[July 27, 2017] |
|
Wix Reports Strong Second Quarter 2017 Results Above Expectations; Expands Market Potential with Introduction of Wix Code
Wix.com
Ltd. (Nasdaq: WIX), a leading cloud-based web development platform,
today reported another strong quarter of financial results for the
second quarter ended June 30, 2017, again exceeding the high end of
guidance on all key metrics.
"Our focus on product development and innovation once again resulted in
a strong quarter," said Avishai Abrahami, Co-founder and CEO of Wix.
"With the addition of Wix Code, we now have a product targeted
specifically to creators, designers and developers. This is a remarkable
product that significantly expands our addressable market to those who
want to build complex web applications that can be tailored for any
business need. With Wix ADI, the Wix Editor, our vertical applications
and now Wix Code, Wix provides a product set that can be used by any
user, regardless of skill set, to create anything online."
Lior Shemesh, CFO of Wix, commented, "We generated record collections
and revenue this quarter driven by year-over-year growth in new
registered users and conversion to premium subscriptions. Free cash flow
grew significantly as we continue to realize operating leverage over our
operating expenses. We believe we will continue to drive growth and
gains in operating leverage through the second half of 2017."
Q2 2017 Financial Summary
|
|
|
Three months ended June 30,
|
|
|
|
|
|
|
$ in thousands
|
|
|
|
2017
|
|
|
2016
|
|
|
Y/Y growth
|
|
|
Prior Q2 2017 Outlook
|
Revenue
|
|
|
$
|
103,522
|
|
$
|
68,730
|
|
|
51%
|
|
|
$
|
101,000 - 102,000
|
Collections
|
|
|
$
|
117,121
|
|
$
|
81,453
|
|
|
44%
|
|
|
$
|
116,000 - 117,000
|
Operating Income (Loss)
|
|
|
$
|
(10,563)
|
|
$
|
(10,490)
|
|
|
NM
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
|
$
|
3,516
|
|
$
|
(2,980)
|
|
|
NM
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
$
|
19,651
|
|
$
|
11,314
|
|
|
74%
|
|
|
|
Free Cash Flow
|
|
|
$
|
17,412
|
|
$
|
10,185
|
|
|
71%
|
|
|
|
Additional Q2 2017 Results and Highlights
-
Gross margin on a GAAP basis was 83%, compared to 84% in the second
quarter of last year. The decline in the second quarter was due to
additional amortization of intangibles related to recent acquisitions.
Non-GAAP gross margin, calculated as non-GAAP gross profit as a
percent of revenue, was 84%, compared to 85% in the second quarter of
last year. Non-GAAP gross margin represents GAAP gross profit adjusted
for the impact of share-based compensation expense,
acquisition-related costs and amortization divided by revenue.
-
GAAP net loss was $(14.3) million, or $(0.31) per share, compared to a
net loss of $(11.4) million, or $(0.28) per share for the second
quarter of 2016
-
Non-GAAP net loss was $(0.2) million, or $(0.00) per share, compared
to a non-GAAP net loss of $(3.7) million, or $(0.09) per share for the
second quarter of 2016
-
Net cash provided by operating activities for the second quarter of
2017 was $19.7 million, while capital expenditures totaled $2.2
million, leading to free cash flow of $17.4 million, compared to $10.2
million in the second quarter of last year
-
Added 192,000 net premium subscriptions in the period - our second
highest net additions ever - to reach 2.9 million as of June 30, 2017,
a 35% increase over the second quarter of 2016
-
Added 5.5 million registered users in the second quarter - the second
highest registered user additions in our history. Registered users as
of June 30, 2017 were 109 million, representing a 24% increase
compared to the end of the second quarter of 2016
Recent Business Highlights
-
Introduced Wix Code, a market-expanding platform enabling users to
create powerful web applications: Wix Code provides an integrated
development environment for the easy creation of web applications with
custom business logic and a stunning user interface. This product
opens new possibilities for creators, developers and designers looking
for the easiest way to build web applications of all kinds tailored to
their business needs. A closed alpha of Wix Code was released in June,
and the Wix Code Beta is now accepting further applications. The
release of Wix Code is not expected to have an effect on our financial
results in 2017.
-
Launched SEO Wiz to power search optimization on Wix sites: Wix
launched SEO Wiz, enabling users to create a personalized plan and
ensure their Wix sites can be found online. SEO Wiz provides easy
step-by-step interactive walkthroughs, with personalized checklists of
to-dos, to optimize every page of a Wix website. Wix worked directly
with the Google Search Console team to create a fast, easy and
powerful solution for Wix users to index their sites. To date, over 1
million users have begun building their plan in SEO Wiz, and it was
the most installed app from the Wix App Market in the first half of
2017. Of users who have submitted a complete SEO Wiz plan, over 65%
saw their site appear on the first Google search results page for
their top keywords.
-
Launched Worldwide Ambassador Program: Wix Ambassadors around
the globe partner with local technology, co-working and small business
organizations in their local markets to empower millions of Wix users
through workshops, events and professional tutorials and support.
Already, 90 Ambassadors from 22 countries and in 10 languages have met
thousands of Wix users and hosted over 100 events.
-
Wix Mobile Growth: Wix users have created 28 million mobile
sites to date, making Wix one of the largest mobile site development
platforms globally.
-
Global E-commerce Platform: E-commerce subscriptions
reached over 388,000 during the quarter. Growth of e-commerce and
other vertical application subscriptions continues to exceed overall
subscriptions growth and accelerated during the quarter, highlighting
Wix's broad reach with small businesses.
-
Desktop and Mobile Business Management and Growth Solutions: Continued
engagement with the Wix ecosystem is illustrated by over 600 million
user contacts saved onto the Wix platform by our users. Leveraging
Wix's CRM system on the desktop and the Wix App on mobile devices,
business owners can track their customer activity data, manage
relationships, communicate using Wix Engage, get paid via Wix Invoices
and launch marketing campaigns and newsletters via Wix ShoutOut, our
email marketing solution, from a single location, anywhere.
Financial Outlook
The Company is introducing its outlook for the third quarter of
2017 as follows:
|
|
|
|
|
|
|
|
|
|
|
Q3 2017 Outlook
|
|
|
Y/Y growth
|
Revenue
|
|
|
$109 - $110 million
|
|
|
44% - 45%
|
Collections
|
|
|
$117 - $118 million
|
|
|
34% - 35%
|
|
|
|
|
|
|
|
Wix is reaffirming its outlook for the full year 2017:
|
|
|
|
|
|
|
|
|
|
|
FY 2017 Outlook
|
|
|
Y/Y growth
|
Revenue
|
|
|
$421 - $423 million
|
|
|
45% - 46%
|
Collections
|
|
|
$473 - $477 million
|
|
|
38% - 39%
|
Free Cash Flow
|
|
|
$67 - 68 million
|
|
|
85% - 88%
|
Conference Call and Webcast Information
Wix will host a conference call at 5:00 p.m. ET on Thursday, July 27,
2017 to answer questions about the financial and operational performance
of the business during the second quarter 2017. 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,
supplemental data sheet and supporting slides to its Investor Relations
website at https://investors.wix.com/results.
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
866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362
(Israel) at least ten minutes prior to the start time of the call and
reference Conference ID 53229077. A telephonic replay of the call will
be available through August 3, 2017 at 11:59 p.m. ET by dialing
855-859-2056 (US/Canada) or 404-537-3406 (International) and providing
Conference ID 53229077.
Wix will also offer a live and archived webcast of the conference call,
accessible from the "Investor Relations" section of the Company's
website at https://investors.wix.com/.
About Wix.com Ltd.
Wix is a leading cloud-based development platform with over 110 million
registered users worldwide. Wix was founded on the belief that the
Internet should be accessible to everyone to develop, create and
contribute. Through free and premium subscriptions, Wix empowers
millions of businesses, organizations, professionals and individuals to
take their businesses, brands and workflow online. Wix ADI, the Wix
Editor and a highly curated App Market enable users to build and manage
a fully integrated and dynamic digital presence. Wix's headquarters are
in Tel Aviv with offices in Be'er Sheva, Berlin, Dnepropetrovsk, Kiev,
Los Angeles, Miami, New York, San Francisco, São Paulo and Vilnius.
Visit us: on our blog,
Facebook, Twitter, Instagram, LinkedIn, Pinterest and Google+
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 loss, free cash flow, non-GAAP net loss and non-GAAP
net loss per share (collectively the "Non-GAAP financial measures").
Collections represents 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 costs and amortization, divided by revenue.
Non-GAAP operating loss represents operating loss calculated in
accordance with GAAP as adjusted for the impact of share-based
compensation expense, amortization, and acquisition-related costs.
Non-GAAP net loss represents net loss calculated in accordance with GAAP
as adjusted for the impact of share-based compensation expense,
amortization, and acquisition-related costs. Non-GAAP net loss per share
represents non-GAAP net 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 of GAAP to Non-GAAP Financial Measures" table in this
press release. This accompanying table has 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 guidance as to
free cash flow to cash flow from operations because it does not provide
guidance for cash flow from operations. As items that impact cash flow
from operations are out of the Company's control and/or cannot be
reasonably predicted, the Company is unable to provide such guidance.
Accordingly, a reconciliation to cash flow from operations is not
available without unreasonable effort.
Forward-Looking Statements
This press release 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 the availability, merchantability or
functionality of certain new products or features and their anticipated
product demand and customer satisfaction, and may be identified by words
like "anticipate," "assume," "believe," "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 press release are based on
management's current expectations, which are subject to uncertainty,
risks and changes in circumstances that are difficult to predict,
including the timing of product releases, 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; our ability to maintain and enhance our brand and
reputation; 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; customer acceptance of new
products and other challenges inherent in new product development,
changes to technologies used in our solutions or in global, national,
regional or local economic, business, competitive, market, regulatory
and other factors discussed under the heading "Risk Factors" in the
Company's 2016 annual report on Form 20-F filed with the Securities and
Exchange Commission on March 28, 2017. 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.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(In thousands)
|
|
|
|
|
|
Period ended
|
|
|
|
|
December 31,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
|
2017
|
|
Assets
|
|
|
|
(audited)
|
|
|
|
(unaudited)
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
93,064
|
|
|
|
|
$
|
124,132
|
|
Short term deposits
|
|
|
|
|
78,240
|
|
|
|
|
|
61,055
|
|
Restricted cash and deposit
|
|
|
|
|
931
|
|
|
|
|
|
1,093
|
|
Trade receivables
|
|
|
|
|
8,279
|
|
|
|
|
|
8,704
|
|
Prepaid expenses and other current assets
|
|
|
|
|
17,346
|
|
|
|
|
|
24,414
|
|
Total current assets
|
|
|
|
|
197,860
|
|
|
|
|
|
219,398
|
|
Property, equipment and software, net
|
|
|
|
|
|
|
|
|
Long-Term Assets:
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
8,750
|
|
|
|
|
|
10,566
|
|
Prepaid expenses and other long-term assets
|
|
|
|
|
2,622
|
|
|
|
|
|
3,088
|
|
Intangible assets and goodwill, net
|
|
|
|
|
5,452
|
|
|
|
|
|
49,713
|
|
Total long-term assets
|
|
|
|
|
16,824
|
|
|
|
|
|
63,367
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
214,684
|
|
|
|
|
$
|
282,765
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholder's Deficiency
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
$
|
20,709
|
|
|
|
|
$
|
28,933
|
|
Employees and payroll accruals
|
|
|
|
|
20,230
|
|
|
|
|
|
25,938
|
|
Deferred revenues
|
|
|
|
|
146,987
|
|
|
|
|
|
182,220
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
18,847
|
|
|
|
|
|
26,650
|
|
Total current liabilities
|
|
|
|
|
206,773
|
|
|
|
|
|
263,741
|
|
|
|
|
|
|
|
|
|
|
Long term deferred revenues
|
|
|
|
|
9,746
|
|
|
|
|
|
13,126
|
|
Long term deferred tax liability
|
|
|
|
|
634
|
|
|
|
|
|
3,908
|
|
Long-term loan
|
|
|
|
|
-
|
|
|
|
|
|
1,219
|
|
Total long-term liabilities
|
|
|
|
|
10,380
|
|
|
|
|
|
18,253
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
217,153
|
|
|
|
|
|
281,994
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity (Deficiency)
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
|
|
74
|
|
|
|
|
|
74
|
|
Additional paid-in capital
|
|
|
|
|
241,154
|
|
|
|
|
|
275,414
|
|
Other comprehensive income (loss)
|
|
|
|
|
(389
|
)
|
|
|
|
|
3,740
|
|
Accumulated deficit
|
|
|
|
|
(243,308
|
)
|
|
|
|
|
(278,457
|
)
|
Total shareholders' equity (deficiency)
|
|
|
|
|
(2,469
|
)
|
|
|
|
|
771
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity (deficiency)
|
|
|
|
$
|
214,684
|
|
|
|
|
$
|
282,765
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
68,730
|
|
|
|
$
|
103,522
|
|
|
|
|
$
|
130,316
|
|
|
|
$
|
196,060
|
|
Cost of revenue
|
|
|
|
|
11,018
|
|
|
|
|
18,025
|
|
|
|
|
|
21,525
|
|
|
|
|
32,888
|
|
Gross Profit
|
|
|
|
|
57,712
|
|
|
|
|
85,497
|
|
|
|
|
|
108,791
|
|
|
|
|
163,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
25,483
|
|
|
|
|
36,749
|
|
|
|
|
|
49,955
|
|
|
|
|
69,418
|
|
Selling and marketing
|
|
|
|
|
36,026
|
|
|
|
|
48,016
|
|
|
|
|
|
76,480
|
|
|
|
|
102,345
|
|
General and administrative
|
|
|
|
|
6,693
|
|
|
|
|
11,295
|
|
|
|
|
|
12,614
|
|
|
|
|
22,443
|
|
Total operating expenses
|
|
|
|
|
68,202
|
|
|
|
|
96,060
|
|
|
|
|
|
139,049
|
|
|
|
|
194,206
|
|
Operating loss
|
|
|
|
|
(10,490
|
)
|
|
|
|
(10,563
|
)
|
|
|
|
|
(30,258
|
)
|
|
|
|
(31,034
|
)
|
Financial income, net
|
|
|
|
|
(105
|
)
|
|
|
|
(2,043
|
)
|
|
|
|
|
400
|
|
|
|
|
(1,895
|
)
|
Other income (expenses)
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
Loss before taxes on income
|
|
|
|
|
(10,594
|
)
|
|
|
|
(12,605
|
)
|
|
|
|
|
(29,857
|
)
|
|
|
|
(32,928
|
)
|
Taxes on income
|
|
|
|
|
826
|
|
|
|
|
1,659
|
|
|
|
|
|
1,475
|
|
|
|
|
2,221
|
|
Net loss
|
|
|
|
$
|
(11,420
|
)
|
|
|
$
|
(14,264
|
)
|
|
|
|
$
|
(31,332
|
)
|
|
|
$
|
(35,149
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.31
|
)
|
|
|
|
$
|
(0.77
|
)
|
|
|
$
|
(0.78
|
)
|
Basic and diluted weighted-average shares used to compute net loss
per share
|
|
|
|
|
41,166,589
|
|
|
|
|
45,390,479
|
|
|
|
|
|
40,772,744
|
|
|
|
|
45,043,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP OPERATING LOSS
AND NET LOSS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
|
2017
|
(1) Share based compensation expenses:
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Cost of revenues
|
|
|
|
$
|
475
|
|
|
$
|
695
|
|
|
|
$
|
903
|
|
|
$
|
1,201
|
Research and development
|
|
|
|
|
3,558
|
|
|
|
6,586
|
|
|
|
|
6,669
|
|
|
|
11,312
|
Selling and marketing
|
|
|
|
|
1,122
|
|
|
|
1,778
|
|
|
|
|
2,103
|
|
|
|
3,197
|
General and administrative
|
|
|
|
|
1,772
|
|
|
|
2,920
|
|
|
|
|
3,389
|
|
|
|
5,251
|
Total share based compensation expenses
|
|
|
|
|
6,927
|
|
|
|
11,979
|
|
|
|
|
13,064
|
|
|
|
20,961
|
(2) Amortization
|
|
|
|
|
186
|
|
|
|
1,240
|
|
|
|
|
373
|
|
|
|
1,426
|
(3) Acquisition related expenses
|
|
|
|
|
397
|
|
|
|
860
|
|
|
|
|
1,580
|
|
|
|
4,625
|
(4) Taxes on income
|
|
|
|
|
197
|
|
|
|
-
|
|
|
|
|
372
|
|
|
|
-
|
Total adjustments of GAAP to Non GAAP
|
|
|
|
$
|
7,707
|
|
|
$
|
14,079
|
|
|
|
$
|
15,389
|
|
|
$
|
27,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Operating loss
|
|
|
|
$
|
(10,490
|
)
|
|
|
$
|
(10,563
|
)
|
|
|
|
$
|
(30,258
|
)
|
|
|
$
|
(31,034
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based compensation expenses
|
|
|
|
|
6,927
|
|
|
|
|
11,979
|
|
|
|
|
|
13,064
|
|
|
|
|
20,961
|
|
Amortization
|
|
|
|
|
186
|
|
|
|
|
1,240
|
|
|
|
|
|
373
|
|
|
|
|
1,426
|
|
Acquisition related expenses
|
|
|
|
|
397
|
|
|
|
|
860
|
|
|
|
|
|
1,580
|
|
|
|
|
4,625
|
|
Total adjustments
|
|
|
|
$
|
7,510
|
|
|
|
$
|
14,079
|
|
|
|
|
$
|
15,017
|
|
|
|
$
|
27,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating income (loss)
|
|
|
|
$
|
(2,980
|
)
|
|
|
$
|
3,516
|
|
|
|
|
$
|
(15,241
|
)
|
|
|
$
|
(4,022
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Gross Profit
|
|
|
|
$
|
57,712
|
|
|
|
$
|
85,497
|
|
|
|
|
$
|
108,791
|
|
|
|
$
|
163,172
|
|
Share based compensation expenses
|
|
|
|
|
475
|
|
|
|
|
695
|
|
|
|
|
|
903
|
|
|
|
|
1,201
|
|
Amortization
|
|
|
|
|
-
|
|
|
|
|
1,040
|
|
|
|
|
|
-
|
|
|
|
|
1,040
|
|
Acquisition related expenses
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
28
|
|
Non GAAP Gross Profit
|
|
|
|
|
58,187
|
|
|
|
|
87,232
|
|
|
|
|
|
109,694
|
|
|
|
|
165,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
|
|
|
|
|
85
|
%
|
|
|
|
84
|
%
|
|
|
|
|
84
|
%
|
|
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET
LOSS PER SHARE
|
(In thousands, except loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Net loss
|
|
|
|
$
|
(11,420
|
)
|
|
|
$
|
(14,264
|
)
|
|
|
|
$
|
(31,332
|
)
|
|
|
$
|
(35,149
|
)
|
Share based compensation expense and other Non GAAP adjustments
|
|
|
|
|
7,707
|
|
|
|
|
14,079
|
|
|
|
|
|
15,389
|
|
|
|
|
27,012
|
|
Non-GAAP net loss
|
|
|
|
$
|
(3,713
|
)
|
|
|
$
|
(185
|
)
|
|
|
|
$
|
(15,943
|
)
|
|
|
$
|
(8,137
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Non GAAP net loss per share
|
|
|
|
$
|
(0.09
|
)
|
|
|
$
|
(0.00
|
)
|
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
(0.18
|
)
|
Weighted average shares used in computing basic Non GAAP net loss
per share
|
|
|
|
|
41,166,589
|
|
|
|
|
45,390,479
|
|
|
|
|
|
40,772,744
|
|
|
|
|
45,043,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
KEY PERFORMANCE METRICS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Revenues
|
|
|
|
$
|
68,730
|
|
|
$
|
103,522
|
|
|
|
$
|
130,316
|
|
|
$
|
196,060
|
Collections
|
|
|
|
$
|
81,453
|
|
|
$
|
117,121
|
|
|
|
$
|
157,147
|
|
|
$
|
231,667
|
Free Cash Flow
|
|
|
|
$
|
10,185
|
|
|
$
|
17,412
|
|
|
|
$
|
8,051
|
|
|
$
|
32,193
|
Number of registered users at period end (*)
|
|
|
|
|
87,405
|
|
|
|
108,739
|
|
|
|
|
87,405
|
|
|
|
108,739
|
Number of premium subscriptions at period end (*)
|
|
|
|
|
2,121
|
|
|
|
2,865
|
|
|
|
|
2,121
|
|
|
|
2,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) the numbers without DeviantArt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF REVENUES TO COLLECTIONS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Revenues
|
|
|
|
$
|
68,730
|
|
|
$
|
103,522
|
|
|
|
$
|
130,316
|
|
|
$
|
196,060
|
Change in deferred revenues
|
|
|
|
|
12,723
|
|
|
|
13,599
|
|
|
|
|
26,831
|
|
|
|
35,607
|
Collections
|
|
|
|
$
|
81,453
|
|
|
$
|
117,121
|
|
|
|
$
|
157,147
|
|
|
$
|
231,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE
CASH FLOW
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Net cash provided by operating activities
|
|
|
|
$
|
11,314
|
|
|
|
$
|
19,651
|
|
|
|
|
$
|
10,389
|
|
|
|
$
|
36,048
|
|
Capital expenditures, net
|
|
|
|
|
(1,129
|
)
|
|
|
|
(2,239
|
)
|
|
|
|
|
(2,338
|
)
|
|
|
|
(3,855
|
)
|
Free Cash Flow
|
|
|
|
$
|
10,185
|
|
|
|
$
|
17,412
|
|
|
|
|
$
|
8,051
|
|
|
|
$
|
32,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE
CASH FLOW EXCLUDING DEVIANTART ACQUISITION COSTS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Net cash provided by operating activities
|
|
|
|
$
|
11,314
|
|
|
|
$
|
19,651
|
|
|
|
|
$
|
10,389
|
|
|
|
$
|
36,048
|
|
Capital expenditures, net
|
|
|
|
|
(1,129
|
)
|
|
|
|
(2,239
|
)
|
|
|
|
|
(2,338
|
)
|
|
|
|
(3,855
|
)
|
DeviantArt acquisition costs
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
2,738
|
|
Free Cash Flow excluding DeviantArt acquisition costs
|
|
|
|
$
|
10,185
|
|
|
|
$
|
17,412
|
|
|
|
|
$
|
8,051
|
|
|
|
$
|
34,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ending
|
|
|
|
|
September 30, 2017
|
|
|
|
December 31, 2017
|
|
|
|
|
Low
|
|
|
High
|
|
|
|
Low
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected revenues
|
|
|
|
$
|
109,000
|
|
|
$
|
110,000
|
|
|
|
$
|
421,000
|
|
|
$
|
423,000
|
Projected change in deferred revenues
|
|
|
|
$
|
8,000
|
|
|
$
|
8,000
|
|
|
|
|
52,000
|
|
|
|
54,000
|
Projected collections
|
|
|
|
$
|
117,000
|
|
|
$
|
118,000
|
|
|
|
$
|
473,000
|
|
|
$
|
477,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(11,420
|
)
|
|
|
$
|
(14,264
|
)
|
|
|
|
$
|
(31,332
|
)
|
|
|
$
|
(35,149
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
1,206
|
|
|
|
|
1,346
|
|
|
|
|
|
2,450
|
|
|
|
|
2,643
|
|
Amortization
|
|
|
|
|
186
|
|
|
|
|
1,142
|
|
|
|
|
|
373
|
|
|
|
|
1,462
|
|
Share based compensation expenses
|
|
|
|
|
6,927
|
|
|
|
|
11,980
|
|
|
|
|
|
13,064
|
|
|
|
|
20,962
|
|
Tax benefit related to exercise of share options
|
|
|
|
|
197
|
|
|
|
|
-
|
|
|
|
|
|
372
|
|
|
|
|
-
|
|
Increase in accrued interest and exchange rate on short term and
long term deposits
|
|
|
|
|
(163
|
)
|
|
|
|
(53
|
)
|
|
|
|
|
(393
|
)
|
|
|
|
(167
|
)
|
Deferred income taxes, net
|
|
|
|
|
(21
|
)
|
|
|
|
(184
|
)
|
|
|
|
|
(47
|
)
|
|
|
|
(397
|
)
|
Decrease (increase) in trade receivables
|
|
|
|
|
(1,510
|
)
|
|
|
|
1,124
|
|
|
|
|
|
(532
|
)
|
|
|
|
760
|
|
Decrease (increase) in prepaid expenses and other current and
long-term assets
|
|
|
|
|
(2,121
|
)
|
|
|
|
743
|
|
|
|
|
|
(3,710
|
)
|
|
|
|
(3,170
|
)
|
Increase (decrease) in trade payables
|
|
|
|
|
(590
|
)
|
|
|
|
2,151
|
|
|
|
|
|
4,034
|
|
|
|
|
6,659
|
|
Increase (decrease) in employees and payroll accruals
|
|
|
|
|
3,089
|
|
|
|
|
(5,160
|
)
|
|
|
|
|
3,311
|
|
|
|
|
(205
|
)
|
Increase in short term and long term deferred revenues
|
|
|
|
|
12,723
|
|
|
|
|
13,599
|
|
|
|
|
|
26,831
|
|
|
|
|
35,607
|
|
Increase (decrease) in accrued expenses and other current liabilities
|
|
|
|
|
2,811
|
|
|
|
|
7,227
|
|
|
|
|
|
(4,032
|
)
|
|
|
|
7,043
|
|
Net cash provided by operating activities
|
|
|
|
|
11,314
|
|
|
|
|
19,651
|
|
|
|
|
|
10,389
|
|
|
|
|
36,048
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term deposits and restricted deposits
|
|
|
|
|
18,422
|
|
|
|
|
16,664
|
|
|
|
|
|
23,188
|
|
|
|
|
33,050
|
|
Investment in short-term deposits and restricted deposits
|
|
|
|
|
(18,257
|
)
|
|
|
|
(5,000
|
)
|
|
|
|
|
(25,257
|
)
|
|
|
|
(15,650
|
)
|
Purchase of property and equipment
|
|
|
|
|
(1,129
|
)
|
|
|
|
(2,239
|
)
|
|
|
|
|
(2,338
|
)
|
|
|
|
(3,855
|
)
|
Payment for Businesses acquired
|
|
|
|
|
-
|
|
|
|
|
(3,257
|
)
|
|
|
|
|
-
|
|
|
|
|
(33,091
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
|
(964
|
)
|
|
|
|
6,168
|
|
|
|
|
|
(4,407
|
)
|
|
|
|
(19,546
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of options and ESPP shares
|
|
|
|
|
4,250
|
|
|
|
|
7,416
|
|
|
|
|
|
7,571
|
|
|
|
|
14,736
|
|
Credit line repayment
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(170
|
)
|
Net cash provided by financing activities
|
|
|
|
|
4,250
|
|
|
|
|
7,416
|
|
|
|
|
|
7,571
|
|
|
|
|
14,566
|
|
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
14,600
|
|
|
|
|
33,235
|
|
|
|
|
|
13,553
|
|
|
|
|
31,068
|
|
CASH AND CASH EQUIVALENTS-Beginning of period
|
|
|
|
|
38,179
|
|
|
|
|
90,897
|
|
|
|
|
|
39,226
|
|
|
|
|
93,064
|
|
CASH AND CASH EQUIVALENTS-End of period
|
|
|
|
$
|
52,779
|
|
|
|
$
|
124,132
|
|
|
|
|
$
|
52,779
|
|
|
|
$
|
124,132
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006373/en/
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