Outperformance of 2023 targets as well as
anticipated acceleration of top-line growth and overachievement of
2024 targets in three-year plan underpin expectation to
significantly surpass the Rule of 40 in 2025
- Capped off a year of strong growth with total revenue of
$404 million in the fourth quarter,
up 14% y/y driven by continued growth acceleration in the Partners
business
- Partners1 revenue totaled $130.1 million in Q4, up 38% y/y, as more
Partners joined Wix, monetization continued to increase and Studio
uptake exceeded expectations
- Robust growth paired with solid operating leverage drove Wix to
outperform the 2023 targets outlined in three-year plan
- Achieved positive full year GAAP net income two years earlier
than anticipated
- Q4 FCF2 margin was a record 22% and full year
FCF2 margin was 16%, meaningfully above 13% margin
target
- Strong bookings and revenue growth anticipated for 2024 driven
by momentum from milestone product launches of 2023, solid business
fundamentals and stable and positively-trending macro environment
- Expect 2024 bookings growth of 12-14% y/y with acceleration
through the year to 15% y/y growth in 2H24; expect full year
revenue growth of 11-13% y/y
- Expect FCF2 margin of 21-23% in 2024, driven by
growth and continued operational efficiency benefits
- Completed $300 million share
repurchase plan in February and in the process of pursuing the
necessary approvals for $225 million
in additional share repurchases
NEW
YORK, Feb. 21, 2024 /PRNewswire/ -- Wix.com Ltd.
(Nasdaq: WIX), the leading SaaS website builder platform
globally,3 today reported financial results for the
fourth quarter and full year of 2023. In addition, the Company
provided its initial outlook for the first quarter and full year
2024. Please visit the Wix Investor Relations website at
https://investors.wix.com/ to view the Q4'23 Shareholder Update and
other materials.
"We wrapped up an outstanding year of accelerating growth and
record profitability with a strong fourth quarter underpinned by
robust business fundamentals and anchored by incredible momentum in
our Partners business," said Avishai
Abrahami, Wix Co-founder and CEO. "Additionally, 2023 was a
milestone year for innovation at Wix. Wix Studio has proven to be
our highest-performing product release in recent history. In just
six months, more than 500,000 agencies and freelancers have created
Studio accounts, driving the number of Studio premium subscriptions
to be ahead of plan. Most excitingly, nearly half of these Studio
accounts were created by new Partners – a powerful indication that
Studio is successfully winning a new market of large agencies who
had not built on Wix before. AI was another major focus of
innovation in 2023, building on nearly a decade of leading AI
research and development at Wix. We introduced a suite of new genAI
and AI tools, including AI Chat Experience for Business, AI Code
Assistant and, most recently, AI Site Generator, which has been in
the hands of many of our users for a couple of months and is
already generating fantastic feedback. Both Self Creators and
Partners have shown excellent engagement with our AI products over
the past year, with the majority of new users today using or
interacting with at least one AI tool on their web creation
journey. We expect continued momentum and ramping benefits from
these milestone products coupled with our upcoming product pipeline
to propel accelerating growth in 2024."
"Q4 capped off an incredibly strong year of sustained
profitable growth with revenue in the fourth quarter
increasing 14% y/y, driven by incredible Partners revenue growth of
38% y/y," added Lior Shemesh, CFO at
Wix. "On top of this outperformance in 2023, I am extremely
confident in our ability to comfortably beat our three-year plan –
let me walk you through my reasoning:
"First, we expect to drive accelerating profitable growth in
2024 and see a number of indicators of growth momentum today,
including (1) improved visibility from a stable and
positively-trending macro environment; (2) continued strong cohort
behavior, particularly in our Partners business; and (3) ramping
benefits from Studio and the milestone AI initiatives launched in
2023. Because of this visibility and confidence, we are
reintroducing bookings guidance, which we expect to accelerate to
12-14% y/y growth in 2024 with 15% y/y growth in 2H.
"Second, this bookings acceleration in 2024, which we expect
will primarily be driven by improved Creative Subscriptions
performance, will position us for revenue acceleration in 2025.
Higher revenue growth coupled with continued efficient business
operations will, we anticipate, allow us to exceed the 2024 targets
we shared in our August 2023 Analyst
Day.
"Finally, outperformance of our 2023 targets as well as this
anticipated top-line acceleration and overachievement of our
profitability targets in 2024 gives us confidence that we will not
just reach, but actually exceed our three-year plan and
significantly surpass the Rule of 40 in 2025."
Q4 2023 Financial Results
- Total revenue in the fourth quarter of 2023 was $403.8 million, up 14% y/y
- Creative Subscriptions revenue in the fourth quarter of 2023
was $296.2 million, up 12% y/y
- Creative Subscriptions ARR increased to $1.19 billion as of the end of the quarter, up
10% y/y
- Business Solutions revenue in the fourth quarter of 2023 was
$107.6 million, up 20% y/y
- Transaction revenue4 was $46.6 million, up 20% y/y
- Partners revenue1 in the fourth quarter of 2023 was
$130.1 million, up 38% y/y
- Total bookings in the fourth quarter of 2023 were $395.0 million, up 6% y/y; excluding long-term
bookings associated with B2B partnership agreements, total bookings
grew 10% y/y
- Creative Subscriptions bookings in the fourth quarter of 2023
were $283.5 million, up 1% y/y;
excluding long-term bookings associated with B2B partnership
agreements, Creative Subscriptions bookings grew 5% y/y
- Business Solutions bookings in the fourth quarter of 2023 were
$111.5 million, up 24% y/y
- Total gross margin on a GAAP basis in the fourth quarter of
2023 was 69%
- Creative Subscriptions gross margin on a GAAP basis was
82%
- Business Solutions gross margin on a GAAP basis was 32%
- Total non-GAAP gross margin in the fourth quarter of 2023 was
70%
- Creative Subscriptions gross margin on a non-GAAP basis was
83%
- Business Solutions gross margin on a non-GAAP basis was
33%
- GAAP net income in the fourth quarter of 2023 was $3.0 million, or $0.05 per basic and diluted share
- Non-GAAP net income in the fourth quarter of 2023 was
$74.0 million, or $1.29 per basic share or $1.22 per diluted share
- Net cash provided by operating activities for the fourth
quarter of 2023 was $90.4 million,
while capital expenditures totaled $10.0
million, leading to free cash flow of $80.4 million
- Excluding one-time cash restructuring charges and the capital
expenditures and other expenses associated with the build out of
our new corporate headquarters free cash flow for the fourth
quarter of 2023 would have been $90.1
million, or 22% of revenue
- Executed $59 million in
repurchases of ordinary shares
FY 2023 Financial Results
- Total revenue for the full year 2023 was $1.56 billion, up 13% y/y
- Creative Subscriptions revenue for the full year 2023 was
$1.15 billion, up 11% y/y
- Business Solutions revenue for the full year 2023 was
$409.7 million, up 18% y/y
- Transaction4 revenue for the full year was
$177.5 million, up 20% y/y
- Partners1 revenue for the full year 2023 was
$468.5 million, up 35% y/y
- Total bookings for the full year 2023 were $1.60 billion, up 9% y/y; excluding long-term
bookings associated with B2B partnership agreements, total bookings
grew 11% y/y
- Creative Subscriptions bookings for the full year 2023 were
$1.17 billion, up 5% y/y; excluding
long-term bookings associated with B2B partnership agreements,
Creative Subscriptions bookings grew 8% y/y
- Business Solutions bookings for the full year 2023 were
$422.7 million, up 21% y/y
- Total gross margin on a GAAP basis for the full year 2023 was
67%
- Creative Subscriptions gross margin on a GAAP basis was
81%
- Business Solutions gross margin on a GAAP basis was 27%
- Total non-GAAP gross margin for the full year 2023 was 68%
- Creative Subscriptions gross margin on a non-GAAP basis was
82%
- Business Solutions gross margin on a non-GAAP basis was
29%
- GAAP net income for the full year 2023 was $33.1 million, or $0.58 per basic share or $0.57 per diluted share
- Non-GAAP net income for the full year 2023 was $268.3 million, or $4.72 per basic share or $4.39 per diluted share
- Net cash provided by operating activities for the full year
2023 was $248.2 million, while
capital expenditures totaled $66.0
million, leading to free cash flow of $182.2 million
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow for the full year
2023 would have been $246.1 million,
or 16% of revenue
- Executed $127 million in
repurchases of ordinary shares as we remained committed to share
count management and returning value to shareholders
- Added 189 thousand net premium subscriptions in full year 2023
to reach nearly 6.3 million total premium subscriptions as of
December 31, 2023
- Registered users as of December 31,
2023 were 263 million, representing an 8% increase compared
to December 31, 2022
- Total employee headcount as of December
31, 2023 of 5,302, down 4% from the end of 2022
____________________
|
|
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1
|
Partners 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, and enterprise partners. 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 (incl. Wix Studio). Partners
revenue includes revenue from both the Creative Subscriptions and
Business Solutions businesses.
|
|
|
2
|
Free cash flow
excluding one-time cash restructuring charges, if applicable, and
expenses associated with the buildout of our new corporate
headquarters.
|
|
|
3
|
Based on number of
active live sites as reported by competitors' figures, independent
third-party-data and internal data as of Q2 2023.
|
|
|
4
|
Transaction 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.
|
Financial Outlook
Coming off of a strong year of significant product launches and
strengthening fundamentals, we believe our business will experience
strong top line growth of bookings in 2024 and more significantly
in the second half of the year. This positive trend in bookings
growth is expected to translate into y/y revenue growth
acceleration in 2025.
This growth, paired with improved profitability targets due to a
high degree of operating efficiency, leads to our expectation that
our financial performance in 2024 and in 2025 will surpass the
three-year plan we shared at our Analyst & Investor Day in
August.
We now expect to significantly exceed the Rule of 40 in
2025.
We are reintroducing bookings guidance as we enter 2024 with
improved visibility and a tremendous amount of confidence in our
business as a result of a stable and positively-trending macro
environment, strong cohort behavior, particularly in our Partners
business, and most notably, ramping benefits from Studio and the
milestone AI initiatives launched in 2023.
Our outlook for the full year 2024 is as follows:
We expect total bookings of $1.78 - $1.81
billion, up 12 - 14% y/y, an acceleration from 2023. We
expect y/y growth of total bookings to accelerate in the second
half of 2024 to 15% at the high end of the guidance range,
positioning the business to achieve accelerating y/y revenue growth
in 2025.
In particular, the acceleration is expected to be primarily in
Creative Subscription bookings, bringing it to double digit y/y
growth in the 2H24.
We expect total revenue to be $1.73 - $1.76
billion, up 11 - 13% y/y.
We expect total revenue in Q1 2024 of $415 - $419
million, up 11 - 12% y/y.
We continue to operate the business in an efficient manner as
evidenced by the meaningful operating leverage -- on both a GAAP
and non-GAAP basis -- generated throughout 2023 compared to 2022.
We plan to operate with the same efficiency in 2024 and expect
strong gross profit growth due to gross margin improvements on a
y/y basis as well as minimal incremental operating expenses this
year.
We expect non-GAAP total gross margin of 68 - 69% with non-GAAP
business solutions gross margin to exceed 30% for the full
year.
We expect non-GAAP operating expenses to be 51 - 52% of revenue
for the full year, with non-GAAP sales and marketing to remain
similar to 2023 at roughly 23 - 24% of revenue.
We believe we are ahead of our plan to achieve GAAP
profitability. We expect GAAP operating profit in 2024 as well as a
second consecutive year of GAAP net income.
We expect to generate free cash flow, excluding headquarters
costs, of $370 - $400 million, or 21 - 23% of revenue in
2024.
As we continue to responsibly manage dilution, we expect
stock-based compensation expenses to decline as a percent of
revenue for the third consecutive year to approximately 13% of
revenue in 2024, in line with our three-year plan.
We expect capital expenditures, excluding costs associated with
our new headquarters build out, of approximately $7 - $10 million in
2024. We will incur the final costs for our new headquarters in the
first half of the year and anticipate them to be roughly
$8 - $10
million.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30
a.m. ET on Wednesday, February 21,
2024. To participate on the live call, analysts and
investors should register and join at
https://register.vevent.com/register/BIefc01e3fb58f409e9a256960e4651d01.
A replay of the call will be available through February 20, 2025 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 the leading SaaS website builder platform
globally3 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, free cash flow per
share, 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. Bookings and Creative
Subscriptions Bookings are also presented on a further non-GAAP
basis by excluding, in each case, bookings associated with long
term B2B partnership agreements. 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 one-time cash restructuring charges and the capital
expenditures and other expenses associated with the buildout of our
new corporate headquarters. Free cash flow margins represent free
cash flow divided by revenue. Free cash flow per share represents
free cash flow, as adjusted, divided by total outstanding shares on
a fully diluted basis. 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 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 in effect on
the last day of the period; and (iii) monthly revenue from other
partnership agreements and enterprise partners.
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, in particular as we continuously adjust our
marketing strategy and as the macro-economic environment continues
to be turbulent; our expectation that we will be able to increase
the average revenue we derive per premium subscription, including
through our partners; our expectations related to our ability to
develop relevant and required products using Artificial
Intelligence ("AI"), the regulatory environment impacting
AI-related activities including privacy and intellectual property
aspects, and potential competition from third-party AI tools which
may impact our business; 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, in particular
during the current turbulent macro-economic environment; our
expectation regarding the successful impact of our previously
announced Cost-Efficiency Plan and other cost saving measures we
may take in the future; our prediction of the future revenues
and/or bookings generated by our user cohorts and our ability to
maintain and increase such revenue growth, as well as our ability
to generate and maintain elevated levels of free cash flow and
profitability; our expectation to maintain and enhance our brand
and reputation; our expectation that we will effectively execute
our initiatives to improve our user support function through our
Customer Care team, and that our recent downsizing of our Customer
Care team will not affect our ability to continue attracting
registered users and increase user retention, user engagement and
sales; 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 expectation regarding the impact of
fluctuations in foreign currency exchange rates, interest rates,
potential illiquidity of banking systems, and other recessionary
trends 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
our infrastructure; 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 and maintain
profitability; our expectations regarding changes in the global,
national, regional or local economic, business, competitive,
market, and regulatory landscape, including as a result of
Israel-Hamas war and/or the Ukraine-Russia war and any escalations thereof; 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; and our
expectations about entering into new markets and attracting new
customer demographics, including our ability to successfully
attract new partners large enterprise-level users and to grow our
activities with these customer types 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, 2022 filed with the Securities and
Exchange Commission on March 30,
2023. The preceding list is not intended to be an exhaustive
list of all of our forward-looking statements. 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.
|
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|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF OPERATIONS - GAAP
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
|
|
|
$
296,154
|
|
$
265,268
|
|
$
1,152,007
|
|
$
1,039,479
|
Business
Solutions
|
|
|
|
107,617
|
|
89,772
|
|
409,658
|
|
348,187
|
|
|
|
|
403,771
|
|
355,040
|
|
1,561,665
|
|
1,387,666
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenues
|
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
|
|
|
52,794
|
|
58,427
|
|
215,515
|
|
251,587
|
Business
Solutions
|
|
|
|
73,319
|
|
70,337
|
|
297,013
|
|
274,640
|
|
|
|
|
126,113
|
|
128,764
|
|
512,528
|
|
526,227
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
277,658
|
|
226,276
|
|
1,049,137
|
|
861,439
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
|
125,743
|
|
120,994
|
|
481,293
|
|
482,861
|
Selling and
marketing
|
|
|
|
103,642
|
|
97,944
|
|
399,577
|
|
492,886
|
General and
administrative
|
|
|
|
43,401
|
|
39,941
|
|
160,033
|
|
171,045
|
Impairment,
restructuring and other costs
|
|
|
|
3,103
|
|
-
|
|
32,614
|
|
-
|
Total operating
expenses
|
|
|
|
275,889
|
|
258,879
|
|
1,073,517
|
|
1,146,792
|
Operating income
(loss)
|
|
|
|
1,769
|
|
(32,603)
|
|
(24,380)
|
|
(285,353)
|
Financial income
(expenses), net
|
|
|
|
6,461
|
|
(13,256)
|
|
62,474
|
|
(183,513)
|
Other income
(expenses)
|
|
|
|
44
|
|
788
|
|
(255)
|
|
1,023
|
Income (loss) before
taxes on income
|
|
|
|
8,274
|
|
(45,071)
|
|
37,839
|
|
(467,843)
|
Income tax expenses
(benefit)
|
|
|
|
5,320
|
|
(6,096)
|
|
4,702
|
|
(42,980)
|
Net income
(loss)
|
|
|
|
$
2,954
|
|
$
(38,975)
|
|
$
33,137
|
|
$ (424,863)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share
|
|
|
|
$
0.05
|
|
$
(0.67)
|
|
$
0.58
|
|
$
(7.33)
|
Basic weighted-average
shares used to compute net income (loss) per share
|
|
|
|
57,317,815
|
|
58,189,246
|
|
56,829,962
|
|
57,993,364
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share
|
|
|
|
$
0.05
|
|
$
(0.67)
|
|
$
0.57
|
|
$
(7.33)
|
Diluted
weighted-average shares used to compute net income (loss) per
share
|
|
|
|
59,085,757
|
|
58,189,246
|
|
58,408,331
|
|
57,993,364
|
Wix.com Ltd.
|
|
|
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2023
|
|
2022
|
Assets
|
|
|
(unaudited)
|
|
(audited)
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
609,622
|
|
$
244,686
|
Short-term
deposits
|
|
|
212,709
|
|
526,328
|
Restricted
deposits
|
|
|
2,125
|
|
13,669
|
Marketable
securities
|
|
|
140,563
|
|
292,449
|
Trade
receivables
|
|
|
57,394
|
|
42,086
|
Prepaid expenses and
other current assets
|
|
|
57,423
|
|
28,519
|
Total current
assets
|
|
|
1,079,836
|
|
1,147,737
|
|
|
|
|
|
|
Long-Term
Assets:
|
|
|
|
|
|
Prepaid expenses and
other long-term assets
|
|
|
25,809
|
|
23,027
|
Property and equipment,
net
|
|
|
136,928
|
|
108,738
|
Marketable
securities
|
|
|
64,806
|
|
194,964
|
Intangible assets and
goodwill, net
|
|
|
77,339
|
|
83,293
|
Operating lease
right-of-use assets
|
|
|
420,562
|
|
200,608
|
Total long-term
assets
|
|
|
725,444
|
|
610,630
|
|
|
|
|
|
|
Total
assets
|
|
|
$
1,805,280
|
|
$
1,758,367
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficiency
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Trade
payables
|
|
|
$
39,449
|
|
$
96,071
|
Employees and payroll
accruals
|
|
|
56,581
|
|
86,113
|
Deferred
revenues
|
|
|
592,608
|
|
529,205
|
Current portion of
convertible notes, net
|
|
|
-
|
|
361,621
|
Accrued expenses and
other current liabilities
|
|
|
76,556
|
|
88,194
|
Operating lease
liabilities
|
|
|
24,981
|
|
29,268
|
Total current
liabilities
|
|
|
790,175
|
|
1,190,472
|
Long Term
Liabilities:
|
|
|
|
|
|
Long-term deferred
revenues
|
|
|
83,384
|
|
70,594
|
Long-term deferred tax
liability
|
|
|
7,167
|
|
14,902
|
Convertible notes,
net
|
|
|
569,714
|
|
566,566
|
Other long-term
liabilities
|
|
|
7,699
|
|
6,093
|
Long-term operating
lease liabilities
|
|
|
401,626
|
|
172,982
|
Total long-term
liabilities
|
|
|
1,069,590
|
|
831,137
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,859,765
|
|
2,021,609
|
|
|
|
|
|
|
Shareholders'
Deficiency
|
|
|
|
|
|
Ordinary
shares
|
|
|
106
|
|
108
|
Additional paid-in
capital
|
|
|
1,539,952
|
|
1,274,968
|
Treasury
Stock
|
|
|
(558,871)
|
|
(431,862)
|
Accumulated other
comprehensive loss
|
|
|
4,192
|
|
(33,455)
|
Accumulated
deficit
|
|
|
(1,039,864)
|
|
(1,073,001)
|
Total shareholders'
deficiency
|
|
|
(54,485)
|
|
(263,242)
|
|
|
|
|
|
|
Total liabilities and
shareholders' deficiency
|
|
|
$
1,805,280
|
|
$
1,758,367
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
2,954
|
|
$ (38,975)
|
|
33,137
|
|
$
(424,863)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
6,725
|
|
5,209
|
|
20,492
|
|
16,611
|
Amortization
|
|
|
|
1,489
|
|
1,511
|
|
5,955
|
|
6,246
|
Share based
compensation expenses
|
|
|
|
58,195
|
|
59,917
|
|
224,625
|
|
236,836
|
Amortization of debt
discount and debt issuance costs
|
|
|
|
789
|
|
1,305
|
|
4,194
|
|
5,213
|
Changes in accrued
interest and exchange rate on short term and long term
deposits
|
|
|
|
(586)
|
|
(93)
|
|
(2,415)
|
|
(86)
|
Non-cash impairment,
restructuring and other costs
|
|
|
|
3,567
|
|
-
|
|
26,699
|
|
-
|
Amortization of premium
and discount and accrued interest on marketable securities,
net
|
|
|
|
4,237
|
|
2,447
|
|
8,346
|
|
6,252
|
Remeasurement loss
(gain) on Marketable equity
|
|
|
|
(10,296)
|
|
3,955
|
|
(30,608)
|
|
200,338
|
Changes in deferred
income taxes, net
|
|
|
|
(2,035)
|
|
(11,997)
|
|
(8,784)
|
|
(57,865)
|
Changes in operating
lease right-of-use assets
|
|
|
|
1,492
|
|
18,724
|
|
21,549
|
|
45,440
|
Changes in operating
lease liabilities
|
|
|
|
11,517
|
|
(11,204)
|
|
(36,517)
|
|
(45,051)
|
Increase in trade
receivables
|
|
|
|
(2,794)
|
|
(6,290)
|
|
(15,308)
|
|
(11,719)
|
Decrease (increase) in
prepaid expenses and other current and long-term assets
|
|
|
|
(1,123)
|
|
26,713
|
|
(10,383)
|
|
(5,912)
|
Increase (decrease) in
trade payables
|
|
|
|
16,263
|
|
(22,667)
|
|
(51,312)
|
|
(18,514)
|
Increase (decrease) in
employees and payroll accruals
|
|
|
|
(8,307)
|
|
17,506
|
|
(29,532)
|
|
2,862
|
Increase in short term
and long term deferred revenues
|
|
|
|
2,788
|
|
4,081
|
|
76,193
|
|
55,387
|
Increase in accrued
expenses and other current liabilities
|
|
|
|
5,505
|
|
3,092
|
|
11,915
|
|
25,977
|
Net cash provided by
operating activities
|
|
|
|
90,380
|
|
53,234
|
|
248,246
|
|
37,152
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
|
|
|
131,754
|
|
308,379
|
|
625,495
|
|
644,809
|
Investment in
short-term deposits and restricted deposits
|
|
|
|
(99,725)
|
|
(317,869)
|
|
(297,917)
|
|
(766,021)
|
Investment in
marketable securities
|
|
|
|
(837)
|
|
-
|
|
(4,962)
|
|
(202,611)
|
Proceeds from
marketable securities
|
|
|
|
31,920
|
|
98,244
|
|
249,190
|
|
290,113
|
Purchase of property
and equipment and lease prepayment
|
|
|
|
(9,582)
|
|
(14,434)
|
|
(63,021)
|
|
(68,554)
|
Capitalization of
internal use of software
|
|
|
|
(408)
|
|
(215)
|
|
(3,028)
|
|
(2,110)
|
Investment in other
assets
|
|
|
|
-
|
|
-
|
|
(111)
|
|
(580)
|
Proceeds from sale of
equity securities
|
|
|
|
19,203
|
|
48,403
|
|
68,671
|
|
51,596
|
Payment for Businesses
acquired, net of acquired cash
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Purchases of
investments in privately held companies
|
|
|
|
(76)
|
|
(40)
|
|
(7,603)
|
|
(1,300)
|
Net cash provided by
(used in) investing activities
|
|
|
|
72,249
|
|
122,468
|
|
566,714
|
|
(54,658)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
|
|
|
898
|
|
917
|
|
39,660
|
|
42,710
|
Purchase of treasury
stock
|
|
|
|
(58,698)
|
|
(231,873)
|
|
(127,017)
|
|
(231,873)
|
Proceeds from issuance
of convertible senior notes
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Repayment of
convertible notes
|
|
|
|
-
|
|
-
|
|
(362,667)
|
|
-
|
Payments of debt
issuance costs
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Purchase of capped
call
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Net cash used in
financing activities
|
|
|
|
-
57,800
|
|
(230,956)
|
|
(450,024)
|
|
(189,163)
|
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
|
|
|
|
104,829
|
|
(55,254)
|
|
364,936
|
|
(206,669)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
|
|
|
504,793
|
|
299,940
|
|
244,686
|
|
451,355
|
CASH AND CASH
EQUIVALENTS—End of period
|
|
|
|
609,622
|
|
$ 244,686
|
|
$ 609,622
|
|
$ 244,686
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE
METRICS
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
|
|
|
296,154
|
|
265,268
|
|
1,152,007
|
|
1,039,479
|
Business
Solutions
|
|
|
|
107,617
|
|
89,772
|
|
409,658
|
|
348,187
|
Total
Revenues
|
|
|
|
$ 403,771
|
|
$
355,040
|
|
$
1,561,665
|
|
$
1,387,666
|
|
|
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
|
|
|
283,501
|
|
281,766
|
|
1,174,776
|
|
1,121,411
|
Business
Solutions
|
|
|
|
111,503
|
|
90,047
|
|
422,727
|
|
350,708
|
Total
Bookings
|
|
|
|
$ 395,004
|
|
$
371,813
|
|
$
1,597,503
|
|
$
1,472,119
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
|
|
|
$
80,390
|
|
$
38,585
|
|
$
182,197
|
|
$
(33,512)
|
Free Cash Flow
excluding HQ build out and restructuring costs
|
|
|
|
$
90,125
|
|
$
51,990
|
|
$
246,058
|
|
$
32,408
|
Creative Subscriptions
ARR
|
|
|
|
$ 1,192,814
|
|
$
1,080,824
|
|
$
1,192,814
|
|
$
1,080,824
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
REVENUES TO BOOKINGS
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
|
|
|
$ 403,771
|
|
$
355,040
|
|
$
1,561,665
|
|
$
1,387,666
|
Change in deferred
revenues
|
|
|
|
2,788
|
|
4,081
|
|
76,193
|
|
55,387
|
Change in unbilled
contractual obligations
|
|
|
|
(11,555)
|
|
12,692
|
|
(40,355)
|
|
29,066
|
Bookings
|
|
|
|
$ 395,004
|
|
$
371,813
|
|
$
1,597,503
|
|
$
1,472,119
|
|
|
|
|
|
|
|
|
|
|
|
B2B Partnership
long-term bookings
|
|
|
|
-
|
|
(12,094)
|
|
-
|
|
(37,926)
|
Bookings excluding B2B
Partnership long-term bookings
|
|
|
|
$ 395,004
|
|
$
359,719
|
|
$
1,597,503
|
|
$
1,434,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 %
|
|
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Creative Subscriptions
Revenues
|
|
|
|
$ 296,154
|
|
$
265,268
|
|
$
1,152,007
|
|
$
1,039,479
|
Change in deferred
revenues
|
|
|
|
(1,098)
|
|
3,806
|
|
63,124
|
|
52,866
|
Change in unbilled
contractual obligations
|
|
|
|
(11,555)
|
|
12,692
|
|
(40,355)
|
|
29,066
|
Creative Subscriptions
Bookings
|
|
|
|
$ 283,501
|
|
$
281,766
|
|
$
1,174,776
|
|
$
1,121,411
|
|
|
|
|
|
|
|
|
|
|
|
B2B Partnership
long-term bookings
|
|
|
|
-
|
|
(12,094)
|
|
-
|
|
(37,926)
|
Creative Subscriptions
Bookings excluding B2B Partnership long-term bookings
|
|
|
|
$ 283,501
|
|
$
269,672
|
|
$
1,174,776
|
|
$
1,083,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 %
|
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenues
|
|
|
|
$ 107,617
|
|
$
89,772
|
|
$
409,658
|
|
$
348,187
|
Change in deferred
revenues
|
|
|
|
3,886
|
|
275
|
|
13,069
|
|
2,521
|
Business Solutions
Bookings
|
|
|
|
$ 111,503
|
|
$
90,047
|
|
$
422,727
|
|
$
350,708
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
COHORT BOOKINGS
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
(unaudited)
|
Q1 Cohort
revenues
|
|
|
|
|
|
|
|
$
45
|
|
$
41
|
Q1 Change in deferred
revenues
|
|
|
|
|
|
|
|
15
|
|
15
|
Q1 Cohort
Bookings
|
|
|
|
|
|
|
|
$
60
|
|
$
56
|
Wix.com Ltd.
|
|
|
|
|
|
RECONCILIATION OF
REVENUES AND BOOKINGS EXCLUDING FX IMPACT
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
Revenues
|
|
|
|
$ 403,771
|
|
$
355,040
|
FX impact on Q4/23
using Y/Y rates
|
|
|
|
(1,732)
|
|
-
|
Revenues excluding FX
impact
|
|
|
|
$ 402,039
|
|
$
355,040
|
|
|
|
|
|
|
|
Y/Y growth
|
|
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
Bookings
|
|
|
|
$ 395,004
|
|
$
371,813
|
FX impact on Q4/23
using Y/Y rates
|
|
|
|
(4,325)
|
|
-
|
Bookings excluding FX
impact
|
|
|
|
$ 390,679
|
|
$
371,813
|
|
|
|
|
|
|
|
Y/Y growth
|
|
|
|
5 %
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
TOTAL ADJUSTMENTS GAAP
TO NON-GAAP
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
(1) Share based
compensation expenses:
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
|
|
|
$
3,675
|
|
$
4,607
|
|
$
15,013
|
|
$
17,811
|
Research and
development
|
|
|
|
$
31,982
|
|
32,335
|
|
119,482
|
|
120,580
|
Selling and
marketing
|
|
|
|
$
11,232
|
|
9,559
|
|
41,277
|
|
38,714
|
General and
administrative
|
|
|
|
$
11,306
|
|
13,416
|
|
48,853
|
|
59,731
|
Total share based
compensation expenses
|
|
|
|
58,195
|
|
59,917
|
|
224,625
|
|
236,836
|
(2)
Amortization
|
|
|
|
1,489
|
|
1,511
|
|
5,955
|
|
6,246
|
(3) Acquisition related
expenses
|
|
|
|
9
|
|
1,656
|
|
472
|
|
5,127
|
(4) Amortization of
debt discount and debt issuance costs
|
|
|
|
789
|
|
1,305
|
|
4,194
|
|
5,213
|
(5) Impairment,
restructuring and other costs
|
|
|
|
3,103
|
|
-
|
|
32,614
|
|
-
|
(6) Sales tax accrual
and other G&A expenses (income)
|
|
|
|
137
|
|
219
|
|
748
|
|
763
|
(7) Unrealized loss
(gain) on equity and other investments
|
|
|
|
(10,296)
|
|
3,955
|
|
(30,608)
|
|
200,338
|
(8) Non-operating
foreign exchange expenses (income)
|
|
|
|
15,287
|
|
6,220
|
|
1,499
|
|
6,403
|
(9) Provision for
income tax effects related to non-GAAP adjustments
|
|
|
|
2,368
|
|
(176)
|
|
(4,337)
|
|
(46,078)
|
Total adjustments of
GAAP to Non GAAP
|
|
|
|
$
71,081
|
|
$
74,607
|
|
$
235,162
|
|
$
414,848
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP
TO NON-GAAP GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit
|
|
|
|
$ 277,658
|
|
$
226,276
|
|
$
1,049,137
|
|
$
861,439
|
Share based
compensation expenses
|
|
|
|
3,675
|
|
4,607
|
|
15,013
|
|
17,811
|
Acquisition related
expenses
|
|
|
|
5
|
|
-
|
|
229
|
|
140
|
Amortization
|
|
|
|
667
|
|
689
|
|
2,669
|
|
2,968
|
Non GAAP Gross
Profit
|
|
|
|
282,005
|
|
231,572
|
|
1,067,048
|
|
882,358
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
|
|
|
70 %
|
|
65 %
|
|
68 %
|
|
64 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit - Creative
Subscriptions
|
|
|
|
$ 243,360
|
|
$
206,841
|
|
$
936,492
|
|
$
787,892
|
Share based
compensation expenses
|
|
|
|
2,695
|
|
3,437
|
|
11,081
|
|
13,933
|
Non GAAP Gross Profit -
Creative Subscriptions
|
|
|
|
246,055
|
|
210,278
|
|
947,573
|
|
801,825
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Creative Subscriptions
|
|
|
|
83 %
|
|
79 %
|
|
82 %
|
|
77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit - Business
Solutions
|
|
|
|
$
34,298
|
|
$
19,435
|
|
$
112,645
|
|
$
73,547
|
Share based
compensation expenses
|
|
|
|
980
|
|
1,170
|
|
3,932
|
|
3,878
|
Acquisition related
expenses
|
|
|
|
5
|
|
-
|
|
229
|
|
140
|
Amortization
|
|
|
|
667
|
|
689
|
|
2,669
|
|
2,968
|
Non GAAP Gross Profit -
Business Solutions
|
|
|
|
35,950
|
|
21,294
|
|
119,475
|
|
80,533
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin -
Business Solutions
|
|
|
|
33 %
|
|
24 %
|
|
29 %
|
|
23 %
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Operating income
(loss)
|
|
|
|
$
1,769
|
|
$
(32,603)
|
|
$
(24,380)
|
|
$ (285,353)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
|
|
|
58,195
|
|
59,917
|
|
224,625
|
|
236,836
|
Amortization
|
|
|
|
1,489
|
|
1,511
|
|
5,955
|
|
6,246
|
Impairment,
restructuring and other charges
|
|
|
|
3,103
|
|
-
|
|
32,614
|
|
-
|
Sales tax accrual and
other G&A expenses
|
|
|
|
137
|
|
219
|
|
748
|
|
763
|
Acquisition related
expenses
|
|
|
|
9
|
|
1,656
|
|
472
|
|
5,127
|
Total
adjustments
|
|
|
|
$
62,933
|
|
$
63,303
|
|
$
264,414
|
|
$
248,972
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss)
|
|
|
|
$
64,702
|
|
$
30,700
|
|
$
240,034
|
|
$
(36,381)
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating
margin
|
|
|
|
16 %
|
|
9 %
|
|
15 %
|
|
-3 %
|
Wix.com Ltd.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET
INCOME (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,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Net income
(loss)
|
|
|
|
$
2,954
|
|
$
(38,975)
|
|
$
33,137
|
|
$ (424,863)
|
Share based
compensation expenses and other Non GAAP adjustments
|
|
|
|
71,081
|
|
74,607
|
|
235,162
|
|
414,848
|
Non-GAAP net income
(loss)
|
|
|
|
$
74,035
|
|
$
35,632
|
|
$
268,299
|
|
$
(10,015)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Non GAAP net
income (loss) per share
|
|
|
|
$
1.29
|
|
$
0.61
|
|
$
4.72
|
|
$
(0.17)
|
Weighted average shares
used in computing basic Non GAAP net income (loss) per
share
|
|
|
|
57,317,815
|
|
58,189,246
|
|
56,829,962
|
|
57,993,364
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Non GAAP net
income (loss) per share
|
|
|
|
$
1.22
|
|
$
0.61
|
|
$
4.39
|
|
$
(0.17)
|
Weighted average shares
used in computing diluted Non GAAP net income (loss) per
share
|
|
|
|
60,512,505
|
|
58,189,246
|
|
61,106,462
|
|
57,993,364
|
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,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
|
|
|
$
90,380
|
|
$
53,234
|
|
$
248,246
|
|
$
37,152
|
Capital expenditures,
net
|
|
|
|
(9,990)
|
|
(14,649)
|
|
(66,049)
|
|
(70,664)
|
Free Cash
Flow
|
|
|
|
$
80,390
|
|
$
38,585
|
|
$
182,197
|
|
$
(33,512)
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
costs
|
|
|
|
1,411
|
|
-
|
|
5,915
|
|
-
|
Capex related to HQ
build out
|
|
|
|
8,324
|
|
13,405
|
|
57,946
|
|
65,920
|
Free Cash Flow
excluding HQ build out and restructuring costs
|
|
|
|
$
90,125
|
|
$
51,990
|
|
$
246,058
|
|
$
32,408
|
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,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average
shares used to compute net income (loss) per share
|
|
|
|
57,317,815
|
|
58,189,246
|
|
56,829,962
|
|
57,993,364
|
Effect of dilutive
securities (included in the effect of dilutive securities is the
assumed conversion of
employee stock options, employee RSUs and the Notes)
|
|
|
|
1,767,942
|
|
-
|
|
1,578,369
|
|
-
|
Diluted
weighted-average shares used to compute net income (loss) per
share
|
|
|
|
59,085,757
|
|
58,189,246
|
|
58,408,331
|
|
57,993,364
|
|
|
|
|
|
|
|
|
|
|
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding
because they are anti-dilutive:
|
|
|
|
|
|
|
|
|
|
|
Stock
options
|
|
|
|
2,245,872
|
|
4,332,022
|
|
2,245,872
|
|
4,332,022
|
Restricted share
units
|
|
|
|
818,288
|
|
3,123,019
|
|
818,288
|
|
3,123,019
|
Convertible Notes
(if-converted)
|
|
|
|
1,426,728
|
|
3,969,514
|
|
1,426,728
|
|
3,969,514
|
|
|
|
|
63,576,645
|
|
69,613,801
|
|
62,899,219
|
|
69,417,919
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/wix-reports-fourth-quarter-and-full-year-2023-results-302066896.html
SOURCE Wix.com Ltd.