December 8, 2021

Wix Reports Third Quarter 2021 Results

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

NEW YORK, Nov. 11, 2021 /PRNewswire/ — Wix.com Ltd. (Nasdaq: WIX) today reported financial results for the third quarter ended September 30, 2021, highlighted by revenue and collections results ahead of expectations. In addition, the Company provided its initial outlook for the fourth quarter and raised its revenue and collections outlook for the full year. Please visit the Wix investor relations website at https://investors.wix.com/ to view the Q3’21 Shareholder Update.

“Our business outperformed our expectations this quarter as we saw improvements in the business environment. Our users are still navigating a great deal of uncertainty, but we believe the impacts have lessened. Despite this volatility, we delivered outstanding results.” said Avishai Abrahami, Co-founder and CEO of Wix. “We continue to layer on new monetization opportunities, and I have never been more excited about what we have coming down the pipeline.”

Nir Zohar, President and COO of Wix, also added, “This quarter we recorded collections from several new B2B partnerships, most notably the technology alliance with Vistaprint that we announced in August. Companies like Vistaprint are approaching us because they know that our brand and technology platform can bring massive value to their users. We believe these B2B partnerships will deliver sustainable growth over many years to come due to the ongoing financial benefits of renewals, additional new subscriptions above and beyond the agreement, and business solutions such as Ascend or Wix Payments.”

Lior Shemesh, CFO of Wix, added, “Outperformance this quarter was driven by better than expected new user additions, conversion of new users to subscriptions and average collections per subscription. We are increasing our revenue and collections guidance for FY 2021 to reflect the improvements we are experiencing.”

Q3’21 Financial Results

  • Total revenue in the third quarter of 2021 was $320.8 million, up 26% y/y
    • Creative Subscriptions revenue in the third quarter of 2021 was $241.3 million, up 19% y/y
    • Business Solutions revenue in the third quarter of 2021 was $79.5 million, up 55% y/y
  • Creative Subscriptions ARR as of the end of the third quarter of 2021 was $992.3 million, up 18% y/y
  • Total collections in the third quarter of 2021 were $373.3 million, up 33% y/y
    • Creative Subscriptions collections in the third quarter of 2021 were $292.7 million, up 28% y/y
    • Business Solutions collections in the third quarter of 2021 were $80.6 million, up 53% y/y
  • Total gross margin on a GAAP basis in the third quarter of 2021 was 62%
    • Creative Subscriptions gross margin on a GAAP basis was 76%
    • Business Solutions gross margin on a GAAP basis was 19%
  • Total non-GAAP gross margin in the third 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 21%
  • GAAP net income in the third quarter of 2021 was $16.7 million, or $0.28 per fully diluted share outstanding
    • Includes $112.2 million from realized and unrealized net gains in equity holdings, primarily attributable to our holdings in monday.com
  • Non-GAAP net loss in the third quarter of 2021 was $(11.9) million, or $(0.21) per share
  • Net cash provided by operating activities for the third quarter of 2021 was $4.3 million, while capital expenditures totaled $13.0 million, leading to free cash flow of $(8.7) million
    • Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $1.7 million

Financial Outlook

Due to the improvements we have experienced, we are increasing our collections and revenue guidance for FY 2021.

 We are also increasing our investment in marketing in Q4 due to the business improvements we have experienced. This increase in our investment in marketing is a positive sign — we are still experiencing the same returns in accordance with our TROI thresholds, but we are able to increase our investment as the top of the funnel increases. In addition, the US dollar to Israeli Shekel exchange rate has become a more significant headwind to our operating expenses. For these reasons, we are reducing our FCF guidance for the full year.

We are introducing fourth quarter 2021 guidance as follows:


Q4’21 Outlook


Y/Y growth

Revenue

$324 – 333 million


15 – 18%

Collections

$348 – 372 million


14 – 21%

We are updating our full year 2021 guidance as follows:


Updated FY 2021

Outlook


Y/Y growth


Prior FY 2021 Outlook

Revenue

$1,265 – 1,274 million


28 – 29%


$1,255 – 1,270 million

Collections

$1,415 – 1,439 million


28 – 31%


$1,400 – 1,435 million

Free Cash Flow

(excluding capex for

future Wix HQ office

build out)

$45 – 50 million

 


NM

 


$60 – 65 million

 

Free Cash Flow

$22 – 27 million


NM


$35 – 40 million

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Thursday, November 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 9696333. A telephonic replay of the call will be available through November 18, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 9696333.

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 215 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 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, Kyiv, Kraków, Los Angeles, Miami, New York, Phoenix, San Francisco, São Paulo, 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 ameans 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


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Revenue








Creative Subscriptions

$         202,996


$              241,303


$      569,711


$      703,630

Business Solutions

51,184


79,494


136,515


237,685


254,180


320,797


706,226


941,315









Cost of Revenue








Creative Subscriptions

43,361


57,813


117,261


171,830

Business Solutions

36,479


64,716


95,131


187,950


79,840


122,529


212,392


359,780









Gross Profit

174,340


198,268


493,834


581,535









Operating expenses:








Research and development

84,473


109,323


230,653


308,608

Selling and marketing

113,092


119,991


328,581


387,467

General and administrative

26,515


38,917


76,482


112,722

Total operating expenses

224,080


268,231


635,716


808,797

Operating loss

(49,740)


(69,963)


(141,882)


(227,262)

Financial income (expenses), net

(7,298)


111,917


(9,492)


288,811

Other income

25


87


84


193

Income (loss) before taxes on income

(57,013)


42,041


(151,290)


61,742

Taxes on income

(171)


25,374


2,441


67,932

Net income (loss)

$         (56,842)


$                16,667


$    (153,731)


$        (6,190)









Basic net income (loss) per share 

$              (1.03)


$                     0.29


$           (2.85)


$           (0.11)

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

55,356,961


57,313,747


53,963,584


56,970,641









Diluted net income (loss) per share 

$              (1.03)


$                     0.28


$           (2.85)


$           (0.11)

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

55,356,961


60,549,853


53,963,584


56,970,641

 

 

Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)






Period ended


December 31,


September 30,


2020


2021

Assets

(audited)


(unaudited)

Current Assets:




Cash and cash equivalents

$         168,858


$         287,167

Short term deposits

577,138


541,324

Restricted cash and deposit

925


6,960

Marketable securities

289,927


417,136

Trade receivables 

23,670


27,988

Prepaid expenses and other current assets

40,666


36,373

 Total current assets

1,101,184


1,316,948





Long Term Assets:




Property and equipment, net

35,863


53,414

Marketable securities

536,877


470,148

Prepaid expenses and other long-term assets 

87,680


23,922

Intangible assets and goodwill, net

43,516


89,975

Operating lease right-of-use assets

88,406


100,728

 Total long-term assets

792,342


738,187





 Total assets

$      1,893,526


$      2,055,135





Liabilities and Shareholder’s Equity




Current Liabilities:




Trade payables

$            79,881


$            89,330

Employees and payroll accruals

70,814


76,379

Deferred revenues

373,521


436,306

Accrued expenses and other current liabilities

70,429


87,499

Operating lease liabilities

22,336


30,849

Total current liabilities

616,981


720,363





Long term deferred revenues

50,867


60,336

Long term deferred tax liability

15,343


79,718

Convertible notes, net

834,440


921,676

Long term operating lease liabilities

74,187


77,288

Total long term liabilities

974,837


1,139,018





 Total liabilities

1,591,818


1,859,381





Shareholders’  Equity




Ordinary shares

107


110

Additional paid-in capital

862,134


916,966

Treasury Stock


(199,997)

Accumulated other comprehensive income

9,406


1,277

Accumulated deficit

(569,939)


(522,602)

Total shareholders’ equity

301,708


195,754





Total liabilities and shareholders’ equity

$      1,893,526


$      2,055,135

 

 

Wix.com Ltd.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




(In thousands)





















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

OPERATING ACTIVITIES:








Net loss 

$         (56,842)


$           16,667


$    (153,731)


$     (6,190)

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








Depreciation 

3,712


3,595


10,821


10,405

Amortization

826


3,045


1,958


4,490

Share based compensation expenses

38,922


53,070


104,607


150,097

Amortization of debt discount and debt issuance costs

7,594


1,297


18,543


4,000

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

(36)


(57)


26


(105)

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

1,222


1,796


1,939


6,201

Gain on equity securities


(110,855)



(184,041)

Deferred income taxes, net

(1,696)


21,111


(3,417)


61,214

Changes in operating lease right-of-use assets

3,907


5,907


13,353


18,967

Changes in operating lease liabilities

(3,377)


(6,062)


(13,194)


(19,675)

Decrease (increase) in trade receivables

(4,329)


1,430


(5,946)


(3,871)

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

(7,183)


(652)


(28,788)


(101,497)

Increase (decrease) in trade payables

(3,331)


6,727


31,643


5,699

Increase (decrease)  in employees and payroll accruals

14,014


(628)


37,708


12,519

Increase in short term and long term deferred revenues

26,761


5,336


89,424


70,768

Increase in accrued expenses and other current liabilities

4,350


2,596


14,553


15,663

Net cash provided by operating activities

24,514


4,323


119,499


44,644

INVESTING ACTIVITIES:








Proceeds from short-term deposits and restricted deposits

175,000


269,000


201,225


447,015

Investment in short-term deposits and restricted deposits

(309,210)


(245,000)


(447,210)


(417,131)

Investment in marketable securities

(468,473)



(698,641)


Proceeds from marketable securities

45,104


80,909


200,015


261,568

Purchase of property and equipment

(4,928)


(12,604)


(13,135)


(22,981)

Capitalization of software development costs

(206)


(426)


(338)


(1,017)

Investment in other long-term assets



(5,643)


Proceeds from equity securities


18,771



18,771

Payment for Businesses acquired, net of acquired cash


189


(6,626)


(42,614)

Purchases of investments in privately held companies


(2,000)


(785)


(3,500)

Net cash used in investing activities

(562,713)


108,839


(771,138)


240,111

FINANCING ACTIVITIES:








Proceeds from exercise of options and ESPP shares

9,418


11,752


28,705


33,554

Purchase of treasury stock


(200,000)



(200,000)

Proceeds from issuance of convertible senior notes

575,000



575,000


Payments of debt issuance costs

(15,713)



(15,713)


Purchase of capped call

(46,000)



(46,000)


Net cash provided by financing activities

522,705


(188,248)


541,992


(166,446)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(15,494)


(75,086)


(109,647)


118,309

CASH AND CASH EQUIVALENTS—Beginning of period

173,950


362,253


268,103


168,858

CASH AND CASH EQUIVALENTS—End of period

$         158,456


$         287,167


$      158,456


$  287,167

 









Wix.com Ltd.




KEY PERFORMANCE METRICS




(In thousands)













Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Creative Subscriptions

202,996


241,303


569,711


703,630

Business Solutions

51,184


79,494


136,515


237,685

Total Revenue

$       254,180


$           320,797


$     706,226


$      941,315









Creative Subscriptions

228,327


292,737


654,820


823,841

Business Solutions

52,614


80,560


140,830


243,426

Total Collections

$       280,941


$           373,297


$     795,650


$   1,067,267









Free Cash Flow

$          19,380


$              (8,707)


$     106,026


$        20,646

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

$          20,159


$               1,663


$     107,696


$        34,048

Creative Subscriptions ARR

$        840,512


$           992,295


840,512


992,295

















Wix.com Ltd.




RECONCILIATION OF REVENUES TO COLLECTIONS




(In thousands)













Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Revenues

$       254,180


$           320,797


$     706,226


$     941,315

Change in deferred revenues

26,761


5,336


89,424


70,768

Change in unbilled contractual obligations


47,164



55,184

Collections

$       280,941


$           373,297


$     795,650


$  1,067,267


















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Creative Subscriptions Revenue

$       202,996


$           241,303


$     569,711


$     703,630

Change in deferred revenues

25,331


4,270


85,109


65,027

Change in unbilled contractual obligations


47,164



55,184

Creative Subscriptions Collections

$       228,327


$           292,737


$     654,820


$     823,841


















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Business Solutions Revenue

$          51,184


$             79,494


$     136,515


$     237,685

Change in deferred revenues

1,430


1,066


4,315


5,741

Business Solutions Collections

$          52,614


$             80,560


$     140,830


$     243,426

















Wix.com Ltd.




RECONCILIATION OF COHORT COLLECTIONS




(In millions)





Nine Months Ended




September 30,




2020


2021













Q1 Cohort revenues

31


39





Q1 Change in deferred revenues

19


21





Q1 Cohort collections

$                  50


$                      60





 

 

Wix.com Ltd.




TOTAL ADJUSTMENTS GAAP TO NON-GAAP




(In thousands)





















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021

(1) Share based compensation expenses:

(unaudited)


(unaudited)

Cost of revenues

$            2,455


$                4,057


$          5,955


$        11,367

Research and development

20,312


26,250


54,713


74,028

Selling and marketing

6,108


8,715


16,071


24,370

General and administrative

10,047


14,048


27,868


40,332

Total share based compensation expenses

38,922


53,070


104,607


150,097

(2) Amortization

826


3,045


1,958


4,490

(3) Acquisition related expenses

1,489


2,579


4,125


6,635

(4) Amortization of debt discount and debt issuance costs

7,594


1,297


18,543


4,000

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


341


1,489


1,372

(6) Unrealized gain on equity and other investments


(112,165)



(284,026)

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

(5)


1,745


427


4,698

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


21,480



61,008

Total adjustments of GAAP to Non GAAP

$          48,826


$           (28,608)


$     131,149


$     (51,726)

 

 

Wix.com Ltd.




RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT




(In thousands)





















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit

$       174,340


$           198,268


$     493,834


$     581,535

Share based compensation expenses

2,455


4,057


5,955


11,367

Acquisition related expenses

200


108


505


387

Amortization 

226


930


226


1,385

Non GAAP Gross Profit 

177,221


203,363


500,520


594,674









Non GAAP Gross margin

70%


63%


71%


63%


















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit – Creative Subscriptions

$       159,635


$           183,490


$     452,450


$     531,800

Share based compensation expenses

1,947


2,947


4,754


8,420

Non GAAP Gross Profit – Creative Subscriptions

161,582


186,437


457,204


540,220









Non GAAP Gross margin – Creative Subscriptions

80%


77%


80%


77%


















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Gross Profit – Business Solutions

$          14,705


$             14,778


$        41,384


$        49,735

Share based compensation expenses

508


1,110


1,201


2,947

Acquisition related expenses

200


108


505


387

Amortization 

226


930


226


1,385

Non GAAP Gross Profit – Business Solutions

15,639


16,926


43,316


54,454









Non GAAP Gross margin – Business Solutions

31%


21%


32%


23%

 

 

Wix.com Ltd.




RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS




(In thousands)













Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Operating loss

$       (49,740)


$           (69,963)


$   (141,882)


$   (227,262)

Adjustments:








Share based compensation expenses

38,922


53,070


104,607


150,097

Amortization 

826


3,045


1,958


4,490

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


341


1,489


1,372

Acquisition related expenses

1,489


2,579


4,125


6,635

Total adjustments

$          41,237


$             59,035


$     112,179


$     162,594









Non GAAP operating income (loss)

$          (8,503)


$           (10,928)


$     (29,703)


$     (64,668)

 

 

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


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Net loss

$       (56,842)


$             16,667


$   (153,731)


$        (6,190)

Share based compensation expense and other Non GAAP adjustments

48,826


(28,608)


131,149


(51,726)

Non-GAAP net income (loss)

$          (8,016)


$           (11,941)


$     (22,582)


$     (57,916)









Basic  Non GAAP net income (loss) per share

$            (0.14)


$                (0.21)


$          (0.42)


$          (1.02)

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

55,356,961


57,313,747


53,963,584


56,970,641

 

 

Wix.com Ltd.




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




(In thousands)













Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)

Net cash provided by operating activities

$          24,514


$                4,323


$     119,499


$        44,644

Capital expenditures, net

(5,134)


(13,030)


(13,473)


(23,998)

Free Cash Flow

$          19,380


$             (8,707)


$     106,026


$        20,646









Capex related to future Wix HQ office build-out

779


10,370


1,670


13,402

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

$          20,159


$                1,663


$     107,696


$        34,048

 

 

Wix.com Ltd.




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

NUMBER OF SHARES OUTSTANDING 

















Three Months Ended


Nine Months Ended


September 30,


September 30,


2020


2021


2020


2021


(unaudited)


(unaudited)









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

55,356,961


57,313,747


53,963,584


56,970,641

Effect of dilutive securities (included in the effect of dilutive securities is the assumed

conversion of employee stock options, employee RSUs and the Notes)


3,236,106



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

55,356,961


60,549,853


53,963,584


56,970,641









The following items have been excluded from the diluted weighted average number of shares

outstanding because they are anti-dilutive:








Stock options

4,741,271


672,240


4,741,271


4,699,390

Restricted share units

2,109,920


675,134


2,109,920


1,921,287

 Convertible Notes (if-converted)

4,530,284


3,969,514


4,530,284


3,969,514


66,738,436


65,866,741


65,345,059


67,560,832

 

 

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SOURCE Wix.com Ltd.