- Finished 2022 ahead of guidance, with total revenue of
$355.0 million in the fourth quarter,
up 6% y/y; total revenue was $361.4
million and up 8% y/y on a constant currency basis
- Q4'22 was the most profitable FCF quarter in Wix history with
FCF1 of $52.0 million,
ahead of guidance
- Cost efficiencies expected to generate an additional
$50 million of savings in 2023
(~$65 million annualized),
accelerating path to profitability
-
- Creative Subscriptions non-GAAP gross margin expected to reach
80% in FY 2023
- Expecting FCF1 margin of 10-11% of revenue for full
year 2023, increasing each quarter and exiting the year at
12-13%
- Accelerated profitability drives new goal of achieving positive
GAAP net income in FY 2025, ahead of plan
- Confident and committed to achieving "Rule of 40" in FY 2025
under varying future growth scenarios
- Exceptional brand strength of Wix enabling an evolution in our
marketing strategy and demonstrating our category leadership --
despite reducing acquisition marketing spend by ~50% in Q4, we have
seen stable new cohort bookings
- Executed $243 million2
of ordinary share repurchases in Q4, representing approximately 5%
of our total ordinary shares outstanding, underscoring board and
management conviction in our current and future ability to generate
strong free cash flow
NEW
YORK, Feb. 22, 2023 /PRNewswire/ -- Wix.com
Ltd. (Nasdaq: WIX) today reported financial results for the fourth
quarter and full year ended December 31,
2022. In addition, the Company provided its initial outlook
for the first quarter and full year 2023. Please visit the Wix
Investor Relations website at https://investors.wix.com/ to view
the Q4'22 Shareholder Update and other materials.
"In the face of a dynamic macroeconomic environment this year,
we shifted our focus toward tightening spending and becoming more
efficient in the execution of our priorities. Through all of this,
we continued to lead through innovation. We released hundreds of
new products and features throughout 2022 to improve our platform
for self creators and partners. Among the most notable releases
this year were Wix Blocks for developers, our new Wix Editor,
Wix Portfolio and our new AI Text
Creator," said Avishai Abrahami, Wix
Co-founder and CEO. "We enter 2023 with great confidence that we
are creating a best-in-class platform that will bring forth
innovation and create lasting value for our users and shareholders.
The actions and strategies implemented this past year position us
well to weather this uncertain period, emerge a stronger and more
profitable software company, and achieve 'Rule of 40' in 2025.
While internet growth is currently reverting back to the
pre-pandemic trendline, we believe there are still many years of
significant expansion ahead. The potential for Wix in 2023 and
beyond is enormous, and I am excited about what is to come."
Lior Shemesh, CFO at Wix, added,
"We ended 2022 on strong footing with Q4 and full year revenue
above our guidance range as well as the strongest quarter of free
cash flow1 in our history. Earlier this month, we began
implementing further cost efficiency measures that we expect to
yield an additional $50 million of
cost savings in 2023 and $65 million
on an annualized basis. Combined with our original cost reduction
plan, we now expect total cost savings of $200 million in 2023 and $215 million of annualized savings compared to
the plan we shared at our May 2022
Analyst Day. By continuing to control what we can, we expect to
accelerate profitability with positive GAAP and non-GAAP net income
now expected sooner than originally anticipated, exit 2023 with a
FCF1 margin of ~12-13%, and achieve the 'Rule of 40' in
FY2025 under varying revenue growth scenarios."
Accelerated Path to Profitability
We are confident in and committed to achieving "Rule of 40"
in FY2025 under varying future growth scenarios with the
acceleration of our path to profitability through additional cost
reduction measures.
On top of the $150 million cost
reduction plan announced in August
2022, we are implementing an incremental $50 million of cost savings in 2023. These
savings consist of a further reduction in headcount that took place
last week, increased hosting efficiencies and a reduction in capex.
On an annualized basis, these actions create $65 million of savings for a total of
$215 million of annualized cost
savings compared to the three-year plan shared at our May 2022 Analyst Day.
As a result of these actions, we now expect to achieve key
financial milestones approximately 2 years sooner than previously
anticipated in our three-year plan:
- Non-GAAP gross margin is expected to increase to 66% in FY2023
with an exit margin of 67%. Creative Subscriptions non-GAAP gross
margin is expected to reach 80% in FY2023
- Non-GAAP operating expenses are expected to be down to 59-60%
of revenue for FY2023 – a level previously anticipated for
FY2025
- More than $100 million of
non-GAAP operating income and positive non-GAAP net income expected
in FY2023 – targets previously anticipated for late-FY2024
- Positive GAAP operating income and net income expected for
FY2025 – targets previously anticipated beyond the three-year
horizon
- Partners business expected to generate positive FCF by
mid-FY2024 – more than a year ahead of our three-year plan shared
in May 2022
With increased efficiency across our business as well as
improved technological capabilities achieved over the last couple
of years, we made the difficult decision to rightsize the
organization to meet current demand needs. As a result, we
heavy-heartedly parted ways with approximately 370 of our employees
last week, or nearly 7% of our total workforce. This reduction
primarily occurred across our Customer Care team, which we were
able to realign without sacrificing the level and quality of
service provided to our users.
This headcount reduction, in addition to the efficiency efforts
and savings implemented throughout 2022, will bring our total
headcount from nearly 6,100 at the end of Q1'22 to roughly 5,200 at
the end of this process, reflecting a 15% decrease.
Success in Evolving our Marketing Strategy
As mentioned last quarter, in September we began tests to adjust
our marketing approach to focus on higher-intent users. We
accelerated this testing throughout Q4, and in doing so, we reduced
investment in acquisition marketing in the quarter by nearly 50%
compared to the previous year.
The results were outstanding. Despite reducing acquisition
marketing spend by 50%, we have seen stable new cohort
bookings.
We believe the driver of this success is the strength of our
brand. Our investments in building a global, scaled brand over the
past 15 years have made Wix synonymous with relevant general
keywords on the internet. So when people are searching for a
"website builder", for example, they are actually searching for
Wix.
Based on these phenomenal results, we plan to continue executing
this new marketing strategy and expect investment in acquisition
marketing to remain at these reduced levels throughout 2023. We
also plan to shift dollars to invest more into our brand going
forward in order to drive future growth. We will continue
developing plans throughout 1H23 for this new marketing strategy
and expect brand marketing investment to be higher in 2H23. We
currently estimate this increased brand marketing investment to be
roughly 3-4% of revenue in 2H23. With this evolution of our
marketing strategy, we still expect lower sales and marketing
expenses in 2023 compared to 2022 as our efficiency improves from
this new strategy.
Q4 2022 Financial Results
- Total revenue in the fourth quarter of 2022 was $355.0 million, up 6% y/y
-
- Total revenue on a y/y constant currency basis was $361.4 million, up 8% y/y
- Creative Subscriptions revenue in the fourth quarter of 2022
was $265.3 million, up 8% y/y
-
- Creative Subscriptions ARR increased to $1.08 billion, up 7% y/y
- Business Solutions revenue in the fourth quarter of 2022 was
$89.8 million, up 3% y/y
-
- Transaction revenue3 was $38.9 million, up 8% y/y
- Partners revenue4 in the fourth quarter of 2022 was
$94.6 million, up 23% y/y
- Total bookings in the fourth quarter of 2022 were $371.8 million, up 6% y/y
-
- Total bookings on a y/y constant currency basis were
$385.8 million, up 10% y/y
- Creative Subscriptions bookings in the fourth quarter of 2022
were $281.8 million , up 7% y/y
- Business Solutions bookings in the fourth quarter of 2022 were
$90.0 million, up 3% y/y
- Total gross margin on a GAAP basis in the fourth quarter of
2022 was 64%
-
- Creative Subscriptions gross margin on a GAAP basis was
78%
- Business Solutions gross margin on a GAAP basis was 22%
- Total non-GAAP gross margin in the fourth quarter of 2022 was
65%
-
- Creative Subscriptions gross margin on a non-GAAP basis was
79%
- Business Solutions gross margin on a non-GAAP basis was
24%
- GAAP net loss in the fourth quarter of 2022 was $(39.0) million, or $(0.67) per share
- Non-GAAP net income in the fourth quarter of 2022 was
$35.6 million, or $0.61 per share
- Net cash provided by operating activities for the fourth
quarter of 2022 was $53.2 million,
while capital expenditures totaled $14.6
million, leading to free cash flow of $38.6 million
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow for the fourth
quarter of 2022 would have been $52.0
million
- Executed $243 million in
repurchases of ordinary shares2, or approximately 5% of
total shares outstanding, under Board-authorized $300 million share repurchase program
FY 2022 Financial Results
- Total revenue for the full year 2022 was $1.39 billion, up 9% y/y
-
- Total revenue on a y/y constant currency basis was $1.40 billion, up 11% y/y
- Creative Subscriptions revenue for the full year 2022 was
$1.04 billion, up 9% y/y
- Business Solutions revenue for the full year 2022 was
$348.2 million, up 9% y/y
-
- Transaction revenue3 for the full year was
$148.2 million, up 14% y/y
- Partners revenue4 for the full year 2022 was
$348.2 million, up 29% y/y
- Total bookings for the full year 2022 were $1.47 billion, up 4% y/y
-
- Total bookings on a y/y constant currency basis were
$1.52 billion, up 7% y/y
- Creative Subscriptions bookings for the full year 2022 were
$1.12 billion , up 3% y/y
- Business Solutions bookings for the full year 2022 were
$350.7 million, up 6% y/y
- Total gross margin on a GAAP basis for the full year 2022 was
62%
-
- Creative Subscriptions gross margin on a GAAP basis was
76%
- Business Solutions gross margin on a GAAP basis was 21%
- Total non-GAAP gross margin for the full year 2022 was 64%
-
- Creative Subscriptions gross margin on a non-GAAP basis was
77%
- Business Solutions gross margin on a non-GAAP basis was
23%
- GAAP net loss for the full year 2022 was $(424.9) million, or $(7.33) per share
- Non-GAAP net loss for the full year 2022 was $(10.0) million, or $(0.17) per share
- Net cash provided by operating activities for the full year
2022 was $37.2 million, while capital
expenditures totaled $70.7 million,
leading to free cash flow of $(33.5)
million
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow for the full year
2022 would have been $32.4
million
- Added 96 thousand net premium subscriptions in full year 2022
to reach nearly 6.1 million as of December
31, 2022, a 2% increase over the total number of premium
subscriptions at December 31,
2021
- Registered users as of December 31,
2022 were 243 million, representing a 10% increase compared
to December 31, 2021
- Total employee headcount as of December
31, 2022 of 5,516, including 152 part time employees, down
7% y/y
____________________
|
|
1Free cash
flow excluding the capex investment and related costs for the
buildout of our new corporate headquarters
|
|
2Cash
settlement of share repurchase transactions executed in Q4'22
totaled approximately $232 million
|
|
3Transaction
revenue is a portion of Business Solutions revenue, and we define
transaction revenue as all revenue generated through transaction
facilitation, primarily from Wix Payments as well as Wix POS,
shipping solutions and multi-channel commerce and gift card
solutions
|
|
4Partners
revenue is defined as revenue generated through agencies and
freelancers that build sites or applications for other users as
well as revenue generated through B2B partnerships, such as
LegalZoom or Vistaprint. We identify agencies and freelancers
building sites or applications for others using multiple criteria
including but not limited to the number of sites built,
participation in the Wix Partner Program and/or the Wix Marketplace
or Wix products used, among other criteria. Partners revenue
includes revenue from both the Creative Subscriptions and Business
Solutions businesses
|
Financial Outlook
We are encouraged by the strong fundamentals of our
business.
Assuming no deterioration in the macro environment, we expect
total revenue in Q1'23 to be $367-$371 million,
representing approximately 7-9% y/y growth.
For the full year, we expect total revenue to be $1,510 - $1,535
million, representing approximately 9 - 11% y/y
growth.
Our focus in 2023 will continue to be on driving cost
efficiencies across the business while innovating industry-first
products for our users. As a result of the $50 million of incremental cost savings expected
in 2023 (~$65 million on an
annualized basis), we anticipate profitability to accelerate
compared to the three-year plan outlined at our Analyst Day in
May 2022.
Non-GAAP gross margin is expected to increase to ~66% for the
full year 2023 with an exit margin of ~67%. This improvement will
be driven by increases in gross margin to Creative Subscriptions,
which we expect will be ~80% and Business Solutions, which we
expect to be ~27% in 2023.
Non-GAAP operating expenses are expected to be slightly down y/y
to 59-60% of revenue for full year 2023 as operational efficiencies
from our cost reduction efforts materialize.
We expect depreciation expenses of approximately $17 - $19 million,
non-HQ related capex of approximately $8 - $9 million and
HQ-related capex of $50 -
$55 million for full year 2023. Due
to the timing of vendor payments associated with the buildout of
our headquarters, we now anticipate HQ-related capex of
$5 - 10 million in 2024 following the
completion of the project in late 2023. The total cost associated
with the buildout of our headquarters remains ~$150 million, unchanged from prior
expectations.
As a result, free cash flow excluding HQ investments is
expected to be roughly $152 -
$162 million, or 10-11% of revenue in
2023. We expect free cash flow margin to improve as we progress
through the year and exit 2023 with a free cash flow margin of
~12-13%, driven by the new efficiencies implemented in
1H23.
Finally, stock-based compensation is expected to decrease to 15%
of revenue in 2023, down from 17% of revenue in 2022, as headcount
across the organization declines. We expect stock-based
compensation as a percentage of revenue to continue to decline y/y
through 2025.
The accelerated profitability expected in 2023 will put us on
the path to achieve the "Rule of 40" in 2025.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30
a.m. ET on Wednesday, February 22,
2023. To participate on the live call, analysts and
investors should register and join at
https://register.vevent.com/register/BI5eb72bdb2bf1417e924830624d187210.
A replay of the call will be available through February 22, 2024 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 operating margin, 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 foreign exchange 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
recognized 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; 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
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
|
$
265,268
|
|
$
246,669
|
|
$
1,039,479
|
|
$
950,299
|
|
Business
Solutions
|
|
89,772
|
|
86,744
|
|
348,187
|
|
319,358
|
|
Marketable
securities
|
|
355,040
|
|
333,413
|
|
1,387,666
|
|
1,269,657
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenues
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
|
58,427
|
|
60,789
|
|
251,587
|
|
232,619
|
|
Business
Solutions
|
|
70,337
|
|
71,103
|
|
274,640
|
|
255,960
|
|
|
|
128,764
|
|
131,892
|
|
526,227
|
|
488,579
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
226,276
|
|
201,521
|
|
861,439
|
|
781,078
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
120,994
|
|
116,329
|
|
482,861
|
|
424,937
|
|
Selling and
marketing
|
|
97,944
|
|
124,560
|
|
492,886
|
|
512,027
|
|
General and
administrative
|
|
39,941
|
|
56,926
|
|
171,045
|
|
169,648
|
|
Total operating
expenses
|
|
258,879
|
|
297,815
|
|
1,146,792
|
|
1,106,612
|
|
Operating
loss
|
|
(32,603)
|
|
(96,294)
|
|
(285,353)
|
|
(325,534)
|
|
Financial income
(expenses), net
|
|
(13,256)
|
|
(16,868)
|
|
(183,513)
|
|
271,943
|
|
Other income
|
|
788
|
|
391
|
|
1,023
|
|
584
|
|
Loss before taxes on
income
|
|
(45,071)
|
|
(112,771)
|
|
(467,843)
|
|
(53,007)
|
|
Taxes on income (tax
benefit)
|
|
(6,096)
|
|
(3,730)
|
|
(42,980)
|
|
64,202
|
|
Net loss
|
|
$
(38,975)
|
|
$ (109,041)
|
|
$ (424,863)
|
|
$ (117,209)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
(0.67)
|
|
$
(1.91)
|
|
$
(7.33)
|
|
$
(2.06)
|
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
|
58,189,246
|
|
57,103,278
|
|
57,993,364
|
|
57,004,154
|
Wix.com Ltd.
|
|
|
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
Assets
|
|
(unaudited)
|
|
(audited)
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
244,686
|
|
$
451,355
|
Short-term
deposits
|
|
526,328
|
|
411,687
|
Restricted
deposits
|
|
13,669
|
|
7,012
|
Marketable
securities
|
|
292,449
|
|
456,515
|
Trade
receivables
|
|
42,086
|
|
30,367
|
Prepaid expenses and
other current assets
|
|
28,519
|
|
32,877
|
Total current
assets
|
|
1,147,737
|
|
1,389,813
|
|
|
|
|
|
Long-Term
Assets:
|
|
|
|
|
Prepaid expenses and
other long-term assets
|
|
23,027
|
|
41,554
|
Property and equipment,
net
|
|
108,738
|
|
50,437
|
Marketable
securities
|
|
194,964
|
|
387,341
|
Intangible assets and
goodwill, net
|
|
83,293
|
|
89,547
|
Operating lease
right-of-use assets
|
|
200,608
|
|
101,095
|
Total long-term
assets
|
|
610,630
|
|
669,974
|
|
|
|
|
|
Total
assets
|
|
$
1,758,367
|
|
$
2,059,787
|
|
|
|
|
|
Liabilities and
Shareholders' Equity (deficiency)
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Trade
payables
|
|
$
96,071
|
|
$
114,584
|
Employees and payroll
accruals
|
|
86,113
|
|
83,251
|
Deferred
revenues
|
|
529,205
|
|
484,446
|
Current portion of
convertible notes, net
|
|
361,621
|
|
-
|
Accrued expenses and
other current liabilities
|
|
88,194
|
|
62,816
|
Operating lease
liabilities
|
|
29,268
|
|
29,201
|
Total current
liabilities
|
|
1,190,472
|
|
774,298
|
Long Term
Liabilities:
|
|
|
|
|
Long-term deferred
revenues
|
|
70,594
|
|
59,966
|
Long-term deferred tax
liability
|
|
14,902
|
|
72,803
|
Convertible notes,
net
|
|
566,566
|
|
922,974
|
Other long-term
liabilities
|
|
6,093
|
|
2,267
|
Long-term operating
lease liabilities
|
|
172,982
|
|
81,764
|
Total long-term
liabilities
|
|
831,137
|
|
1,139,774
|
|
|
|
|
|
Total
liabilities
|
|
2,021,609
|
|
1,914,072
|
|
|
|
|
|
Shareholders'
Equity (deficiency)
|
|
|
|
|
Ordinary
shares
|
|
108
|
|
111
|
Additional paid-in
capital
|
|
1,274,968
|
|
994,795
|
Treasury
Stock
|
|
(431,862)
|
|
(199,997)
|
Accumulated other
comprehensive income
|
|
(33,455)
|
|
(1,056)
|
Accumulated
deficit
|
|
(1,073,001)
|
|
(648,138)
|
Total shareholders'
equity (deficiency)
|
|
(263,242)
|
|
145,715
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
1,758,367
|
|
$
2,059,787
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
(38,975)
|
|
$
(109,041)
|
|
$
(424,863)
|
|
$
(117,209)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Marketable
securities
|
|
5,209
|
|
3,524
|
|
16,611
|
|
13,929
|
Amortization
|
|
1,511
|
|
462
|
|
6,246
|
|
4,952
|
Share based
compensation expenses
|
|
59,917
|
|
71,294
|
|
236,836
|
|
221,391
|
Amortization of debt
discount and debt issuance costs
|
|
1,305
|
|
1,298
|
|
5,213
|
|
5,298
|
Changes in accrued
interest and exchange rate on short term and long term
deposits
|
|
(93)
|
|
85
|
|
(86)
|
|
(20)
|
Amortization of premium
and discount and accrued interest on marketable securities,
net
|
|
2,447
|
|
1,642
|
|
6,252
|
|
7,843
|
Remeasurement loss
(gain) on Marketable equity
|
|
3,955
|
|
17,718
|
|
200,338
|
|
(166,323)
|
Deferred income taxes,
net
|
|
(11,997)
|
|
(6,760)
|
|
(57,865)
|
|
54,454
|
Changes in operating
lease right-of-use assets
|
|
18,724
|
|
9,474
|
|
45,440
|
|
28,441
|
Changes in operating
lease liabilities
|
|
(11,204)
|
|
(7,013)
|
|
(45,051)
|
|
(26,688)
|
Increase in trade
receivables
|
|
(6,290)
|
|
(2,379)
|
|
(11,719)
|
|
(6,250)
|
Decrease (increase) in
prepaid expenses and other current and long-term assets
|
|
26,713
|
|
3,029
|
|
(5,912)
|
|
(98,468)
|
Increase (decrease) in
trade payables
|
|
(22,667)
|
|
20,896
|
|
(18,514)
|
|
26,595
|
Increase in employees
and payroll accruals
|
|
17,506
|
|
6,872
|
|
2,862
|
|
19,391
|
Increase in short term
and long term deferred revenues
|
|
4,081
|
|
6,522
|
|
55,387
|
|
82,361
|
Increase in accrued
expenses and other current liabilities
|
|
3,092
|
|
3,418
|
|
25,977
|
|
15,988
|
Net cash provided by
operating activities
|
|
53,234
|
|
21,041
|
|
37,152
|
|
65,685
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
|
308,379
|
|
285,000
|
|
644,809
|
|
732,015
|
Investment in
short-term deposits and restricted deposits
|
|
(317,869)
|
|
(155,500)
|
|
(766,021)
|
|
(572,631)
|
Investment in
marketable securities
|
|
-
|
|
(29,377)
|
|
(202,611)
|
|
(29,377)
|
Proceeds from
marketable securities
|
|
98,244
|
|
50,633
|
|
290,113
|
|
312,201
|
Purchase of property
and equipment and payment of prepaid expenses
|
|
(14,434)
|
|
(12,789)
|
|
(68,554)
|
|
(35,770)
|
Capitalization of
internal use of software
|
|
(215)
|
|
(913)
|
|
(2,110)
|
|
(1,930)
|
Investment in other
short-term assets
|
|
-
|
|
-
|
|
(580)
|
|
-
|
Proceeds from equity
securities
|
|
48,403
|
|
-
|
|
51,596
|
|
18,771
|
Payment for Businesses
acquired, net of acquired cash
|
|
-
|
|
(115)
|
|
-
|
|
(42,729)
|
Purchases of
investments in privately held companies
|
|
(40)
|
|
(181)
|
|
(1,300)
|
|
(3,681)
|
Net cash provided by
(used in) investing activities
|
|
122,468
|
|
136,758
|
|
(54,658)
|
|
376,869
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
|
917
|
|
6,389
|
|
42,710
|
|
39,943
|
Purchase of treasury
stock
|
|
(231,873)
|
|
-
|
|
(231,873)
|
|
(200,000)
|
Net cash provided by
(used in) financing activities
|
|
(230,956)
|
|
6,389
|
|
(189,163)
|
|
(160,057)
|
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
|
|
(55,254)
|
|
164,188
|
|
(206,669)
|
|
282,497
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
|
299,940
|
|
287,167
|
|
451,355
|
|
168,858
|
CASH AND CASH
EQUIVALENTS—End of period
|
|
$
244,686
|
|
$ 451,355
|
|
$ 244,686
|
|
$ 451,355
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE
METRICS
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
|
265,268
|
|
246,669
|
|
1,039,479
|
|
950,299
|
Business
Solutions
|
|
89,772
|
|
86,744
|
|
348,187
|
|
319,358
|
Total
Revenues
|
|
$ 355,040
|
|
$
333,413
|
|
$
1,387,666
|
|
$
1,269,657
|
|
|
|
|
|
|
|
|
|
Marketable
securities
|
|
281,766
|
|
264,038
|
|
1,121,411
|
|
1,087,879
|
Business
Solutions
|
|
90,047
|
|
87,518
|
|
350,708
|
|
330,944
|
Total
Bookings
|
|
$ 371,813
|
|
$
351,556
|
|
$
1,472,119
|
|
$
1,418,823
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
|
$
38,585
|
|
$
7,339
|
|
$
(33,512)
|
|
$
27,985
|
Free Cash Flow,
excluding Capex and other cash costs related to HQ build
out
|
|
$
51,990
|
|
$
17,386
|
|
$
32,408
|
|
$
51,434
|
Creative Subscriptions
ARR
|
|
$
1,080,824
|
|
$
1,009,576
|
|
$
1,080,824
|
|
$
1,009,576
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
REVENUES TO BOOKINGS
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
$ 355,040
|
|
$
333,413
|
|
$
1,387,666
|
|
$
1,269,657
|
Change in deferred
revenues
|
|
4,081
|
|
6,522
|
|
55,387
|
|
82,361
|
Change in unbilled
contractual obligations
|
|
12,692
|
|
11,621
|
|
29,066
|
|
66,805
|
Bookings
|
|
$ 371,813
|
|
$
351,556
|
|
$
1,472,119
|
|
$
1,418,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Creative Subscriptions
Revenues
|
|
$ 265,268
|
|
$
246,669
|
|
$
1,039,479
|
|
$
950,299
|
Change in deferred
revenues
|
|
3,806
|
|
5,748
|
|
52,866
|
|
70,775
|
Change in unbilled
contractual obligations
|
|
12,692
|
|
11,621
|
|
29,066
|
|
66,805
|
Creative Subscriptions
Bookings
|
|
$ 281,766
|
|
$
264,038
|
|
$
1,121,411
|
|
$
1,087,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenues
|
|
$
89,772
|
|
$
86,744
|
|
$
348,187
|
|
$
319,358
|
Change in deferred
revenues
|
|
275
|
|
774
|
|
2,521
|
|
11,586
|
Business Solutions
Bookings
|
|
$
90,047
|
|
$
87,518
|
|
$
350,708
|
|
$
330,944
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
COHORT BOOKINGS
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
(unaudited)
|
Q1 Cohort
revenues
|
|
|
|
|
|
$
41
|
|
$
53
|
Q1 Change in deferred
revenues
|
|
|
|
|
|
15
|
|
18
|
Q1 Cohort
Bookings
|
|
|
|
|
|
$
56
|
|
$
71
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
REVENUES AND BOOKINGS EXCLUDING FX IMPACT
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
$
355,040
|
|
$
333,413
|
FX impact on
Q4/22 using Y/Y rates
|
|
|
|
|
|
6,397
|
|
-
|
Revenues excluding FX
impact
|
|
|
|
|
|
$
361,437
|
|
$
333,413
|
|
|
|
|
|
|
|
|
|
Y/Y growth
|
|
|
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
(unaudited)
|
Bookings
|
|
|
|
|
|
$
371,813
|
|
$
351,556
|
FX impact on
Q4/22 using Y/Y rates
|
|
|
|
|
|
14,011
|
|
-
|
Bookings excluding FX
impact
|
|
|
|
|
|
$
385,824
|
|
$
351,556
|
|
|
|
|
|
|
|
|
|
Y/Y growth
|
|
|
|
|
|
10 %
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
TOTAL ADJUSTMENTS GAAP
TO NON-GAAP
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(1) Share based
compensation expenses:
|
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
|
$
4,607
|
|
$
4,095
|
|
$
17,811
|
|
$
15,462
|
Research and
development
|
|
32,335
|
|
28,028
|
|
120,580
|
|
102,056
|
Selling and
marketing
|
|
9,559
|
|
9,483
|
|
38,714
|
|
33,853
|
General and
administrative
|
|
13,416
|
|
29,688
|
|
59,731
|
|
70,020
|
Total share based
compensation expenses
|
|
59,917
|
|
71,294
|
|
236,836
|
|
221,391
|
(2)
Amortization
|
|
1,511
|
|
462
|
|
6,246
|
|
4,952
|
(3) Acquisition related
expenses
|
|
1,656
|
|
2,045
|
|
5,127
|
|
8,680
|
(4) Amortization of
debt discount and debt issuance costs
|
|
1,305
|
|
1,298
|
|
5,213
|
|
5,298
|
(5) Sales tax accrual
and other G&A expenses (income)
|
|
219
|
|
320
|
|
763
|
|
1,692
|
(6) Unrealized loss
(gain) on equity and other investments
|
|
3,955
|
|
16,195
|
|
200,338
|
|
(267,831)
|
(7) Non-operating
foreign exchange expenses (income)
|
|
6,220
|
|
2,013
|
|
6,403
|
|
6,711
|
(8) Provision for
income tax effects related to non-GAAP adjustments
|
|
(176)
|
|
(3,725)
|
|
(46,078)
|
|
57,283
|
Total adjustments of
GAAP to Non GAAP
|
|
$
74,607
|
|
$
89,902
|
|
$
414,848
|
|
$
38,176
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP
TO NON-GAAP GROSS PROFIT
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit
|
|
$ 226,276
|
|
$
201,521
|
|
$
861,439
|
|
$
781,078
|
Share based
compensation expenses
|
|
4,607
|
|
4,095
|
|
17,811
|
|
15,462
|
Acquisition related
expenses
|
|
-
|
|
97
|
|
140
|
|
484
|
Amortization
|
|
689
|
|
645
|
|
2,968
|
|
2,030
|
Non GAAP Gross
Profit
|
|
231,572
|
|
206,358
|
|
882,358
|
|
799,054
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
|
65 %
|
|
62 %
|
|
64 %
|
|
63 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit - Creative
Subscriptions
|
|
$ 206,841
|
|
$
185,880
|
|
$
787,892
|
|
$
717,680
|
Share based
compensation expenses
|
|
3,437
|
|
3,026
|
|
13,933
|
|
11,446
|
Non GAAP Gross Profit -
Creative Subscriptions
|
|
210,278
|
|
188,906
|
|
801,825
|
|
729,126
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Creative Subscriptions
|
|
79 %
|
|
77 %
|
|
77 %
|
|
77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit - Business
Solutions
|
|
$
19,435
|
|
$
15,641
|
|
$
73,547
|
|
$
63,398
|
Share based
compensation expenses
|
|
1,170
|
|
1,069
|
|
3,878
|
|
4,016
|
Acquisition related
expenses
|
|
-
|
|
97
|
|
140
|
|
484
|
Amortization
|
|
689
|
|
645
|
|
2,968
|
|
2,030
|
Non GAAP Gross Profit -
Business Solutions
|
|
21,294
|
|
17,452
|
|
80,533
|
|
69,928
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Business Solutions
|
|
24 %
|
|
20 %
|
|
23 %
|
|
22 %
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
|
$ (32,603)
|
|
$
(96,294)
|
|
$ (285,353)
|
|
$ (325,534)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
|
59,917
|
|
71,294
|
|
236,836
|
|
221,391
|
Amortization
|
|
1,511
|
|
462
|
|
6,246
|
|
4,952
|
Sales tax accrual and
other G&A expenses
|
|
219
|
|
320
|
|
763
|
|
1,692
|
Acquisition related
expenses
|
|
1,656
|
|
2,045
|
|
5,127
|
|
8,680
|
Total
adjustments
|
|
$
63,303
|
|
$
74,121
|
|
$
248,972
|
|
$
236,715
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss)
|
|
$
30,700
|
|
$
(22,173)
|
|
$
(36,381)
|
|
$
(88,819)
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
margin
|
|
9 %
|
|
-7 %
|
|
-3 %
|
|
-7 %
|
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
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
|
$ (38,975)
|
|
$ (109,041)
|
|
$ (424,863)
|
|
$ (117,209)
|
Share based
compensation expenses and other Non GAAP adjustments
|
|
74,607
|
|
89,902
|
|
414,848
|
|
38,176
|
Non-GAAP net income
(loss)
|
|
$
35,632
|
|
$
(19,139)
|
|
$
(10,015)
|
|
$
(79,033)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
Non GAAP net income (loss) per share
|
|
$
0.61
|
|
$
(0.34)
|
|
$
(0.17)
|
|
$
(1.39)
|
Weighted average shares
used in computing basic and diluted Non GAAP net income (loss)
per
share
|
|
58,189,246
|
|
57,103,278
|
|
57,993,364
|
|
57,004,154
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
|
$
53,234
|
|
$
21,041
|
|
$
37,152
|
|
$
65,685
|
Capital expenditures,
net
|
|
(14,649)
|
|
(13,702)
|
|
(70,664)
|
|
(37,700)
|
Free Cash
Flow
|
|
$
38,585
|
|
$
7,339
|
|
$
(33,512)
|
|
$
27,985
|
|
|
|
|
|
|
|
|
|
Capex and other cash
costs related to HQ build out
|
|
13,405
|
|
10,047
|
|
65,920
|
|
23,449
|
Free Cash Flow,
excluding Capex and other cash costs related to HQ build
out
|
|
$
51,990
|
|
$
17,386
|
|
$
32,408
|
|
$
51,434
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
RECONCILIATION OF BASIC
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
|
58,189,246
|
|
57,103,278
|
|
57,993,364
|
|
57,004,154
|
|
|
|
|
|
|
|
|
|
The following items
have been excluded from the diluted weighted average number of
shares
outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
|
Stock
options
|
|
4,332,022
|
|
4,720,600
|
|
4,332,022
|
|
4,720,600
|
Restricted share
units
|
|
3,123,019
|
|
2,225,516
|
|
3,123,019
|
|
2,225,516
|
Convertible Notes
(if-converted)
|
|
3,969,514
|
|
3,969,514
|
|
3,969,514
|
|
3,969,514
|
|
|
69,613,801
|
|
68,018,908
|
|
69,417,919
|
|
67,919,784
|
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SOURCE Wix.com Ltd.