NEW YORK, Feb. 17, 2021 /PRNewswire/
-- Wix.com Ltd. (Nasdaq: WIX) today reported strong
financial results for the fourth quarter and full year ended
December 31, 2020, exceeding the high
end of its guidance ranges for revenue, collections and free cash
flow. In addition, the Company provided its initial outlook for the
first quarter and full year of 2021.
"We have concluded the most successful year in our company's
history. In 2020, over 31 million new registered users joined Wix,
we added nearly 1 million net new subscriptions, and we crossed
$1 billion of annual collections for
the first time. It was truly humbling to help lift millions of
businesses through an extremely challenging year, and I am
particularly proud of our team for maintaining focus and dedication
throughout the year," said Avishai
Abrahami, Co-founder and CEO of Wix. "It is clear that we
can now become a dominant player on the internet, and I expect us
to strengthen this position significantly over the coming
decade. Wix will now strive to become the main engine of the
internet, democratizing access and providing a place where the
majority of people will build their web presence. My goal and
belief is that at this rate of growth, in the next 5-7 years, 50%
of anything new built on the internet will be done on Wix."
Lior Shemesh, CFO of Wix, added,
"Our fourth quarter results closed out a record-breaking year at
Wix with results exceeding the high end of our guidance
ranges. The demand for a web presence is higher than ever
before. As such, we are investing heavily in our business and into
new products, most notably Wix Payments as online commerce
businesses continue to come to Wix. Our first quarter 2021 guidance
of 37-41% y/y collections growth and full year guidance of 30-32%
collections growth reflect the continuation of the momentum from
2020, the returns on these investments and the new baseline of
growth for Wix for years to come."
FY 2020 Financial Results
- Total revenue for the full year 2020 was $988.8 million, compared to $761.1 million for the full year 2019, an
increase of 30% y/y
-
- Creative Subscriptions revenue for the full year 2020 was
$783.5 million, compared to
$644.5 million for the full year
2019, an increase of 22% y/y
- Business Solutions revenue for the full year 2020 was
$205.3 million, compared to
$116.6 million for the full year
2019, an increase of 76% y/y
- Total collections for the full year 2020 were $1.102 billion, compared to $832.5 million for the full year 2019, an
increase of 32% y/y
-
- Creative Subscriptions collections for the full year 2020 were
$891.2 million, compared to
$711.8 million for the full year
2019, an increase of 25% y/y
- Business Solutions collections for the full year 2020 were
$210.8 million, compared to
$120.7 million for the full year
2019, an increase of 75% y/y
- Total gross margin on a GAAP basis for the full year 2020 was
68%, compared to 74% for the full year 2019. The y/y decline was
related to incremental investments in Customer Care, hosting and
the faster revenue growth of the Business Solutions segment,
primarily Wix Payments
-
- Creative Subscriptions gross margin on a GAAP basis was 79%,
compared to 81% for the full year 2019. The y/y decline was related
to the investment in expanding our Customer Care organization and
higher hosting costs to serve the increased number of users
- Business Solutions gross margin on a GAAP basis was 28%
compared to 35% for the full year 2019. The y/y decline was related
primarily to the growth of Wix Payments, the expansion of Customer
Care and higher hosting costs to meet the increased number of
users
- Total non-GAAP gross margin for the full year 2020, calculated
as non-GAAP gross profit as a percent of revenue, was 69%, compared
to 75% for the full year 2019. The y/y decline was related to
incremental investments in Customer Care, hosting and the faster
revenue growth of the Business Solutions segment
-
- Creative Subscriptions gross margin on a non-GAAP basis was
80%, compared to 82% for the full year 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
- Business Solutions gross margin on a non-GAAP basis was 29%,
compared to 37% for the full year 2019. The y/y decline was related
primarily to the growth of Wix Payments, the expansion of Customer
Care and higher hosting costs to meet the increased number of
users. As Wix Payments scales, we expect the gross margin in
Business Solutions to increase over time
- GAAP net loss for the full year 2020 was $(216.5) million, or $(3.98) per share, compared to a net loss of
$(86.4) million, or $(1.71) per share, for the full year 2019
- Non-GAAP net loss for the full year 2020 was $(24.2) million, or $(0.44) per share, compared to non-GAAP net
income of $59.1 million, or
$1.17 per share, for the full year
2019
- Net cash provided by operating activities for the full year
2020 was $148.0 million, while
capital expenditures totaled $18.9
million, leading to free cash flow of $129.2 million, compared to $127.5 million of free cash flow for the full
year 2019, a 1.3% y/y increase
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$131.7 million, an increase of 3.3%
y/y
Q4 2020 Financial Results
- Total revenue in the fourth quarter of 2020 was $282.5 million, compared to $204.6 million in the fourth quarter of 2019, an
increase of 38% y/y
-
- Creative Subscriptions revenue in the fourth quarter of 2020
was $213.7 million, compared to
$171.4 million in the fourth quarter
of 2019, an increase of 25% y/y
- Business Solutions revenue in the fourth quarter of 2020 was
$68.8 million, compared to
$33.2 million in the fourth quarter
of 2019, an increase of 107% y/y
- Creative Subscriptions ARR was $878.0
million in the fourth quarter of 2020, compared to
$707.2 million in the fourth quarter
of 2019, an increase of 24% y/y
- Business Solutions ARR was $138.3
million in the fourth quarter of 2020, compared to
$94.8 million in the fourth quarter
of 2019, an increase of 46% y/y
- Total collections in the fourth quarter of 2020 were
$306.4 million, compared to
$226.7 million in the fourth quarter
of 2019, an increase of 35% y/y
-
- Creative Subscriptions collections in the fourth quarter of
2020 were $236.4 million, compared to
$190.8 million in the fourth quarter
of 2019, an increase of 24% y/y
- Business Solutions collections in the fourth quarter of 2020
were $70.0 million, compared to
$35.9 million in the fourth quarter
of 2019, an increase of 95% y/y
- Total gross margin on a GAAP basis in the fourth quarter of
2020 was 63%, compared to 72% in the fourth quarter of 2019. The
y/y decline was related to incremental investments in Customer
Care, hosting and the faster revenue growth of the Business
Solutions segment
-
- Creative Subscriptions gross margin on a GAAP basis was 76%,
compared to 80% in the fourth quarter of 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
- Business Solutions gross margin on a GAAP basis was 23%
compared to 28% in the fourth quarter of 2019. The y/y decline was
related primarily to the growth of Wix Payments, the expansion of
Customer Care and higher hosting costs to serve the increased
number of users
- Total non-GAAP gross margin in the fourth quarter of 2020,
calculated as non-GAAP gross profit as a percent of revenue, was
65%, compared to 74% in the fourth quarter of 2019. The y/y decline
was related to incremental investments in Customer Care, hosting
and the faster revenue growth of the Business Solutions
segment
-
- Creative Subscriptions gross margin on a non-GAAP basis was
78%, compared to 81% in the fourth quarter of 2019. The y/y decline
was related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
- Business Solutions gross margin on a non-GAAP basis was 25%,
compared to 34% in the fourth quarter of 2019. The y/y decline was
related primarily to the growth of Wix Payments, the expansion of
Customer Care and higher hosting costs to meet the increased number
of users
- GAAP net loss in the fourth quarter of 2020 was $(62.8) million, or $(1.13) per share, compared to a net loss of
$(21.6) million, or $(0.42) per share, for the fourth quarter of
2019
- Non-GAAP net loss in the fourth quarter of 2020 was
$(1.6) million, or $(0.03) per share, compared to non-GAAP net
income of $19.9 million, or
$0.39 per share, for the fourth
quarter of 2019
- Net cash provided by operating activities in the fourth quarter
of 2020 was $28.6 million, while
capital expenditures totaled $5.4
million, leading to free cash flow of $23.1 million, compared to $37.5 million of free cash flow in the fourth
quarter of 2019, a 38% y/y decrease
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$24.0 million, a decrease of 36%
y/y
- Added 185,000 net premium subscriptions in the fourth quarter
of 2020, a 107% increase y/y, to reach 5.5 million as of
December 31, 2020, a 22% increase
over the total number of premium subscriptions at the end of the
fourth quarter of 2019
- Added 7.4 million registered users in the fourth quarter of
2020, a 27% increase y/y. Registered users as of December 31, 2020 were 196.7 million,
representing a 19% increase compared to the end of the fourth
quarter of 2019
Recent Business Highlights
- Launched Editor X out of beta and introduced a new suite of
collaboration tools that enable concurrent editing, making it the
only fully collaborative web creation platform in the world. There
are already over 200K users on Editor
X. In addition to concurrent editing, the platform's new
collaboration features include live commenting, advanced roles and
permissions, and shared design libraries. These additions will
enable design teams to increase their velocity and work more
efficiently. The platform also expanded its design capabilities and
now offers advanced code-free interactions. Editor X enables design
flexibility and allows designers and agencies to control every
aspect of the creation process. These newly introduced capabilities
enable smarter collaboration between stakeholders and a seamless
handoff to clients once a project is complete
- Implemented several significant product improvements to the Wix
Payments platform in 2020 to improve the user experience and expand
our overall product offering. Recent upgrades include a smoother
onboarding process, improved balance management and the addition of
account managers for high volume users. We believe these
improvements, along with many others we plan, will drive volume
growth and higher capture of revenue in Wix Payments in 2021
- Generated $5.4 billion in Gross
Payments Volume (GPV) in 2020, a 126% increase over $2.4 billion in 2019 as the number of online
commerce businesses and their sales volume grew throughout the
year. Wix Payments collections and revenue was $53.6 million in 2020, a 382% increase over
$11.1 million in 2019 as we improved
our take rate throughout the year. We expect GPV will be
$10 billion in 2021
- Rebranded the full-stack no-code / low-code development
platform formerly known as Corvid by Wix to Velo by Wix
- Introduced a web development course for our no-code / low-code
platform Velo in partnership with Codecademy
Financial Outlook
Our outlook is underscored by an increase in our collections
growth guidance for 2021, since our initial guidance provided in
December, as our confidence in the upcoming year has increased. Our
success in online commerce, expected growth in Partners activity on
Wix and the launch of new products bolster our outlook for the
year.
We plan to make incremental investments of approximately
$60 million in 2021 to capitalize on
the opportunities ahead. Our incremental investments will be
focused in the following areas:
- Continued expansion of Customer Care to address the current and
future demand and to expand our support dedicated to Wix Payments.
We plan to hire at least 600 more Experts in 2021
- Advancing the evolution of the Wix Payments platform by
improving the user experience, expanding to additional geographies
and offering new capabilities for our users
- Building our team and infrastructure necessary to scale and
globalize the Wix Point of Sale (POS) solution
- Growing our Account Management team to provide the high level
of service expected by Partners and high-volume online commerce
users
We are introducing full year 2021 guidance as follows:
|
FY 2021
Outlook
|
|
Y/Y growth
|
Revenue
|
$1,272 - 1,286
million
|
|
29 - 30%
|
Collections
|
$1,435 - 1,455
million
|
|
30 - 32%
|
Free Cash Flow
(excluding capex for future Wix HQ office build out)
|
$90 - 100
million
|
|
NM
|
Free Cash
Flow
|
$60 - 70
million
|
|
NM
|
We are also introducing first quarter 2021 guidance as
follows:
|
Q1 2021
Outlook
|
|
Y/Y growth
|
Revenue
|
$291 - 296
million
|
|
35 - 37%
|
Collections
|
$340 - 350
million
|
|
37 - 41%
|
Conference Call and Webcast Information
Wix will host a conference call at 8:30
a.m. ET on Wednesday, February 17, 2021 to answer
questions about the financial and operational performance of the
business for the fourth quarter and full year ended
December 31, 2020. 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 +1-877-667-0467 (US/ Canada),
+1-346- 354-0953 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the
start time of the call and reference Conference ID 3847028. A
telephonic replay of the call will be available through
February 24, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and
providing Conference ID 3847028.
Wix will also offer a live and archived webcast of the
conference call, accessible from the "Investor Relations" section
of the Company's website at https://investors.wix.com/.
About Wix.com Ltd.
Wix is leading the way with a cloud-based website
development platform for over 200 million registered users
worldwide today. The Wix website builder was founded on the belief
that the Internet should be accessible to everyone to develop,
create and contribute. Through free and premium subscriptions, Wix
empowers millions of businesses, organizations, artists, and
individuals to take their businesses, brands and workflow online.
The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix 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, Kiev,
Los Angeles, Miami, New
York, 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,
collections on a constant currency
basis, revenue on a constant
currency basis, 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, free cash
flow margins, 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 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, cash we collect for payments and
additional products and services, as well as payments due to us
under the terms of contractual agreements for obligations we have
fulfilled. Cash receipts for premium subscriptions are deferred and
recognized as revenues over the terms of the subscriptions. Cash
receipts for payments and 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). 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.
Free cash flow margins represent free cash flow divided by revenue.
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.
The presentation of this financial information
is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in
accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational
decision making and as a means to
evaluate period-to-period comparisons. The
Company believes that these measures
provide useful information about operating results,
enhance the overall understanding of past financial
performance and future prospects, and
allow for greater transparency with respect to
key metrics used by management in its financial and operational
decision making.
For more information on the non-GAAP financial
measures, please see the reconciliation tables
provided below. The accompanying tables have more details on the
GAAP financial measures that are most
directly comparable to non-GAAP
financial measures and the related
reconciliations between these financial measures. The Company is
unable to provide reconciliations of free cash flow, free cash
flow, as adjusted, cumulative cohort collections, non-GAAP gross
margin, and non-GAAP tax expense to their most directly comparable
GAAP financial measures on a forward-looking basis without
unreasonable effort because items that impact those GAAP financial
measures are out of the Company's control and/or cannot be
reasonably predicted. Such information may have a
significant, and potentially unpredictable, impact on our future
financial results.
Wix also uses Creative Subscriptions Annualized Recurring
Revenue (ARR), Business Solutions ARR and Gross Payment Volume
(GPV) as key operating metrics. 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. Business Solutions ARR is
calculated as Business Solutions MRR multiplied by 12. Business
Solutions MRR is calculated as the total of all active
subscriptions to Ascend, G-Suite, TPAs, FB Ads or Wix apps products
in effect on the last day of the period, multiplied by the monthly
revenue of such subscriptions. 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 grow our user base and
premium subscriptions, including through the growth of our Partners
activity; uncertainty surrounding the effects of COVID-19 on our
business, including uncertainty relating to the expected consumer
dynamics post COVID-19 and the anticipated GPV on our platform; our
ability to create new and higher monetization opportunities from
our premium subscriptions; our ability to enter into new markets,
and attract new customer segments, and our ability to successfully
enter into partnership agreements and grow our Partners activities
as anticipated; our ability to maintain and enhance our brand and
reputation; our prediction of the future collections generated by
our user cohorts, and our ability to increase and maintain the
value we create from user cohorts; our share repurchases made
pursuant to our share repurchase plan; our ability to manage the
growth of our infrastructure effectively; our ability to
effectively execute and see a return on our initiatives to scale
and improve our user support function, including through the recent
expansion of our Customer Care; the success of our sales efforts;
customer acceptance and satisfaction of new products and other
challenges inherent in new product development, including products
such as EditorX geared to new user demographics; changes to
technologies used in our solutions; or changes in global, national,
regional or local economic, business, competitive, market,
regulatory and other factors discussed under the heading "Risk
Factors" in the Company's 2019 annual report on Form 20-F filed
with the Securities and Exchange Commission on April 2, 2020. 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
914-267-7390
Media Relations:
pr@wix.com
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
$
171,355
|
|
$
213,745
|
|
$
644,491
|
|
$
783,456
|
Business
Solutions
|
33,233
|
|
68,789
|
|
116,597
|
|
205,304
|
|
204,588
|
|
282,534
|
|
761,088
|
|
988,760
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
33,420
|
|
50,278
|
|
120,905
|
|
167,539
|
Business
Solutions
|
23,815
|
|
53,029
|
|
76,002
|
|
148,160
|
|
57,235
|
|
103,307
|
|
196,907
|
|
315,699
|
|
|
|
|
|
|
|
|
Gross
Profit
|
147,353
|
|
179,227
|
|
564,181
|
|
673,061
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development,net
|
66,634
|
|
89,625
|
|
250,791
|
|
320,278
|
Selling and
marketing
|
74,809
|
|
109,629
|
|
307,718
|
|
438,210
|
General and
administrative
|
23,602
|
|
35,433
|
|
85,922
|
|
111,915
|
Total operating
expenses
|
165,045
|
|
234,687
|
|
644,431
|
|
870,403
|
Operating
loss
|
(17,692)
|
|
(55,460)
|
|
(80,250)
|
|
(197,342)
|
Financial
expenses, net
|
(2,553)
|
|
(10,158)
|
|
(3,621)
|
|
(19,650)
|
Other income
(expenses)
|
(94)
|
|
34
|
|
55
|
|
118
|
Loss before taxes on
income
|
(20,339)
|
|
(65,584)
|
|
(83,816)
|
|
(216,874)
|
Taxes on
income (benefit)
|
1,234
|
|
(2,795)
|
|
2,598
|
|
(354)
|
Net loss
|
$
(21,573)
|
|
$
(62,789)
|
|
$
(86,414)
|
|
$
(216,520)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.42)
|
|
$
(1.13)
|
|
$
(1.71)
|
|
$
(3.98)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
51,321,155
|
|
55,809,471
|
|
50,504,698
|
|
54,425,056
|
|
|
|
|
Wix.com
Ltd.
|
CONSOLIDATED BALANCE
SHEETS
|
(In
thousands)
|
|
|
|
|
|
Period
ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
268,103
|
|
$
168,858
|
Short term
deposits
|
294,096
|
|
577,138
|
Restricted cash and
deposit
|
1,149
|
|
925
|
Marketable
securities
|
164,301
|
|
289,927
|
Trade
receivables
|
16,987
|
|
23,670
|
Prepaid expenses and
other current assets
|
19,211
|
|
40,666
|
Total current
assets
|
763,847
|
|
1,101,184
|
|
|
|
|
Long Term
Assets:
|
|
|
|
Property and
equipment, net
|
31,706
|
|
35,863
|
Marketable
securities
|
177,298
|
|
536,877
|
Prepaid expenses and
other long-term assets
|
9,926
|
|
20,971
|
Intangible assets and
goodwill, net
|
37,641
|
|
43,516
|
Operating lease
assets
|
79,249
|
|
88,406
|
Total long-term
assets
|
335,820
|
|
725,633
|
|
|
|
|
Total
assets
|
$
1,099,667
|
|
$
1,826,817
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
37,687
|
|
$
79,881
|
Employees and payroll
accruals
|
41,938
|
|
70,814
|
Deferred
revenues
|
289,148
|
|
373,521
|
Accrued expenses and
other current liabilities
|
56,464
|
|
70,429
|
Operating lease
liabilities
|
18,949
|
|
22,336
|
Total current
liabilities
|
444,186
|
|
616,981
|
|
|
|
|
Long term deferred
revenues
|
21,969
|
|
50,867
|
Other long term
liabilities
|
2,804
|
|
-
|
Convertible senior
notes
|
358,715
|
|
834,440
|
Long term operating
lease liabilities
|
64,244
|
|
74,187
|
Total long term
liabilities
|
447,732
|
|
959,494
|
|
|
|
|
Total
liabilities
|
891,918
|
|
1,576,475
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Ordinary
shares
|
94
|
|
107
|
Additional paid-in
capital
|
611,083
|
|
862,134
|
Other comprehensive
loss
|
1,357
|
|
9,406
|
Accumulated
deficit
|
(404,785)
|
|
(621,305)
|
Total shareholders'
equity
|
207,749
|
|
250,342
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,099,667
|
|
$
1,826,817
|
Wix.com
Ltd.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(audited)
|
|
(unaudited)
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net
loss
|
$
(21,573)
|
|
$
(62,789)
|
|
$
(86,414)
|
|
$
(216,520)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
3,347
|
|
3,789
|
|
12,126
|
|
14,610
|
Amortization
|
2,385
|
|
619
|
|
4,588
|
|
2,577
|
Share based
compensation expenses
|
28,473
|
|
42,706
|
|
109,337
|
|
147,313
|
Amortization of debt
discount and debt issuance costs
|
5,353
|
|
11,411
|
|
20,938
|
|
29,954
|
Decrease (increase)
in accrued interest and exchange rate on short term and long term
deposits
|
17
|
|
(69)
|
|
748
|
|
(43)
|
Amortization of
premium and discount and accrued interest on marketable securities,
net
|
(247)
|
|
2,532
|
|
(346)
|
|
4,471
|
Deferred income
taxes, net
|
748
|
|
163
|
|
935
|
|
(3,254)
|
Changes in operating
lease right-of-use assets
|
18,225
|
|
4,514
|
|
18,225
|
|
17,867
|
Changes in operating
lease liabilities
|
(15,376)
|
|
(2,613)
|
|
(15,376)
|
|
(15,807)
|
Increase in trade
receivables
|
(956)
|
|
(511)
|
|
(3,459)
|
|
(6,457)
|
Decrease (increase)
in prepaid expenses and other current and long-term
assets
|
7,656
|
|
6,111
|
|
(5,168)
|
|
(22,677)
|
Increase (decrease)
in trade payables
|
(11,166)
|
|
10,324
|
|
(7,560)
|
|
41,967
|
Increase (decrease)
in employees and payroll accruals
|
(4,563)
|
|
(12,382)
|
|
7,781
|
|
25,326
|
Increase in short
term and long term deferred revenues
|
22,095
|
|
23,847
|
|
71,397
|
|
113,271
|
Increase in accrued
expenses and other current liabilities
|
6,819
|
|
898
|
|
21,812
|
|
15,451
|
Net cash provided by
operating activities
|
41,237
|
|
28,550
|
|
149,564
|
|
148,049
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
103,000
|
|
93,000
|
|
348,775
|
|
294,225
|
Investment in
short-term deposits and restricted deposits
|
(93,000)
|
|
(129,790)
|
|
(296,100)
|
|
(577,000)
|
Investment in
marketable securities
|
(138,191)
|
|
(64,940)
|
|
(402,774)
|
|
(763,581)
|
Proceeds from
marketable securities
|
71,603
|
|
77,320
|
|
132,905
|
|
277,335
|
Purchase of property
and equipment
|
(3,650)
|
|
(5,268)
|
|
(21,427)
|
|
(18,403)
|
Capitalization of
software development costs
|
(116)
|
|
(112)
|
|
(639)
|
|
(450)
|
Investment in other
short and long-term assets
|
(191)
|
|
-
|
|
(891)
|
|
(5,643)
|
Payment for
Businesses acquired
|
-
|
|
-
|
|
-
|
|
(6,626)
|
Proceeds from
investments in privately-held companies
|
-
|
|
1,098
|
|
-
|
|
1,098
|
Purchases of
investments in privately-held companies
|
(3,600)
|
|
(400)
|
|
(3,862)
|
|
(1,185)
|
Net cash used in
investing activities
|
(64,145)
|
|
(29,092)
|
|
(244,013)
|
|
(800,230)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
exercise of options and ESPP shares
|
7,853
|
|
10,944
|
|
31,495
|
|
39,649
|
Proceeds from
issuance of convertible senior notes
|
-
|
|
-
|
|
-
|
|
575,000
|
Payments of debt
issuance costs
|
-
|
|
-
|
|
-
|
|
(15,713)
|
Purchase of capped
call
|
-
|
|
-
|
|
-
|
|
(46,000)
|
Net cash provided by
financing activities
|
7,853
|
|
10,944
|
|
31,495
|
|
552,936
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(15,055)
|
|
10,402
|
|
(62,954)
|
|
(99,245)
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
283,158
|
|
158,456
|
|
331,057
|
|
268,103
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
268,103
|
|
$
168,858
|
|
$
268,103
|
|
$
168,858
|
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions
|
171,355
|
|
213,745
|
|
644,491
|
|
783,456
|
Business
Solutions
|
33,233
|
|
68,789
|
|
116,597
|
|
205,304
|
Total
Revenue
|
$
204,588
|
|
$
282,534
|
|
$
761,088
|
|
$
988,760
|
|
|
|
|
|
|
|
|
Creative
Subscriptions
|
190,805
|
|
236,420
|
|
711,763
|
|
891,240
|
Business
Solutions
|
35,878
|
|
69,961
|
|
120,722
|
|
210,791
|
Total
Collections
|
$
226,683
|
|
$
306,381
|
|
$
832,485
|
|
$
1,102,031
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
37,471
|
|
$
23,170
|
|
$
127,498
|
|
$
129,196
|
Creative
Subscriptions ARR
|
$
707,202
|
|
$
878,036
|
|
$
707,202
|
|
$
878,036
|
Number of registered
users at period end (*)
|
165,341
|
|
196,747
|
|
165,341
|
|
196,747
|
Number of premium
subscriptions at period end (*)
|
4,499
|
|
5,494
|
|
4,499
|
|
5,494
|
|
|
|
|
|
|
|
|
(*) Excludes users
and subscriptions of DeviantArt
|
|
|
|
|
|
|
|
Wix.com
Ltd.
|
RECONCILIATION OF
REVENUES TO COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Revenues
|
$
204,588
|
|
$
282,534
|
|
$
761,088
|
|
$
988,760
|
Change in deferred
revenues
|
22,095
|
|
23,847
|
|
71,397
|
|
113,271
|
Collections
|
$
226,683
|
|
$
306,381
|
|
$
832,485
|
|
$
1,102,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Creative
Subscriptions Revenue
|
$
171,355
|
|
$
213,745
|
|
$
644,491
|
|
$
783,456
|
Change in deferred
revenues
|
19,450
|
|
22,675
|
|
67,272
|
|
107,784
|
Creative
Subscriptions Collections
|
$
190,805
|
|
$
236,420
|
|
$
711,763
|
|
$
891,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Business Solutions
Revenue
|
$
33,233
|
|
$
68,789
|
|
$
116,597
|
|
$
205,304
|
Change in deferred
revenues
|
2,645
|
|
1,172
|
|
4,125
|
|
5,487
|
Business Solutions
Collections
|
$
35,878
|
|
$
69,961
|
|
$
120,722
|
|
$
210,791
|
Wix.com
Ltd.
|
TOTAL ADJUSTMENTS
GAAP TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
(unaudited)
|
Cost of
revenues
|
$
1,582
|
|
$
3,172
|
|
$
5,854
|
|
$
9,127
|
Research and
development
|
14,900
|
|
22,170
|
|
56,161
|
|
76,883
|
Selling and
marketing
|
4,614
|
|
6,774
|
|
18,458
|
|
22,845
|
General and
administrative
|
7,377
|
|
10,590
|
|
28,864
|
|
38,458
|
Total share based
compensation expenses
|
28,473
|
|
42,706
|
|
109,337
|
|
147,313
|
(2)
Amortization
|
2,385
|
|
619
|
|
4,588
|
|
2,577
|
(3) Acquisition
related expenses
|
1,868
|
|
1,686
|
|
2,485
|
|
5,811
|
(4) Amortization of
debt discount and debt issuance costs
|
5,353
|
|
11,411
|
|
20,938
|
|
29,954
|
(5) Sales tax accrual
and other G&A expenses (income)
|
2,135
|
|
2,810
|
|
5,309
|
|
4,299
|
(6) Non-operating
foreign exchange expenses (income)
|
1,257
|
|
1,925
|
|
2,905
|
|
2,352
|
Total adjustments of
GAAP to Non GAAP
|
$
41,471
|
|
$
61,157
|
|
$
145,562
|
|
$
192,306
|
Wix.com
Ltd.
|
RECONCILIATION OF
GAAP TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross
Profit
|
$
147,353
|
|
$
179,227
|
|
$
564,181
|
|
$
673,061
|
Share based
compensation expenses
|
1,582
|
|
3,172
|
|
5,854
|
|
9,127
|
Acquisition related
expenses
|
-
|
|
260
|
|
-
|
|
765
|
Amortization
|
1,526
|
|
90
|
|
1,951
|
|
316
|
Non GAAP Gross
Profit
|
150,461
|
|
182,749
|
|
571,986
|
|
683,269
|
|
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
74%
|
|
65%
|
|
75%
|
|
69%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Creative Subscriptions
|
$
137,935
|
|
$
163,467
|
|
$
523,586
|
|
$
615,917
|
Share based
compensation expenses
|
1,334
|
|
2,386
|
|
4,994
|
|
7,140
|
Non GAAP Gross Profit
- Creative Subscriptions
|
139,269
|
|
165,853
|
|
528,580
|
|
623,057
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Creative Subscriptions
|
81%
|
|
78%
|
|
82%
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Gross Profit -
Business Solutions
|
$
9,418
|
|
$
15,760
|
|
$
40,595
|
|
$
57,144
|
Share based
compensation expenses
|
248
|
|
786
|
|
860
|
|
1,987
|
Acquisition related
expenses
|
-
|
|
260
|
|
-
|
|
765
|
Amortization
|
1,526
|
|
90
|
|
1,951
|
|
316
|
Non GAAP Gross Profit
- Business Solutions
|
11,192
|
|
16,896
|
|
43,406
|
|
60,212
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
- Business Solutions
|
34%
|
|
25%
|
|
37%
|
|
29%
|
Wix.com
Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Operating
loss
|
$
(17,692)
|
|
$
(55,460)
|
|
$
(80,250)
|
|
$
(197,342)
|
Adjustments:
|
|
|
|
|
|
|
|
Share based
compensation expenses
|
28,473
|
|
42,706
|
|
109,337
|
|
147,313
|
Amortization
|
2,385
|
|
619
|
|
4,588
|
|
2,577
|
Sales tax accrual and
other G&A expenses (income)
|
2,135
|
|
2,810
|
|
5,309
|
|
4,299
|
Acquisition related
expenses
|
1,868
|
|
1,686
|
|
2,485
|
|
5,811
|
Total
adjustments
|
$
34,861
|
|
$
47,821
|
|
$
121,719
|
|
$
160,000
|
|
|
|
|
|
|
|
|
Non GAAP operating
income (loss)
|
$
17,169
|
|
$
(7,639)
|
|
$
41,469
|
|
$
(37,342)
|
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
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net loss
|
$
(21,573)
|
|
$
(62,789)
|
|
$
(86,414)
|
|
$
(216,520)
|
Share based
compensation expense and other Non GAAP adjustments
|
41,471
|
|
61,157
|
|
145,562
|
|
192,306
|
Non-GAAP net income
(loss)
|
$
19,898
|
|
$
(1,632)
|
|
$
59,148
|
|
$
(24,214)
|
|
|
|
|
|
|
|
|
Basic Non GAAP
net income (loss) per share
|
$
0.39
|
|
$
(0.03)
|
|
$
1.17
|
|
$
(0.44)
|
Weighted average
shares used in computing basic Non GAAP net income (loss) per
share
|
51,321,155
|
|
55,809,471
|
|
50,504,698
|
|
54,425,056
|
Wix.com
Ltd.
|
RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net cash provided by
operating activities
|
$
41,237
|
|
$
28,550
|
|
$
149,564
|
|
$
148,049
|
Capital expenditures,
net
|
(3,766)
|
|
(5,380)
|
|
(22,066)
|
|
(18,853)
|
Free Cash
Flow
|
$
37,471
|
|
$
23,170
|
|
$
127,498
|
|
$
129,196
|
|
|
|
|
|
|
|
|
Capex related to
future Wix HQ office build-out
|
-
|
|
792
|
|
-
|
|
2,462
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
37,471
|
|
$
23,962
|
|
$
127,498
|
|
$
131,658
|
Wix.com
Ltd.
|
RECONCILIATION OF
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
51,321,155
|
|
55,809,471
|
|
50,504,698
|
|
54,425,056
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding because they are anti-dilutive:
|
|
|
|
|
|
|
|
Stock
options
|
7,447,519
|
|
4,621,780
|
|
7,447,519
|
|
4,621,780
|
Restricted share
units
|
2,125,440
|
|
2,078,427
|
|
2,125,440
|
|
2,078,427
|
Convertible
Notes (if-converted)
|
3,104,251
|
|
4,428,999
|
|
3,104,251
|
|
4,428,999
|
|
63,998,365
|
|
66,938,677
|
|
63,181,908
|
|
65,554,262
|
Wix.com
Ltd.
|
RECONCILIATION OF
PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
March 31,
2021
|
|
December 31,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Projected
revenues
|
291,000
|
|
296,000
|
|
1,272,000
|
|
1,286,000
|
Projected change in
deferred revenues
|
49,000
|
|
54,000
|
|
163,000
|
|
169,000
|
Projected
Collections
|
$
340,000
|
|
$
350,000
|
|
$
1,435,000
|
|
$
1,455,000
|
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SOURCE Wix.com Ltd.