- Total revenue of $345.2 million,
up 9% y/y, and $349.0 million on a
constant currency basis, up 11% y/y
- Total bookings of $354.6 million,
up 3% y/y, and $365.2 million on a
constant currency basis, up 7% y/y
- Partners continue to turn to the Wix platform, resulting in
partners revenue of $84.9 million or
25% of total revenue, up 31% y/y and representing a two year CAGR
of 56%
- Cost reduction plan expected to generate approximately
$150 million of annualized cost
savings and accelerate margin expansion
- Launched a new Wix Editor experience, combining AI capabilities
with new advanced features to create an even more powerful and
intuitive web creation experience
NEW
YORK, Aug. 10, 2022 /PRNewswire/ -- Wix.com Ltd.
(Nasdaq: WIX) today reported financial results for the second
quarter ended June 30, 2022. In
addition, the Company provided its initial outlook for the third
quarter. Please visit the Wix Investor Relations website at
https://investors.wix.com/ to view the Q2'22 Shareholder Update and
other materials.
"We are pleased with our fundamental business improvement this
quarter as Wix continues to be the go-to platform for any type of
user and any type of business globally," said Avishai Abrahami, Wix Co-founder and CEO. "The
strong results of our growth initiatives continue. Despite the
current macroeconomic environment, we are focused on what is under
our control — driving operational efficiencies to accelerate our
path to profitability while continuing to execute on growth
initiatives, such as launching the new Wix Editor this quarter. We
remain committed to executing on our three-year financial plan,
enhancing our differentiated business model and delivering
innovative capabilities for our users to drive shareholder
value."
Lior Shemesh, CFO at Wix, added,
"Our results this quarter reflect continued market-wide volatility.
We are executing on the three-year plan we shared in May and are
undertaking a cost reduction plan that we expect will save
approximately $150 million in
annualized expenses. These cost reduction measures are expected to
accelerate expansion of our gross margin and operating margin as
well as help us achieve our free cash flow target as presented in
our three-year plan even if market conditions continue to be
challenged in 2023."
Cost reduction plan
As part of our commitment to execute on the three-year plan and
achieve the free cash flow targets introduced at our Analyst Day in
May, today we are announcing a set of comprehensive cost reduction
measures that will result in approximately $150 million of annualized cost savings. These
savings are not one-time in nature and will continue to be realized
on a run-rate basis. Approximately 20% of the annualized
savings are expected to be realized already in 2022. Further, these
cost savings do not include any reduction to our user acquisition
marketing investments that we adjust to match our TROI thresholds,
which we have not changed.
We expect that these reductions in our cost structure will
result in free cash flow as a percentage of revenue (excluding
headquarters capital expenditures) to be in line with our
three-year plan and accelerate margin expansion ahead of the
three-year plan in 2023 and beyond.
Key aspects of the plan include right-sizing our workforce and
future hiring targets across multiple functions to realign with the
operating environment today and optimizing additional operating
costs that are not revenue generating.
We continue to take a deeper look to identify additional areas
of productivity improvements across our care, sales and marketing,
and engineering functions as well as opportunities to rationalize
our real estate footprint, among other potential levers.
These measures will allow us to increase our focus on and
investment in our highest conviction growth opportunities.
Many of these actions are already underway. Of these
$150 million of annualized savings,
roughly 25% will come from cost of revenue, mainly our care
organization, which will lead to approximately 200 basis points of
gross margin improvement in 2023 compared to our three-year plan
presented in May. The other 75% of savings will come
primarily from operating expenses with a small amount being capital
expenditures.
Q2 2022 Financial Results
- Total revenue in the second quarter of 2022 was $345.2 million, up 9% y/y and representing a two
year CAGR of 21%
-
- Total revenue on a y/y constant currency basis was $349.0 million, up 11% y/y
- Creative Subscriptions revenue in the second quarter of 2022
was $258.2 million, up 9% y/y
- Creative Subscriptions ARR increased to $1.05 billion, up 9% y/y
- Business Solutions revenue in the second quarter of 2022 was
$87.0 million, up 9% y/y
-
- Transaction revenue was $36.8
million, up 13% y/y
- Partners revenue in the second quarter of 2022 was $84.9 million, up 31% y/y
- Total bookings in the second quarter of 2022 were $354.6 million, up 3% y/y and representing a two
year CAGR of 15%
-
- Total bookings on a y/y constant currency basis were
$365.2 million, up 7% y/y
- Creative Subscriptions bookings in the second quarter of 2022
were $269.9 million, up 3% y/y
- Business Solutions bookings in the second quarter of 2022 were
$84.7 million, up 6% y/y
- Total gross margin on a GAAP basis in the second quarter of
2022 was 61%
-
- Creative Subscriptions gross margin on a GAAP basis was
74%
- Business Solutions gross margin on a GAAP basis was 21%
- Total non-GAAP gross margin in the second quarter of 2022 was
62%
-
- Creative Subscriptions gross margin on a non-GAAP basis was
76%
- Business Solutions gross margin on a non-GAAP basis was
23%
- GAAP net loss in the second quarter of 2022 was $111.2 million, or $1.92 per share
- Non-GAAP net loss in the second quarter of 2022 was
$7.8 million, or $0.14 per share
- Net cash used by operating activities for the second quarter of
2022 was $(2.7) million, while
capital expenditures totaled $13.2
million, leading to free cash flow of $(15.9) million
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$(6.0) million
Financial Outlook
Our guidance for the second half reflects demand that has reset
to pre-COVID-19 levels and FX rate headwinds experienced since
May.
For Q3, we expect total revenue to be $341 to $345
million, representing 7 - 8% y/y growth. For the full year,
we now expect revenue to grow 8 - 10% y/y. These ranges
include the impact of y/y FX rates through July, discontinued
commercial activities in Russia
and the assumption that market conditions remain challenged for the
remainder of the year.
We expect free cash flow to be roughly 2 - 3% of revenue in
2022, inclusive of the cost reduction plan and y/y FX rate
headwinds through July. On a y/y constant currency basis,
this would translate into free cash flow margin of 4 - 5% of
revenue for full year 2022.
Despite these lower revenue growth expectations, we expect that
the cost reduction plan we have implemented will allow free cash
flow as a percentage of revenue (excluding headquarters capital
expenditures) in 2023 to be in line with the three-year plan
outlined in May and drive accelerated gross and operating margins
compared to the plan even if market conditions continue to be
challenged in 2023. We are committed to this plan and are taking
the necessary actions to achieve it.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m.
ET on Wednesday, August 10, 2022. To
participate on the live call, analysts and investors should
register and join at
https://register.vevent.com/register/I75e57676e62f46a4bdce023f055300a6.
A replay of the call will be available through August 9, 2023 via the registration link.
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 a leading platform to
create, manage and grow a digital presence. What began as a website
builder in 2006 is now a complete platform providing users with
enterprise-grade performance, security and a reliable
infrastructure. Offering a wide range of commerce and business
solutions, advanced SEO and marketing tools, Wix enables users to
take full ownership of their brand, their data and their
relationships with their customers. With a focus on continuous
innovation and delivery of new features and products, anyone can
build a powerful digital presence to fulfill their dreams on
Wix.
For more about Wix, please visit our Press Room
Investor Relations:
ir@wix.com
Media Relations:
pr@wix.com
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:
bookings, cumulative cohort bookings, bookings 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. Bookings is
a non-GAAP financial measure calculated by adding the change in
deferred revenues and the change in unbilled contractual
obligations for a particular period to revenues for the same
period. Bookings include cash receipts for premium subscriptions
purchased by users as well as cash we collect from business
solutions, 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 the majority of the additional products
and services (other than Google Workspace) are recognized as
revenues upon receipt. Committed payments are recognised as revenue
as we fulfill 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 bookings, 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 in effect
on the last day of the period; (ii) the average revenue per month
from domain registrations; (iii) monthly revenue from other
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, bookings 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 quarterly and annual
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 expectation that we will be able to
attract and retain registered users and generate new premium
subscriptions; our expectation that we will be able 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, as well as third-party products we will
offer in the future 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 expectations regarding execution of our multi-year
strategic plan and cost reduction plan; our prediction of the
future revenues generated by our user cohorts and our ability to
maintain and increase such revenue growth; our expectation to
maintain and enhance our brand and reputation; our expectation that
we will 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; our
expectation that our products created for markets outside of
North America will continue to
generate growth in those markets; our plans 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 expectations
regarding the extent of 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,
the effectiveness of government policies, vaccine administration
rates and other factors; our expectation regarding the impact of
fluctuations in foreign currency exchange rates on our business;
our expectations relating to the repurchase of our ordinary shares
and/or Convertible Notes pursuant to our repurchase program; our
expectation that we will effectively manage the growth of our
infrastructure; changes we expect may occur to technologies used in
our solutions; our expectations regarding the outcome of any
regulatory investigation or litigation, including class actions;
our expectations regarding future changes in our cost of revenues
and our operating expenses on an absolute basis and as a percentage
of our revenues, as well as our ability to achieve profitability;
our expectations regarding changes in the global, national,
regional or local economic, business, competitive, market, and
regulatory landscape, including as a result of increasing interest
rates and inflationary pressures, lasting effects of COVID-19,
and as a result of the military invasion of Ukraine by Russia; 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 for the foreseeable future; our expectations
with respect to the integration and performance of acquisitions;
our ability to attract and retain qualified employees and key
personnel; our expectations about entering into new markets and
attracting new customer demographics, including our ability to
successfully attract new partners and grow our partner activities
as anticipated and other factors discussed under the heading "Risk
Factors" in the Company's annual report on Form 20-F for the year
ended December 31, 2021 filed with
the Securities and Exchange Commission on April 1, 2022. 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.
|
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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
$
258,177
|
|
$
235,891
|
|
$
513,145
|
|
$
462,327
|
|
Business
Solutions
|
87,047
|
|
79,684
|
|
173,676
|
|
154,027
|
|
|
345,224
|
|
315,575
|
|
686,821
|
|
616,354
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenues
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
66,252
|
|
58,271
|
|
131,125
|
|
114,017
|
|
Business
Solutions
|
68,605
|
|
62,641
|
|
138,481
|
|
120,694
|
|
|
134,857
|
|
120,912
|
|
269,606
|
|
234,711
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
210,367
|
|
194,663
|
|
417,215
|
|
381,643
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
121,618
|
|
104,199
|
|
241,483
|
|
199,285
|
|
Selling and
marketing
|
120,780
|
|
123,021
|
|
277,494
|
|
267,476
|
|
General and
administrative
|
42,991
|
|
39,411
|
|
88,677
|
|
73,805
|
|
Total operating
expenses
|
285,389
|
|
266,631
|
|
607,654
|
|
540,566
|
|
Operating
loss
|
(75,022)
|
|
(71,968)
|
|
(190,439)
|
|
(158,923)
|
|
Financial income
(expenses), net
|
(46,926)
|
|
143,969
|
|
(191,399)
|
|
176,894
|
|
Other income
|
58
|
|
41
|
|
104
|
|
106
|
|
Income (loss) before
taxes on income
|
(121,890)
|
|
72,042
|
|
(381,734)
|
|
18,077
|
|
Taxes on income (tax
benefit)
|
(10,652)
|
|
34,409
|
|
(43,207)
|
|
42,558
|
|
Net income
(loss)
|
$
(111,238)
|
|
$
37,633
|
|
$
(338,527)
|
|
$
(24,481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share
|
$
(1.92)
|
|
$
0.66
|
|
$
(5.87)
|
|
$
(0.43)
|
|
Basic weighted-average
shares used to compute net income (loss) per share
|
57,943,140
|
|
57,306,260
|
|
57,712,372
|
|
56,793,411
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share
|
$
(1.92)
|
|
$
0.60
|
|
$
(5.87)
|
|
$
(0.43)
|
|
Diluted
weighted-average shares used to compute net income (loss) per
share
|
57,943,140
|
|
64,948,445
|
|
57,712,372
|
|
56,793,411
|
|
Wix.com Ltd.
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Period ended
|
|
|
June 30,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
Assets
|
(unaudited)
|
|
(audited)
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
241,886
|
|
$
451,355
|
|
Short-term
deposits
|
568,840
|
|
411,687
|
|
Restricted cash and
deposits
|
9,737
|
|
7,012
|
|
Marketable
securities
|
353,350
|
|
456,515
|
|
Trade
receivables
|
40,800
|
|
30,367
|
|
Prepaid expenses and
other current assets
|
34,059
|
|
32,877
|
|
Total current
assets
|
1,248,672
|
|
1,389,813
|
|
|
|
|
|
|
Long-Term
Assets:
|
|
|
|
|
Prepaid expenses and
other long-term assets
|
23,320
|
|
41,554
|
|
Property and equipment,
net
|
64,955
|
|
50,437
|
|
Marketable
securities
|
291,572
|
|
387,341
|
|
Intangible assets and
goodwill, net
|
86,384
|
|
89,547
|
|
Operating lease
right-of-use assets
|
243,526
|
|
101,095
|
|
Total long-term
assets
|
709,757
|
|
669,974
|
|
|
|
|
|
|
Total
assets
|
$ 1,958,429
|
|
$
2,059,787
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity (deficiency)
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Trade
payables
|
$
127,113
|
|
$
114,584
|
|
Employees and payroll
accruals
|
78,169
|
|
83,251
|
|
Deferred
revenues
|
522,570
|
|
484,446
|
|
Current portion of
convertible notes, net
|
360,579
|
|
-
|
|
Accrued expenses and
other current liabilities
|
83,053
|
|
62,816
|
|
Operating lease
liabilities
|
25,052
|
|
29,201
|
|
Total current
liabilities
|
1,196,536
|
|
774,298
|
|
|
|
|
|
|
Long-term deferred
revenues
|
67,125
|
|
59,966
|
|
Long-term deferred tax
liability
|
24,509
|
|
72,803
|
|
Convertible notes,
net
|
564,998
|
|
922,974
|
|
Other long-term
liabilities
|
2,090
|
|
2,267
|
|
Long-term operating
lease liabilities
|
192,735
|
|
81,764
|
|
Total long-term
liabilities
|
851,457
|
|
1,139,774
|
|
|
|
|
|
|
Total
liabilities
|
2,047,993
|
|
1,914,072
|
|
|
|
|
|
|
Shareholders'
Equity (deficiency)
|
|
|
|
|
Ordinary
shares
|
114
|
|
111
|
|
Additional paid-in
capital
|
1,137,242
|
|
994,795
|
|
Treasury
Stock
|
(199,997)
|
|
(199,997)
|
|
Accumulated other
comprehensive income
|
(40,258)
|
|
(1,056)
|
|
Accumulated
deficit
|
(986,665)
|
|
(648,138)
|
|
Total shareholders'
equity (deficiency)
|
(89,564)
|
|
145,715
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,958,429
|
|
$
2,059,787
|
|
Wix.com Ltd.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ (111,238)
|
|
$ 37,633
|
|
$ (338,527)
|
|
$
(24,481)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
4,022
|
|
3,378
|
|
7,557
|
|
6,810
|
|
Amortization
|
1,580
|
|
846
|
|
3,154
|
|
1,445
|
|
Share based
compensation expenses
|
59,139
|
|
50,396
|
|
120,123
|
|
97,027
|
|
Amortization of debt
discount and debt issuance costs
|
1,302
|
|
1,296
|
|
2,603
|
|
2,703
|
|
Changes in accrued
interest and exchange rate on short term and long term
deposits
|
(210)
|
|
(63)
|
|
(165)
|
|
(48)
|
|
Amortization of premium
and discount and accrued interest on marketable securities,
net
|
1,256
|
|
2,082
|
|
2,805
|
|
4,405
|
|
Revaluation on
Marketable equity securities
|
54,920
|
|
(73,186)
|
|
206,565
|
|
(73,186)
|
|
Deferred income taxes,
net
|
(12,644)
|
|
32,752
|
|
(48,219)
|
|
40,103
|
|
Changes in operating
lease right-of-use assets
|
9,737
|
|
8,379
|
|
18,575
|
|
13,060
|
|
Changes in operating
lease liabilities
|
(15,525)
|
|
(7,578)
|
|
(25,172)
|
|
(13,613)
|
|
Decrease (increase) in
trade receivables
|
1,216
|
|
875
|
|
(10,433)
|
|
(5,301)
|
|
Increase in prepaid
expenses and other current and long-term assets
|
(15,032)
|
|
(26,929)
|
|
(27,345)
|
|
(100,845)
|
|
Increase (decrease) in
trade payables
|
(9,573)
|
|
2,234
|
|
12,113
|
|
(1,028)
|
|
Increase (decrease) in
employees and payroll accruals
|
(342)
|
|
(27,407)
|
|
(5,082)
|
|
13,147
|
|
Increase in short term
and long term deferred revenues
|
7,731
|
|
19,266
|
|
45,283
|
|
69,596
|
|
Increase (decrease) in
accrued expenses and other current liabilities
|
20,974
|
|
(2,141)
|
|
19,816
|
|
10,527
|
|
Net cash provided by
(used in) operating activities
|
(2,687)
|
|
21,833
|
|
(16,349)
|
|
40,321
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
126,259
|
|
40,000
|
|
231,259
|
|
178,015
|
|
Investment in
short-term deposits and restricted deposits
|
(240,972)
|
|
(171,529)
|
|
(390,972)
|
|
(172,131)
|
|
Investment in
marketable securities
|
(92,408)
|
|
-
|
|
(164,563)
|
|
-
|
|
Proceeds from
marketable securities
|
78,870
|
|
90,562
|
|
140,250
|
|
180,659
|
|
Purchase of property
and equipment and payment of prepaid expenses
|
(12,629)
|
|
(6,657)
|
|
(31,912)
|
|
(10,377)
|
|
Capitalization of
internal use of software
|
(588)
|
|
(462)
|
|
(1,229)
|
|
(591)
|
|
Proceeds from sale of
marketable equity securities
|
-
|
|
-
|
|
3,193
|
|
-
|
|
Payment for Businesses
acquired, net of acquired cash
|
-
|
|
(37,217)
|
|
-
|
|
(42,803)
|
|
Purchases of
investments in privately held companies
|
(1,000)
|
|
(1,500)
|
|
(1,160)
|
|
(1,500)
|
|
Net cash provided by
(used in) investing activities
|
(142,468)
|
|
(86,803)
|
|
(215,134)
|
|
131,272
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
432
|
|
11,380
|
|
22,014
|
|
21,802
|
|
Net cash provided by
financing activities
|
432
|
|
11,380
|
|
22,014
|
|
21,802
|
|
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
|
(144,723)
|
|
(53,590)
|
|
(209,469)
|
|
193,395
|
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
386,609
|
|
415,843
|
|
451,355
|
|
168,858
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
241,886
|
|
$
362,253
|
|
$
241,886
|
|
$
362,253
|
|
Wix.com Ltd.
|
|
KEY PERFORMANCE
METRICS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Creative
Subscriptions
|
258,177
|
|
235,891
|
|
513,145
|
|
462,327
|
|
Business
Solutions
|
87,047
|
|
79,684
|
|
173,676
|
|
154,027
|
|
Total
Revenues
|
$ 345,224
|
|
$
315,575
|
|
$ 686,821
|
|
$ 616,354
|
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
269,921
|
|
263,045
|
|
569,708
|
|
531,104
|
|
Business
Solutions
|
84,673
|
|
79,816
|
|
178,134
|
|
162,866
|
|
Total
Bookings
|
$ 354,594
|
|
$
342,861
|
|
$ 747,842
|
|
$ 693,970
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
(15,904)
|
|
$
14,714
|
|
$ (49,490)
|
|
$
29,353
|
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
(5,993)
|
|
$
16,911
|
|
$
(24,141)
|
|
$
32,385
|
|
Creative Subscriptions
ARR
|
$
1,052,852
|
|
$
967,281
|
|
$
1,052,852
|
|
$
967,281
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF
REVENUES TO BOOKINGS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
$ 345,224
|
|
$
315,575
|
|
$ 686,821
|
|
$ 616,354
|
|
Change in deferred
revenues
|
7,731
|
|
19,266
|
|
45,283
|
|
69,596
|
|
Change in unbilled
contractual obligations
|
1,639
|
|
8,020
|
|
15,738
|
|
8,020
|
|
Bookings
|
$ 354,594
|
|
$
342,861
|
|
$ 747,842
|
|
$ 693,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Creative Subscriptions
Revenues
|
$ 258,177
|
|
$
235,891
|
|
$ 513,145
|
|
$ 462,327
|
|
Change in deferred
revenues
|
10,105
|
|
19,134
|
|
40,825
|
|
60,757
|
|
Change in unbilled
contractual obligations
|
1,639
|
|
8,020
|
|
15,738
|
|
8,020
|
|
Creative Subscriptions
Bookings
|
$ 269,921
|
|
$
263,045
|
|
$ 569,708
|
|
$ 531,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Business Solutions
Revenues
|
$
87,047
|
|
$
79,684
|
|
$ 173,676
|
|
$ 154,027
|
|
Change in deferred
revenues
|
(2,374)
|
|
132
|
|
4,458
|
|
8,839
|
|
Business Solutions
Bookings
|
$
84,673
|
|
$
79,816
|
|
$ 178,134
|
|
$ 162,866
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF
COHORT BOOKINGS
|
|
(In
millions)
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
Q1 Cohort
revenues
|
$
19
|
|
$
25
|
|
Q1 Change in deferred
revenues
|
21
|
|
26
|
|
Q1 Cohort
Bookings
|
$
40
|
|
$
51
|
|
Wix.com Ltd.
|
|
TOTAL ADJUSTMENTS GAAP
TO NON-GAAP
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
|
Cost of
revenues
|
$
4,555
|
|
$
3,809
|
|
$
8,786
|
|
$
7,310
|
|
Research and
development
|
29,919
|
|
24,490
|
|
58,639
|
|
47,778
|
|
Selling and
marketing
|
10,019
|
|
8,213
|
|
19,894
|
|
15,655
|
|
General and
administrative
|
14,646
|
|
13,884
|
|
32,804
|
|
26,284
|
|
Total share based
compensation expenses
|
59,139
|
|
50,396
|
|
120,123
|
|
97,027
|
|
(2)
Amortization
|
1,580
|
|
846
|
|
3,154
|
|
1,445
|
|
(3) Acquisition related
expenses
|
1,187
|
|
2,351
|
|
2,886
|
|
4,056
|
|
(4) Amortization of
debt discount and debt issuance costs
|
1,302
|
|
1,296
|
|
2,603
|
|
2,703
|
|
(5) Sales tax accrual
and other G&A expenses (income)
|
189
|
|
579
|
|
361
|
|
1,031
|
|
(6) Unrealized loss
(gain) on equity and other investments
|
54,920
|
|
(142,348)
|
|
206,565
|
|
(171,861)
|
|
(7) Non-operating
foreign exchange expenses (income)
|
(2,274)
|
|
363
|
|
1,858
|
|
2,953
|
|
(8) Provision for
income tax effects related to non-GAAP adjustments
|
(12,632)
|
|
32,740
|
|
(48,244)
|
|
39,528
|
|
Total adjustments of
GAAP to Non GAAP
|
$ 103,411
|
|
$
(53,777)
|
|
$ 289,306
|
|
$ (23,118)
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF GAAP
TO NON-GAAP GROSS PROFIT
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Gross Profit
|
$ 210,367
|
|
$
194,663
|
|
$ 417,215
|
|
$ 381,643
|
|
Share based
compensation expenses
|
4,555
|
|
3,809
|
|
8,786
|
|
7,310
|
|
Acquisition related
expenses
|
59
|
|
112
|
|
140
|
|
279
|
|
Amortization
|
759
|
|
358
|
|
1,520
|
|
455
|
|
Non GAAP Gross
Profit
|
215,740
|
|
198,942
|
|
427,661
|
|
389,687
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
62 %
|
|
63 %
|
|
62 %
|
|
63 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Gross Profit - Creative
Subscriptions
|
$ 191,925
|
|
$
177,620
|
|
$ 382,020
|
|
$ 348,310
|
|
Share based
compensation expenses
|
3,608
|
|
2,887
|
|
6,993
|
|
5,473
|
|
Non GAAP Gross Profit -
Creative Subscriptions
|
195,533
|
|
180,507
|
|
389,013
|
|
353,783
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Creative Subscriptions
|
76 %
|
|
77 %
|
|
76 %
|
|
77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Gross Profit - Business
Solutions
|
$
18,442
|
|
$
17,043
|
|
$
35,195
|
|
$
33,333
|
|
Share based
compensation expenses
|
947
|
|
922
|
|
1,793
|
|
1,837
|
|
Acquisition related
expenses
|
59
|
|
112
|
|
140
|
|
279
|
|
Amortization
|
759
|
|
358
|
|
1,520
|
|
455
|
|
Non GAAP Gross Profit -
Business Solutions
|
20,207
|
|
18,435
|
|
38,648
|
|
35,904
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Business Solutions
|
23 %
|
|
23 %
|
|
22 %
|
|
23 %
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Operating
loss
|
$ (75,022)
|
|
$
(71,968)
|
|
$
(190,439)
|
|
$
(158,923)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
59,139
|
|
50,396
|
|
120,123
|
|
97,027
|
|
Amortization
|
1,580
|
|
846
|
|
3,154
|
|
1,445
|
|
Sales tax accrual and
other G&A expenses
|
189
|
|
579
|
|
361
|
|
1,031
|
|
Acquisition related
expenses
|
1,187
|
|
2,351
|
|
2,886
|
|
4,056
|
|
Total
adjustments
|
$
62,095
|
|
$
54,172
|
|
$ 126,524
|
|
$ 103,559
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
loss
|
$
(12,927)
|
|
$
(17,796)
|
|
$
(63,915)
|
|
$ (55,364)
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF NET
INCOME (LOSS) TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER
SHARE
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Net income
(loss)
|
$
(111,238)
|
|
$
37,633
|
|
$
(338,527)
|
|
$ (24,481)
|
|
Share based
compensation expenses and other Non GAAP adjustments
|
103,411
|
|
(53,777)
|
|
289,306
|
|
(23,118)
|
|
Non-GAAP net
loss
|
$
(7,827)
|
|
$
(16,144)
|
|
$ (49,221)
|
|
$ (47,599)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
Non GAAP net loss per share
|
$
(0.14)
|
|
$
(0.28)
|
|
$
(0.85)
|
|
$
(0.84)
|
|
Weighted average shares
used in computing basic and diluted Non GAAP net loss per
share
|
57,943,140
|
|
57,306,260
|
|
57,712,372
|
|
56,793,411
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH
FLOW
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Net cash provided by
(used in) operating activities
|
$
(2,687)
|
|
$
21,833
|
|
$ (16,349)
|
|
$
40,321
|
|
Capital expenditures,
net
|
(13,217)
|
|
(7,119)
|
|
(33,141)
|
|
(10,968)
|
|
Free Cash
Flow
|
$ (15,904)
|
|
$
14,714
|
|
$ (49,490)
|
|
$
29,353
|
|
|
|
|
|
|
|
|
|
|
Capex related to future
Wix HQ office build-out
|
9,911
|
|
2,197
|
|
25,349
|
|
3,032
|
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
(5,993)
|
|
$
16,911
|
|
$ (24,141)
|
|
$
32,385
|
|
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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average
shares used to compute net income (loss) per share
|
57,943,140
|
|
57,306,260
|
|
57,712,372
|
|
56,793,411
|
|
Effect of dilutive
securities (included in the effect of dilutive securities is the
assumed conversion of employee stock options, employee RSUs and the
Notes)
|
-
|
|
7,642,185
|
|
-
|
|
-
|
|
Diluted
weighted-average shares used to compute net income (loss) per
share
|
57,943,140
|
|
64,948,445
|
|
57,712,372
|
|
56,793,411
|
|
|
|
|
|
|
|
|
|
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
|
Stock
options
|
5,024,271
|
|
643,955
|
|
5,024,271
|
|
4,735,250
|
|
Restricted share
units
|
3,009,354
|
|
436,301
|
|
3,009,354
|
|
2,063,427
|
|
Convertible Notes
(if-converted)
|
3,969,514
|
|
-
|
|
3,969,514
|
|
3,969,514
|
|
|
69,946,279
|
|
66,028,701
|
|
69,715,511
|
|
67,561,602
|
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SOURCE Wix.com Ltd.