NEW YORK, Feb. 20, 2020 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the fourth quarter and full year ended December 31, 2019. In addition, the Company provided its initial outlook for the first quarter and full year 2020.

(PRNewsfoto/Wix.com Ltd.)

"The fourth quarter was the culmination of a phenomenal year at Wix. We continue to evolve from a  website builder to a comprehensive web creation and business solutions platform," said Avishai Abrahami, Co-founder and CEO of Wix. "The unveiling of Editor X was a major milestone for Wix and has laid the groundwork for expanding our reach in the professional market in 2020. We believe that we have never been better positioned for the future."

Lior Shemesh, CFO of Wix, said, "Our results in the fourth quarter closed out a record year of revenue, collections and free cash flow generation for Wix. The guidance we are providing reflects that momentum continuing into 2020 and our confidence in our ability to continue to deliver strong growth for years to come."

New Financial Disclosures
For increased transparency, beginning this quarter we will present revenue, collections and cost of revenue in two segments: Creative Subscriptions and Business Solutions.

In addition, for the first time we are providing Annualized Recurring Revenue (ARR)1 as the primary KPI for the growth of our Creative Subscriptions segment. We believe this new financial reporting provides improved clarity regarding our top line growth and gross margins and is a better metric for modeling our business.

ARR for Creative Subscriptions Revenue as of December 31, 2019 was $707.2 million, up 21% Y/Y

___________________

1Annualized Recurring Revenue (ARR) is calculated as Monthly Recurring Revenue (MRR) multiplied by 12. MRR is calculated as all active Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative  Subscriptions, as well as monthly revenue from agreements with partners

FY 2019 Financial Summary


Twelve months ended

December 31,





$ in thousands

2018

2019


Y/Y
growth


Prior FY 2019
Outlook

Creative Subscriptions Revenue

$525,350

$644,491


23%



Business Solutions Revenue

$78,354

$116,597


49%



Total Revenue

$603,704

$761,088


26%


$761 - $763 million








Creative Subscriptions Collections

$580,119

$711,763


23%



Business Solutions Collections

$78,266

$120,722


54%



Total Collections

$658,385

$832,485


26%


$828 - $831 million








Net Cash Provided by Operating Activities

$115,709

$149,564


29%



Free Cash Flow

$101,633

$127,498


25%


$124 - $126 million

Q4 2019 Financial Summary


Three months ended

December 31,



$ in thousands

2018

2019



Y/Y
growth


Prior Q4 2019
Outlook

Creative Subscriptions Revenue

$143,621

$171,355



19%



Business Solutions Revenue

$20,576

$33,233



62%



Total Revenue

$164,197

$204,588



25%


$204 - $206 million









Creative Subscriptions Collections

$155,668

$190,805



23%



Business Solutions Collections

$20,390

$35,878



76%



Total Collections

$176,058

$226,683



29%


$222 - $225 million









Net Cash Provided by Operating Activities

$36,055

$41,237



14%



Free Cash Flow

$32,664

$37,471



15%



Additional FY 2019 Results and Highlights

  • Currency was a headwind to top line growth throughout the year. Had FX rates remained constant year over year, revenue would have been ~$8 million higher, or $768.9 million, up 27% y/y and collections would have been ~$12 million higher, or $844.5 million, up 28% y/y
  • Total gross margin on a GAAP basis for the full year 2019 was 74%, compared to 79% in 2018
    • Creative Subscriptions gross margin on a GAAP basis for the full year 2019 was 81%, compared to 84% in 2018
    • Business Solutions gross margin on a GAAP basis for the full year 2019 was 35%, compared to 46% in 2018
  • Total gross margin on a non-GAAP basis for the full year 2019 was 75%, compared to 80% in 2018
    • Creative Subscriptions gross margin on a non-GAAP basis for the full year 2019 was 82%, compared to 85% in 2018
    • Business Solutions gross margin on a non-GAAP basis for the full year 2019 was 37%, compared to 48% in 2018
  • GAAP net loss for the full year 2019 was $(86.4) million, or $(1.71) per share, compared to a net loss of $(37.1) million, or $(0.77), per share in 2018
  • Non-GAAP net income for the full year 2019 was $59.1 million, or $1.17 per share, compared to a non GAAP net income of $51.3 million, or $1.07 per share in 2018
  • Net cash provided by operating activities for the full year 2019 was $149.6 million, while capital expenditures totaled $22.1 million, leading to free cash flow of $127.5 million, compared to $101.6 million of free cash flow in 2018, a 25% year-over-year increase

Additional Q4 2019 Results and Highlights

  • Total gross margin on a GAAP basis in the fourth quarter of 2019 was 72%, compared to 79% in the fourth quarter of 2018
    • Creative Subscriptions gross margin on a GAAP basis was 80%, compared to 84% in the fourth quarter of 2018
    • Business Solutions gross margin on a GAAP basis was 28%, compared to 46% in the fourth quarter of 2018
  • Total non-GAAP gross margin in the fourth quarter of 2019, calculated as non-GAAP gross profit as a percent of revenue, was 74%, compared to 80% in the fourth quarter of 2018
    • Creative Subscriptions gross margin on a non-GAAP basis was 81%, compared to 84% in the fourth quarter of 2018
    • Business Solutions gross margin on a non-GAAP basis was 34%, compared to 47% in the fourth quarter of 2018
  • GAAP net loss in the fourth quarter of 2019 was $(21.6) million, or $(0.42) per share, compared to a net loss of $(5.8) million, or $(0.12) per share, for the fourth quarter of 2018
  • Non-GAAP net income in the fourth quarter of 2019 was $19.9 million, or $0.39 per share, compared to non-GAAP net income of $20.8 million, or $0.42 per share for the fourth quarter of 2018
  • Net cash provided by operating activities in the fourth quarter of 2019 was $41.2 million, while capital expenditures totaled $3.8 million, leading to free cash flow of $37.5 million, compared to $32.7 million of free cash flow in the fourth quarter of 2018, a 15% year-over-year increase
  • Added 89,000 net premium subscriptions in the fourth quarter of 2019 to reach 4.5 million as of December 31, 2019, a 13% increase over the total number of premium subscriptions at the end of the fourth quarter of 2018
  • Added 5.8 million registered users in the fourth quarter of 2019. Registered users as of December 31, 2019 were 165 million, representing a 16% increase compared to the end of the fourth quarter of 2018

Recent Business Highlights

  • Unveiled website creation platform, Editor X: In February, Wix introduced Editor X, a new website creation platform that offers advanced design and layouting capabilities specifically targeted to designers and web agencies. The wide, flexible new canvas allows the use of modern CSS technologies, including Flexbox and Grid, all with precise drag and drop, so designers and web creators can control the exact position and styling of elements at every viewport.
  • Opened a new expanded office space in New York City: The new location will house sales team members and agency relations for the Wix Partner Program, product and marketing teams, as well as HR and operations staff. Additionally, the Wix Playground Academy will hold its annual design academy at this address as well as hosting classes, workshops, lectures and partner events.

Financial Outlook

Wix is introducing its outlook for the full year 2020:



FY 2020 Outlook


Y/Y growth

Revenue

$946 - $956 million


24% - 26%

Collections

$1,020 - $1,035 million


23% - 24%

Free Cash Flow

$155 - $162 million


22% - 27%

Free Cash Flow (excluding $8-9M in
capex for future Wix HQ office build out)

$163 - $171 million


28% - 34%


Wix is also introducing its outlook for the first quarter 2020:



Q1 2020 Outlook


Y/Y growth

Revenue

$215 - $217 million


23% - 25%

Collections

$247 - $249 million


23% - 24%





Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Thursday, February 20, 2020 to answer questions about the financial and operational performance of the business for the fourth quarter ended December 31, 2019. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion of this call, the Company has posted a shareholder update and supporting slides to its Investor Relations website at https://investors.wix.com/. These materials provide shareholders and analysts with additional detail for analyzing results in advance of the quarterly conference call.

To participate on the live call, analysts and investors should dial +1-877-667-0467 (US/ Canada), +1-346-354-0953 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call and reference Conference ID 3793195. A telephonic replay of the call will be available through February 27, 2020 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 3793195.

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.

Learn more: Wix.com, in our Press Room and on our Investor Relations site

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Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S.  GAAP,  Wix  uses  the  following  non-GAAP  financial   measures:   collections,   cumulative   cohort collections, collections  on  a  constant  currency  basis,  revenue  on  a  constant  currency  basis,  non-GAAP  gross  margin,  non-GAAP  operating  income  ,  non-GAAP  net   income   ,  non-GAAP  net  income  per  share  and  free  cash  flow (collectively the "Non-GAAP financial measures"). Collections represent  the  total  cash  collected  by  us  from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period.  Non-GAAP  gross  margin  represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided  by  revenue.  Non-GAAP operating income represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of  share-based  compensation  expense,  amortization,  acquisition-related  expenses  and  sales tax expense  accrual. Non-GAAP  net  income  represents  net  loss  calculated  in  accordance  with  GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual, amortization of  debt  discount  and  debt  issuance  costs  and  acquisition-related  expenses  and non-operating foreign exchange expenses (income). Non-GAAP net income per share represents non-GAAP net income 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.

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  has  not  reconciled  its  free  cash  flow  guidance to net cash provided  by  operating  activities  because  net  cash  provided  by  operating  activities  is not accessible on a forward-looking  basis.  Items  that  impact  net  cash  provided  by  operating  activities  are out of the Company's control and/or cannot  be  reasonably  predicted.  Accordingly,  a  reconciliation  to  net cash provided by operating activities  is  not  available  without  unreasonable  effort.  The  Company  has  also  not reconciled future collections over the next eight years  from  existing  user  cohorts.  Items  that  impact  future revenue and deferred revenue  over  an  eight  year  period  cannot  be  reasonably  predicted.  Accordingly, a reconciliation to revenue is not available without unreasonable effort.

Forward-Looking Statements

This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, collections and free cash flow, and may be identified by words like "anticipate," "assume," "believe," "aim," "forecast," "indication," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "outlook," "future," "will," "seek" and similar terms or phrases. The forward-looking statements contained in this document, including the full year guidance, are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions including through the launch of our Wix Partner Program; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, and our ability to successfully enter into partnership agreements; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our share repurchases made pursuant to our share repurchase plan; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading "Risk Factors" in the Company's 2018 annual report on Form 20-F filed with the Securities and Exchange Commission on April 9, 2019. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

Investor Relations:
Maggie O'Donnell
investors.wix.com 
ir@wix.com 
914-267-7390

Media Relations:
Rona Davis
Wix Press Room 
ronadt@wix.com

 

Wix.com Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(In thousands, except loss per share data)


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(audited)


(unaudited)

Revenue








Creative Subscriptions

$         143,621


$              171,355


$       525,350


$       644,491

Business Solutions

20,576


33,233


78,354


116,597


164,197


204,588


603,704


761,088









Cost of Revenue








Creative Subscriptions

23,302


33,420


84,752


120,905

Business Solutions

11,187


23,815


42,195


76,002


34,489


57,235


126,947


196,907









Gross Profit

129,708


147,353


476,757


564,181









Operating expenses:








Research and development

54,558


66,634


198,912


250,791

Selling and marketing

61,065


74,809


249,178


307,718

General and administrative

16,258


23,602


59,297


85,922

Total operating expenses

131,881


165,045


507,387


644,431

Operating loss

(2,173)


(17,692)


(30,630)


(80,250)

Financial expenses, net

(1,688)


(2,553)


(2,794)


(3,621)

Other income (expenses)

(590)


(94)


(489)


55

Loss before taxes on income

(4,451)


(20,339)


(33,913)


(83,816)

Taxes on income

1,302


1,234


3,207


2,598

Net loss

$           (5,753)


$              (21,573)


$       (37,120)


$       (86,414)









Basic and diluted net loss per share 

$             (0.12)


$                  (0.42)


$           (0.77)


$           (1.71)

Basic and diluted weighted-average shares used to compute net loss per share 

49,053,599


51,321,155


48,017,188


50,504,698

 

 





Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)






Period ended


December 31,


December 31,


2018


2019

Assets

(audited)


(unaudited)

Current Assets:




Cash and cash equivalents

$         331,057


$         268,103

Short term deposits

349,619


294,096

Restricted cash and deposit

1,149


1,149

Marketable securities

22,992


164,301

Trade receivables 

13,528


16,987

Prepaid expenses and other current assets

11,939


20,859

 Total current assets

730,284


765,495





Long Term Assets:




Property and equipment, net

21,947


31,706

Marketable securities

47,225


177,298

Prepaid expenses and other long-term assets 

3,065


8,278

Intangible assets and goodwill, net

42,229


37,641

Operating lease assets

-


79,249

 Total long-term assets

114,466


334,172





 Total assets

$         844,750


$      1,099,667





Liabilities and Shareholder's Equity




Current Liabilities:




Trade payables

$            45,567


$            37,687

Employees and payroll accruals

32,036


41,938

Deferred revenues

227,226


289,148

Accrued expenses and other current liabilities

35,564


56,464

Operating lease liabilities

-


18,949

Total current liabilities

340,393


444,186





Long term deferred revenues

12,494


21,969

Long term deferred tax liability

602


1,585

Convertible senior notes

337,777


358,715

Long term loan

1,219


1,219

Other long term liabilities

-


-

Long term operating lease liabilities

-


64,244

Total long term liabilities

352,092


447,732





 Total liabilities

692,485


891,918





Shareholders'  Equity




Ordinary shares

88


94

Additional paid-in capital

472,239


611,083

Other comprehensive loss

(1,691)


1,357

Accumulated deficit

(318,371)


(404,785)

Total shareholders' equity

152,265


207,749





Total liabilities and shareholders' equity

$         844,750


$      1,099,667

 

 

Wix.com Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(audited)


(unaudited)

OPERATING ACTIVITIES:








Net loss 

$           (5,753)


$         (21,573)


$  (37,120)


$   (86,414)

Adjustments to reconcile net loss to net cash used in operating activities:








Depreciation 

2,418


3,347


8,724


12,126

Amortization

732


2,385


2,784


4,588

Share based compensation expenses

20,127


28,473


72,330


109,337

Amortization of debt discount and debt issuance costs

5,039


5,353


10,004


20,938

Decrease (increase) in accrued interest and exchange rate on short term and long term deposits

807


17


(583)


748

Amortization of premium and discount and accrued interest on marketable securities, net

(185)


(247)


(99)


(346)

Deferred income taxes, net

(213)


748


(959)


935

Changes in operating lease right-of-use assets

-


18,225


-


18,225

Changes in operating lease liabilities

-


(15,376)


-


(15,376)

Decrease (increase) in trade receivables

877


(956)


(2,128)


(3,459)

Decrease (increase) in prepaid expenses and other current and long-term assets

6,372


7,656


(3,665)


(5,168)

Increase (decrease) in trade payables

5,367


(11,166)


10,933


(7,560)

Increase (decrease) in employees and payroll accruals

(3,220)


(4,563)


2,843


7,781

Increase in short term and long term deferred revenues

11,861


22,095


54,681


71,397

Increase (decrease) in accrued expenses and other current liabilities

(8,174)


6,819


(2,036)


21,812

Net cash provided by operating activities

36,055


41,237


115,709


149,564

INVESTING ACTIVITIES:








Proceeds from short-term deposits and restricted deposits

88,999


103,000


204,125


348,775

Investment in short-term deposits and restricted deposits

(113,200)


(93,000)


(437,979)


(296,100)

Investment in marketable securities

(6,306)


(138,191)


(58,963)


(402,774)

Proceeds from marketable securities

5,261


71,603


21,054


132,905

Purchase of property and equipment

(3,312)


(3,650)


(13,684)


(21,427)

Capitalization of software development costs

(79)


(116)


(392)


(639)

Investment in other long-term assets

-


(191)


(500)


(891)

Purchases of investments in privately-held companies

(1,250)


(3,600)


(1,250)


(3,862)

Net cash used in investing activities

(29,887)


(64,145)


(287,589)


(244,013)

FINANCING ACTIVITIES:








Proceeds from exercise of options and ESPP shares

4,923


7,853


32,896


31,495

Proceeds from issuance of convertible senior notes

-


-


442,750


-

Payments of debt issuance costs

-


-


(12,601)


-

Purchase of capped call

-


-


(45,338)


-

Net cash provided by financing activities

4,923


7,853


417,707


31,495

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

11,091


(15,055)


245,827


(62,954)

CASH AND CASH EQUIVALENTS—Beginning of period

319,966


283,158


85,230


331,057

CASH AND CASH EQUIVALENTS—End of period

$         331,057


$         268,103


$  331,057


$   268,103

 

 

 

Wix.com Ltd.

KEY PERFORMANCE METRICS

(In thousands)










Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Creative Subscriptions

143,621


171,355


525,350


644,491

Business Solutions

20,576


33,233


78,354


116,597

Total Revenue

$       164,197


$           204,588


$     603,704


$     761,088









Creative Subscriptions

155,668


190,805


580,119


711,763

Business Solutions

20,390


35,878


78,266


120,722

Total Collections

$       176,058


$           226,683


$     658,385


$     832,485









Free Cash Flow

$          32,664


$             37,471


$     101,633


$     127,498

Number of registered users at period end (*)

142,439


165,341


142,439


165,341

Number of premium subscriptions at period end (*)

3,983


4,499


3,983


4,499









(*) Excludes users and subscriptions of DeviantArt
























Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)










Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Revenues

$       164,197


$           204,588


$     603,704


$     761,088

Change in deferred revenues

11,861


22,095


54,681


71,397

Collections

$       176,058


$           226,683


$     658,385


$     832,485


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Creative Subscriptions Revenue

$       143,621


$           171,355


$     525,350


$     644,491

Change in deferred revenues

12,047


19,450


54,769


67,272

Creative Subscriptions Collections

$       155,668


$           190,805


$     580,119


$     711,763


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Business Solutions Revenue

$          20,576


$             33,233


$        78,354


$     116,597

Change in deferred revenues

(186)


2,645


(88)


4,125

Business Solutions Collections

$          20,390


$             35,878


$        78,266


$     120,722

















































Wix.com Ltd.

TOTAL ADJUSTMENTS GAAP TO NON-GAAP

(In thousands)


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019

(1) Share based compensation expenses:

(unaudited)


(unaudited)

Cost of revenues

$            1,150


$                1,582


$          4,418


$          5,854

Research and development

11,090


14,900


39,417


56,161

Selling and marketing

2,779


4,614


9,770


18,458

General and administrative

5,108


7,377


18,725


28,864

Total share based compensation expenses

20,127


28,473


72,330


109,337

(2) Amortization

732


2,385


2,784


4,588

(3) Acquisition related expenses

125


1,868


2,760


2,485

(4) Amortization of debt discount and debt issuance costs

5,039


5,353


10,004


20,938

(5) Sales tax accrual

-


2,135


-


5,309

(6) Non-operating foreign exchange expenses (income)

-


1,257


-


2,905

(6)  Loss on investment in other long term assets

500


-


500


-

Total adjustments of GAAP to Non GAAP

$          26,523


$             41,471


$        88,378


$     145,562

























Wix.com Ltd.

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands)


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Gross Profit

$       129,708


$           147,353


$     476,757


$     564,181

Share based compensation expenses

1,150


1,582


4,418


5,854

Amortization 

142


1,526


568


1,951

Non GAAP Gross Profit 

131,000


150,461


481,743


571,986









Non GAAP Gross margin

80%


74%


80%


75%


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Gross Profit - Creative Subscriptions

$       120,319


$           137,935


$     440,598


$     523,586

Share based compensation expenses

1,018


1,334


3,904


4,994

Amortization 

-


-


-


-

Non GAAP Gross Profit - Creative Subscriptions

121,337


139,269


444,502


528,580









Non GAAP Gross margin - Creative Subscriptions

84%


81%


85%


82%


















Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Gross Profit - Business Solutions

$            9,389


$                9,418


$        36,159


$        40,595

Share based compensation expenses

132


248


514


860

Amortization 

142


1,526


568


1,951

Non GAAP Gross Profit - Business Solutions

9,663


11,192


37,241


43,406









Non GAAP Gross margin - Creative Subscriptions

47%


34%


48%


37%

















Wix.com Ltd.

RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME

(In thousands)










Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Operating loss

$          (2,173)


$           (17,692)


$     (30,630)


$     (80,250)

Adjustments:








Share based compensation expenses

20,127


28,473


72,330


109,337

Amortization 

732


2,385


2,784


4,588

Sales tax accrual

-


2,135


-


5,309

Acquisition related expenses

125


1,868


2,760


2,485

Total adjustments

$          20,984


$             34,861


$        77,874


$     121,719









Non GAAP operating income

$          18,811


$             17,169


$        47,244


$        41,469

















Wix.com Ltd.

RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE

(In thousands, except  per share data)










Three Months Ended


Year Ended


December 31,


December 31,


2018


2019


2018


2019


(unaudited)


(unaudited)

Net loss

$          (5,753)


$           (21,573)


$     (37,120)


$     (86,414)

Share based compensation expense and other Non GAAP adjustments

26,523


41,471


88,378


145,562

Non-GAAP net income

$          20,770


$             19,898


$        51,258


$        59,148









Basic  Non GAAP net income per share

$              0.42


$                  0.39


$            1.07


$            1.17

Weighted average shares used in computing basic Non GAAP net income per share

49,053,599


51,321,155


48,017,188


50,504,698

























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,


2018


2019


2018


2019


(unaudited)


(unaudited)

Net cash provided by operating activities

$          36,055


$             41,237


$     115,709


$     149,564

Capital expenditures, net

(3,391)


(3,766)


(14,076)


(22,066)

Free Cash Flow

$          32,664


$             37,471


$     101,633


$     127,498

















































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,


2018


2019


2018


2019


(unaudited)


(unaudited)









Basic and diluted weighted average number of shares outstanding 

49,053,599


51,321,155


48,017,188


50,504,698

The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:








Stock options

7,676,713


7,447,519


7,676,713


7,447,519

Restricted share units

2,090,512


2,125,440


2,090,512


2,125,440


58,820,824


60,894,114


57,784,413


60,077,657

























Wix.com Ltd.

RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS

(In thousands)










Three Months Ended


Year Ending


March 31, 2020


December 31, 2020


Low


High


Low


High









Projected revenues

215,000


217,000


946,000


956,000

Projected change in deferred revenues

32,000


32,000


74,000


79,000

Projected Collections

$       247,000


$           249,000


$  1,020,000


$  1,035,000

 

 

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SOURCE Wix.com Ltd.

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