Wix Reports Outstanding Second Quarter 2020 Results

NEW YORK, Aug. 6, 2020 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the second quarter ended June 30, 2020, exceeding the high end of its guidance ranges for both revenue and collections. In addition, the Company provided its initial outlook for the third quarter of 2020.

"The trends that began in late March continued throughout the second quarter, driving record-setting results," said Avishai Abrahami, Co-founder and CEO of Wix. "The need for business owners to move online quickly, communicate with customers, and deliver goods and services has never been more imminent, and the Wix platform continues to provide millions of users with the ability to thrive during these unprecedented times. Our focus remains on the success of our users, and we continue to deliver innovative products and technology, marked this quarter by the public launch of Editor X and our expanded eCommerce offering."

Nir Zohar, President and COO of Wix added, "Throughout the second quarter, we continued to experience positive trends as a result of continued economic disruption globally. Our results in July tell us that these trends are continuing, potentially indicating a new baseline of growth for our business. We will continue to support our users in their needs so they can be successful throughout the ongoing disruptions to their lives and businesses."

Lior Shemesh, CFO of Wix said, "Our business has seen an immense uplift in demand in recent months, driven by the rapidly increasing importance of having an online presence. We added a record 9.3 million users and 346,000 net premium subscriptions in the second quarter, reflecting this strong demand and our ability to meet the needs of our users. We are responding to this continued heightened demand by increasing our investment in marketing, which based on our historical data, will drive continued collections and revenue growth in the near future."

Q2 2020 Financial Results

    --  Total revenue in the second quarter of 2020 was $236.1 million, compared
        to $185.4 million in the second quarter of 2019, an increase of 27% y/y
        --  On a y/y constant currency basis, Q2 revenue would have been $237.9
            million, up 28% y/y
        --  Creative Subscriptions revenue in the second quarter of 2020 was
            $190.2 million, compared to $157.0 million in the second quarter of
            2019, an increase of 21% y/y
        --  Business Solutions revenue in the second quarter of 2020 was $45.9
            million, compared to $28.4 million in the second quarter of 2019, an
            increase of 62% y/y
    --  Creative Subscriptions ARR was $790.9 million in the second quarter of
        2020, compared to $648.2 million in the second quarter of 2019, an
        increase of 22% y/y
    --  Total collections in the second quarter of 2020 were $265.9 million,
        compared to $199.6 million in the second quarter of 2019, an increase of
        33% y/y
        --  On a y/y constant currency basis, Q2 collections would have been
            $269.8 million, up 35% y/y
        --  Creative Subscriptions collections in the second quarter of 2020
            were $217.7 million, compared to $170.5 million in the second
            quarter of 2019, an increase of 28% y/y
        --  Business Solutions collections in the second quarter of 2020 was
            $48.2 million, compared to $29.1 million in the second quarter of
            2019, an increase of 66% y/y
    --  Our Q2 user cohort generated $10 million in revenue and $38 million in
        collections in Q2, which are 66% higher than the year ago cohort. Users
        purchased Business and eCommerce subscription packages and annual and
        multi-year packages at a higher frequency
    --  Total gross margin on a GAAP basis in the second quarter of 2020 was
        70%, compared to 75% in the second quarter of 2019. Total GAAP gross
        margin declined y/y due to incremental investments in Customer Care and
        sequentially due to the faster revenue growth of the Business Solutions
        segment
        --  Creative Subscriptions gross margin on a GAAP basis was 80%,
            compared to 81% in the second quarter of 2019. The y/y decline was
            related to the investment in expanding our Customer Care
            organization
        --  Business Solutions gross margin on a GAAP basis was 30% compared to
            39% in the second quarter of 2019. The decline was related primarily
            to the growth of Wix Payments and the expansion of Customer Care
    --  Total non-GAAP gross margin in the second quarter of 2020, calculated as
        non-GAAP gross profit as a percent of revenue, was 71%, compared to 76%
        in the second quarter of 2019. Total non-GAAP gross margin declined y/y
        due to incremental investments in Customer Care and sequentially due to
        the faster revenue growth of the Business Solutions segment
        --  Creative Subscriptions gross margin on a non-GAAP basis was 81%,
            compared to 82% in the second quarter of 2019. The y/y decline was
            related to the investment in expanding our Customer Care
            organization
        --  Business Solutions gross margin on a non-GAAP basis was 32%,
            compared to 40% in the second quarter of 2019. The decline was
            related primarily to the growth of Wix Payments and the expansion of
            Customer Care
    --  GAAP net loss in the second quarter of 2020 was $(57.7) million, or
        $(1.06) per share, compared to a net loss of $(16.7) million, or $(0.33)
        per share, for the second quarter of 2019
    --  Non-GAAP net loss in the second quarter of 2020 was $(14.2) million, or
        $(0.26) per share, compared to non-GAAP net income of $17.0 million, or
        $0.34 per share for the second quarter of 2019
    --  Net cash provided by operating activities in the second quarter of 2020
        was $50.0 million, while capital expenditures totaled $3.3 million,
        leading to free cash flow of $46.7 million, compared to $30.8 million of
        free cash flow in the second quarter of 2019, a 52% year-over-year
        increase
        --  Excluding the capex investment associated with our new headquarters
            office build out, free cash flow would have been $47.1 million, up
            53% y/y
    --  Added 346,000 net premium subscriptions in the second quarter of 2020 to
        reach 5.0 million as of June 30, 2020, a 17% increase over the total
        number of premium subscriptions at the end of the second quarter of 2019
    --  Added 9.3 million registered users in the second quarter of 2020.
        Registered users as of June 30, 2020 were 182 million, representing a
        18% increase compared to the end of the second quarter of 2019

Recent Business Highlights

    --  Launched extended eCommerce solution, offering merchants access to
        advanced online business tools, such as dropshipping, automated sales
        tax calculations, streamlined order and fulfillment, and integrated
        sales channels, including social media and marketplaces
    --  Announced the official launch of a new brand and innovative website
        creation platform, Editor X. Previously available in a closed beta
        program and now open to the public, Editor X caters to web designers and
        agencies who are looking for advanced design capabilities
    --  Launched eCommerce solution for U.S. based merchants selling
        hemp-derived cannabidiol (CBD) products online, enabling these merchants
        to create an eCommerce website, process payments online, manage and ship
        inventory and grow their CBD businesses where government and state
        regulations permit
    --  Expanded Customer Care team to a new office in Denver, Colorado to
        bolster existing efforts to provide best-in-class service to millions of
        users
    --  Conducted the third annual Wix Playground Academy, a three month
        intensive web design program taught by Wix professionals and
        award-winning designers, in a completely online format for the first
        time. The students participated in the Social Good Project, building
        websites for 14 non-profits

Financial Outlook

Our outlook for Q3 reflects continued momentum of new registered users as well as the growth in monetization of our user cohorts. We believe these behaviors will drive y/y collections growth above 31% in Q3.

During Q2, we increased advertising investment by approximately 90% y/y, and we acquired the largest user cohort in our history, which we expect will return future collections that are approximately 90% higher than the previous year's Q2 cohort. This return supports our decision to be more aggressive with our marketing investment. We plan to continue the increased investment in advertising as long as positive returns continue.

Our Marketing team responded to the surge in demand quickly and aggressively, a testament to the strength of our team. We believe this level investment will drive higher revenue and collections over the coming years and will expand profitability and free cash flow over time as well.

We are introducing Q3 guidance as follows:


                           
     Q3 2020 Outlook                  
      Y/Y growth




     Revenue                     
            $247 - 250 million       26 - 27%




     Collections                 
            $270 - 275 million       31 - 34%


      Free Cash Flow                
            $15 - 17 million   (42) - (49)%


      Free Cash Flow
       (excluding ~$1
       million in                   
            $16 - 18 million   (38) - (45)%

      capex for future Wix
       HQ office build
       out)

This guidance assumes FX rates as of today. We continue to experience trends that are tailwinds to our top line growth. However, given the uncertainty related to COVID-19 and macroeconomic conditions, it is difficult to predict how long and to what degree these trends will remain; therefore, we are only providing guidance for the third quarter at this time.

Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Thursday, August 6, 2020 to answer questions about the financial and operational performance of the business for the second quarter ended June 30, 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 +1-888-771-4371 (US/ Canada) or +1-847-585-4405 (US Toll) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through August 13, 2020 at 11:59 p.m. ET at https://onlinexperiences.com/Launch/QReg/ShowUUID=D0DBA6CF-E305-452B-976E-19713D114599&LangLocaleID=1033 with passcode 49852245.

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

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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 (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 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 (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. 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, 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.

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 our Wix Partner Program; uncertainty surrounding the duration and severity of COVID-19 and its effects on our business, including changes in consumer dynamics shifting to online and increased GMV 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; 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 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                 
           Six Months Ended


                                       
              June 30,                       
         June 30,

                                                                                              ---

                                              2019                         2020                    2019             2020

                                                                                                                  ---

                                     
              (unaudited)                    
         (unaudited)



     
                Revenue


      Creative
       Subscriptions                      $157,012                     $190,169                $308,376         $366,715


      Business Solutions                    28,407                       45,890                  51,333           85,331

                                                                                                                  ---

                                           185,419                      236,059                 359,709          452,046





     
                Cost of Revenue


      Creative
       Subscriptions                        29,296                       38,510                  55,943           73,900


      Business Solutions                    17,366                       31,972                  30,434           58,652

                                                                                                                  ---

                                            46,662                       70,482                  86,377          132,552




      Gross Profit                         138,757                      165,577                 273,332          319,494





     Operating expenses:


      Research and
       development                          61,486                       75,464                 119,669          146,180


      Selling and
       marketing                            71,329                      119,333                 157,047          215,489


      General and
       administrative                       20,103                       24,531                  38,569           49,967

                                                                                                                  ---

      Total operating
       expenses                            152,918                      219,328                 315,285          411,636

                                                                                                                  ---

      Operating loss                      (14,161)                    (53,751)               (41,953)        (92,142)


      Financial expenses,
       net                                   (580)                     (3,339)                (2,310)         (2,194)


      Other income
       (expenses)                                8                           28                      32               59

                                                                                                                  ---

      Loss before taxes on
       income                             (14,733)                    (57,062)               (44,231)        (94,277)


      Taxes on income                        2,001                          674                   3,243            2,612



     Net loss                           $(16,734)                   $(57,736)              $(47,474)       $(96,889)





      Basic and diluted
       net loss per share                  $(0.33)                     $(1.06)                $(0.95)         $(1.82)



      Basic and diluted
       weighted-average
       shares used to
       compute net loss
       per share                        50,273,017                   54,695,477              49,917,692       53,266,895

                                                                                                                  ===


                                        
              Wix.com Ltd.


                            
              CONDENSED CONSOLIDATED BALANCE SHEET


                                       
              (In thousands)




                                       
              Period ended


                                       
              December 31,                
       June 30,

                                                                                            ---

                                                            2019                            2020



                   Assets               
              (audited)                
       (unaudited)



     Current Assets:


        Cash and
         cash
         equivalents                                    $268,103                        $173,950


        Short term
         deposits                                        294,096                         406,033


        Restricted
         cash and
         deposit                                           1,149                             925


        Marketable
         securities                                      164,301                         174,624


        Trade
         receivables                                      16,987                          18,830


        Prepaid
         expenses
         and other
         current
         assets                                           19,211                          49,888


       Total
        current
        assets                                           763,847                         824,250






     Long Term Assets:


        Property
         and
         equipment,
         net                                              31,706                          32,926


        Marketable
         securities                                      177,298                         245,211


        Prepaid
         expenses
         and other
         long-
         term
         assets                                            9,926                          13,243


        Intangible
         assets and
         goodwill,
         net                                              37,641                          44,509


        Operating
         lease
         assets                                           79,249                          81,112


       Total
        long-
        term
        assets                                           335,820                         417,001





       Total
        assets                                        $1,099,667                      $1,241,251

                                                                                            ===



                   Liabilities and Shareholder's Equity



     Current Liabilities:


        Trade
         payables                                        $37,687                         $73,059


        Employees
         and
         payroll
         accruals                                         41,938                          66,306


        Deferred
         revenues                                        289,148                         344,515


        Accrued
         expenses
         and other
         current
         liabilities                                      56,464                          65,036


        Operating
         lease
         liabilities                                      18,949                          17,372


      Total
       current
       liabilities                                       444,186                         566,288





        Long term
         deferred
         revenues                                         21,969                          29,265


        Long term
         deferred
         tax
         liability                                         1,585                           1,574


         Convertible
         senior
         notes                                           358,715                         369,664


        Long term
         loan                                              1,219                           1,219


        Long term
         operating
         lease
         liabilities                                      64,244                          68,402


      Total long
       term
       liabilities                                       447,732                         470,124





       Total
        liabilities                                      891,918                       1,036,412






     Shareholders'  Equity


        Ordinary
         shares                                               94                             104


        Additional
         paid-in
         capital                                         611,083                         695,412


        Other
         comprehensive
         loss                                              1,357                          10,997


         Accumulated
         deficit                                       (404,785)                      (501,674)


      Total
       shareholders'
       equity                                            207,749                         204,839





      Total
       liabilities
       and
       shareholders'
       equity                                         $1,099,667                      $1,241,251

                                                                                            ===


                                                    
              Wix.com Ltd.


                                   
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                   
              (In thousands)






                                                               
              Three Months Ended                
           Six Months Ended


                                                                 
              June 30,                      
         June 30,

                                                                                                                       ---

                                                                        2019                        2020                    2019             2020

                                                                                                                                           ---

                                                               
              (unaudited)                   
         (unaudited)



     OPERATING ACTIVITIES:



     Net loss                                                     $(16,734)                  $(57,736)              $(47,474)       $(96,889)


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



       Depreciation                                                   2,927                       3,537                   5,585            7,109



       Amortization                                                     738                         566                   1,470            1,132


        Share based compensation
         expenses                                                     27,565                      34,967                  52,472           65,685


        Amortization of debt
         discount and debt issuance
         costs                                                         5,194                       5,516                  10,311           10,949


        Decrease in accrued interest
         and exchange rate on short
         term and long term deposits                                     105                          15                     594               62


        Amortization of premium and
         discount and accrued
         interest on marketable
         securities, net                                                (10)                        438                      41              717


        Deferred income taxes, net                                       402                        (55)                    533          (1,721)


        Changes in operating lease
         right-of-use assets                                                                      5,158                                   9,446


        Changes in operating lease
         liabilities                                                                            (4,588)                                (9,817)


        Decrease (increase) in trade
         receivables                                                     161                     (1,765)                (4,532)         (1,617)


        Increase in prepaid expenses
         and other current and long-
         term assets                                                 (3,942)                    (6,931)               (11,141)        (21,605)


        Increase (decrease) in trade
         payables                                                    (3,222)                     26,172                   1,328           34,974


        Increase in employees and
         payroll accruals                                              4,223                      11,585                  12,235           23,694


        Increase in short term and
         long term deferred revenues                                  14,144                      29,792                  40,233           62,663


      Increase in accrued expenses
       and other current
       liabilities                                                     5,629                       3,287                  10,599           10,203


      Net cash provided by
       operating activities                                           37,180                      49,958                  72,254           94,985

                                                                                                                                           ---


     INVESTING ACTIVITIES:


        Proceeds from short-term
         deposits and restricted
         deposits                                                     55,000                       9,225                  81,775           26,225


        Investment in short-term
         deposits and restricted
         deposits                                                                              (49,000)               (26,000)       (138,000)


        Investment in marketable
         securities                                                (108,693)                  (100,867)              (136,616)       (230,168)


        Proceeds from marketable
         securities                                                   21,601                      65,656                  29,056          154,911


        Purchase of property and
         equipment                                                   (6,235)                    (3,264)               (11,065)         (8,207)


        Capitalization of software
         development costs                                             (191)                                             (389)           (132)


      Investment in other short
       and long-term assets                                          (2,800)                      (643)                (2,800)         (5,643)


        Payment for Businesses
         acquired                                                                                                                      (6,626)


        Purchases of investments in
         privately-held companies                                                                 (685)                                  (785)


      Net cash used in investing
       activities                                                   (41,318)                   (79,578)               (66,039)       (208,425)

                                                                                                                                           ---


     FINANCING ACTIVITIES:


        Proceeds from exercise of
         options and ESPP shares                                       7,512                      12,312                  14,190           19,287


        Net cash provided by
         financing activities                                          7,512                      12,312                  14,190           19,287

                                                                                                                                           ---

      INCREASE (DECREASE) IN CASH
       AND CASH EQUIVALENTS                                            3,374                    (17,308)                 20,405         (94,153)


      CASH AND CASH EQUIVALENTS-
       Beginning of period                                           348,088                     191,258                 331,057          268,103


      CASH AND CASH EQUIVALENTS-
       End of period                                                $351,462                    $173,950                $351,462         $173,950


                                                                                                      
              Three Months Ended                                
              Six Months Ended


                                                                                                           
              June 30,                                         
              June 30,

                                                                                                                                                                                             ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Creative
          Subscriptions                                                                                            157,012                            190,169                            308,376          366,715


         Business Solutions                                                                                         28,407                             45,890                             51,333           85,331

                                                                                                                                                                                                           ---

                      Total Revenue                                                                               $185,419                           $236,059                           $359,709         $452,046




         Creative
          Subscriptions                                                                                            170,493                            217,696                            347,387          426,493


         Business Solutions                                                                                         29,070                             48,155                             52,555           88,216

                                                                                                                                                                                                           ---

                      Total Collections                                                                           $199,563                           $265,851                           $399,942         $514,709




         Free Cash Flow                                                                                            $30,754                            $46,694                            $60,800          $86,646


         Creative
          Subscriptions ARR                                                                                       $648,176                           $790,916                           $648,176         $790,916


         Number of registered
          users at period end
          (*)                                                                                                      154,039                            181,585                            154,039          181,585


         Number of premium
          subscriptions at
          period end (*)                                                                                             4,295                              5,007                              4,295            5,007





        (*) Excludes users and subscriptions of DeviantArt






                                                                                   
              Wix.com Ltd.


                                                                     
              RECONCILIATION OF REVENUES TO COLLECTIONS


                                                                                  
              (In thousands)




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)



        Revenues                                                                                                 $185,419                           $236,059                           $359,709         $452,046


         Change in deferred
          revenues                                                                                                  14,144                             29,792                             40,233           62,663


         Collections                                                                                              $199,563                           $265,851                           $399,942         $514,709







                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Creative
          Subscriptions
          Revenue                                                                                                 $157,012                           $190,169                           $308,376         $366,715


         Change in deferred
          revenues                                                                                                  13,481                             27,527                             39,011           59,778


         Creative
          Subscriptions
          Collections                                                                                             $170,493                           $217,696                           $347,387         $426,493







                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Business Solutions
          Revenue                                                                                                  $28,407                            $45,890                            $51,333          $85,331


         Change in deferred
          revenues                                                                                                     663                              2,265                              1,222            2,885


         Business Solutions
          Collections                                                                                              $29,070                            $48,155                            $52,555          $88,216







                                                                                   
              Wix.com Ltd.


                                                          
              RECONCILIATION OF REVENUES AND COLLECTIONS EXCLUDING FX IMPACT


                                                                                  
              (In thousands)




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)



        Revenues                                                                                                 $185,419                           $236,059                           $359,709         $452,046


         FX impact on Q2/20
          using Q2/19 rates                                                                                                                            1,824                                              3,335


         Revenue excluding FX
          impact                                                                                                  $185,419                           $237,883                           $359,709         $455,381





    Y/Y%                                                                                                                           28%                                                           27%




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Collections                                                                                              $199,563                           $265,851                           $399,942         $514,709


         FX impact on Q2/20
          using Q2/19 rates                                                                                                                            3,922                                              6,271


         Collections
          excluding FX impact                                                                                     $199,563                           $269,773                           $399,942         $520,980





    Y/Y%                                                                                                                           35%                                                           30%












                                                                                   
              Wix.com Ltd.


                                                                        
              TOTAL ADJUSTMENTS GAAP TO NON-GAAP


                                                                                  
              (In thousands)






                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

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


         Cost of revenues                                                                                           $1,436                             $1,869                             $2,747           $3,500


         Research and
          development                                                                                               14,119                             18,216                             26,375           34,401


         Selling and
          marketing                                                                                                  4,506                              5,395                              9,254            9,963


         General and
          administrative                                                                                             7,504                              9,487                             14,096           17,821


         Total share based
          compensation
          expenses                                                                                                  27,565                             34,967                             52,472           65,685

                                                                                                                                                                                                           ---

         (2) Amortization                                                                                              738                                566                              1,470            1,132


         (3) Acquisition
          related expenses                                                                                              53                              1,697                                 53            2,636


         (4) Amortization of
          debt discount and
          debt issuance costs                                                                                        5,194                              5,516                             10,311           10,949


         (5) Sales tax
          accrual and other
          G&A expenses
          (income)                                                                                                                                     (485)                                             1,489


         (6) Non-operating
          foreign exchange
          expenses (income)                                                                                            140                              1,305                              1,592              432


         Total adjustments of
          GAAP to Non GAAP                                                                                         $33,690                            $43,566                            $65,898          $82,323









                                                                                   
              Wix.com Ltd.


                                                                  
              RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT


                                                                                  
              (In thousands)






                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Gross Profit                                                                                             $138,757                           $165,577                           $273,332         $319,494


         Share based
          compensation
          expenses                                                                                                   1,436                              1,869                              2,747            3,500


         Acquisition related
          expenses                                                                                                                                       305                                                305


         Amortization                                                                                                  141                                                                  283                -


         Non GAAP Gross
          Profit                                                                                                   140,334                            167,751                            276,362          323,299

                                                                                                                                                                                                           ---



         Non GAAP Gross
          margin                                                                                                       76%                               71%                               77%             72%






                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Gross Profit -
          Creative
          Subscriptions                                                                                           $127,716                           $151,659                           $252,433         $292,815


         Share based
          compensation
          expenses                                                                                                   1,226                              1,485                              2,375            2,807


         Non GAAP Gross
          Profit -Creative
          Subscriptions                                                                                            128,942                            153,144                            254,808          295,622

                                                                                                                                                                                                           ---



         Non GAAP Gross
          margin -Creative
          Subscriptions                                                                                                82%                               81%                               83%             81%






                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Gross Profit -
          Business Solutions                                                                                       $11,041                            $13,918                            $20,899          $26,679


         Share based
          compensation
          expenses                                                                                                     210                                384                                372              693


         Acquisition related
          expenses                                                                                                                                       305                                                305


         Amortization                                                                                                  141                                                                  283                -


         Non GAAP Gross
          Profit -Business
          Solutions                                                                                                 11,392                             14,607                             21,554           27,677

                                                                                                                                                                                                           ---



         Non GAAP Gross
          margin -Business
          Solutions                                                                                                    40%                               32%                               42%             32%






                                                                                   
              Wix.com Ltd.


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


                                                                                  
              (In thousands)




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Operating loss                                                                                          $(14,161)                         $(53,751)                         $(41,953)       $(92,142)



        Adjustments:


         Share based
          compensation
          expenses                                                                                                  27,565                             34,967                             52,472           65,685


         Amortization                                                                                                  738                                566                              1,470            1,132


         Sales tax accrual
          and other G&A
          expenses (income)                                                                                                                            (485)                                             1,489


         Acquisition related
          expenses                                                                                                      53                              1,697                                 53            2,636


         Total adjustments                                                                                         $28,356                            $36,745                            $53,995          $70,942





         Non GAAP operating
          income (loss)                                                                                            $14,195                          $(17,006)                           $12,042        $(21,200)







                                                                                   
              Wix.com Ltd.


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


                                                                      
              (In thousands, except  per share data)




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)



        Net loss                                                                                                $(16,734)                         $(57,736)                         $(47,474)       $(96,889)


         Share based
          compensation
          expense and other
          Non GAAP
          adjustments                                                                                               33,690                             43,566                             65,898           82,323


         Non-GAAP net income
          (loss)                                                                                                   $16,956                          $(14,170)                           $18,424        $(14,566)





         Basic  Non GAAP net
          income (loss) per
          share                                                                                                      $0.34                            $(0.26)                             $0.37          $(0.27)



         Weighted average
          shares used in
          computing basic Non
          GAAP net income
          (loss) per share                                                                                      50,273,017                         54,695,477                         49,917,692       53,266,895

                                                                                                                                                                                                           ===







                                                                                   
              Wix.com Ltd.


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


                                                                                  
              (In thousands)




                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)


         Net cash provided by
          operating
          activities                                                                                               $37,180                            $49,958                            $72,254          $94,985


         Capital
          expenditures, net                                                                                        (6,426)                           (3,264)                          (11,454)         (8,339)


         Free Cash Flow                                                                                            $30,754                            $46,694                            $60,800          $86,646





         Capex related to
          future Wix HQ
          office build-out                                                                                                                               408                                                891


         Free Cash Flow,
          excluding capex
          related to future
          Wix HQ office
          build-out                                                                                                $30,754                            $47,102                            $60,800          $87,537









                                                                                   
              Wix.com Ltd.


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






                                                                                                    
              Three Months Ended                            
              Six Months Ended


                                                                                                         
              June 30,                                      
              June 30,

                                                                                                                                                                                       ---

                                                                                                                      2019                               2020                               2019             2020

                                                                                                                                                                                                           ---

                                                                                                       
              (unaudited)                                   
              (unaudited)




         Basic and diluted
          weighted average
          number of shares
          outstanding                                                                                           50,273,017                         54,695,477                         49,917,692       53,266,895

                                                                                                                                                                                                           ===

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


         Stock options                                                                                           7,744,708                          4,906,490                          7,744,708        4,906,490


         Restricted share
          units                                                                                                  2,289,069                          2,190,991                          2,289,069        2,190,991


          Convertible Notes
           (if-converted)                                                                                        3,104,251                          3,104,251                          3,104,251        3,104,251


                                                                                                                63,411,045                         64,897,209                         63,055,720       63,468,627

                                                                                                                                                                                                           ===




                                          
              Wix.com Ltd.


                           
              RECONCILIATION OF REVENUES TO COLLECTIONS


                                         
              (In thousands)




                    
             Three Months Ended


                      
              September 30,



                                             2019



                       
              (unaudited)


     Revenues                            $196,791


      Change
      in
      deferred
      revenues                              9,069


     Collections                         $205,860







                                      
              Wix.com Ltd.


                  
         RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS


                                     
              (In thousands)




                              Three Months Ended


                              September 30, 2020



                           
              Low                         
              High





      Projected
      revenues                            247,000                              250,000


      Projected
      change
      in
      deferred
      revenues                             23,000                               25,000


      Projected
      Collections                        $270,000                             $275,000







                                      
              Wix.com Ltd.


                          
              RECONCILIATION OF COHORT COLLECTIONS


                                     
              (In millions)




                              Three Months Ended


                         
              June 30,



                                             2019                                 2020





      Q2
      Cohort
      revenues                                  6                                   10


      Q2
      Change
      in
      deferred
      revenues                                 17                                   28


      Q2
      Cohort
      Collections                             $23                                  $38

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SOURCE Wix.com Ltd.