StockSelector.com
  Research, Select, & Monitor Tuesday, November 21, 2017 10:54:43 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Wix.com Ltd.$54.35($1.05)(1.90%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Wix Reports Strong Second Quarter 2017 Results Above Expectations; Expands Market Potential with Introduction of Wix Code
   Thursday, July 27, 2017 4:01:03 PM ET

--Free Cash Flow of $17.4 million grew 71% Y/Y

--Added over 192,000 Net Premium Subscriptions for a total of 2.9 Million, up 35% Y/Y

--Introduced Newest Product Innovation, Wix Code, a Formidable New Solution Enabling Creators, Designers and Developers to Create Powerful Web Applications

Wix.com Ltd. (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, Sao 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  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                           57,712                                                                                         85,497                                                                                                             108,791                                                                                        163,172
    Gross Profit
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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                                                                  41,166,589                                               45,390,479                                                                    40,772,744                                               45,043,215  
per share
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================                                                                ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 
                                                                                                                                                                                    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                                                                  41,166,589                                               45,390,479                                                                    40,772,744                                               45,043,215  
per share
                                                                                                                                 ==================== ========== ====================                                           ==================== ========== ====================                                                                ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 
                                                                                                                                                                                       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                                                                                             (163 )                                                                                       (53 )                                                                                                           (393 )                                                                                      (167 )
      long term deposits
      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                                                                                              (2,121 )                                                                                       743                                                                                                           (3,710 )                                                                                    (3,170 )
      long-term assets
      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  
                                                                                                                                           ==================== ======= ====================                                           ==================== ======= ====================                                                                ==================== ======= ====================                                           ==================== ======= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170727006373r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006373/en/

SOURCE: Wix.com Ltd."> <Property FormalName="PrimaryTwitterHandle" Value="@Wix

Wix.com 
Investor Relations: 
415-449-4716 
ir@wix.com 
or 
Media Relations: 
Vivian Hernandez, 415-517-6539 
pr@wix.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.