Disclaimer

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Wix.com Ltd. (“WIX”) has no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only.

By clicking “Accept” you acknowledge and agree that neither WIX nor third party provider Virtua Research, Inc. (“Virtua) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the External Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against WIX and Virtua and further acknowledge and agree that in no event shall WIX or Virtua, its officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site.

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if WIX and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: collections, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, non-GAAP R&D expense, non-GAAP S&M expense, and non-GAAP G&A expense (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 income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net income (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 income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP income (loss) per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Non-GAAP R&D expense represents R&D expense calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization. Non-GAAP S&M expense represents S&M expense calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization. Non-GAAP G&A expense represents G&A expense calculated in accordance with GAAP as adjusted for the impact of sharebased compensation expense, withdrawn secondary offering expenses and acquisition-related costs.

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 on the External Site. 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.

NASDAQ: WIX Price: 99.65 Change: -3.55 -3.44% Volume: 885,213 4:00 ET on Aug 15, 2018 price delayed 20 minutes

Wix Reports First Quarter 2018 Results

05/09/2018

- Strong start to the year with all key metrics once again exceeding high end of expectations
- Q1 revenue of $137.8 million, up 49% y/y; under ASC 605, Q1 revenue would have been $134.6 million, an increase of 45% y/y
- Q1 collections of $159.7 million, up 39% y/y
- Record free cash flow of $21.4 million, an increase of 45% y/y, demonstrates increasing leverage in our business model
- Newest Q1 user cohort largest ever - expected to generate over $370 million in collections over the next eight years based on current cohort behavior
- Results driven by continued outperformance of conversion and retention of subscriptions and outstanding marketing execution
- Increasing 2018 outlook to reflect continued confidence in revenue and collections growth and incremental free cash flow generation

NEW YORK, May 9, 2018 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX), a leading cloud-based web development platform, today reported financial results for the first quarter ended March 31, 2018. In addition, the Company provided its initial outlook for the second quarter of 2018 and increased its outlook for the full year 2018.

 (PRNewsfoto/Wix)

"Our continued focus on product development and efficient marketing investment once again drove strong financial results," said Avishai Abrahami, Co-founder and CEO of Wix. "We are encouraged by the continued adoption of Wix Code, which allows our experts and professional users to build sophisticated web applications quickly and easily. Every day we see the potential of this product demonstrated with impressive results, and we are delighted by the creative ways that developers around the world have put Wix Code to use. This is a strong start to the year, and we are building momentum to propel continued growth through the remainder of 2018."

Lior Shemesh, CFO of Wix, added, "The first quarter results exceeded our expectations as conversion and retention outperformed expectations, contributing to the creation of our largest user cohort ever. Equally impressive, we generated over $21 million in free cash flow, a record for a single quarter, demonstrating positive returns from our investment in marketing and R&D. We are increasing our outlook for 2018 to reflect this momentum and our continued confidence in the growth of the business."

Q1 2018 Financial Summary

 


Three months ended

March 31,


$ in thousands

2017

2018


Y/Y growth


Prior Q1 2018 Outlook

Revenue

$92,538

$137,775


49%


$135,000 - 136,000

Collections

$114,546

$159,655


39%


$157,000 - 158,000

Operating Income (Loss)

$(20,471)

$(18,452)


NM



Non-GAAP Operating
Income (Loss)

$(7,538)

$(762)


NM



Net Cash Provided by
Operating Activities

$16,397

$24,779


51%



Free Cash Flow

$14,781

$21,421


45%











 

Additional Q1 2018 Results and Highlights

On January 1, 2018, Wix adopted Accounting Standards Codification ("ASC") 606 "Revenue from Contracts with Customers," using the modified retrospective method. This new rule replaced the previous accounting standard ASC 605, "Revenue Recognition." As required, throughout the year we will provide the relevant 2018 financial results under ASC 606 as well as ASC 605 for comparability purposes. First quarter of 2017 financial results are presented under ASC 605. A reconciliation of the first quarter 2018 results under ASC 606 and ASC 605, as well as a reconciliation of other non-GAAP measures discussed in this release, are presented in the tables at the end of this press release.

  • Revenue in the first quarter of 2018 was $137.8 million, a 49% increase over the year ago period. Under ASC 605, first quarter revenue would have been $134.6 million, a 45% increase over last year
  • Collections in the first quarter of 2018 were $159.7 million, a 39% increase over the prior year period
    • Revenue and collections in the first quarter of 2018 each include a $7.3 million benefit due to the change from net (agent) to gross (principal) accounting related to the amended terms of our partnership agreement with Google announced last quarter
  • Gross margin on a GAAP basis in the first quarter of 2018 was 79%, compared to 84% for the first quarter of 2017; non-GAAP gross margin in the first quarter of 2018, calculated as non-GAAP gross profit as a percent of revenue, was 80%, compared to 85% for the first quarter of 2017
    • The decrease in gross margin is a result of the change from net (agent) to gross (principal) accounting of revenue due to the updated terms of our agreement with Google that was previously announced
    • Under ASC 605, first quarter 2018 GAAP gross margin as a percent of revenue would have also been 79% and non-GAAP gross margin as a percent of revenue would have also been 80%
  • GAAP net loss in the first quarter of 2018 was $(19.8) million, or $(0.42) per share, compared to a net loss of $(20.9) million, or $(0.47) per share, for the first quarter of 2017. Under ASC 605, first quarter 2018 GAAP net loss would have been $(21.7) million
  • Non-GAAP net loss in the first quarter of 2018 was $(2.1) million, or $(0.05) per share, compared to a non-GAAP net loss of $(8.0) million, or $(0.18) per share for the first quarter of 2017. Under ASC 605, first quarter 2018 non-GAAP net loss would have been $(4.0) million
  • Net cash provided by operating activities in the first quarter of 2018 was $24.8 million, while capital expenditures totaled $3.4 million, leading to free cash flow of $21.4 million, compared to $14.8 million of free cash flow in the first quarter of 2017, a 45% year over year increase
  • Added 231,000 net premium subscriptions in the first quarter of 2018 to reach 3.5 million as of March 31, 2018, a 29% increase over the total number of subscriptions at the end of the first quarter of 2017
  • Added 5.9 million registered users in the first quarter of 2018. Registered users as of March 31, 2018 were 125 million, representing a 21% increase compared to the end of the first quarter of 2017

Recent Business Highlights  

  • Every 100,000 subscriptions generates over $165 million in collections: We generated a record number of subscriptions in a user cohort in Q1 2018, which is evidence of our ability to continue to drive growth in our business. We currently estimate that the Q1 2018 user cohort will generate over $370 million in future collections over the next eight years at an 80% gross margin with minimal additional marketing investment based on current cohort behavior. This is the result of our improving product offering, driving higher conversion and monetization of our user cohorts.
  • Wix Code: We continue to improve the capabilities of Wix Code by releasing new features that increase functionality, giving users more power to create advanced websites and applications. Current Wix users who are more technically savvy are increasingly putting Wix Code capabilities to use, and the product is attracting new professional web designers and developers to our platform.
  • Wix ADI: Wix Artificial Design Intelligence, or Wix ADI, continues to contribute to overall improvements in conversion. The ability for users to produce websites with AI-driven aesthetics and functionality, fully customized to their business within minutes, is increasing the number of sites completed, leading to improving conversion.
  • Wix Answers: We have continued to roll out Wix Answers, a powerful online customer support platform that lets businesses help their customers across multiple channels. Wix Answers is the platform that currently serves as the support infrastructure for our over 127 million registered users worldwide. Wix Answers can be customized to businesses of all sizes with an intuitive set-up and offers a fully-fledged knowledge base, ticketing system and call center. It also offers integration with other platforms, actionable insights and an embeddable help widget that can be used with any website. Wix Answers is a great example of the strength of Wix R&D, as a product developed in-house for our own use that is now shared and monetized. This product is available to current Wix users as a customer support solution and is also available to be purchased on a subscription basis by non-Wix users.

Financial Outlook

Guidance is provided using ASC 606. Over the course of 2018, the impact of ASC 606 is expected to have a minimal impact on revenue as compared to ASC 605. The following outlook can be compared to 2017 figures that were presented under ASC 606 with our fourth quarter 2017 earnings release, which is available on our Investor Relations website at https://investors.wix.com.

Wix is introducing its outlook for the second quarter of 2018 as follows:

 


Q2 2018 Outlook


Y/Y growth

Revenue1

$144 - $145 million


39% – 40%

Collections1

$158 - $159 million


35% – 36%





Wix is increasing its outlook for the full year 2018 following the first quarter results:







2018 Outlook




Prior

Updated


Y/Y growth

Revenue2

$591 - $595 million

$594 - $597 million


40%

Collections2

$645 - $653 million

$651 - $657 million


35% – 36%

Free Cash Flow

$98 - $100 million

$100 - $102 million


41% – 44%














Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Wednesday, May 9, 2018 to answer questions about the financial and operational performance of the business during the first quarter of 2018. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion of this call, the Company has posted a shareholder update and supporting slides to its Investor Relations website at https://investors.wix.com/. These materials provide shareholders and analysts with additional detail for analyzing results in advance of the quarterly conference call.

To participate on the live call, analysts and investors should dial 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 8696559. A telephonic replay of the call will be available through May 13, 2018 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID 8696559.

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 development platform for over 127 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, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, a highly curated App Market, and Wix Code 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, Dnipro, Kiev, Los Angeles, Miami, New York, San Francisco, São Paulo and Vilnius.

Visit us: on our blog, FacebookTwitterInstagramLinkedInPinterest 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 income (loss), free cash flow, non-GAAP net income (loss) and non-GAAP net income (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 income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net income (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 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.

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, but not limited to revenue, collections and free cash flow, 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, including the full year guidance, are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our initiatives to scale and improve our user support function; 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 2017 annual report on Form 20-F filed with the Securities and Exchange Commission on March 29, 2018. 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  
415-223-2624 

Media Relations: 
Vivian Hernandez 
pr@wix.com  
415-517-6539

Wix.com Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(In thousands, except loss per share data)












Three Months Ended



March 31,



2017


2018



(unaudited)







Revenue

$           92,538


$        137,775


Cost of revenue

14,863


29,044


Gross Profit

77,675


108,731







Operating expenses:





Research and development

32,669


46,502


Selling and marketing

54,329


67,011


General and administrative

11,148


13,670


Total operating expenses

98,146


127,183


Operating loss

(20,471)


(18,452)


Financial income, net

148


(129)


Other income 

-


21


Loss before taxes on income

(20,323)


(18,560)


Taxes on income

562


1,251


Net loss

$          (20,885)


$         (19,811)







Basic and diluted net loss per share 

$              (0.47)


$             (0.42)


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

44,695,951


46,827,425







 

 

 











Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)


















Period ended








December 31,


March 31,








2017


2018

Assets







(audited)


(unaudited)

Current Assets:










Cash and cash equivalents







$       85,230


$     103,487

Short term deposits







115,382


128,739

Restricted cash and deposit







949


949

Marketable securities







32,730


32,985

Trade receivables 







11,400


11,212

Prepaid expenses and other current assets







19,246


17,595

 Total current assets







264,937


294,967

Property, equipment and software, net










Long-Term Assets:










Property and equipment, net







16,201


18,163

Prepaid expenses and other long-term assets 







3,823


1,127

Intangible assets and goodwill, net







45,052


44,425

 Total long-term assets







65,076


63,715











 Total assets







$     330,013


$     358,682











Liabilities and Shareholder's Deficiency










Current Liabilities:










Trade payables







$       34,240


$       34,297

Employees and payroll accruals







28,067


33,188

Deferred revenues







202,482


201,498

Accrued expenses and other current liabilities







37,592


43,668

Total current liabilities







302,381


312,651











Long term deferred revenues







14,329


9,040

Long term deferred tax liability







764


723

Long-term loan







1,219


1,219

Total long-term liabilities







16,312


10,982











 Total liabilities







318,693


323,633











Shareholders'  Equity (Deficiency)










Ordinary shares







80


80

Additional paid-in capital







311,107


340,417

Other comprehensive loss







(286)


(767)

Accumulated deficit







(299,581)


(304,681)

Total shareholders' equity (deficiency)







11,320


35,049











Total liabilities and shareholders' equity (deficiency) 







$     330,013


$     358,682

 

 

 

Wix.com Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)










Three Months Ended


March 31,


2017


2018


(unaudited)

OPERATING ACTIVITIES:




Net loss 

$     (20,885)


$     (19,811)

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




Depreciation 

1,297


1,897

Amortization

320


588

Share based compensation expenses

8,982


15,674

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

(114)


(352)

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

-


(33)

Deferred income taxes, net

(213)


(98)

Decrease (increase) in trade receivables

(364)


188

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

(3,913)


(9,272)

Increase (decrease)  in trade payables

4,508


(444)

Increase in employees and payroll accruals

4,955


8,453

Increase in short term and long term deferred revenues

22,008


21,880

Increase (decrease) in accrued expenses and other current liabilities

(184)


6,109

  Net cash provided by operating activities

16,397


24,779

INVESTING ACTIVITIES:




  Proceeds from short-term deposits and restricted deposits

16,386


13,774

  Investment in short-term deposits and restricted deposits

(10,650)


(26,779)

  Investment in marketable securities

-


(3,403)

  Proceeds from marketable securities

-


2,940

  Purchase of property and equipment

(1,616)


(3,211)

  Capitalization of software development costs

-


(147)

  Payment for Businesses acquired

(29,834)


-

Net cash used in investing activities

(25,714)


(16,826)

FINANCING ACTIVITIES:




  Proceeds from exercise of options and ESPP shares

7,320


10,304

  Credit line repayment

(170)


-

  Net cash provided by financing activities

7,150


10,304

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(2,167)


18,257

CASH AND CASH EQUIVALENTS—Beginning of period

93,064


85,230

CASH AND CASH EQUIVALENTS—End of period

$      90,897


$    103,487





 

 

 

Wix.com Ltd.

KEY PERFORMANCE METRICS

(In thousands)































Three Months Ended















March 31,















2017


2018















(unaudited)


Revenues













$     92,538


$      137,775


Collections













$   114,546


$      159,655


Free Cash Flow













$     14,781


$        21,421


Number of registered users at period end (*)













103,234


125,189


Number of premium subscriptions at period end (*)













2,673


3,454



















(*) Excludes users and subscriptions of DeviantArt

















 

 

 

Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)









































Three Months Ended




















March 31,




















2017


2018




















(unaudited)


Revenues


















$     92,538


$      137,775


Change in deferred revenues


















22,008


21,880


Collections


















$   114,546


$      159,655


 

 

 

RECONCILIATION OF GAAP TO NON-GAAP OPERATING LOSS AND NET LOSS

(In thousands)



























Three Months Ended








March 31,








2017


2018


(1) Share based compensation expenses:






(unaudited)


  Cost of revenues






$          506


$          1,079


  Research and development






4,726


8,485


  Selling and marketing






1,419


2,042


  General and administrative






2,331


4,068


  Total share based compensation expenses






8,982


15,674


(2) Amortization






186


588


(3) Acquisition related expenses






3,765


1,428


Total adjustments of GAAP to Non GAAP






$     12,933


$        17,690


 

 

 

Wix.com Ltd.

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands)




































Three Months Ended











March 31,











2017


2018











(unaudited)


Gross Profit









$     77,675


$      108,731


Share based compensation expenses









506


1,079


Amortization 









-


142


Acquisition related expenses









28


-


Non GAAP Gross Profit 









78,209


109,952















Non GAAP Gross margin









85%


80%


 

 

 

Wix.com Ltd.



RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)



(In thousands)































Three Months Ended














March 31,














2017


2018














(unaudited)


Operating loss











$    (20,471)


$      (18,452)


Adjustments:
















Share based compensation expenses












8,982


15,674


Amortization 












186


588


Acquisition related expenses












3,765


1,428


Total adjustments












$     12,933


$        17,690


















Non GAAP operating income (loss)












$      (7,538)


$           (762)


 

 

 

Wix.com Ltd.

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

(In thousands, except  per share data)







Three Months Ended



March 31,



2017


2018



(unaudited)


Net loss

$    (20,885)


$      (19,811)


Share based compensation expense and other Non GAAP adjustments

12,933


17,690


Non-GAAP net income/(loss)

$      (7,952)


$        (2,121)







Basic  Non GAAP net income/(loss) per share

$        (0.18)


$          (0.05)


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

44,695,951


46,827,425


 

 

 

Wix.com Ltd.


RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW


(In thousands)






























Three Months Ended














March 31,














2017


2018














(unaudited)


Net cash provided by operating activities












$     16,397


$        24,779


Capital expenditures, net












(1,616)


(3,358)


Free Cash Flow












$     14,781


$        21,421


 

 

 

Wix.com Ltd.

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








Three Months Ended



March 31,



2017


2018



(unaudited)







Basic and diluted weighted average number of shares outstanding 

44,695,951


46,827,425


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





Stock options

8,881,497


8,588,308


Restricted share units

1,921,955


2,192,784



55,499,403


57,608,517


 

 

 

Wix.com Ltd.

RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS

(In thousands)




















Three Months Ended


Year Ending







June 30, 2018


December 31, 2018







Low


High


Low


High














Projected revenues (*)






$   144,000

-

$      145,000


$   594,000

-

$597,000

Projected change in deferred revenues






$     14,000


$        14,000


57,000


60,000

Projected collections






$   158,000


$      159,000


$   651,000


$657,000














(*) Guidance under ASC 606













 

 

 







Wix.com Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

2018 RECONCILIATION OF ASC 606 TO ASC 605

(In thousands, except loss per share data)














Three Months ended March 31,


2018


2018


2018








ASC 606


ASC 605


Impact







Revenues

$   137,775


$   134,603


$(3,172)

  y/y%

49%


45%



Cost of revenues

29,044


27,740


(1,304)

Gross Profit (loss)

108,731


106,863


(1,868)


79%


79%



Operating expenses:



80%



Research and development

46,502


46,502


-

Marketing

67,011


67,011


-

General and administrative

13,670


13,670


-

Total operating expenses

127,183


127,183


-







Operating loss

(18,452)


(20,320)


(1,868)

Financial income (expenses), net

(129)


(129)


-

Other expenses 

21


21


-







Loss before taxes on income

(18,560)


(20,428)


(1,868)

Taxes on income

1,251


1,251


-

Net loss

(19,811)


(21,679)


(1,868)







Basic and diluted net loss per share 

$       (0.42)


$       (0.46)


$  (0.04)

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

46,827,425


46,827,425


-













Adjustments to Non GAAP












Total Adjustments

$     17,690


$     17,690


$       -

Non GAAP operating income (loss)

$        (762)


$     (2,630)


$(1,868)

Non-GAAP net income/(loss)

$     (2,121)


$     (3,989)


$(1,868)

Basic Non GAAP net income/(loss) per share

$       (0.05)


$       (0.09)


$  (0.04)

 

1 Revenue and collections guidance for Q2 2018 includes an additional $8 million benefit to both due to a change in accounting effective Jan. 1, 2018 related to the amended terms of our partnership agreement with Google. Excluding the accounting change, Q2 2018 revenue guidance would be $136-$137 million, or 31%-32% y/y growth, and Q2 2018 collections would be $150-$151 million, or 28%-29% y/y growth

2 Revenue and collections guidance for FY 2018 includes an additional $30 million benefit to both due to a change in accounting effective Jan. 1, 2018 related to the amended terms of our partnership agreement with Google. Excluding the accounting change, FY 2018 updated revenue guidance would be $564-$567 million, or 33% y/y growth, and FY 2018 collections would be $621-$627 million, or 28%-30% y/y growth

 

 

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SOURCE Wix.com Ltd.