Wix Reports Second Quarter 2021 Results

NEW YORK, Aug. 11, 2021 /PRNewswire/ — Wix.com Ltd. (Nasdaq: WIX) today reported financial results for the second quarter ended June 30,…

NEW YORK, Aug. 11, 2021 /PRNewswire/ — Wix.com Ltd. (Nasdaq: WIX) today reported financial results for the second quarter ended June 30, 2021. In addition, the Company provided its initial outlook for the third quarter. Please visit the Wix investor relations website at https://investors.wix.com/ to view the Q2’21 Shareholder Update.

«As the story of the pandemic continues to evolve, there is an uncertainty whether we are at the end of it, or if there is a massive new wave coming again. For our users, this uncertainty means that they don’t know if they should create new online or offline stores, services and events. The result of this uncertainty, for us, is a mild slowdown in the creation of new web presences, which is reflected in our financials, where we came in at the low end of our expectations,» said Avishai Abrahami, Co-founder and CEO of Wix. «As our users and the world are navigating a great deal of uncertainty, it is more essential than ever that we remain focused on our north star goal of becoming the main engine of the internet, democratizing access and providing a place for the majority of people to build their online presence.»

Lior Shemesh, CFO of Wix, added, «Our second quarter results showed stronger growth than pre-pandemic quarters, although we did face more headwinds in the back half of the quarter than we expected. User growth remained elevated compared to 2019, renewals remained strong and conversion and monetization per subscription were solid – all encouraging signs of strong underlying fundamentals.

We are adjusting our expectations for the remainder of this year to account for continued uncertainty around the pandemic as well as the timing of B2B partnership agreements. Our ambitions have not changed, and we remain well-positioned to become the primary online platform for all users and businesses.»

Regarding the recently announced technology alliance with Vistaprint, Nir Zohar, President and COO, said, «We are excited to join Vistaprint in empowering small businesses to build a complete, professional digital presence with capabilities to manage, grow and succeed. This partnership demonstrates the robustness of Wix’s products for all types of users and all types of businesses and is a testament to our many years of investing in technology, product development and our brand. Just as Amazon and Google have become the technology layer for the cloud, Wix is striving to become the technology layer for online creation, and this alliance is evidence that we are on our way to achieving this goal.»

Q2’21 Financial Results



  • Total revenue in the second quarter of 2021 was $316.4 million, up 34% y/y
    • Creative Subscriptions revenue in the second quarter of 2021 was $235.9 million, up 24% y/y
    • Business Solutions revenue in the second quarter of 2021 was $80.5 million, up 75% y/y
  • Creative Subscriptions ARR as of the end of the second quarter of 2021 was $967.3 million, up 22% y/y
  • Total collections in the second quarter of 2021 were $342.9 million, up 29% y/y
    • Creative Subscriptions collections in the second quarter of 2021 were $263.0 million, up 21% y/y
    • Business Solutions collections in the second quarter of 2021 were $79.8 million, up 66% y/y
  • Total gross margin on a GAAP basis in the second quarter of 2021 was 62%
    • Creative Subscriptions gross margin on a GAAP basis was 75%
    • Business Solutions gross margin on a GAAP basis was 22%
  • Total non-GAAP gross margin in the second quarter of 2021 was 63%
    • Creative Subscriptions gross margin on a non-GAAP basis was 77%
    • Business Solutions gross margin on a non-GAAP basis was 23%
  • GAAP net profit in the second quarter of 2021 was $38.0 million, or $0.66 per share
    • Includes $110 million from unrealized net gains in equity holdings, primarily attributable to our holdings in Monday.com
  • Non-GAAP net loss in the second quarter of 2021 was $(15.8) million, or $(0.28) per share
  • Net cash provided by operating activities for the second quarter of 2021 was $21.8 million, while capital expenditures totaled $7.1 million, leading to free cash flow of $14.7 million
    • Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $16.9 million

Financial Outlook

We are introducing third quarter 2021 guidance as follows:


Q3’21 Outlook


Y/Y growth

Revenue

$311 – 317 million


22 – 25%

Collections

$355 – 365 million


26 – 30%

We are updating our full year 2021 guidance as follows:


Updated FY 2021

Outlook


Y/Y growth


Prior FY 2021 Outlook

Revenue

$1,255 – 1,270 million


27 – 28%


$1,280  – 1,290 million

Collections

$1,400 – 1,435 million


27 – 30%


$1,440 – 1,460 million

Free Cash Flow (excluding capex for future Wix HQ office build out)

$60 – 65 million


NM


$92 – 102 million

Free Cash Flow

$35 – 40 million


NM


$62 – 72 million

Given the current state of uncertainty, at this time it is challenging to predict how users will behave beyond Q3. We are adjusting our outlook for the remainder of the year and providing a range that reflects potential outcomes.

The top end of the guidance range for FY 2021 reflects an improvement to new user additions and conversion of users to subscriptions, above the rate we are seeing currently, as well as B2B partnerships in our pipeline in which we have a high degree of certainty in closing within the remainder of the year. The bottom end of the range reflects the possibility that we will see continued high uncertainty, resulting in further declines in new user additions, and that certain partnerships in our pipeline do not close by the end of 2021.

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, August 11, 2021. To participate on the live call, analysts and investors should dial +1-877-667-0467 (US/ Canada), +1-346- 354-0953 (International) or 1-809-315-362 (Israel) and reference Conference ID 2751369. A telephonic replay of the call will be available through August 18, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 2751369.

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 leading the way with a cloud-based website development platform for over 200 million registered users worldwide today. The Wix website builder 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, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix, Wix Payments and Velo by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix’s headquarters are in Tel Aviv with offices in Austin, Be’er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Krakow, Kyiv, Los Angeles, Miami, New York, Phoenix, San Francisco, São Paulo, Singapore, Tokyo and Vilnius. 

Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn and Pinterest

Download: Wix App is available for free on Google Play and in the App Store

For more about Wix please visit our Press Room

Non-GAAP Financial Measures and Key Operating Metrics

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S.  GAAP,  Wix  uses  the  following  non-GAAP  financial   measures:   collections,   cumulative   cohort collections,  non-GAAP  gross  margin,  non-GAAP  operating  income (loss),  non-GAAP  net   income (loss),  non-GAAP  net  income (loss)  per  share,  free  cash  flow, free cash flow, as adjusted, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the «Non-GAAP financial measures»). Measures presented on a constant currency or FX neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Collections is a non-GAAP financial measure calculated by adding the change in deferred revenues for a particular period to revenues for the same period. Collections include cash receipts for premium subscriptions purchased by registered users as well as cash we collect for payments and additional products and services, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and a majority of the additional products and services are recognised as revenues upon receipt. Committed payments are recognised as revenue as we fulfil our obligation under the terms of the contractual agreement.  Non-GAAP  gross  margin  represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided  by  revenue.  Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of  share-based  compensation  expense,  amortization,  acquisition-related  expenses  and  sales tax expense  accrual and other G&A expenses (income). Non-GAAP  net  income (loss) represents  net  loss  calculated  in  accordance  with  GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of  debt  discount  and  debt  issuance  costs  and  acquisition-related  expenses  and non-operating foreign exchange expenses (income) and unrealized gain on equity investments and provisions for income tax effects related to non-GAAP adjustments. Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude capital expenditures associated with our new headquarters. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

The presentation of this financial  information  is  not  intended  to  be considered in isolation or as a substitute for, or superior to, the financial information  prepared  and  presented  in  accordance  with  GAAP.  The  Company uses these non-GAAP financial measures for financial and operational decision  making  and  as  a means to  evaluate  period-to-period  comparisons.  The  Company  believes  that  these  measures  provide  useful information about operating results, enhance  the overall understanding of past financial performance  and  future  prospects,  and  allow  for  greater  transparency with respect to key metrics used by management in its financial and operational decision making.

For more information on the  non-GAAP  financial  measures,  please  see  the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures  that  are  most  directly  comparable  to  non-GAAP  financial  measures  and  the  related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, cumulative cohort collections, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company’s control and/or cannot be reasonably predicted.  Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) all active Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative Subscriptions, other than domain registrations; (ii) the average revenue per month from domain registrations; (iii) monthly revenue from partnership agreements. Finally, Wix discusses GPV. GPV includes the total value, in US dollars, of transactions facilitated by our platform.

Forward-Looking Statements

This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, collections and free cash flow, and may be identified by words like «anticipate,» «assume,» «believe,» «aim,» «forecast,» «indication,» «continue,» «could,» «estimate,» «expect,» «intend,» «may,» «plan,» «potential,» «predict,» «project,» «outlook,» «future,» «will,» «seek» and similar terms or phrases. The forward-looking statements contained in this document, including the annual and quarterly guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to attract and retain registered users and generate new premium subscriptions; our ability to increase the revenue we derive from the sale of premium subscriptions and business solutions through our partners; our expectation that new products and developments, including third-party products offered within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions; our assumption that long-term agreements with partners will become a more significant part of our business in the future and that the expected accounts receivable from such long term partners agreement will ultimately be received; our assumption that historical user behavior can be extrapolated to predict future user behavior; our prediction of the future revenues generated by our user cohorts and our ability to maintain and increase such revenue growth; our ability to maintain and enhance our brand and reputation; our ability to attract and retain qualified employees and key personnel; our ability to enter into new markets and attract new customer demographics, including new partners; our expectation that our products created for markets outside of North America will continue to generate growth in those markets; the impact of fluctuations in foreign currency exchange rates on our business; our ability to effectively execute our initiatives to scale and improve our user support function through our Customer Care team, and thereby increase user retention, user engagement and sales; the integration and performance of acquisitions; risks relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase plan; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our ability to effectively manage the growth of our infrastructure; the impact on our business and operations of the COVID-19 pandemic, including uncertainty relating to expected consumer dynamics after the COVID-19 pandemic subsides and the anticipated GPV on our platform, the effectiveness of government policies, vaccine administration rates and other factors; changes to technologies used in our solutions; any regulatory investigations or litigation; our expectations regarding changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues; changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of COVID-19; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and other factors discussed under the heading «Risk Factors» in the Company’s 2020 annual report on Form 20-F filed with the Securities and Exchange Commission on March 25, 2021. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

 

Investor Relations:

Maggie O’Donnell

ir@wix.com

Media Relations:

pr@wix.com

 

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,


2020


2021


2020


2021


(unaudited)


(unaudited)

Revenue








Creative Subscriptions

$         190,169


$              235,891


$      366,715


$      462,327

Business Solutions

45,890


80,515


85,331


158,191


236,059


316,406


452,046


620,518









Cost of Revenue








Creative Subscriptions

38,510


58,271


73,900


114,017

Business Solutions

31,972


63,148


58,652


123,234


70,482


121,419


132,552


237,251









Gross Profit

165,577


194,987


319,494


383,267









Operating expenses:








Research and development

75,464


104,199


146,180


199,285

Selling and marketing

119,333


123,021


215,489


267,476

General and administrative

24,531


39,411


49,967


73,805

Total operating expenses

219,328


266,631


411,636


540,566

Operating loss

(53,751)


(71,644)


(92,142)


(157,299)

Financial income (expenses), net

(3,339)


143,969


(2,194)


176,894

Other income

28


41


59


106

Income (loss) before taxes on income

(57,062)


72,366


(94,277)


19,701

Taxes on income

674


34,409


2,612


42,558

Net income (loss)

$         (57,736)


$                37,957


$      (96,889)


$      (22,857)









Basic net income (loss) per share 

$              (1.06)


$                     0.66


$          (1.82)


$          (0.40)

Basic weighted-average shares used to compute net income (loss) per share 

54,695,477


57,306,260


53,266,895


56,793,411









Diluted net income (loss) per share 

$              (1.06)


$                     0.60


$          (1.82)


$          (0.40)

Diluted weighted-average shares used to compute net income (loss) per share 

54,695,477


64,948,445


53,266,895


56,793,411

 

Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)






Period ended


December 31,


June 30,


2020


2021

Assets

(audited)


(unaudited)

Current Assets:




 Cash and cash equivalents

$         168,858


$         362,253

 Short term deposits

577,138


565,267

 Restricted cash and deposit

925


6,960

 Marketable securities

289,927


351,624

 Trade receivables 

23,670


29,418

 Prepaid expenses and other current assets

40,666


37,294

 Total current assets

1,101,184


1,352,816





Long Term Assets:




 Property and equipment, net

35,863


42,522

 Marketable securities

536,877


526,840

 Prepaid expenses and other long-term assets 

87,680


19,585

 Intangible assets and goodwill, net

43,516


90,228

 Operating lease right-of-use assets

88,406


84,813

 Total long-term assets

792,342


763,988





 Total assets

$      1,893,526


$      2,116,804





Liabilities and Shareholder’s Equity




Current Liabilities:




Trade payables

$            79,881


$            81,334

Employees and payroll accruals

70,814


86,721

Deferred revenues

373,521


432,606

Accrued expenses and other current liabilities

70,429


84,075

Operating lease liabilities

22,336


26,667

Total current liabilities

616,981


711,403





Long term deferred revenues

50,867


58,583

Long term deferred tax liability

15,343


55,884

Convertible notes, net

834,440


920,379

Long term operating lease liabilities

74,187


65,710

Total long term liabilities

974,837


1,100,556





 Total liabilities

1,591,818


1,811,959





Shareholders’  Equity




Ordinary shares

107


111

Additional paid-in capital

862,134


842,244

Accumulated ther comprehensive income

9,406


1,759

Accumulated deficit

(569,939)


(539,269)

Total shareholders’ equity

301,708


304,845





Total liabilities and shareholders’ equity

$      1,893,526


$      2,116,804

 

Wix.com Ltd.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




(In thousands)





















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

OPERATING ACTIVITIES:








Net loss 

$         (57,736)


$           37,957


$  (96,889)


$  (22,857)

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








Depreciation 

3,537


3,378


7,109


6,810

Amortization

566


846


1,132


1,445

Share based compensation expenses

34,967


50,396


65,685


97,027

Amortization of debt discount and debt issuance costs

5,516


1,296


10,949


2,703

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

15


(63)


62


(48)

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

438


2,082


717


4,405

Gain on equity securities


(73,186)



(73,186)

Deferred income taxes, net

(55)


32,752


(1,721)


40,103

Changes in operating lease right-of-use assets

5,158


8,379


9,446


13,060

Changes in operating lease liabilities

(4,588)


(7,578)


(9,817)


(13,613)

Decrease (increase) in trade receivables

(1,765)


875


(1,617)


(5,301)

Increase in prepaid expenses and other current and long-term assets

(6,931)


(30,304)


(21,605)


(100,845)

Increase (decrease) in trade payables

26,172


2,234


34,974


(1,028)

Increase (decrease) in employees and payroll accruals

11,585


(27,407)


23,694


13,147

Increase in short term and long term deferred revenues

29,792


21,810


62,663


65,432

Increase (decrease) in accrued expenses and other current liabilities

3,287


(1,634)


10,203


13,067

Net cash provided by operating activities

49,958


21,833


94,985


40,321

INVESTING ACTIVITIES:








Proceeds from short-term deposits and restricted deposits

9,225


40,000


26,225


178,015

Investment in short-term deposits and restricted deposits

(49,000)


(171,529)


(138,000)


(172,131)

Investment in marketable securities

(100,867)



(230,168)


Proceeds from marketable securities

65,656


90,562


154,911


180,659

Purchase of property and equipment

(3,264)


(6,657)


(8,207)


(10,377)

Capitalization of software development costs

0


(462)


(132)


(591)

Investment in other long-term assets

(643)



(5,643)


Payment for Businesses acquired, net of acquired cash


(37,217)


(6,626)


(42,803)

Purchases of investments in privately held companies

(685)


(1,500)


(785)


(1,500)

Net cash used in investing activities

(79,578)


(86,803)


(208,425)


131,272

FINANCING ACTIVITIES:








Proceeds from exercise of options and ESPP shares

12,312


11,380


19,287


21,802

Net cash provided by financing activities

12,312


11,380


19,287


21,802

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(17,308)


(53,590)


(94,153)


193,395

CASH AND CASH EQUIVALENTS—Beginning of period

191,258


415,843


268,103


168,858

CASH AND CASH EQUIVALENTS—End of period

$         173,950


$         362,253


$  173,950


$  362,253

 

Wix.com Ltd.




KEY PERFORMANCE METRICS




(In thousands)













Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Creative Subscriptions

190,169


235,891


366,715


462,327

Business Solutions

45,890


80,515


85,331


158,191

Total Revenue

$       236,059


$           316,406


$     452,046


$     620,518









Creative Subscriptions

217,696


263,045


426,493


531,104

Business Solutions

48,155


79,816


88,216


162,866

Total Collections

$       265,851


$           342,861


$     514,709


$     693,970









Free Cash Flow

$          46,694


$             14,714


$        86,646


$        29,353

Free Cash Flow, excluding capex related to future Wix HQ office build-out

$          47,102


$             16,911


$        87,537


$        32,385

Creative Subscriptions ARR

$        790,916


$           967,281


790,916


967,281

















Wix.com Ltd.




RECONCILIATION OF REVENUES TO COLLECTIONS




(In thousands)













Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Revenues

$       236,059


$           316,406


$     452,046


$     620,518

Change in deferred revenues

29,792


21,810


62,663


65,432

Change in unbilled contractual obligations


4,645



8,020

Collections

$       265,851


$           342,861


$     514,709


$     693,970


















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Creative Subscriptions Revenue

$       190,169


$           235,891


$     366,715


$     462,327

Change in deferred revenues

27,527


22,509


59,778


60,757

Change in unbilled contractual obligations


4,645



8,020

Creative Subscriptions Collections

$       217,696


$           263,045


$     426,493


$     531,104


















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Business Solutions Revenue

$          45,890


$             80,515


$        85,331


$     158,191

Change in deferred revenues

2,265


(699)


2,885


4,675

Business Solutions Collections

$          48,155


$             79,816


$        88,216


$     162,866

















Wix.com Ltd.




RECONCILIATION OF COHORT COLLECTIONS




(In millions)





Six Months Ended




June 30,




2020


2021













Q1 Cohort revenues

19


25





Q1 Change in deferred revenues

22


26





Q1 Cohort collections

$                  41


$                      51





 

Wix.com Ltd.




TOTAL ADJUSTMENTS GAAP TO NON-GAAP




(In thousands)





















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021

(1) Share based compensation expenses:

(unaudited)


(unaudited)

Cost of revenues

$            1,869


$                3,809


$          3,500


$          7,310

Research and development

18,216


24,490


34,401


47,778

Selling and marketing

5,395


8,213


9,963


15,655

General and administrative

9,487


13,884


17,821


26,284

Total share based compensation expenses

34,967


50,396


65,685


97,027

(2) Amortization

566


846


1,132


1,445

(3) Acquisition related expenses

1,697


2,351


2,636


4,056

(4) Amortization of debt discount and debt issuance costs

5,516


1,296


10,949


2,703

(5) Sales tax accrual and other G&A expenses (income)

(485)


579


1,489


1,031

(6) Unrealized gain on equity and other investments


(142,348)



(171,861)

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

1,305


363


432


2,953

(8) Provision for income tax effects related to non-GAAP adjustments


32,740



39,528

Total adjustments of GAAP to Non GAAP

$          43,566


$           (53,777)


$        82,323


$     (23,118)

























Wix.com Ltd.




RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT




(In thousands)





















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit

$       165,577


$           194,987


$     319,494


$     383,267

Share based compensation expenses

1,869


3,809


3,500


7,310

Acquisition related expenses

305


112


305


279

Amortization 


358



455

Non GAAP Gross Profit 

167,751


199,266


323,299


391,311









Non GAAP Gross margin

71%


63%


72%


63%


















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit – Creative Subscriptions

$       151,659


$           177,620


$     292,815


$     348,310

Share based compensation expenses

1,485


2,887


2,807


5,473

Non GAAP Gross Profit – Creative Subscriptions

153,144


180,507


295,622


353,783









Non GAAP Gross margin – Creative Subscriptions

81%


77%


81%


77%


















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit – Business Solutions

$          13,918


$             17,367


$        26,679


$        34,957

Share based compensation expenses

384


922


693


1,837

Acquisition related expenses

305


112


305


279

Amortization 


358



455

Non GAAP Gross Profit – Business Solutions

14,607


18,759


27,677


37,528









Non GAAP Gross margin – Business Solutions

32%


23%


32%


24%

 

Wix.com Ltd.




RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS




(In thousands)













Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Operating loss

$       (53,751)


$           (71,644)


$     (92,142)


$   (157,299)

Adjustments:








Share based compensation expenses

34,967


50,396


65,685


97,027

Amortization 

566


846


1,132


1,445

Sales tax accrual and other G&A expenses (income)

(485)


579


1,489


1,031

Acquisition related expenses

1,697


2,351


2,636


4,056

Total adjustments

$          36,745


$             54,172


$        70,942


$     103,559









Non GAAP operating income (loss)

$       (17,006)


$           (17,472)


$     (21,200)


$     (53,740)

















Wix.com Ltd.




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




(In thousands, except  per share data)













Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Net loss

$       (57,736)


$             37,957


$     (96,889)


$     (22,857)

Share based compensation expense and other Non GAAP adjustments

43,566


(53,777)


82,323


(23,118)

Non-GAAP net income (loss)

$       (14,170)


$           (15,820)


$     (14,566)


$     (45,975)









Basic  Non GAAP net income (loss) per share

$            (0.26)


$                (0.28)


$          (0.27)


$          (0.81)

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

54,695,477


57,306,260


53,266,895


56,793,411

























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,


2020


2021


2020


2021


(unaudited)


(unaudited)

Net cash provided by operating activities

$          49,958


$             21,833


$        94,985


$        40,321

Capital expenditures, net

(3,264)


(7,119)


(8,339)


(10,968)

Free Cash Flow

$          46,694


$             14,714


$        86,646


$        29,353









Capex related to future Wix HQ office build-out

408


2,197


891


3,032

Free Cash Flow, excluding capex related to future Wix HQ office build-out

$          47,102


$             16,911


$        87,537


$        32,385

























Wix.com Ltd.




RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 

















Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2021


2020


2021


(unaudited)


(unaudited)









Basic weighted-average shares used to compute net income (loss) per share 

54,695,477


57,306,260


53,266,895


56,793,411

Effect of dilutive securities (included in the effect of dilutive securities is the assumed conversion of employee stock options, employee RSUs and the Notes)


7,642,185



Diluted weighted-average shares used to compute net income (loss) per share 

54,695,477


64,948,445


53,266,895


56,793,411









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








Stock options

4,906,490


643,955


4,906,490


4,735,250

Restricted share units

2,190,991


436,301


2,190,991


2,063,427

 Convertible Notes (if-converted)

3,104,251



3,104,251


3,969,514


64,897,209


66,028,701


63,468,627


67,561,602

 

 

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SOURCE Wix.com Ltd.