Wix Reports Fourth Quarter and Full Year 2019 Results

NEW YORK, Feb. 20, 2020 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the fourth quarter and full year ended December 31, 2019. In addition, the Company provided its initial outlook for the first quarter and full year 2020.

"The fourth quarter was the culmination of a phenomenal year at Wix. We continue to evolve from a website builder to a comprehensive web creation and business solutions platform," said Avishai Abrahami, Co-founder and CEO of Wix. "The unveiling of Editor X was a major milestone for Wix and has laid the groundwork for expanding our reach in the professional market in 2020. We believe that we have never been better positioned for the future."

Lior Shemesh, CFO of Wix, said, "Our results in the fourth quarter closed out a record year of revenue, collections and free cash flow generation for Wix. The guidance we are providing reflects that momentum continuing into 2020 and our confidence in our ability to continue to deliver strong growth for years to come."

New Financial Disclosures
For increased transparency, beginning this quarter we will present revenue, collections and cost of revenue in two segments: Creative Subscriptions and Business Solutions.

In addition, for the first time we are providing Annualized Recurring Revenue (ARR)(1) as the primary KPI for the growth of our Creative Subscriptions segment. We believe this new financial reporting provides improved clarity regarding our top line growth and gross margins and is a better metric for modeling our business.

ARR for Creative Subscriptions Revenue as of December 31, 2019 was $707.2 million, up 21% Y/Y



            ___________________


                        (1)Annualized Recurring Revenue (ARR) is calculated as
                         Monthly Recurring Revenue (MRR) multiplied by 12. MRR
                         is calculated as all active Creative Subscriptions in
                         effect on the last day of the period, multiplied by
                         the monthly revenue of such Creative  Subscriptions,
                         as well as monthly revenue from agreements with
                         partners

FY 2019 Financial Summary


                                                                        Twelve months ended

                                                               
              December 31,



                             
              
           $ in thousands      2018           2019     
            Y/Y      
             Prior FY 2019
                                                                                              growth               Outlook




     Creative Subscriptions Revenue                            $525,350       $644,491                 23%



     Business Solutions Revenue                                 $78,354       $116,597                 49%



     
                Total Revenue                                $603,704       $761,088                 26% 
       
                $761 - $763 million





     Creative Subscriptions Collections                        $580,119       $711,763                 23%



     Business Solutions Collections                             $78,266       $120,722                 54%



     
                Total Collections                            $658,385       $832,485                 26% 
       
                $828 - $831 million





     Net Cash Provided by Operating Activities                 $115,709       $149,564                 29%



     Free Cash Flow                                            $101,633       $127,498                 25%       
              $124 - $126 million

Q4 2019 Financial Summary


                                                                        Three months ended

                                                               
              December 31,



                             
              
           $ in thousands      2018           2019    
            Y/Y      
            Prior Q4 2019
                                                                                             growth              Outlook




     Creative Subscriptions Revenue                            $143,621       $171,355                19%



     Business Solutions Revenue                                 $20,576        $33,233                62%



     
                Total Revenue                                $164,197       $204,588                25% 
       
               $204 - $206 million





     Creative Subscriptions Collections                        $155,668       $190,805                23%



     Business Solutions Collections                             $20,390        $35,878                76%



     
                Total Collections                            $176,058       $226,683                29% 
       
               $222 - $225 million





     Net Cash Provided by Operating Activities                  $36,055        $41,237                14%



     Free Cash Flow                                             $32,664        $37,471                15%

Additional FY 2019 Results and Highlights

    --  Currency was a headwind to top line growth throughout the year. Had FX
        rates remained constant year over year, revenue would have been ~$8
        million higher, or $768.9 million, up 27% y/y and collections would have
        been ~$12 million higher, or $844.5 million, up 28% y/y
    --  Total gross margin on a GAAP basis for the full year 2019 was 74%,
        compared to 79% in 2018
        --  Creative Subscriptions gross margin on a GAAP basis for the full
            year 2019 was 81%, compared to 84% in 2018
        --  Business Solutions gross margin on a GAAP basis for the full year
            2019 was 35%, compared to 46% in 2018
    --  Total gross margin on a non-GAAP basis for the full year 2019 was 75%,
        compared to 80% in 2018
        --  Creative Subscriptions gross margin on a non-GAAP basis for the full
            year 2019 was 82%, compared to 85% in 2018
        --  Business Solutions gross margin on a non-GAAP basis for the full
            year 2019 was 37%, compared to 48% in 2018
    --  GAAP net loss for the full year 2019 was $(86.4) million, or $(1.71) per
        share, compared to a net loss of $(37.1) million, or $(0.77), per share
        in 2018
    --  Non-GAAP net income for the full year 2019 was $59.1 million, or $1.17
        per share, compared to a non GAAP net income of $51.3 million, or $1.07
        per share in 2018
    --  Net cash provided by operating activities for the full year 2019 was
        $149.6 million, while capital expenditures totaled $22.1 million,
        leading to free cash flow of $127.5 million, compared to $101.6 million
        of free cash flow in 2018, a 25% year-over-year increase

Additional Q4 2019 Results and Highlights

    --  Total gross margin on a GAAP basis in the fourth quarter of 2019 was
        72%, compared to 79% in the fourth quarter of 2018
        --  Creative Subscriptions gross margin on a GAAP basis was 80%,
            compared to 84% in the fourth quarter of 2018
        --  Business Solutions gross margin on a GAAP basis was 28%, compared to
            46% in the fourth quarter of 2018
    --  Total non-GAAP gross margin in the fourth quarter of 2019, calculated as
        non-GAAP gross profit as a percent of revenue, was 74%, compared to 80%
        in the fourth quarter of 2018
        --  Creative Subscriptions gross margin on a non-GAAP basis was 81%,
            compared to 84% in the fourth quarter of 2018
        --  Business Solutions gross margin on a non-GAAP basis was 34%,
            compared to 47% in the fourth quarter of 2018
    --  GAAP net loss in the fourth quarter of 2019 was $(21.6) million, or
        $(0.42) per share, compared to a net loss of $(5.8) million, or $(0.12)
        per share, for the fourth quarter of 2018
    --  Non-GAAP net income in the fourth quarter of 2019 was $19.9 million, or
        $0.39 per share, compared to non-GAAP net income of $20.8 million, or
        $0.42 per share for the fourth quarter of 2018
    --  Net cash provided by operating activities in the fourth quarter of 2019
        was $41.2 million, while capital expenditures totaled $3.8 million,
        leading to free cash flow of $37.5 million, compared to $32.7 million of
        free cash flow in the fourth quarter of 2018, a 15% year-over-year
        increase
    --  Added 89,000 net premium subscriptions in the fourth quarter of 2019 to
        reach 4.5 million as of December 31, 2019, a 13% increase over the total
        number of premium subscriptions at the end of the fourth quarter of 2018
    --  Added 5.8 million registered users in the fourth quarter of 2019.
        Registered users as of December 31, 2019 were 165 million, representing
        a 16% increase compared to the end of the fourth quarter of 2018

Recent Business Highlights

    --  Unveiled website creation platform, Editor X: In February, Wix
        introduced Editor X, a new website creation platform that offers
        advanced design and layouting capabilities specifically targeted to
        designers and web agencies. The wide, flexible new canvas allows the use
        of modern CSS technologies, including Flexbox and Grid, all with precise
        drag and drop, so designers and web creators can control the exact
        position and styling of elements at every viewport.
    --  Opened a new expanded office space in New York City: The new location
        will house sales team members and agency relations for the Wix Partner
        Program, product and marketing teams, as well as HR and operations
        staff. Additionally, the Wix Playground Academy will hold its annual
        design academy at this address as well as hosting classes, workshops,
        lectures and partner events.

Financial Outlook



              Wix is introducing its outlook for the full year 2020:




                                                            
              FY 2020 Outlook              
     Y/Y growth

                                                                                                                 ---


              Revenue                                               
              $946 - $956 million        24% - 26%



              Collections                                       
              $1,020 - $1,035 million        23% - 24%


               Free Cash Flow                                        
              $155 - $162 million        22% - 27%


               Free Cash Flow
                (excluding $8-9M in                                  
              $163 - $171 million        28% - 34%
    capex for future Wix HQ office build out)





              Wix is also introducing its outlook for the first quarter 2020:




                                                            
              Q1 2020 Outlook              
     Y/Y growth

                                                                                                                 ---


              Revenue                                               
              $215 - $217 million        23% - 25%



              Collections                                           
              $247 - $249 million        23% - 24%

Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Thursday, February 20, 2020 to answer questions about the financial and operational performance of the business for the fourth quarter ended December 31, 2019. 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 3793195. A telephonic replay of the call will be available through February 27, 2020 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 3793195.

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.

Learn more: Wix.com, in our Press Room and on our Investor Relations site

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

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, cumulative cohort collections, collections on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income , non-GAAP net income , non-GAAP net income per share and free cash flow (collectively the "Non-GAAP financial measures"). Collections represent 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 expenses and amortization, divided by revenue. Non-GAAP operating income 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. Non-GAAP net income represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual, amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income per share represents non-GAAP net income 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 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 has not reconciled its free cash flow guidance to net cash provided by operating activities because net cash provided by operating activities is not accessible on a forward-looking basis. Items that impact net cash provided by operating activities are out of the Company's control and/or cannot be reasonably predicted. Accordingly, a reconciliation to net cash provided by operating activities is not available without unreasonable effort. The Company has also not reconciled future collections over the next eight years from existing user cohorts. Items that impact future revenue and deferred revenue over an eight year period cannot be reasonably predicted. Accordingly, a reconciliation to revenue is not available without unreasonable effort.

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 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 including through the launch of our Wix Partner Program; 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; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our 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 our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; 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 2018 annual report on Form 20-F filed with the Securities and Exchange Commission on April 9, 2019. 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
investors.wix.com
ir@wix.com

914-267-7390

Media Relations:
Rona Davis
Wix Press Room
ronadt@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,

                                                                                                                                                                                             ---

                                                                                                                                                2018                  2019                        2018         2019

                                                                                                                                                                                                             ---

                                                                                                                                   
         (unaudited)          
     (audited)     
              (unaudited)



     
                Revenue



     Creative Subscriptions                                                                                                                $143,621              $171,355                    $525,350     $644,491



     Business Solutions                                                                                                                      20,576                33,233                      78,354      116,597

                                                                                                                                                                                                             ---

                                                                                                                                             164,197               204,588                     603,704      761,088





     
                Cost of Revenue



     Creative Subscriptions                                                                                                                  23,302                33,420                      84,752      120,905



     Business Solutions                                                                                                                      11,187                23,815                      42,195       76,002

                                                                                                                                                                                                             ---

                                                                                                                                              34,489                57,235                     126,947      196,907





     Gross Profit                                                                                                                           129,708               147,353                     476,757      564,181





     Operating expenses:



     Research and development                                                                                                                54,558                66,634                     198,912      250,791



     Selling and marketing                                                                                                                   61,065                74,809                     249,178      307,718



     General and administrative                                                                                                              16,258                23,602                      59,297       85,922

                                                                                                                                                                                                             ---


     Total operating expenses                                                                                                               131,881               165,045                     507,387      644,431

                                                                                                                                                                                                             ---


     Operating loss                                                                                                                         (2,173)             (17,692)                   (30,630)    (80,250)



     Financial expenses, net                                                                                                                (1,688)              (2,553)                    (2,794)     (3,621)



     Other income (expenses)                                                                                                                  (590)                 (94)                      (489)          55

                                                                                                                                                                                                             ---


     Loss before taxes on income                                                                                                            (4,451)             (20,339)                   (33,913)    (83,816)



     Taxes on income                                                                                                                          1,302                 1,234                       3,207        2,598



     Net loss                                                                                                                              $(5,753)            $(21,573)                  $(37,120)   $(86,414)






     Basic and diluted net loss per share                                                                                                   $(0.12)              $(0.42)                    $(0.77)     $(1.71)




     Basic and diluted weighted-average shares used to compute net loss per share                                                        49,053,599            51,321,155                  48,017,188   50,504,698

                                                                                                                                                                                                             ===




                                                           
              Wix.com Ltd.


                                                        
     CONDENSED CONSOLIDATED BALANCE SHEET


                                                          
              (In thousands)




                                                                                        
          Period ended


                                                                                        
          December 31,         
      December 31,

                                                                                                                                        ---

                                                                                                               2018                     2019




     
                Assets                                                                
          (audited)            
      (unaudited)



     Current Assets:



     Cash and cash equivalents                                                                            $331,057                 $268,103



     Short term deposits                                                                                   349,619                  294,096



     Restricted cash and deposit                                                                             1,149                    1,149



     Marketable securities                                                                                  22,992                  164,301



     Trade receivables                                                                                      13,528                   16,987



     Prepaid expenses and other current assets                                                              11,939                   20,859



      Total current assets                                                                                 730,284                  765,495






     Long Term Assets:



     Property and equipment, net                                                                            21,947                   31,706



     Marketable securities                                                                                  47,225                  177,298



     Prepaid expenses and other long-term assets                                                             3,065                    8,278



     Intangible assets and goodwill, net                                                                    42,229                   37,641



     Operating lease assets                                                                                      -                  79,249



      Total long-term assets                                                                               114,466                  334,172






      Total assets                                                                                        $844,750               $1,099,667

                                                                                                                                        ===




     
                Liabilities and Shareholder's Equity



     Current Liabilities:



     Trade payables                                                                                        $45,567                  $37,687



     Employees and payroll accruals                                                                         32,036                   41,938



     Deferred revenues                                                                                     227,226                  289,148



     Accrued expenses and other current liabilities                                                         35,564                   56,464



     Operating lease liabilities                                                                                 -                  18,949



     Total current liabilities                                                                             340,393                  444,186






     Long term deferred revenues                                                                            12,494                   21,969



     Long term deferred tax liability                                                                          602                    1,585



     Convertible senior notes                                                                              337,777                  358,715



     Long term loan                                                                                          1,219                    1,219



     Other long term liabilities                                                                                 -



     Long term operating lease liabilities                                                                       -                  64,244



     Total long term liabilities                                                                           352,092                  447,732






      Total liabilities                                                                                    692,485                  891,918






     Shareholders'  Equity



     Ordinary shares                                                                                            88                       94



     Additional paid-in capital                                                                            472,239                  611,083



     Other comprehensive loss                                                                              (1,691)                   1,357



     Accumulated deficit                                                                                 (318,371)               (404,785)



     Total shareholders' equity                                                                            152,265                  207,749






     Total liabilities and shareholders' equity                                                           $844,750               $1,099,667

                                                                                                                                        ===


                                                                                                             
              Wix.com Ltd.


                                                                                                     
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                            
              (In thousands)






                                                                                                                                                       
           Three Months Ended             
         Year Ended


                                                                                                                                                       
           December 31,                 
       December 31,

                                                                                                                                                                                                        ---

                                                                                                                                                               2018                     2019                 2018                     2019

                                                                                                                                                                                                                                    ---

                                                                                                                                                        
           (unaudited)                 
       (audited)         
     (unaudited)



     OPERATING ACTIVITIES:



     Net loss                                                                                                                                             $(5,753)               $(21,573)           $(37,120)               $(86,414)



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



     Depreciation                                                                                                                                            2,418                    3,347                8,724                   12,126



     Amortization                                                                                                                                              732                    2,385                2,784                    4,588



     Share based compensation expenses                                                                                                                      20,127                   28,473               72,330                  109,337



     Amortization of debt discount and debt issuance costs                                                                                                   5,039                    5,353               10,004                   20,938



     Decrease (increase) in accrued interest and exchange rate on short term and long term deposits                                                            807                       17                (583)                     748



     Amortization of premium and discount and accrued interest on marketable securities, net                                                                 (185)                   (247)                (99)                   (346)



     Deferred income taxes, net                                                                                                                              (213)                     748                (959)                     935



     Changes in operating lease right-of-use assets                                                                                                                                 18,225                                       18,225



     Changes in operating lease liabilities                                                                                                                                       (15,376)                                    (15,376)



     Decrease (increase) in trade receivables                                                                                                                  877                    (956)             (2,128)                 (3,459)



     Decrease (increase) in prepaid expenses and other current and long-term assets                                                                          6,372                    7,656              (3,665)                 (5,168)



     Increase (decrease) in trade payables                                                                                                                   5,367                 (11,166)              10,933                  (7,560)



     Increase (decrease) in employees and payroll accruals                                                                                                 (3,220)                 (4,563)               2,843                    7,781



     Increase in short term and long term deferred revenues                                                                                                 11,861                   22,095               54,681                   71,397



     Increase (decrease) in accrued expenses and other current liabilities                                                                                 (8,174)                   6,819              (2,036)                  21,812



     Net cash provided by operating activities                                                                                                              36,055                   41,237              115,709                  149,564

                                                                                                                                                                                                                                    ---


     INVESTING ACTIVITIES:



     Proceeds from short-term deposits and restricted deposits                                                                                              88,999                  103,000              204,125                  348,775



     Investment in short-term deposits and restricted deposits                                                                                           (113,200)                (93,000)           (437,979)               (296,100)



     Investment in marketable securities                                                                                                                   (6,306)               (138,191)            (58,963)               (402,774)



     Proceeds from marketable securities                                                                                                                     5,261                   71,603               21,054                  132,905



     Purchase of property and equipment                                                                                                                    (3,312)                 (3,650)            (13,684)                (21,427)



     Capitalization of software development costs                                                                                                             (79)                   (116)               (392)                   (639)



     Investment in other long-term assets                                                                                                                                            (191)               (500)                   (891)



     Purchases of investments in privately-held companies                                                                                                  (1,250)                 (3,600)             (1,250)                 (3,862)



     Net cash used in investing activities                                                                                                                (29,887)                (64,145)           (287,589)               (244,013)

                                                                                                                                                                                                                                    ---


     FINANCING ACTIVITIES:



     Proceeds from exercise of options and ESPP shares                                                                                                       4,923                    7,853               32,896                   31,495



     Proceeds from issuance of convertible senior notes                                                                                                                                                442,750                        -



     Payments of debt issuance costs                                                                                                                                                                  (12,601)                       -



     Purchase of capped call                                                                                                                                                                          (45,338)                       -



     Net cash provided by financing activities                                                                                                               4,923                    7,853              417,707                   31,495

                                                                                                                                                                                                                                    ---


     INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                       11,091                 (15,055)             245,827                 (62,954)



     CASH AND CASH EQUIVALENTS-Beginning of period                                                                                                         319,966                  283,158               85,230                  331,057



     CASH AND CASH EQUIVALENTS-End of period                                                                                                              $331,057                 $268,103             $331,057                 $268,103


                                                                                                                           
              Wix.com Ltd.


                                                                                                                      
              KEY PERFORMANCE METRICS


                                                                                                                          
              (In thousands)




                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Creative Subscriptions                                                                                                                                                                     143,621                    171,355                    525,350             644,491



     Business Solutions                                                                                                                                                                          20,576                     33,233                     78,354             116,597

                                                                                                                                                                                                                                                                            ---


     
                Total Revenue                                                                                                                                                                $164,197                   $204,588                   $603,704            $761,088





     Creative Subscriptions                                                                                                                                                                     155,668                    190,805                    580,119             711,763



     Business Solutions                                                                                                                                                                          20,390                     35,878                     78,266             120,722

                                                                                                                                                                                                                                                                            ---


     
                Total Collections                                                                                                                                                            $176,058                   $226,683                   $658,385            $832,485





     Free Cash Flow                                                                                                                                                                             $32,664                    $37,471                   $101,633            $127,498



     Number of registered users at period end (*)                                                                                                                                               142,439                    165,341                    142,439             165,341



     Number of premium subscriptions at period end (*)                                                                                                                                            3,983                      4,499                      3,983               4,499





     (*) 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,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Revenues                                                                                                                                                                                  $164,197                   $204,588                   $603,704            $761,088



     Change in deferred revenues                                                                                                                                                                 11,861                     22,095                     54,681              71,397



     Collections                                                                                                                                                                               $176,058                   $226,683                   $658,385            $832,485







                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Creative Subscriptions Revenue                                                                                                                                                            $143,621                   $171,355                   $525,350            $644,491



     Change in deferred revenues                                                                                                                                                                 12,047                     19,450                     54,769              67,272



     Creative Subscriptions Collections                                                                                                                                                        $155,668                   $190,805                   $580,119            $711,763







                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Business Solutions Revenue                                                                                                                                                                 $20,576                    $33,233                    $78,354            $116,597



     Change in deferred revenues                                                                                                                                                                  (186)                     2,645                       (88)              4,125



     Business Solutions Collections                                                                                                                                                             $20,390                    $35,878                    $78,266            $120,722















                                                                                                                       
              Wix.com Ltd.


                                                                                                            
              TOTAL ADJUSTMENTS GAAP TO NON-GAAP


                                                                                                                      
              (In thousands)






                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---


     (1) Share based compensation expenses:                                                                                                                                               
              (unaudited)                    
         (unaudited)



     Cost of revenues                                                                                                                                                                            $1,150                     $1,582                     $4,418              $5,854



     Research and development                                                                                                                                                                    11,090                     14,900                     39,417              56,161



     Selling and marketing                                                                                                                                                                        2,779                      4,614                      9,770              18,458



     General and administrative                                                                                                                                                                   5,108                      7,377                     18,725              28,864



     Total share based compensation expenses                                                                                                                                                     20,127                     28,473                     72,330             109,337

                                                                                                                                                                                                                                                                            ---


     (2) Amortization                                                                                                                                                                               732                      2,385                      2,784               4,588



     (3) Acquisition related expenses                                                                                                                                                               125                      1,868                      2,760               2,485



     (4) Amortization of debt discount and debt issuance costs                                                                                                                                    5,039                      5,353                     10,004              20,938



     (5) Sales tax accrual                                                                                                                                                                                                  2,135                                         5,309



     (6) Non-operating foreign exchange expenses (income)                                                                                                                                                                   1,257                                         2,905



     (6)  Loss on investment in other long term assets                                                                                                                                              500                                                  500                   -



     Total adjustments of GAAP to Non GAAP                                                                                                                                                      $26,523                    $41,471                    $88,378            $145,562









                                                                                                                       
              Wix.com Ltd.


                                                                                                      
              RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT


                                                                                                                      
              (In thousands)






                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Gross Profit                                                                                                                                                                              $129,708                   $147,353                   $476,757            $564,181



     Share based compensation expenses                                                                                                                                                            1,150                      1,582                      4,418               5,854



     Amortization                                                                                                                                                                                   142                      1,526                        568               1,951



     Non GAAP Gross Profit                                                                                                                                                                      131,000                    150,461                    481,743             571,986

                                                                                                                                                                                                                                                                            ---




     Non GAAP Gross margin                                                                                                                                                                          80%                       74%                       80%                75%






                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Gross Profit - Creative Subscriptions                                                                                                                                                     $120,319                   $137,935                   $440,598            $523,586



     Share based compensation expenses                                                                                                                                                            1,018                      1,334                      3,904               4,994



     Amortization                                                                                                                                                                                                                                                            -



     Non GAAP Gross Profit - Creative Subscriptions                                                                                                                                             121,337                    139,269                    444,502             528,580

                                                                                                                                                                                                                                                                            ---




     Non GAAP Gross margin - Creative Subscriptions                                                                                                                                                 84%                       81%                       85%                82%






                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Gross Profit - Business Solutions                                                                                                                                                           $9,389                     $9,418                    $36,159             $40,595



     Share based compensation expenses                                                                                                                                                              132                        248                        514                 860



     Amortization                                                                                                                                                                                   142                      1,526                        568               1,951



     Non GAAP Gross Profit - Business Solutions                                                                                                                                                   9,663                     11,192                     37,241              43,406

                                                                                                                                                                                                                                                                            ---




     Non GAAP Gross margin - Creative Subscriptions                                                                                                                                                 47%                       34%                       48%                37%






                                                                                                                       
              Wix.com Ltd.


                                                                                               
              RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME


                                                                                                                      
              (In thousands)




                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Operating loss                                                                                                                                                                            $(2,173)                 $(17,692)                 $(30,630)          $(80,250)



     Adjustments:



     Share based compensation expenses                                                                                                                                                           20,127                     28,473                     72,330             109,337



     Amortization                                                                                                                                                                                   732                      2,385                      2,784               4,588



     Sales tax accrual                                                                                                                                                                                                      2,135                                         5,309



     Acquisition related expenses                                                                                                                                                                   125                      1,868                      2,760               2,485



     Total adjustments                                                                                                                                                                          $20,984                    $34,861                    $77,874            $121,719






     Non GAAP operating income                                                                                                                                                                  $18,811                    $17,169                    $47,244             $41,469







                                                                                                                       
              Wix.com Ltd.


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


                                                                                                          
              (In thousands, except  per share data)




                                                                                                                                                                                         
              Three Months Ended                 
         Year Ended


                                                                                                                                                                                           
              December 31,                  
         December 31,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Net loss                                                                                                                                                                                  $(5,753)                 $(21,573)                 $(37,120)          $(86,414)



     Share based compensation expense and other Non GAAP adjustments                                                                                                                             26,523                     41,471                     88,378             145,562



     Non-GAAP net income                                                                                                                                                                        $20,770                    $19,898                    $51,258             $59,148






     Basic  Non GAAP net income per share                                                                                                                                                         $0.42                      $0.39                      $1.07               $1.17




     Weighted average shares used in computing basic Non GAAP net income\ per share                                                                                                          49,053,599                 51,321,155                 48,017,188          50,504,698

                                                                                                                                                                                                                                                                            ===







                                                                                                                       
              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,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)



     Net cash provided by operating activities                                                                                                                                                  $36,055                    $41,237                   $115,709            $149,564



     Capital expenditures, net                                                                                                                                                                  (3,391)                   (3,766)                  (14,076)           (22,066)



     Free Cash Flow                                                                                                                                                                             $32,664                    $37,471                   $101,633            $127,498















                                                                                                                       
              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,

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                                    2018                       2019                       2018                2019

                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                           
              (unaudited)                    
         (unaudited)





     Basic and diluted weighted average number of shares outstanding                                                                                                                         49,053,599                 51,321,155                 48,017,188          50,504,698

                                                                                                                                                                                                                                                                            ===


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



     Stock options                                                                                                                                                                            7,676,713                  7,447,519                  7,676,713           7,447,519



     Restricted share units                                                                                                                                                                   2,090,512                  2,125,440                  2,090,512           2,125,440


                                                                                                                                                                                              58,820,824                 60,894,114                 57,784,413          60,077,657

                                                                                                                                                                                                                                                                            ===







                                                                                                                       
              Wix.com Ltd.


                                                                                               
              RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS


                                                                                                                      
              (In thousands)




                                                                                                                                                                                         
              Three Months Ended                 
         Year Ending


                                                                                                                                                                                         
              March 31, 2020                 
         December 31, 2020

                                                                                                                                                                                                                                                     ---

                                                                                                                                                                                         
              Low                
         High             
              Low   
     High






     Projected revenues                                                                                                                                                                         215,000                    217,000                    946,000             956,000



     Projected change in deferred revenues                                                                                                                                                       32,000                     32,000                     74,000              79,000



     Projected Collections                                                                                                                                                                     $247,000                   $249,000                 $1,020,000          $1,035,000

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SOURCE Wix.com Ltd.