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: 97.45 Change: -4.94 -4.83% Volume: 453,091 4:00 ET on Oct 18, 2018 price delayed 20 minutes

Wix Reports Second Quarter 2018 Results

07/25/2018
- Strong growth trajectory continues with second quarter revenue increasing 41% y/y to $146.1 million and collections increasing 37% y/y to $159.9 million
- Increased free cash flow in the second quarter to our highest quarterly amount ever, $23.9 million, up 37% y/y
- Results driven by strong cohort performance and continued increases in conversion and retention as users of all types adopt enhanced and new products
- Raised outlook for 2018 reflecting continued strong development momentum and cohort performance to drive top line growth and free cash flow

NEW YORK, July 25, 2018 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX), a leading cloud-based web development platform, today reported financial results for the second quarter ended June 30, 2018. In addition, the Company provided its initial outlook for the third quarter of 2018 and increased its outlook for the full year 2018.

(PRNewsfoto/Wix)

"Our strong second quarter results demonstrate our continued ability to provide users of all kinds who come to Wix with a complete product platform so they can create their dreams online," said Avishai Abrahami, Co-founder and CEO of Wix. "During the second half of the year, we plan to increase penetration of our existing markets and make progress in realizing the benefits of a larger market opportunity as we gain momentum in new products, including ADI in additional languages, Wix Answers and Wix Code."

Lior Shemesh, CFO of Wix, added, "Our results in the second quarter highlighted again our combination of strong revenue and collections growth and increasing free cash flow. We also successfully raised $443 million in convertible notes with a 0% coupon. This capital raise bolsters our balance sheet and provides us with additional financial flexibility."

Q2 2018 Financial Summary


Three months ended

June 30,



$ in thousands

2017

2018


Y/Y growth


Prior Q2 2018
Outlook

Revenue

$103,522

$146,132


41%


$144,000 - 145,000

Collections

$117,121

$159,895


37%


$158,000 - 159,000

Operating Income (Loss)

($10,563)

($6,507)


NA



Non-GAAP Operating
Income

$3,516

$12,939


268%



Net Cash Provided by
Operating Activities

$19,651

$27,268


39%



Free Cash Flow

$17,412

$23,857


37%











Additional Q2 2018 Results and Highlights

  • Revenue in the second quarter of 2018 was $146.1 million, a 41% increase over the same period last year. Under ASC 605, second quarter revenue would have been $144 million, a 39% increase over last year

  • Collections in the second quarter of 2018 were $159.9 million, a 37% increase over the prior year period

  • Gross margin on a GAAP basis in the second quarter of 2018 was 79%, compared to 83% for the second quarter of 2017; non-GAAP gross margin in the second quarter of 2018, calculated as non-GAAP gross profit as a percent of revenue, was 80%, compared to 84% for the second quarter of 2017 

    • Under ASC 605, second 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%

  • Results in the second quarter include the impact of the change from net (agent) to gross (principal) accounting related to the amended terms of our partnership agreement with Google announced earlier this year. As previously stated, this impact is an approximately $30 million benefit to FY 2018 revenue and collections and approximately $7-8 million each quarter in 2018. This impact also has resulted in a year-over-year decrease in our GAAP and non-GAAP gross margin

  • GAAP net loss in the second quarter of 2018 was $(5.6) million, or $(0.12) per share, compared to a net loss of $(14.3) million, or $(0.31) per share, for the second quarter of 2017. Under ASC 605, second quarter 2018 GAAP net loss would have been $(6.9) million

  • Non-GAAP net income in the second quarter of 2018 was $13.8 million, or $0.29 per share, compared to a non-GAAP net loss of $(0.2) million, or $(0.00) per share for the second quarter of 2017. Under ASC 605, second quarter 2018 non-GAAP net income would have been $12.6 million

  • Net cash provided by operating activities in the second quarter of 2018 was $27.3 million, while capital expenditures totaled $3.4 million, leading to free cash flow of $23.9 million, compared to $17.4 million of free cash flow in the second quarter of 2017, a 37% year-over-year increase

  • Added 205,000 net premium subscriptions in the second quarter of 2018 to reach 3.7 million as of June 30, 2018, a 28% increase over the total number of subscriptions at the end of the second quarter of 2017

  • Added 5.8 million registered users in the second quarter of 2018. Registered users as of June 30, 2018 were 131 million, representing a 20% increase compared to the end of the second quarter of 2017

Recent Business Highlights   

  • Momentum in Wix Code Adoption Continues: Usage of Wix Code continues to increase as users across sectors and skill levels are building a wide variety of websites and applications with the product. Activity in the Wix Code Forum, our online community for users to find help and interact with one another, is also increasing as users have contributed over 35,000 posts and comments and have generated over 1 million views. 

  • Recently Launched Wix Mobile Site Builder: In response to increasing requests from our users, we recently launched a Wix mobile site builder. This product utilizes the same AI technology that we released in June 2016. Users can now create a professional looking customized website entirely from a mobile device. Users are then able to modify the site further on either a mobile device or on a desktop using the Wix Editor. This product is another example of our ability to innovate in response to requests from users who come to Wix to build their brands and businesses online.

  • Completed Successful Capital Raise: In June and July, Wix raised $443 million in a private offering of its 0% Convertible Senior Notes due 2023. The size of the offering was upsized from the initial base offering and includes the over-allotment option, which the initial purchasers exercised in full. In connection with this offering, Wix entered into negotiated capped call transactions, which are expected generally to reduce the potential dilution to the ordinary shares of Wix upon any conversion of Notes and/or to offset any cash payments Wix is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the capped call transactions will initially be $211.30 per share, which represents a premium of 100% over the Wix share price of $105.65 on June 21, 2018. Proceeds from the offering were partially used to pay for the capped call transactions with the remaining net proceeds to be used for general corporate purposes. 

Financial Outlook

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


Q3 2018 Outlook


Y/Y growth

Revenue

$152- $153 million


37% – 38%

Collections

$161 - $162 million


34% – 35%





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


2018 Outlook




Prior

Updated


Y/Y growth

Revenue

$594 - $597 million

$597 - $599 million


40% - 41%

Collections

$651 - $657 million

$656 - $660 million


36%

Free Cash Flow

$100 - $102 million

$101 - $103 million


43% - 46%






Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Wednesday, July 25, 2018 to answer questions about the financial and operational performance of the business during the second 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 5158929. A telephonic replay of the call will be available through July 29, 2018 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID 5158929.

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 132 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 blogFacebookTwitterInstagramLinkedInPinterest 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


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018


(unaudited)


(audited)


(unaudited)









Revenue

$               103,522


$              146,132


$        196,060


$        283,907

Cost of revenue

18,025


30,437


32,888


59,481

     Gross Profit

85,497


115,695


163,172


224,426









Operating expenses:








     Research and development

36,749


48,492


69,418


94,994

     Selling and marketing

48,016


58,855


102,345


125,866

     General and administrative

11,295


14,855


22,443


28,525

Total operating expenses

96,060


122,202


194,206


249,385

Operating loss

(10,563)


(6,507)


(31,034)


(24,959)

     Financial income (expenses), net

(2,043)


1,532


(1,895)


1,403

     Other income 

1


63


1


84

Loss before taxes on income

(12,605)


(4,912)


(32,928)


(23,472)

     Taxes on income

1,659


728


2,221


1,979

Net loss

$               (14,264)


$                (5,640)


$        (35,149)


$        (25,451)









Basic and diluted net loss per share 

$                   (0.31)


$                  (0.12)


$            (0.78)


$            (0.54)

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

45,390,479


47,689,337


45,043,215


47,258,381

 

Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)






Period ended


December 31,


June 30,


2017


2018

Assets

(audited)


(unaudited)

Current Assets:




  Cash and cash equivalents

$            85,230


$         354,253

  Short term deposits

115,382


248,948

  Restricted cash and deposit

949


949

  Marketable securities

32,730


33,020

  Trade receivables 

11,400


8,676

  Prepaid expenses and other current assets

19,246


25,453

 Total current assets

264,937


671,299

Property, equipment and software, net




Long Term Assets:




  Property and equipment, net

16,201


19,752

  Prepaid expenses and other long-term assets 

3,823


1,424

  Intangible assets and goodwill, net

45,052


43,693

 Total long-term assets

65,076


64,869





 Total assets

$          330,013


$          736,168





Liabilities and Shareholder's Equity




Current Liabilities:




  Trade payables

$            34,240


$            38,497

  Employees and payroll accruals

28,067


41,564

  Deferred revenues

202,482


214,206

  Accrued expenses and other current liabilities

37,592


41,047

Total current liabilities

302,381


335,314





  Long term deferred revenues

14,329


10,095

  Long term deferred tax liability

764


683

  Convertible senior notes

-


285,018

  Long term loan

1,219


1,219

Total long term liabilities

16,312


297,015





 Total liabilities

318,693


632,329





Shareholders'  Equity




  Ordinary shares

80


85

  Additional paid-in capital

311,107


415,968

  Other comprehensive loss

(286)


(1,893)

  Accumulated deficit

(299,581)


(310,321)

Total shareholders' equity

11,320


103,839





Total liabilities and shareholders' equity

$         330,013


$         736,168

 

Wix.com Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


















Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018


(unaudited)


(audited)


(unaudited)

OPERATING ACTIVITIES:








Net loss 

$         (14,264)


$           (5,640)


$  (35,149)


$   (25,451)

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








    Depreciation 

1,346


2,196


2,643


4,093

    Amortization

1,142


731


1,462


1,319

    Share based compensation expenses

11,980


17,769


20,962


33,443

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

(53)


(545)


(167)


(897)

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

-


45


-


12

    Deferred income taxes, net

(184)


(307)


(397)


(405)

    Decrease in trade receivables

1,124


2,536


760


2,724

    Decrease (increase) in prepaid expenses and other current and long-term assets

743


(8,277)


(3,170)


(17,549)

    Increase in trade payables

2,151


3,826


6,659


3,382

    Increase (decrease) in employees and payroll accruals

(5,160)


4,978


(205)


13,431

    Increase in short term and long term deferred revenues

13,599


13,763


35,607


35,643

    Increase (decrease) in accrued expenses and other current liabilities

7,227


(3,807)


7,043


2,302

    Net cash provided by operating activities

19,651


27,268


36,048


52,047

INVESTING ACTIVITIES:








  Proceeds from short-term deposits and restricted deposits

16,664


5,337


33,050


19,111

  Investment in short-term deposits and restricted deposits

(5,000)


(125,001)


(15,650)


(151,780)

  Investment in marketable securities

-


(11,576)


-


(14,979)

  Proceeds from marketable securities

-


11,496


-


14,436

  Purchase of property and equipment

(2,239)


(3,296)


(3,855)


(6,507)

  Capitalization of software development costs

-


(115)


-


(262)

  Acquisition of Intangible assets 

-


(500)


-


(500)

  Payment for Businesses acquired

(3,257)


-


(33,091)


-

  Net cash used in investing activities

6,168


(123,655)


(19,546)


(140,481)

FINANCING ACTIVITIES:








  Proceeds from exercise of options and ESPP shares

7,416


11,587


14,736


21,891

  Proceeds from Convertible notes,net

-


335,566


-


335,566

  Credit line repayment

-


-


(170)


-

  Net cash provided by financing activities

7,416


347,153


14,566


357,457

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

33,235


250,766


31,068


269,023

CASH AND CASH EQUIVALENTS—Beginning of period

90,897


103,487


93,064


85,230

CASH AND CASH EQUIVALENTS—End of period

$         124,132


$         354,253


$  124,132


$   354,253

 

Wix.com Ltd.

KEY PERFORMANCE METRICS

(In thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018


(unaudited)


(unaudited)

Revenues

$        103,522


$           146,132


$      196,060


$      283,907

Collections

$        117,121


$           159,895


$      231,667


$      319,550

Free Cash Flow

$          17,412


$             23,857


$        32,193


$        45,278

Number of registered users at period end (*)

108,739


131,027


108,739


131,027

Number of premium subscriptions at period end (*)

2,865


3,659


2,865


3,659









(*) Excludes users and subscriptions of DeviantArt
























Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018


(unaudited)


(unaudited)

Revenues

$       103,522


$           146,132


$     196,060


$     283,907

Change in deferred revenues

13,599


13,763


35,607


35,643

Collections

$       117,121


$           159,895


$     231,667


$     319,550

























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

(In thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018

(1) Share based compensation expenses:

(unaudited)


(unaudited)

Cost of revenues

$                695


$                1,087


$          1,201


$          2,166

Research and development

6,586


9,470


11,312


17,955

Selling and marketing

1,778


2,352


3,197


4,394

General and administrative

2,920


4,860


5,251


8,928

Total share based compensation expenses

11,979


17,769


20,961


33,443

(2) Amortization

1,240


731


1,426


1,319

(3) Acquisition related expenses

860


946


4,625


2,374

Total adjustments of GAAP to Non GAAP

$           14,079


$             19,446


$        27,012


$        37,136

























Wix.com Ltd.

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands)










Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2018


2017


2018


(unaudited)


(unaudited)

Gross Profit

$          85,497


$           115,695


$     163,172


$     224,426

Share based compensation expenses

695


1,087


1,201


2,166

Amortization 

1,040


142


1,040


284

Acquisition related expenses

-


-


28


-

Non GAAP Gross Profit 

87,232


116,924


165,441


226,876









Non GAAP Gross margin

84%


80%


84%


80%

























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,


2017


2018


2017


2018


(unaudited)


(unaudited)

Operating loss

$       (10,563)


$             (6,507)


$     (31,034)


$     (24,959)

Adjustments:








Share based compensation expenses

11,979


17,769


20,961


33,443

Amortization 

1,240


731


1,426


1,319

Acquisition related expenses

860


946


4,625


2,374

Total adjustments

$          14,079


$             19,446


$        27,012


$        37,136









Non GAAP operating income (loss)

$            3,516


$             12,939


$        (4,022)


$        12,177

















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,


2017


2018


2017


2018


(unaudited)


(unaudited)

Net loss

$        (14,264)


$              (5,640)


$      (35,149)


$      (25,451)

Share based compensation expense and other Non GAAP adjustments

14,079


19,446


27,012


37,136

Non-GAAP net income/(loss)

$             (185)


$              13,806


$        (8,137)


$        11,685









Basic  Non GAAP net income/(loss) per share

$            (0.00)


$                  0.29


$          (0.18)


$            0.25

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

45,390,479


47,689,337


45,043,215


47,258,381

























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,


2017


2018


2017


2018


(unaudited)


(unaudited)

Net cash provided by operating activities

$          19,651


$             27,268


$        36,048


$        52,047

Capital expenditures, net

(2,239)


(3,411)


(3,855)


(6,769)

Free Cash Flow

$          17,412


$             23,857


$        32,193


$        45,278

















Wix.com Ltd.

RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS

(In thousands)










Three Months Ended


YearEnding


June 30, 2018


December 31, 2018


Low


High


Low


High









Projected revenues (*)

152,000


153,000


597,000


599,000

Projected change in deferred revenues

9,000


9,000


59,000


61,000

Projected collections

$       161,000


$           162,000


$     656,000


$     660,000









(*) Guidance under ASC 606
















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,


2017


2018


2017


2018


(unaudited)


(unaudited)









Basic and diluted weighted average number of shares outstanding 

45,390,479


47,689,337


45,043,215


47,258,381

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








Stock options

8,545,217


8,040,188


8,545,217


8,040,188

Restricted share units

1,938,381


2,117,774


1,938,381


2,117,774


55,874,077


57,847,299


55,526,813


57,416,343









Proforma weighted avg number of shares outstanding , net of cashless net exercise of options



56,390,273




56,390,273

 







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 June 30,


2018


2018


2018








ASC 606


ASC 605


Impact







Revenues

$        146,132


$        143,991


$     2,141

  y/y%

41%


39%



Cost of revenues

30,437


29,535


902

Gross Profit (loss)

115,695


114,456


1,239


79%


79%



Operating expenses:






     Research and development

48,492


48,492


-

     Marketing

58,855


58,855


-

     General and administrative

14,855


14,855


-

Total operating expenses

122,202


122,202


-







Operating loss

(6,507)


(7,746)


1,239

Financial income (expenses), net

1,532


1,532


-

Other expenses 

63


63


-







Loss before taxes on income

(4,912)


(6,151)


1,239

Taxes on income

728


728


-

Net loss

(5,640)


(6,879)


1,239







Basic and diluted net loss per share 

$             (0.12)


$             (0.14)


$       0.02

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

47,689,337


47,689,337


-













Adjustments to Non GAAP












Total Adjustments

$           19,446


$           19,446


$             -

Non GAAP operating income (loss)

$           12,939


$           11,700


$     1,239

Non-GAAP net income/(loss)

$           13,806


$           12,567


$     1,239

Basic Non GAAP net income/(loss) per share

$               0.29


$               0.26


$       0.03

 

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SOURCE Wix.com Ltd.