|
|
57,481
|
Total current
assets
|
763,847
|
|
1,080,043
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
31,706
|
|
35,028
|
Marketable
securities
|
177,298
|
|
540,047
|
Prepaid expenses and
other long-term assets
|
9,926
|
|
13,290
|
Intangible assets and
goodwill, net
|
37,641
|
|
44,135
|
Operating lease
assets
|
79,249
|
|
82,582
|
Total long-term
assets
|
335,820
|
|
715,082
|
|
|
|
|
Total
assets
|
$
1,099,667
|
|
$
1,795,125
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
37,687
|
|
$
70,346
|
Employees and payroll
accruals
|
41,938
|
|
74,642
|
Deferred
revenues
|
289,148
|
|
359,761
|
Accrued expenses and
other current liabilities
|
56,464
|
|
68,699
|
Operating lease
liabilities
|
18,949
|
|
19,111
|
Total current
liabilities
|
444,186
|
|
592,559
|
|
|
|
|
Long term deferred
revenues
|
21,969
|
|
40,780
|
Long term deferred
tax liability
|
1,585
|
|
693
|
Convertible senior
notes
|
358,715
|
|
823,029
|
Long term
loan
|
1,219
|
|
1,219
|
Long term operating
lease liabilities
|
64,244
|
|
69,348
|
Total long term
liabilities
|
447,732
|
|
935,069
|
|
|
|
|
Total
liabilities
|
891,918
|
|
1,527,628
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
94
|
|
106
|
Additional paid-in capital
|
611,083
|
|
817,006
|
Other
comprehensive loss
|
1,357
|
|
8,901
|
Accumulated deficit
|
(404,785)
|
|
(558,516)
|
Total shareholders'
equity
|
207,749
|
|
267,497
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,099,667
|
|
$
1,795,125
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(17,367)
|
|
$
(56,842)
|
|
$
(64,841)
|
|
$
(153,731)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
3,194
|
|
3,712
|
|
8,779
|
|
10,821
|
Amortization
|
733
|
|
826
|
|
2,203
|
|
1,958
|
Share based
compensation expenses
|
28,392
|
|
38,922
|
|
80,864
|
|
104,607
|
Amortization of debt
discount and debt issuance costs
|
5,274
|
|
7,594
|
|
15,585
|
|
18,543
|
Decrease in accrued
interest and exchange rate on short term and long term
deposits
|
137
|
|
(36)
|
|
731
|
|
26
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
(140)
|
|
1,222
|
|
(99)
|
|
1,939
|
Deferred income
taxes, net
|
(346)
|
|
(1,696)
|
|
187
|
|
(3,417)
|
Changes in operating
lease right-of-use assets
|
-
|
|
3,907
|
|
-
|
|
13,353
|
Changes in operating
lease liabilities
|
-
|
|
(3,377)
|
|
-
|
|
(13,194)
|
Decrease (increase)
in trade receivables
|
2,029
|
|
(4,329)
|
|
(2,503)
|
|
(5,946)
|
Increase in prepaid
expenses and other current and long-term assets
|
(1,683)
|
|
(7,183)
|
|
(12,824)
|
|
(28,788)
|
Increase (decrease)
in trade payables
|
2,278
|
|
(3,331)
|
|
3,606
|
|
31,643
|
Increase in employees
and payroll accruals
|
109
|
|
14,014
|
|
12,344
|
|
37,708
|
Increase in short
term and long term deferred revenues
|
9,069
|
|
26,761
|
|
49,302
|
|
89,424
|
Increase in accrued
expenses and other current liabilities
|
4,394
|
|
4,350
|
|
14,993
|
|
14,553
|
Net cash provided by
operating activities
|
36,073
|
|
24,514
|
|
108,327
|
|
119,499
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from short-term deposits
and restricted deposits
|
164,000
|
|
175,000
|
|
245,775
|
|
201,225
|
Investment in short-term deposits
and restricted deposits
|
(175,000)
|
|
(309,210)
|
|
(203,100)
|
|
(447,210)
|
Investment in marketable
securities
|
(127,967)
|
|
(468,473)
|
|
(264,583)
|
|
(698,641)
|
Proceeds
from marketable securities
|
32,246
|
|
45,104
|
|
61,302
|
|
200,015
|
Purchase of property and
equipment
|
(6,712)
|
|
(4,928)
|
|
(17,777)
|
|
(13,135)
|
Capitalization of software development costs
|
(134)
|
|
(206)
|
|
(523)
|
|
(338)
|
Investment in other short and
long-term assets
|
-
|
|
-
|
|
(700)
|
|
(5,643)
|
Payment
for Businesses acquired
|
-
|
|
-
|
|
-
|
|
(6,626)
|
Purchases of investments in privately-held companies
|
(262)
|
|
-
|
|
(262)
|
|
(785)
|
Net cash used in
investing activities
|
(113,829)
|
|
(562,713)
|
|
(179,868)
|
|
(771,138)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds
from exercise of options and ESPP shares
|
9,452
|
|
9,418
|
|
23,642
|
|
28,705
|
Proceeds
from issuance of convertible senior notes
|
-
|
|
575,000
|
|
-
|
|
575,000
|
Payments
of debt issuance costs
|
-
|
|
(15,713)
|
|
-
|
|
(15,713)
|
Purchase
of capped call
|
-
|
|
(46,000)
|
|
-
|
|
(46,000)
|
Net cash
provided by financing activities
|
9,452
|
|
522,705
|
|
23,642
|
|
541,992
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(68,304)
|
|
(15,494)
|
|
(47,899)
|
|
(109,647)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
351,462
|
|
173,950
|
|
331,057
|
|
268,103
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
283,158
|
|
$
158,456
|
|
$
283,158
|
|
$
158,456
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
164,761
|
|
202,996
|
|
473,137
|
|
569,711
|
Business
Solutions
|
32,030
|
|
51,184
|
|
83,363
|
|
136,515
|
Total
Revenue
|
$
196,791
|
|
$
254,180
|
|
$
556,500
|
|
$
706,226
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
173,571
|
|
228,327
|
|
520,958
|
|
654,820
|
Business
Solutions
|
32,289
|
|
52,614
|
|
84,844
|
|
140,830
|
Total
Collections
|
$
205,860
|
|
$
280,941
|
|
$
605,802
|
|
$
795,650
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
29,227
|
|
$
19,380
|
|
$
90,027
|
|
$
106,026
|
Creative
Subscriptions ARR
|
$
680,377
|
|
$
840,512
|
|
$
680,377
|
|
$
840,512
|
Number of registered
users at period end (*)
|
159,543
|
|
189,390
|
|
159,543
|
|
189,390
|
Number of premium
subscriptions at period end (*)
|
4,410
|
|
5,309
|
|
4,410
|
|
5,309
|
|
|
|
|
|
|
|
|
(*) 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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
196,791
|
|
$
254,180
|
|
$
556,500
|
|
$
706,226
|
Change in deferred
revenues
|
9,069
|
|
26,761
|
|
49,302
|
|
89,424
|
Collections
|
$
205,860
|
|
$
280,941
|
|
$
605,802
|
|
$
795,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
164,761
|
|
$
202,996
|
|
$
473,137
|
|
$
569,711
|
Change in deferred
revenues
|
8,810
|
|
25,331
|
|
47,821
|
|
85,109
|
Creative
Subscriptions Collections
|
$
173,571
|
|
$
228,327
|
|
$
520,958
|
|
$
654,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
32,030
|
|
$
51,184
|
|
$
83,363
|
|
$
136,515
|
Change in deferred
revenues
|
259
|
|
1,430
|
|
1,481
|
|
4,315
|
Business Solutions
Collections
|
$
32,289
|
|
$
52,614
|
|
$
84,844
|
|
$
140,830
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
1,525
|
|
$
2,455
|
|
$
4,272
|
|
$
5,955
|
Research and
development
|
14,886
|
|
20,312
|
|
41,261
|
|
54,713
|
Selling and
marketing
|
4,590
|
|
6,108
|
|
13,844
|
|
16,071
|
General and
administrative
|
7,391
|
|
10,047
|
|
21,487
|
|
27,868
|
Total share based
compensation expenses
|
28,392
|
|
38,922
|
|
80,864
|
|
104,607
|
(2)
Amortization
|
733
|
|
826
|
|
2,203
|
|
1,958
|
(3) Acquisition
related expenses
|
564
|
|
1,489
|
|
617
|
|
4,125
|
(4) Amortization of
debt discount and debt issuance costs
|
5,274
|
|
7,594
|
|
15,585
|
|
18,543
|
(5) Sales tax accrual
and other G&A expenses (income)
|
3,174
|
|
-
|
|
3,174
|
|
1,489
|
(6) Non-operating
foreign exchange expenses (income)
|
56
|
|
(5)
|
|
1,648
|
|
427
|
Total adjustments of
GAAP to Non GAAP
|
$
38,193
|
|
$
48,826
|
|
$
104,091
|
|
$
131,149
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
143,496
|
|
$
174,340
|
|
$
416,828
|
|
$
493,834
|
Share based
compensation expenses
|
1,525
|
|
2,455
|
|
4,272
|
|
5,955
|
Acquisition related
expenses
|
-
|
|
200
|
|
-
|
|
505
|
Amortization
|
142
|
|
226
|
|
425
|
|
226
|
Non GAAP Gross
Profit
|
145,163
|
|
177,221
|
|
421,525
|
|
500,520
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
74%
|
|
70%
|
|
76%
|
|
71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
133,219
|
|
$
159,635
|
|
$
385,652
|
|
$
452,450
|
Share based
compensation expenses
|
1,285
|
|
1,947
|
|
3,660
|
|
4,754
|
Non GAAP Gross Profit
- Creative Subscriptions
|
134,504
|
|
161,582
|
|
389,312
|
|
457,204
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
82%
|
|
80%
|
|
82%
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
10,277
|
|
$
14,705
|
|
$
31,176
|
|
$
41,384
|
Share based
compensation expenses
|
240
|
|
508
|
|
612
|
|
1,201
|
Acquisition related
expenses
|
-
|
|
200
|
|
-
|
|
505
|
Amortization
|
142
|
|
226
|
|
425
|
|
226
|
Non GAAP Gross Profit
- Business Solutions
|
10,659
|
|
15,639
|
|
32,213
|
|
43,316
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Business Solutions
|
33%
|
|
31%
|
|
39%
|
|
32%
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(20,605)
|
|
$
(49,740)
|
|
$
(62,558)
|
|
$
(141,882)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
28,392
|
|
38,922
|
|
80,864
|
|
104,607
|
Amortization
|
733
|
|
826
|
|
2,203
|
|
1,958
|
Sales tax
accrual and other G&A expenses (income)
|
3,174
|
|
-
|
|
3,174
|
|
1,489
|
Acquisition
related expenses
|
564
|
|
1,489
|
|
617
|
|
4,125
|
Total
adjustments
|
$
32,863
|
|
$
41,237
|
|
$
86,858
|
|
$
112,179
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss)
|
$
12,258
|
|
$
(8,503)
|
|
$
24,300
|
|
$
(29,703)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(17,367)
|
|
$
(56,842)
|
|
$
(64,841)
|
|
$
(153,731)
|
Share based
compensation expense and other Non GAAP adjustments
|
38,193
|
|
48,826
|
|
104,091
|
|
131,149
|
Non-GAAP net income
(loss)
|
$
20,826
|
|
$
(8,016)
|
|
$
39,250
|
|
$
(22,582)
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income (loss) per share
|
$
0.41
|
|
$
(0.14)
|
|
$
0.78
|
|
$
(0.42)
|
Weighted average
shares used in computing basic Non GAAP net income (loss) per
share
|
50,862,253
|
|
55,356,961
|
|
50,232,546
|
|
53,963,584
|
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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
36,073
|
|
$
24,514
|
|
$
108,327
|
|
$
119,499
|
Capital expenditures,
net
|
(6,846)
|
|
(5,134)
|
|
(18,300)
|
|
(13,473)
|
Free Cash
Flow
|
$
29,227
|
|
$
19,380
|
|
$
90,027
|
|
$
106,026
|
|
|
|
|
|
|
|
|
Capex related to
future Wix HQ office build-out
|
-
|
|
779
|
|
-
|
|
1,670
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
29,227
|
|
$
20,159
|
|
$
90,027
|
|
$
107,696
|
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,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
50,862,253
|
|
55,356,961
|
|
50,232,546
|
|
53,963,584
|
The following items
have been excluded from the diluted weighted average number of
shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
7,571,765
|
|
4,741,271
|
|
7,571,765
|
|
4,741,271
|
Restricted share
units
|
2,231,470
|
|
2,109,920
|
|
2,231,470
|
|
2,109,920
|
Convertible
Notes (if-converted)
|
3,104,251
|
|
4,428,999
|
|
3,104,251
|
|
4,428,999
|
|
63,769,739
|
|
66,637,151
|
|
63,140,032
|
|
65,243,774
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December 31,
2020
|
|
December 31,
2020
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
266,000
|
|
271,000
|
|
972,000
|
|
977,000
|
Projected change in
deferred revenues
|
29,000
|
|
34,000
|
|
118,000
|
|
123,000
|
Projected
Collections
|
$
295,000
|
|
$
305,000
|
|
$
1,090,000
|
|
$
1,100,000
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/wix-reports-third-quarter-2020-results-301171574.html
SOURCE Wix.com Ltd.