NEW YORK, May 14, 2020 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the first quarter ended March 31, 2020. In addition, the Company provided
its initial outlook for the second quarter 2020.
"The current crisis has magnified the importance of having an
online presence like never before, and we are very fortunate to
offer a product that provides businesses, brands and individuals an
opportunity to build and grow despite the increasing hardships that
they are facing," said Avishai
Abrahami, Co-founder and CEO of Wix. "As demand for an
online presence increases, we remain focused on providing
best-in-class free and paid products and delivering improvements to
our offering in response to our users' needs."
Abrahami continued, "The COVID-19 crisis has forced a massive
change upon our users. The need for SMBs, entrepreneurs and brands
to move online quickly, to communicate with their customers and to
deliver goods and services has never been clearer. Demand for our
platform offerings boomed at the beginning of April, and I am
extremely proud to say that our team responded quickly to make sure
we can deliver the best service to our users across the globe."
Nir Zohar, President and COO of Wix added, "The changes we have
seen in the market, starting at the end of Q1, have demonstrated
the strength, adaptability and resilience of our business. It is
easy to think of SMBs as particularly vulnerable to change and
crises, but when it comes down to it, we see that entrepreneurs and
business owners will do everything in their power to adapt and keep
their business going. It is gratifying for us to offer them a
platform on which they can expand their business, or even
completely reinvent themselves online, so they can continue running
their businesses and supporting their families."
Lior Shemesh, CFO of Wix said,
"As data from April shows, our business has remained steadfast,
even as this pandemic has shut down most of the world. The strong
performance from recent cohorts, combined with the boost in demand
for our platform, has convinced us to double down on what we do
best - using the strength of our balance sheet to invest in
marketing to grow our business even further. We believe combining
this incremental investment with the increasing demand will allow
us to make faster headway in capturing more market share." Shemesh
continued, "This immense demand uplift, coupled with the marketing
investment to support it, has already driven us to a significantly
higher outlook for Q2 than we originally expected. We expect
collections growth of 28-30% y/y in the second quarter."
Business Update as of April
2020
- Demand for creating an online presence is accelerating as
businesses around the globe adapt to the current environment.
During the month of April, over 3.2 million new users registered
with Wix to create an online presence, an increase of 63% y/y and
an all-time monthly high
- Users need to get online quickly and need functionality,
driving these new users to purchase subscriptions and business
applications at a higher rate and at higher price points than prior
cohorts. Collections from users acquired during April 2020 were 76% higher than from users
acquired in April a year ago
- Despite what we observed in the early stages of this crisis,
cohort cancellation trends have reversed, a testament to our
long-standing freemium model. During April, we added more
subscriptions from existing user cohorts (that is, from all created
prior to April 2020) than total
cancellations in the month. Total net premium subscription
additions in the month of April were up 207% y/y
- Our users are moving commerce online more rapidly than in the
past as net new Wix Stores
subscriptions grew 580% y/y and net new Wix Restaurants
subscriptions increased 167% y/y in April
2020
- As more commerce moves online, businesses also need solutions
to communicate and market online. New purchases of Ascend by Wix
grew 136% y/y in April 2020
- The growth of selling activity of businesses on Wix is also
increasing as total gross merchandise volume (GMV) transacted
across all payment methods in April grew 110% y/y. Wix Payments
growth also accelerated as new Wix Payments merchants increased
123% m/m and GMV transacted through Wix Payments grew 66% m/m in
April 2020
- From a development standpoint, we successfully transitioned our
entire workforce to working from home, and our development roadmap
hasn't missed a beat. COVID-19 has had no significant impact on
execution or software delivery times
- Further, the launch of Editor X is still on track for summer
2020, bringing web agencies and designers the most innovative web
design and creation platform, with advanced design and layouting
capabilities, available today
Q1 2020 Financial Results
- Total revenue in the first quarter of 2020 was $216.0 million, compared to $174.3 million in the first quarter of 2019, an
increase of 24% y/y
-
- On a y/y constant currency basis, Q1 revenue would have been
$217.5 million, up 25% y/y
- Creative Subscriptions revenue in the first quarter of 2020 was
$176.5 million, compared to
$151.4 million in the first quarter
of 2019, an increase of 17% y/y
- Business Solutions revenue in the first quarter of 2020 was
$39.4 million, compared to
$22.9 million in the first quarter of
2019, an increase of 72% y/y
- Creative Subscriptions ARR was $739.5
million in the first quarter of 2020, compared to
$621.9 million in the first quarter
of 2019, an increase of 19% y/y
- Total collections in the first quarter of 2020 were
$248.9 million, compared to
$200.4 million in the first quarter
of 2019, an increase of 24% y/y
-
- On a y/y constant currency basis, Q1 collections would have
been $251.2 million, up 25% y/y
- Creative Subscriptions collections in the first quarter of 2020
were $208.8 million, compared to
$176.9 million in the first quarter
of 2019, an increase of 18% y/y
- Business Solutions collections in the first quarter of 2020
were $40.1 million, compared to
$23.5 million in the first quarter of
2019, an increase of 71% y/y
- Total gross margin on a GAAP basis in the first quarter of 2020
was 71%, compared to 77% in the first quarter of 2019
-
- Creative Subscriptions gross margin on a GAAP basis was 80%,
compared to 82% in the first quarter of 2019
- Business Solutions gross margin on a GAAP basis was 32%
compared to 43% in the first quarter of 2019
- Total non-GAAP gross margin in the first quarter of 2020,
calculated as non-GAAP gross profit as a percent of revenue, was
72%, compared to 78% in the first quarter of 2019
-
- Creative Subscriptions gross margin on a non-GAAP basis was
81%, compared to 83% in the first quarter of 2019
- Business Solutions gross margin on a non-GAAP basis was 33%,
compared to 44% in the first quarter of 2019
- GAAP net loss in the first quarter of 2020 was $(39.2) million, or $(0.76) per share, compared to a net loss of
$(30.7) million, or $(0.62) per share, for the first quarter of
2019
- Non-GAAP net loss in the first quarter of 2020 was $(0.4) million, or $(0.01) per share, compared to non-GAAP net
income of $1.5 million, or
$0.03 per share for the first quarter
of 2019
- Net cash provided by operating activities in the first quarter
of 2020 was $45.0 million, while
capital expenditures totaled $5.1
million, leading to free cash flow of $40.0 million, compared to $30.0 million of free cash flow in the first
quarter of 2019, a 33% year-over-year increase
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$40.4 million, up 35% y/y
- Added 162,000 net premium subscriptions in the first quarter of
2020 to reach 4.7 million as of March 31,
2020, a 12% increase over the total number of premium
subscriptions at the end of the first quarter of 2019
- Added 6.9 million registered users in the first quarter of
2020. Registered users as of March 31,
2020 were 172 million, representing a 16% increase compared
to the end of the first quarter of 2019
Recent Business Highlights
- Relaunched the Wix Arena as the Wix Marketplace, a place where
Partners can offer their services to Wix users who need help
creating, optimizing or marketing their website
- The Wix Education Team created a learning site with at-home
family activities in order to provide more fun and creative
opportunities for kids and parents to learn how to create and grow
a website
- Integrated Zoom with Wix Bookings, Wix
Stores and Wix Events to help businesses bring their
appointments and services online. Zoom is now available in the Wix
App Market
- Built and launched an online volunteer call center on Corvid by
Wix to connect governments to citizens that need support. The tool
was built to help the Israeli Ministry of Finance & Welfare
answer the needs of citizens in the time of COVID-19 and is now
being offered to governments around the world
Financial Outlook
Wix is introducing its outlook for the second quarter 2020. The
rapid acceleration of businesses moving online causes Q2 to be well
ahead of what was originally expected when full year guidance was
provided in February:
|
Q2 2020 Outlook
|
|
Y/Y growth
|
Revenue
|
$231 - 233
million
|
|
25% - 26%
|
Collections
|
$255 - 260
million
|
|
28% - 30%
|
Free Cash
Flow
|
$41 - 43
million
|
|
33% - 40%
|
Free Cash Flow
(excluding $1 million in capex
for future Wix HQ office build out)
|
$42 - 44
million
|
|
37% - 43%
|
COVID-19 has accelerated a huge shift of businesses that rely on
an online presence as the anchor of their activity. As we look
ahead, we are considering multiple aspects of this
transformation:
- Global changes in consumer dynamics shifting to online
- The global rise in unemployment rates and the need of
individuals to turn to the internet to find a source of income
- Faster adoption of our platform (increases in new user demand)
coupled with higher intent (increases in conversion of users to
premium subscription purchases)
- The mix shift of subscription purchases to business packages,
resulting in higher ARPS
- Higher GMV of transactions on Wix
Stores and other verticals
- The overall impact of these changes on our ability to invest
our marketing budget faster
This change in behavior is creating a vast tailwind for our
business. Our second quarter guidance reflects this rapid
acceleration.
In addition, we expect the second half of 2020 may be very
different from what we originally anticipated when we provided full
year 2020 guidance in February. We are obviously experiencing
changes that are positive to our current state of growth; however,
at this stage we have no way to estimate the longevity of these
changes, what else may change or what will stay the same.
We do strongly believe that we have seen a paradigm shift as the
speed of businesses moving online has dramatically increased - what
changes may have taken many years are now happening in months. We
believe these changes will continue and business will not return to
the way it was before.
In light of these rapid changes and the new opportunities they
present, we believe it is imprudent for us to provide a financial
outlook for the second half of 2020 at this time. We plan to adapt
our business quickly as the environment changes, and as of today,
the range of outcomes is too great to provide an update beyond Q2.
We are withdrawing our prior full year guidance and plan to provide
an update in our Q2 earnings release in July
2020.
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Thursday, May 14, 2020 to answer questions
about the financial and operational performance of the business for
the first quarter ended March 31,
2020. 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 8883387. A telephonic replay of the call will be
available through May 21, 2020 at
11:30 a.m. ET by dialing +1-855-859-2056 and providing
Conference ID 8883387.
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
Visit us: on our blog, Facebook, Twitter, Instagram,
LinkedIn and Pinterest
Download: Wix App is
available for free on Google Play and in the App Store
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, non-GAAP gross margin,
non-GAAP operating income (loss), non-GAAP
net income (loss), non-GAAP net
income (loss) 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 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. 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, 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 (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.
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.
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 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; the uncertainty
surrounding the duration and severity of COVID -19 and its effects
on our business including changes in consumer dynamics shifting to
online and increased GMV on our platform and our ability to predict
future financial results due to the global and regional impact of
COVID-19, 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 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
2019 annual report on Form 20-F filed with the Securities and
Exchange Commission on April 2, 2020.
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
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Revenue
|
|
|
|
Creative
Subscriptions
|
$
151,364
|
|
$
176,546
|
Business
Solutions
|
22,926
|
|
39,441
|
|
174,290
|
|
215,987
|
|
|
|
|
Cost of
Revenue
|
|
|
|
Creative
Subscriptions
|
26,648
|
|
35,390
|
Business
Solutions
|
13,067
|
|
26,680
|
|
39,715
|
|
62,070
|
|
|
|
|
Gross
Profit
|
134,575
|
|
153,917
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
58,183
|
|
70,716
|
Selling and
marketing
|
85,718
|
|
96,156
|
General and
administrative
|
18,466
|
|
25,436
|
Total operating
expenses
|
162,367
|
|
192,308
|
Operating
loss
|
(27,792)
|
|
(38,391)
|
Financial expenses,
net
|
(1,730)
|
|
1,145
|
Other income
(expenses)
|
24
|
|
31
|
Loss before taxes on
income
|
(29,498)
|
|
(37,215)
|
Taxes on
income
|
1,242
|
|
1,938
|
Net loss
|
$
(30,740)
|
|
$
(39,153)
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.62)
|
|
$
(0.76)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
49,562,367
|
|
51,838,314
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
March 31,
|
|
2019
|
|
2020
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
268,103
|
|
$
191,258
|
Short term
deposits
|
294,096
|
|
366,048
|
Restricted cash and
deposit
|
1,149
|
|
1,150
|
Marketable
securities
|
164,301
|
|
168,642
|
Trade
receivables
|
16,987
|
|
17,065
|
Prepaid expenses and
other current assets
|
19,211
|
|
40,560
|
Total current
assets
|
763,847
|
|
784,723
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
31,706
|
|
32,951
|
Marketable
securities
|
177,298
|
|
210,302
|
Prepaid expenses and
other long-term assets
|
9,926
|
|
13,148
|
Intangible assets and
goodwill, net
|
37,641
|
|
45,075
|
Operating lease
assets
|
79,249
|
|
78,617
|
Total long-term
assets
|
335,820
|
|
380,093
|
|
|
|
|
Total
assets
|
$
1,099,667
|
|
$
1,164,816
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
37,687
|
|
$
46,639
|
Employees and payroll
accruals
|
41,938
|
|
48,408
|
Deferred
revenues
|
289,148
|
|
319,531
|
Accrued expenses and
other current liabilities
|
56,464
|
|
65,665
|
Operating lease
liabilities
|
18,949
|
|
15,944
|
Total current
liabilities
|
444,186
|
|
496,187
|
|
|
|
|
Long term deferred
revenues
|
21,969
|
|
24,457
|
Long term deferred
tax liability
|
1,585
|
|
1,598
|
Convertible senior
notes
|
358,715
|
|
364,148
|
Long term
loan
|
1,219
|
|
1,219
|
Long term operating
lease liabilities
|
64,244
|
|
66,283
|
Total long term
liabilities
|
447,732
|
|
457,705
|
|
|
|
|
Total
liabilities
|
891,918
|
|
953,892
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
94
|
|
96
|
Additional paid-in
capital
|
611,083
|
|
654,454
|
Other comprehensive
loss
|
1,357
|
|
312
|
Accumulated
deficit
|
(404,785)
|
|
(443,938)
|
Total shareholders'
equity
|
207,749
|
|
210,924
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,099,667
|
|
$
1,164,816
|
Wix.com
Ltd.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
Net
loss
|
$
(30,740)
|
|
$
(39,153)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation
|
2,658
|
|
3,572
|
Amortization
|
732
|
|
566
|
Share based
compensation expenses
|
24,907
|
|
30,718
|
Amortization of debt
discount and debt issuance costs
|
5,117
|
|
5,433
|
Decrease in accrued
interest and exchange rate on short term and long term
deposits
|
489
|
|
47
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
51
|
|
279
|
Deferred income
taxes, net
|
131
|
|
(1,666)
|
Changes in operating
lease right-of-use assets
|
-
|
|
4,288
|
Changes in operating
lease liabilities
|
-
|
|
(5,229)
|
Decrease (increase)
in trade receivables
|
(4,693)
|
|
148
|
Increase in prepaid
expenses and other current and long-term assets
|
(7,199)
|
|
(14,674)
|
Increase in trade
payables
|
4,550
|
|
8,802
|
Increase in employees
and payroll accruals
|
8,012
|
|
12,109
|
Increase in short
term and long term deferred revenues
|
26,089
|
|
32,871
|
Increase in accrued
expenses and other current liabilities
|
4,970
|
|
6,916
|
Net cash provided by
operating activities
|
35,074
|
|
45,027
|
INVESTING
ACTIVITIES:
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
26,775
|
|
17,000
|
Investment in
short-term deposits and restricted deposits
|
(26,000)
|
|
(89,000)
|
Investment in
marketable securities
|
(27,923)
|
|
(129,301)
|
Proceeds from
marketable securities
|
7,455
|
|
89,255
|
Purchase of property
and equipment
|
(4,830)
|
|
(4,943)
|
Capitalization of
software development costs
|
(198)
|
|
(132)
|
Investment in other
short and long-term assets
|
-
|
|
(3,500)
|
Payment for
Businesses acquired
|
-
|
|
(6,626)
|
Acquisition of
Intangible assets
|
-
|
|
(1,500)
|
Purchases of
investments in privately-held companies
|
-
|
|
(100)
|
Net cash used in
investing activities
|
(24,721)
|
|
(128,847)
|
FINANCING
ACTIVITIES:
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
6,678
|
|
6,975
|
Net cash provided by
financing activities
|
6,678
|
|
6,975
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
17,031
|
|
(76,845)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
331,057
|
|
268,103
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
348,088
|
|
$
191,258
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Creative
Subscriptions
|
151,364
|
|
176,546
|
Business
Solutions
|
22,926
|
|
39,441
|
Total
Revenue
|
$
174,290
|
|
$
215,987
|
|
|
|
|
Creative
Subscriptions
|
176,893
|
|
208,797
|
Business
Solutions
|
23,486
|
|
40,061
|
Total
Collections
|
$
200,379
|
|
$
248,858
|
|
|
|
|
Free Cash
Flow
|
$
30,046
|
|
$
39,952
|
Creative
Subscriptions ARR
|
$
621,876
|
|
$
739,457
|
Number of registered
users at period end (*)
|
148,363
|
|
172,254
|
Number of premium
subscriptions at period end (*)
|
4,164
|
|
4,661
|
|
|
|
|
(*) Excludes users
and subscriptions of DeviantArt
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Revenues
|
$
174,290
|
|
$
215,987
|
Change in deferred
revenues
|
26,089
|
|
32,871
|
Collections
|
$
200,379
|
|
$
248,858
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
151,364
|
|
$
176,546
|
Change in deferred
revenues
|
25,529
|
|
32,251
|
Creative
Subscriptions Collections
|
$
176,893
|
|
$
208,797
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
22,926
|
|
$
39,441
|
Change in deferred
revenues
|
560
|
|
620
|
Business Solutions
Collections
|
$
23,486
|
|
$
40,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
(1) Share based
compensation expenses:
|
(unaudited)
|
Cost of
revenues
|
$
1,311
|
|
$
1,631
|
Research and
development
|
12,256
|
|
16,185
|
Selling and
marketing
|
4,748
|
|
4,568
|
General and
administrative
|
6,592
|
|
8,334
|
Total share based
compensation expenses
|
24,907
|
|
30,718
|
(2)
Amortization
|
732
|
|
566
|
(3) Acquisition
related expenses
|
-
|
|
939
|
(4) Amortization of
debt discount and debt issuance costs
|
5,117
|
|
5,433
|
(5) Sales tax
accrual
|
-
|
|
1,974
|
(6) Non-operating
foreign exchange expenses (income)
|
1,452
|
|
(873)
|
Total adjustments of
GAAP to Non GAAP
|
$
32,208
|
|
$
38,757
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Gross
Profit
|
$
134,575
|
|
$
153,917
|
Share based
compensation expenses
|
1,311
|
|
1,631
|
Amortization
|
142
|
|
-
|
Non GAAP Gross
Profit
|
136,028
|
|
155,548
|
|
|
|
|
Non GAAP Gross
margin
|
78%
|
|
72%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
124,716
|
|
$
141,156
|
Share based
compensation expenses
|
1,150
|
|
1,322
|
Non GAAP Gross Profit
- Creative Subscriptions
|
125,866
|
|
142,478
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
83%
|
|
81%
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
9,859
|
|
$
12,761
|
Share based
compensation expenses
|
161
|
|
309
|
Amortization
|
142
|
|
-
|
Non GAAP Gross Profit
- Business Solutions
|
10,162
|
|
13,070
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
44%
|
|
33%
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Operating
loss
|
$
(27,792)
|
|
$
(38,391)
|
Adjustments:
|
|
|
|
Share based
compensation expenses
|
24,907
|
|
30,718
|
Amortization
|
732
|
|
566
|
Sales tax
accrual
|
-
|
|
1,974
|
Acquisition related
expenses
|
-
|
|
939
|
Total
adjustments
|
$
25,639
|
|
$
34,197
|
|
|
|
|
Non GAAP operating
loss
|
$
(2,153)
|
|
$
(4,194)
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS)
PER SHARE
|
(In thousands,
except per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Net loss
|
$
(30,740)
|
|
$
(39,153)
|
Share based
compensation expense and other Non GAAP adjustments
|
32,208
|
|
38,757
|
Non-GAAP net income
(loss)
|
$
1,468
|
|
$
(396)
|
|
|
|
|
Basic Non GAAP
net income (loss) per share
|
$
0.03
|
|
$
(0.01)
|
Weighted average
shares used in computing basic Non GAAP net income (loss) per
share
|
49,562,367
|
|
51,838,314
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
35,074
|
|
$
45,027
|
Capital expenditures,
net
|
(5,028)
|
|
(5,075)
|
Free Cash
Flow
|
$
30,046
|
|
$
39,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
49,562,367
|
|
51,838,314
|
The following items
have been excluded from the diluted weighted average number of
shares
outstanding because they are anti-dilutive:
|
|
|
|
Stock
options
|
8,237,537
|
|
5,481,573
|
Restricted share
units
|
2,342,469
|
|
2,228,786
|
|
60,142,373
|
|
59,548,673
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2020
|
|
Low
|
|
High
|
|
|
|
|
Projected
revenues
|
231,000
|
|
233,000
|
Projected change in
deferred revenues
|
24,000
|
|
27,000
|
Projected
Collections
|
$
255,000
|
|
$
260,000
|
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SOURCE Wix.com Ltd.