NEW YORK, May 12, 2021 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported financial
results for the first quarter ended March
31, 2021 exceeding the high end of its guidance ranges for
revenue and collections. In addition, the Company provided its
initial outlook for the second quarter and updated its outlook for
the full year of 2021. Please visit the Wix investor relations
website at https://investors.wix.com/ to view the Q1'21 Shareholder
Update.
"Three months ago I stated my belief that Wix is becoming the
main engine of the internet, and that in the next 5-7 years, 50% of
anything new built on the internet will be done on Wix. We are
starting off 2021 in a very strong position and are making strides
in achieving these goals. Wix is taking a leading role in
facilitating the global shift online and changing the way web
presences are built," said Avishai
Abrahami, Co-founder and CEO of Wix. "We strive to be a
horizontal platform that offers the best solution for any type of
user and any type of business to not only create but also grow and
succeed online. Many types of businesses are relying on Wix today,
and we expect that our diversified approach to online commerce will
benefit Wix as global economies reopen."
Lior Shemesh, CFO of Wix, added,
"Our first quarter 2021 results build on the growth we experienced
in 2020 and serve as evidence of the positive returns we are
generating from our investments in product development, marketing
and support. These investments have driven an increase in
conversion and collections per subscription, illustrated by the
strength of the collections from the Q1 2021 user cohort, which
were 32% higher than the Q1 2020 user cohort generated in its first
quarter. We now expect that future collections from existing
cohorts will be approximately $14.2
billion over the next 10 years. We are raising our full year
guidance to reflect the conviction we have in our position as the
best platform for any type or user and any type of business to move
online."
Q1 2021 Financial Results
- Total revenue in the first quarter of 2021 was $304.1 million, up 41% y/y
-
- Creative Subscriptions revenue in the first quarter of 2021 was
$226.4 million, up 28% y/y
- Business Solutions revenue in the first quarter of 2021 was
$77.7 million, up 97% y/y
- Creative Subscriptions ARR as of the end of Q1 2021 was
$926.1 million, up 25% y/y
- Total collections in the first quarter of 2021 were
$351.1 million, up 41% y/y
-
- Creative Subscriptions collections in the first quarter of 2021
were $268.1 million, up 28% y/y
- Business Solutions collections in the first quarter of 2021
were $83.1 million, up 107% y/y
- Total gross margin on a GAAP basis in the first quarter of 2021
was 62%
-
- Creative Subscriptions gross margin on a GAAP basis was
75%
- Business Solutions gross margin on a GAAP basis was 23%
- Total non-GAAP gross margin in the first quarter of 2021 was
63%
-
- Creative Subscriptions gross margin on a non-GAAP basis was
77%
- Business Solutions gross margin on a non-GAAP basis was
24%
- GAAP net loss in the first quarter of 2021 was $(121.8) million, or $(2.16) per share
- Non-GAAP net loss in the first quarter of 2021 was $(30.2) million, or $(0.54) per share
- Net cash provided by operating activities for the first quarter
of 2021 was $18.5 million, while
capital expenditures totaled $3.8
million, leading to free cash flow of $14.6 million
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$15.5 million
Financial Outlook
Following the strong start to 2021, we are excited about the
remainder of the year ahead. As the need for an online presence
continues while businesses increasingly require online commerce
capabilities, we believe our growth will continue throughout the
year.
As countries continue to administer vaccines to their
populations and economies reopen and improve, we believe our
horizontal platform positions us for growth. Our online commerce
platform encompasses businesses of all types -- over 40% of Gross
Payments Volume (GPV) in Q1 was from non-retail store businesses
like restaurants, fitness, beauty and events. As these businesses
begin to capture more consumer spending, subscriptions and GPV on
Wix will continue to grow.
Considering these factors, our initial Q2 2021 outlook as well
as our revised full year 2021 outlook reflects sustained growth and
momentum from the expansion we experienced in 2020, underscoring
the continued strong demand for our solutions as well as positive
returns from investments in product development, support and
marketing.
We are introducing second quarter 2021 guidance as follows:
|
Q2 2021
Outlook
|
|
Y/Y growth
|
Revenue
|
$308 - 312
million
|
|
30 - 32%
|
Collections
|
$342 - 352
million
|
|
29 - 32%
|
We are updating our full year 2021 guidance as follows:
|
Updated FY 2021
Outlook
|
|
Y/Y growth
|
|
Prior FY 2021
Outlook
|
Revenue
|
$1,280 - 1,290
million
|
|
29 - 30%
|
|
$1,272 - 1,286
million
|
Collections
|
$1,440 - 1,460
million
|
|
31 - 32%
|
|
$1,435 - 1,455
million
|
Free Cash Flow
(excluding capex for future Wix HQ office build out)
|
$92 - 102
million
|
|
NM
|
|
$90 - 100
million
|
Free Cash
Flow
|
$62 - 72
million
|
|
NM
|
|
$60 - 70
million
|
- Our free cash flow guidance is inclusive of approximately
$60 million in incremental
investments we plan in 2021 to address the significant
opportunities ahead of us. Specifically, our investments are
focused on the continued expansion of Customer Care, advancing the
evolution of our payments platform, building infrastructure to
scale and globalize the Wix POS and growing our Account Management
team
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at
8:30 a.m. ET on Wednesday, May 12,
2021. 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) and
reference Conference ID 3484525. A telephonic replay of the call
will be available through May 19,
2021 at 11:30 a.m. ET by
dialing +1-855-859-2056 and providing Conference ID 3484525.
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 200 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 curated App Market, Ascend by Wix, Wix Payments and Velo
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, Phoenix, 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 and Key Operating
Metrics
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 financial 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 is a non-GAAP financial
measure calculated by adding the change in deferred revenues for a
particular period to revenues for the same period. Collections
include cash receipts for premium subscriptions purchased by
registered users as well as cash we collect for payments and
additional products and services, as well as payments due to us
under the terms of contractual agreements for which we may have not
yet received payment. Cash receipts for premium subscriptions are
deferred and recognized as revenues over the terms of the
subscriptions. Cash receipts for payments and majority of the
additional products and services are recognised as revenues upon
receipt. Committed payments are recognised as revenue as we fulfil
our obligation under the terms of the contractual agreement.
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 and other G&A
expenses (income). 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 and other G&A expenses (income), 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. Non-GAAP financial expense represents
financial expense calculated in accordance with GAAP as adjusted
for unrealized gains of equity investments, amortization of debt
discount and debt issuance costs and non-operating foreign exchange
expenses. Non-GAAP tax expense represents tax expense calculated in
accordance with GAAP as adjusted for provisions for income tax
effects related to non-GAAP adjustments.
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.
Wix also uses Creative Subscriptions Annualized Recurring
Revenue (ARR) as a key operating metric. Creative Subscriptions ARR
is calculated as Creative Subscriptions Monthly Recurring Revenue
(MRR) multiplied by 12. Creative Subscriptions MRR is calculated as
the total of (i) all active Creative Subscriptions in effect on the
last day of the period, multiplied by the monthly revenue of such
Creative Subscriptions, other than domain registrations; (ii) the
average revenue per month from domain registrations; (iii) monthly
revenue from partnership agreements.
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 annual and quarterly
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 attract and retain registered
users and generate new premium subscriptions; our ability to
increase the revenue we derive from the sale of premium
subscriptions and business solutions through our partners; our
expectation that new products and developments, including
third-party products offered within our platform, will receive
customer acceptance and satisfaction, including the growth in
market adoption of our online commerce solutions; our assumption
that historical user behavior can be extrapolated to predict future
user behavior; our prediction of the future revenues generated by
our user cohorts and our ability to maintain and increase such
revenue growth; our ability to maintain and enhance our brand and
reputation; our ability to attract and retain qualified employees
and key personnel; our ability to enter into new markets and
attract new customer demographics, including new partners; our
expectation that our products created for markets outside of
North America will continue to
generate growth in those markets; the impact of fluctuations in
foreign currency exchange rates on our business; our ability to
effectively execute our initiatives to scale and improve our user
support function through our Customer Care team, and thereby
increase user retention, user engagement and sales; the integration
and performance of acquisitions; risks relating to the repurchase
of our ordinary shares and/or Convertible Notes pursuant to our
repurchase plan; our ability to successfully localize our products,
including by making our product, support and communication channels
available in additional languages and to expand our payment
infrastructure to transact in additional local currencies and
accept additional payment methods; our ability to effectively
manage the growth of our infrastructure; the impact on our business
and operations of the COVID-19 pandemic, including uncertainty
relating to expected consumer dynamics after the COVID-19 pandemic
subsides and the anticipated GPV on our platform, the effectiveness
of government policies, vaccine administration rates and other
factors; changes to technologies used in our solutions; any
regulatory investigations or litigation; our expectations regarding
changes in our cost of revenues and our operating expenses on an
absolute basis and as a percentage of our revenues; changes in the
global, national, regional or local economic, business,
competitive, market, and regulatory landscape, including as a
result of COVID-19; our planned level of capital expenditures and
our belief that our existing cash and cash from operations will be
sufficient to fund our operations for at least the next 12 months
and other factors discussed under the heading "Risk Factors" in the
Company's 2020 annual report on Form 20-F filed with the Securities
and Exchange Commission on March 25,
2021. 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
Media Relations:
pr@wix.com
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Revenue
|
|
|
|
Creative
Subscriptions
|
$
176,546
|
|
$
226,436
|
Business
Solutions
|
39,441
|
|
77,676
|
|
215,987
|
|
304,112
|
|
|
|
|
Cost of
Revenue
|
|
|
|
Creative
Subscriptions
|
35,390
|
|
55,746
|
Business
Solutions
|
26,680
|
|
60,086
|
|
62,070
|
|
115,832
|
|
|
|
|
Gross
Profit
|
153,917
|
|
188,280
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
70,716
|
|
95,086
|
Selling and
marketing
|
96,156
|
|
144,455
|
General and
administrative
|
25,436
|
|
34,394
|
Total operating
expenses
|
192,308
|
|
273,935
|
Operating
loss
|
(38,391)
|
|
(85,655)
|
Financial income
(expenses), net
|
1,145
|
|
(28,013)
|
Other
income
|
31
|
|
65
|
Loss before taxes on
income
|
(37,215)
|
|
(113,603)
|
Taxes on
income
|
1,938
|
|
8,149
|
Net loss
|
$
(39,153)
|
|
$
(121,752)
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.76)
|
|
$
(2.16)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
51,838,314
|
|
56,280,561
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
March 31,
|
|
2020
|
|
2021
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
168,858
|
|
$
415,843
|
Short term
deposits
|
577,138
|
|
439,123
|
Restricted cash and
deposit
|
925
|
|
1,512
|
Marketable
securities
|
289,927
|
|
269,260
|
Trade
receivables
|
23,670
|
|
29,915
|
Prepaid expenses and
other current assets
|
40,666
|
|
75,853
|
Total current
assets
|
1,101,184
|
|
1,231,506
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
35,863
|
|
37,281
|
Marketable
securities
|
536,877
|
|
463,550
|
Prepaid expenses and
other long-term assets
|
87,680
|
|
118,898
|
Intangible assets and
goodwill, net
|
43,516
|
|
49,070
|
Operating lease
right-of-use assets
|
88,406
|
|
84,904
|
Total long-term
assets
|
792,342
|
|
753,703
|
|
|
|
|
Total
assets
|
$
1,893,526
|
|
$
1,985,209
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
79,881
|
|
$
77,781
|
Employees and payroll
accruals
|
70,814
|
|
103,692
|
Deferred
revenues
|
373,521
|
|
412,368
|
Accrued expenses and
other current liabilities
|
70,429
|
|
85,348
|
Operating lease
liabilities
|
22,336
|
|
22,140
|
Total current
liabilities
|
616,981
|
|
701,329
|
|
|
|
|
Long term deferred
revenues
|
50,867
|
|
59,059
|
Long term deferred
tax liability
|
15,343
|
|
22,382
|
Convertible notes,
net
|
834,440
|
|
919,084
|
Long term operating
lease liabilities
|
74,187
|
|
69,527
|
Total long term
liabilities
|
974,837
|
|
1,070,052
|
|
|
|
|
Total
liabilities
|
1,591,818
|
|
1,771,381
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
107
|
|
110
|
Additional paid-in
capital
|
862,134
|
|
851,065
|
Accumulated ther
comprehensive income
|
9,406
|
|
817
|
Accumulated
deficit
|
(569,939)
|
|
(638,164)
|
Total shareholders'
equity
|
301,708
|
|
213,828
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,893,526
|
|
$
1,985,209
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
Net
loss
|
$
(39,153)
|
|
$
(121,752)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation
|
3,572
|
|
3,432
|
Amortization
|
566
|
|
599
|
Share based
compensation expenses
|
30,718
|
|
46,631
|
Amortization of debt
discount and debt issuance costs
|
5,433
|
|
62,345
|
Decrease in accrued
interest and exchange rate on short term and long term
deposits
|
47
|
|
15
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
279
|
|
2,323
|
Deferred income
taxes, net
|
(1,666)
|
|
7,351
|
Changes in operating
lease right-of-use assets
|
4,288
|
|
4,681
|
Changes in operating
lease liabilities
|
(5,229)
|
|
(6,035)
|
Decrease (increase)
in trade receivables
|
148
|
|
(6,176)
|
Increase in prepaid
expenses and other current and long-term assets
|
(14,674)
|
|
(73,916)
|
Increase (decrease)
in trade payables
|
8,802
|
|
(3,262)
|
Increase in employees
and payroll accruals
|
12,109
|
|
40,554
|
Increase in short
term and long term deferred revenues
|
32,871
|
|
46,997
|
Increase in accrued
expenses and other current liabilities
|
6,916
|
|
14,701
|
Net cash provided by
operating activities
|
45,027
|
|
18,488
|
INVESTING
ACTIVITIES:
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
17,000
|
|
138,015
|
Investment in
short-term deposits and restricted deposits
|
(89,000)
|
|
(602)
|
Investment in
marketable securities
|
(129,301)
|
|
-
|
Proceeds from
marketable securities
|
89,255
|
|
90,097
|
Purchase of property
and equipment
|
(4,943)
|
|
(3,720)
|
Capitalization of
software development costs
|
(132)
|
|
(129)
|
Investment in other
long-term assets
|
(5,000)
|
|
-
|
Payment for
Businesses acquired, net of acquired cash
|
(6,626)
|
|
(5,586)
|
Purchases of
investments in privately held companies
|
(100)
|
|
-
|
Net cash used in
investing activities
|
(128,847)
|
|
218,075
|
FINANCING
ACTIVITIES:
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
6,975
|
|
10,422
|
Net cash provided by
financing activities
|
6,975
|
|
10,422
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(76,845)
|
|
246,985
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
268,103
|
|
168,858
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
191,258
|
|
$
415,843
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Creative
Subscriptions
|
176,546
|
|
226,436
|
Business
Solutions
|
39,441
|
|
77,676
|
Total
Revenue
|
$
215,987
|
|
$
304,112
|
|
|
|
|
Creative
Subscriptions
|
208,797
|
|
268,059
|
Business
Solutions
|
40,061
|
|
83,050
|
Total
Collections
|
$
248,858
|
|
$
351,109
|
|
|
|
|
Free Cash
Flow
|
$
39,952
|
|
$
14,639
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
40,435
|
|
$
15,474
|
Creative
Subscriptions ARR
|
$
739,457
|
|
$
926,103
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Revenues
|
$
215,987
|
|
$
304,112
|
Change in deferred
revenues
|
32,871
|
|
46,997
|
Collections
|
$
248,858
|
|
$
351,109
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
176,546
|
|
$
226,436
|
Change in deferred
revenues
|
32,251
|
|
41,623
|
Creative
Subscriptions Collections
|
$
208,797
|
|
$
268,059
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
39,441
|
|
$
77,676
|
Change in deferred
revenues
|
620
|
|
5,374
|
Business Solutions
Collections
|
$
40,061
|
|
$
83,050
|
Wix.com
Ltd.
|
RECONCILIATION OF
COHORT COLLECTIONS
|
(In
millions)
|
|
Three Months
Ended
|
|
March 31
|
|
2020
|
|
2021
|
|
|
|
|
Q1 Cohort
revenues
|
8
|
|
4
|
Q1 Change in deferred
revenues
|
20
|
|
32
|
Q1 Cohort
collections
|
$
28
|
|
$
36
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
(1) Share based
compensation expenses:
|
(unaudited)
|
Cost of
revenues
|
$
1,631
|
|
$
3,501
|
Research and
development
|
16,185
|
|
23,288
|
Selling and
marketing
|
4,568
|
|
7,442
|
General and
administrative
|
8,334
|
|
12,400
|
Total share based
compensation expenses
|
30,718
|
|
46,631
|
(2)
Amortization
|
566
|
|
599
|
(3) Acquisition
related expenses
|
939
|
|
1,705
|
(4) Amortization of
debt discount and debt issuance costs
|
5,433
|
|
62,345
|
(5) Sales tax accrual
and other G&A expenses (income)
|
1,974
|
|
452
|
(6) Unrealized gain
on equity and other investments
|
-
|
|
(29,513)
|
(7) Non-operating
foreign exchange expenses (income)
|
(873)
|
|
2,590
|
(8) Provision for
income tax effects related to non-GAAP adjustments
|
-
|
|
6,788
|
Total adjustments of
GAAP to Non GAAP
|
$
38,757
|
|
$
91,597
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Gross
Profit
|
$
153,917
|
|
$
188,280
|
Share based
compensation expenses
|
1,631
|
|
3,501
|
Acquisition related
expenses
|
-
|
|
167
|
Amortization
|
-
|
|
97
|
Non GAAP Gross
Profit
|
155,548
|
|
192,045
|
|
|
|
|
Non GAAP Gross
margin
|
72%
|
|
63%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
141,156
|
|
$
170,690
|
Share based
compensation expenses
|
1,322
|
|
2,586
|
Non GAAP Gross Profit
- Creative Subscriptions
|
142,478
|
|
173,276
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
81%
|
|
77%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
12,761
|
|
$
17,590
|
Share based
compensation expenses
|
309
|
|
915
|
Acquisition related
expenses
|
-
|
|
167
|
Amortization
|
-
|
|
97
|
Non GAAP Gross Profit
- Business Solutions
|
13,070
|
|
18,769
|
|
|
|
|
Non GAAP Gross margin
- Business Solutions
|
33%
|
|
24%
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Operating
loss
|
$
(38,391)
|
|
$
(85,655)
|
Adjustments:
|
|
|
|
Share based
compensation expenses
|
30,718
|
|
46,631
|
Amortization
|
566
|
|
599
|
Sales tax accrual and
other G&A expenses (income)
|
1,974
|
|
452
|
Acquisition related
expenses
|
939
|
|
1,705
|
Total
adjustments
|
$
34,197
|
|
$
49,387
|
|
|
|
|
Non GAAP operating
income (loss)
|
$
(4,194)
|
|
$
(36,268)
|
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
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Net loss
|
$
(39,153)
|
|
$
(121,752)
|
Share based
compensation expense and other Non GAAP adjustments
|
38,757
|
|
91,597
|
Non-GAAP net income
(loss)
|
$
(396)
|
|
$
(30,155)
|
|
|
|
|
Basic Non GAAP
net income (loss) per share
|
$
(0.01)
|
|
$
(0.54)
|
Weighted average
shares used in computing basic Non GAAP net income (loss) per
share
|
51,838,314
|
|
56,280,561
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
45,027
|
|
$
18,488
|
Capital expenditures,
net
|
(5,075)
|
|
(3,849)
|
Free Cash
Flow
|
$
39,952
|
|
$
14,639
|
|
|
|
|
Capex related to
future Wix HQ office build-out
|
483
|
|
835
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
40,435
|
|
$
15,474
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
(unaudited)
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
51,838,314
|
|
56,280,561
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding because they are anti-dilutive:
|
|
|
|
Stock
options
|
5,481,573
|
|
4,845,705
|
Restricted share
units
|
2,228,786
|
|
2,067,705
|
Convertible
Notes (if-converted)
|
3,104,251
|
|
3,969,514
|
|
62,652,924
|
|
67,163,485
|
Wix.com
Ltd.
|
|
|
|
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
June 30,
2021
|
|
December 31,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
308,000
|
|
312,000
|
|
1,280,000
|
|
1,290,000
|
Projected change in
deferred revenues
|
34,000
|
|
40,000
|
|
160,000
|
|
170,000
|
Projected
Collections
|
$
342,000
|
|
$
352,000
|
|
$
1,440,000
|
|
$
1,460,000
|
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SOURCE Wix.com Ltd.