Wix Reports Fourth Quarter and Full Year 2020 Results
NEW YORK, Feb. 17, 2021 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the fourth quarter and full year ended December 31, 2020, exceeding the high end of its guidance ranges for revenue, collections and free cash flow. In addition, the Company provided its initial outlook for the first quarter and full year of 2021.
"We have concluded the most successful year in our company's history. In 2020, over 31 million new registered users joined Wix, we added nearly 1 million net new subscriptions, and we crossed $1 billion of annual collections for the first time. It was truly humbling to help lift millions of businesses through an extremely challenging year, and I am particularly proud of our team for maintaining focus and dedication throughout the year," said Avishai Abrahami, Co-founder and CEO of Wix. "It is clear that we can now become a dominant player on the internet, and I expect us to strengthen this position significantly over the coming decade. Wix will now strive to become the main engine of the internet, democratizing access and providing a place where the majority of people will build their web presence. My goal and belief is that at this rate of growth, in the next 5-7 years, 50% of anything new built on the internet will be done on Wix."
Lior Shemesh, CFO of Wix, added, "Our fourth quarter results closed out a record-breaking year at Wix with results exceeding the high end of our guidance ranges. The demand for a web presence is higher than ever before. As such, we are investing heavily in our business and into new products, most notably Wix Payments as online commerce businesses continue to come to Wix. Our first quarter 2021 guidance of 37-41% y/y collections growth and full year guidance of 30-32% collections growth reflect the continuation of the momentum from 2020, the returns on these investments and the new baseline of growth for Wix for years to come."
FY 2020 Financial Results
-- Total revenue for the full year 2020 was $988.8 million, compared to
$761.1 million for the full year 2019, an increase of 30% y/y
-- Creative Subscriptions revenue for the full year 2020 was $783.5
million, compared to $644.5 million for the full year 2019, an
increase of 22% y/y
-- Business Solutions revenue for the full year 2020 was $205.3
million, compared to $116.6 million for the full year 2019, an
increase of 76% y/y
-- Total collections for the full year 2020 were $1.102 billion, compared
to $832.5 million for the full year 2019, an increase of 32% y/y
-- Creative Subscriptions collections for the full year 2020 were
$891.2 million, compared to $711.8 million for the full year 2019,
an increase of 25% y/y
-- Business Solutions collections for the full year 2020 were $210.8
million, compared to $120.7 million for the full year 2019, an
increase of 75% y/y
-- Total gross margin on a GAAP basis for the full year 2020 was 68%,
compared to 74% for the full year 2019. The y/y decline was related to
incremental investments in Customer Care, hosting and the faster revenue
growth of the Business Solutions segment, primarily Wix Payments
-- Creative Subscriptions gross margin on a GAAP basis was 79%,
compared to 81% for the full year 2019. The y/y decline was related
to the investment in expanding our Customer Care organization and
higher hosting costs to serve the increased number of users
-- Business Solutions gross margin on a GAAP basis was 28% compared to
35% for the full year 2019. The y/y decline was related primarily to
the growth of Wix Payments, the expansion of Customer Care and
higher hosting costs to meet the increased number of users
-- Total non-GAAP gross margin for the full year 2020, calculated as
non-GAAP gross profit as a percent of revenue, was 69%, compared to 75%
for the full year 2019. The y/y decline was related to incremental
investments in Customer Care, hosting and the faster revenue growth of
the Business Solutions segment
-- Creative Subscriptions gross margin on a non-GAAP basis was 80%,
compared to 82% for the full year 2019. The y/y decline was related
to the investment in expanding our Customer Care organization and
higher hosting costs to serve the increased number of users
-- Business Solutions gross margin on a non-GAAP basis was 29%,
compared to 37% for the full year 2019. The y/y decline was related
primarily to the growth of Wix Payments, the expansion of Customer
Care and higher hosting costs to meet the increased number of users.
As Wix Payments scales, we expect the gross margin in Business
Solutions to increase over time
-- GAAP net loss for the full year 2020 was $(216.5) million, or $(3.98)
per share, compared to a net loss of $(86.4) million, or $(1.71) per
share, for the full year 2019
-- Non-GAAP net loss for the full year 2020 was $(24.2) million, or $(0.44)
per share, compared to non-GAAP net income of $59.1 million, or $1.17
per share, for the full year 2019
-- Net cash provided by operating activities for the full year 2020 was
$148.0 million, while capital expenditures totaled $18.9 million,
leading to free cash flow of $129.2 million, compared to $127.5 million
of free cash flow for the full year 2019, a 1.3% y/y increase
-- Excluding the capex investment associated with our new headquarters
office build out, free cash flow would have been $131.7 million, an
increase of 3.3% y/y
Q4 2020 Financial Results
-- Total revenue in the fourth quarter of 2020 was $282.5 million, compared
to $204.6 million in the fourth quarter of 2019, an increase of 38% y/y
-- Creative Subscriptions revenue in the fourth quarter of 2020 was
$213.7 million, compared to $171.4 million in the fourth quarter of
2019, an increase of 25% y/y
-- Business Solutions revenue in the fourth quarter of 2020 was $68.8
million, compared to $33.2 million in the fourth quarter of 2019, an
increase of 107% y/y
-- Creative Subscriptions ARR was $878.0 million in the fourth quarter of
2020, compared to $707.2 million in the fourth quarter of 2019, an
increase of 24% y/y
-- Business Solutions ARR was $138.3 million in the fourth quarter of 2020,
compared to $94.8 million in the fourth quarter of 2019, an increase of
46% y/y
-- Total collections in the fourth quarter of 2020 were $306.4 million,
compared to $226.7 million in the fourth quarter of 2019, an increase of
35% y/y
-- Creative Subscriptions collections in the fourth quarter of 2020
were $236.4 million, compared to $190.8 million in the fourth
quarter of 2019, an increase of 24% y/y
-- Business Solutions collections in the fourth quarter of 2020 were
$70.0 million, compared to $35.9 million in the fourth quarter of
2019, an increase of 95% y/y
-- Total gross margin on a GAAP basis in the fourth quarter of 2020 was
63%, compared to 72% in the fourth quarter of 2019. The y/y decline was
related to incremental investments in Customer Care, hosting and the
faster revenue growth of the Business Solutions segment
-- Creative Subscriptions gross margin on a GAAP basis was 76%,
compared to 80% in the fourth quarter of 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
-- Business Solutions gross margin on a GAAP basis was 23% compared to
28% in the fourth quarter of 2019. The y/y decline was related
primarily to the growth of Wix Payments, the expansion of Customer
Care and higher hosting costs to serve the increased number of users
-- Total non-GAAP gross margin in the fourth quarter of 2020, calculated as
non-GAAP gross profit as a percent of revenue, was 65%, compared to 74%
in the fourth quarter of 2019. The y/y decline was related to
incremental investments in Customer Care, hosting and the faster revenue
growth of the Business Solutions segment
-- Creative Subscriptions gross margin on a non-GAAP basis was 78%,
compared to 81% in the fourth quarter of 2019. The y/y decline was
related to the investment in expanding our Customer Care
organization and higher hosting costs to serve the increased number
of users
-- Business Solutions gross margin on a non-GAAP basis was 25%,
compared to 34% in the fourth quarter of 2019. The y/y decline was
related primarily to the growth of Wix Payments, the expansion of
Customer Care and higher hosting costs to meet the increased number
of users
-- GAAP net loss in the fourth quarter of 2020 was $(62.8) million, or
$(1.13) per share, compared to a net loss of $(21.6) million, or $(0.42)
per share, for the fourth quarter of 2019
-- Non-GAAP net loss in the fourth quarter of 2020 was $(1.6) million, or
$(0.03) per share, compared to non-GAAP net income of $19.9 million, or
$0.39 per share, for the fourth quarter of 2019
-- Net cash provided by operating activities in the fourth quarter of 2020
was $28.6 million, while capital expenditures totaled $5.4 million,
leading to free cash flow of $23.1 million, compared to $37.5 million of
free cash flow in the fourth quarter of 2019, a 38% y/y decrease
-- Excluding the capex investment associated with our new headquarters
office build out, free cash flow would have been $24.0 million, a
decrease of 36% y/y
-- Added 185,000 net premium subscriptions in the fourth quarter of 2020, a
107% increase y/y, to reach 5.5 million as of December 31, 2020, a 22%
increase over the total number of premium subscriptions at the end of
the fourth quarter of 2019
-- Added 7.4 million registered users in the fourth quarter of 2020, a 27%
increase y/y. Registered users as of December 31, 2020 were 196.7
million, representing a 19% increase compared to the end of the fourth
quarter of 2019
Recent Business Highlights
-- Launched Editor X out of beta and introduced a new suite of
collaboration tools that enable concurrent editing, making it the only
fully collaborative web creation platform in the world. There are
already over 200K users on Editor X. In addition to concurrent editing,
the platform's new collaboration features include live commenting,
advanced roles and permissions, and shared design libraries. These
additions will enable design teams to increase their velocity and work
more efficiently. The platform also expanded its design capabilities and
now offers advanced code-free interactions. Editor X enables design
flexibility and allows designers and agencies to control every aspect of
the creation process. These newly introduced capabilities enable smarter
collaboration between stakeholders and a seamless handoff to clients
once a project is complete
-- Implemented several significant product improvements to the Wix Payments
platform in 2020 to improve the user experience and expand our overall
product offering. Recent upgrades include a smoother onboarding process,
improved balance management and the addition of account managers for
high volume users. We believe these improvements, along with many others
we plan, will drive volume growth and higher capture of revenue in Wix
Payments in 2021
-- Generated $5.4 billion in Gross Payments Volume (GPV) in 2020, a 126%
increase over $2.4 billion in 2019 as the number of online commerce
businesses and their sales volume grew throughout the year. Wix Payments
collections and revenue was $53.6 million in 2020, a 382% increase over
$11.1 million in 2019 as we improved our take rate throughout the year.
We expect GPV will be $10 billion in 2021
-- Rebranded the full-stack no-code / low-code development platform
formerly known as Corvid by Wix to Velo by Wix
-- Introduced a web development course for our no-code / low-code platform
Velo in partnership with Codecademy
Financial Outlook
Our outlook is underscored by an increase in our collections growth guidance for 2021, since our initial guidance provided in December, as our confidence in the upcoming year has increased. Our success in online commerce, expected growth in Partners activity on Wix and the launch of new products bolster our outlook for the year.
We plan to make incremental investments of approximately $60 million in 2021 to capitalize on the opportunities ahead. Our incremental investments will be focused in the following areas:
-- Continued expansion of Customer Care to address the current and future
demand and to expand our support dedicated to Wix Payments. We plan to
hire at least 600 more Experts in 2021
-- Advancing the evolution of the Wix Payments platform by improving the
user experience, expanding to additional geographies and offering new
capabilities for our users
-- Building our team and infrastructure necessary to scale and globalize
the Wix Point of Sale (POS) solution
-- Growing our Account Management team to provide the high level of service
expected by Partners and high-volume online commerce users
We are introducing full year 2021 guidance as follows:
FY 2021 Outlook
Y/Y growth
Revenue
$1,272 - 1,286 million 29 - 30%
Collections
$1,435 - 1,455 million 30 - 32%
Free Cash Flow (excluding
capex for future Wix HQ
office build out)
$90 - 100 million
NM
Free Cash Flow
$60 - 70 million
NM
We are also introducing first quarter 2021 guidance as follows:
Q1 2021 Outlook Y/Y growth
Revenue
$291 - 296 million 35 - 37%
Collections
$340 - 350 million 37 - 41%
Conference Call and Webcast Information
Wix will host a conference call at 8:30 a.m. ET on Wednesday, February 17, 2021 to answer questions about the financial and operational performance of the business for the fourth quarter and full year ended December 31, 2020. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion of this call, the Company has posted a shareholder update and supporting slides to its Investor Relations website at https://investors.wix.com/. These materials provide shareholders and analysts with additional detail for analyzing results in advance of the quarterly conference call.
To participate on the live call, analysts and investors should dial +1-877-667-0467 (US/ Canada), +1-346- 354-0953 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call and reference Conference ID 3847028. A telephonic replay of the call will be available through February 24, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 3847028.
Wix will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the Company's website at https://investors.wix.com/.
About Wix.com Ltd.
Wix is leading the way with a cloud-based website development platform for over 200 million registered users worldwide today. The Wix website builder was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix and Velo by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Austin, Be'er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kiev, Los Angeles, Miami, New York, San Francisco, São Paulo, Tokyo and Vilnius.
Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn and Pinterest
Download: Wix App is available for free on Google Play and in the App Store
For more about Wix please visit our Press Room
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: collections, cumulative cohort collections, collections on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or FX neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Collections is a non-GAAP financial measure calculated by adding the change in deferred revenues for a particular period to revenues for the same period. Collections include cash receipts for premium subscriptions purchased by registered users as well, cash we collect for payments and additional products and services, as well as payments due to us under the terms of contractual agreements for obligations we have fulfilled. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and majority of the additional products and services are recognised as revenues upon receipt. Committed payments are recognised as revenue as we fulfil our obligation under the terms of the contractual agreement. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude capital expenditures associated with our new headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, cumulative cohort collections, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company's control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.
Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR), Business Solutions ARR and Gross Payment Volume (GPV) as key operating metrics. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) all active Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative Subscriptions, other than domain registrations; (ii) the average revenue per month from domain registrations; (iii) monthly revenue from partnership agreements. Business Solutions ARR is calculated as Business Solutions MRR multiplied by 12. Business Solutions MRR is calculated as the total of all active subscriptions to Ascend, G-Suite, TPAs, FB Ads or Wix apps products in effect on the last day of the period, multiplied by the monthly revenue of such subscriptions. GPV includes the total value, in US dollars, of transactions facilitated by our platform.
Forward-Looking Statements
This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, collections and free cash flow, and may be identified by words like "anticipate," "assume," "believe," "aim," "forecast," "indication," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "outlook," "future," "will," "seek" and similar terms or phrases. The forward-looking statements contained in this document, including the annual and quarterly guidance, are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions, including through the growth of our Partners activity; uncertainty surrounding the effects of COVID-19 on our business, including uncertainty relating to the expected consumer dynamics post COVID-19 and the anticipated GPV on our platform; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, and our ability to successfully enter into partnership agreements and grow our Partners activities as anticipated; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts, and our ability to increase and maintain the value we create from user cohorts; our share repurchases made pursuant to our share repurchase plan; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute and see a return on our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Care; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development, including products such as EditorX geared to new user demographics; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading "Risk Factors" in the Company's 2019 annual report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2020. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
Investor Relations:
Maggie O'Donnell
ir@wix.com
914-267-7390
Media Relations:
pr@wix.com
Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(In thousands, except loss per share data)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(audited)
(unaudited)
Revenue
Creative Subscriptions $171,355 $213,745 $644,491 $783,456
Business Solutions 33,233 68,789 116,597 205,304
---
204,588 282,534 761,088 988,760
Cost of Revenue
Creative Subscriptions 33,420 50,278 120,905 167,539
Business Solutions 23,815 53,029 76,002 148,160
---
57,235 103,307 196,907 315,699
Gross Profit 147,353 179,227 564,181 673,061
Operating expenses:
Research and development,net 66,634 89,625 250,791 320,278
Selling and marketing 74,809 109,629 307,718 438,210
General and administrative 23,602 35,433 85,922 111,915
---
Total operating expenses 165,045 234,687 644,431 870,403
---
Operating loss (17,692) (55,460) (80,250) (197,342)
Financial expenses, net (2,553) (10,158) (3,621) (19,650)
Other income (expenses) (94) 34 55 118
---
Loss before taxes on income (20,339) (65,584) (83,816) (216,874)
Taxes on income (benefit) 1,234 (2,795) 2,598 (354)
Net loss $(21,573) $(62,789) $(86,414) $(216,520)
Basic and diluted net loss per share $(0.42) $(1.13) $(1.71) $(3.98)
Basic and diluted weighted-average shares used to compute net
loss per share 51,321,155 55,809,471 50,504,698 54,425,056
===
Wix.com Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands)
Period ended
December 31,
December 31,
---
2019 2020
Assets
(audited)
(unaudited)
Current Assets:
Cash and cash
equivalents $268,103 $168,858
Short term
deposits 294,096 577,138
Restricted
cash and
deposit 1,149 925
Marketable
securities 164,301 289,927
Trade
receivables 16,987 23,670
Prepaid
expenses and
other
current
assets 19,211 40,666
Total current
assets 763,847 1,101,184
Long Term Assets:
Property and
equipment,
net 31,706 35,863
Marketable
securities 177,298 536,877
Prepaid
expenses and
other long-
term assets 9,926 20,971
Intangible
assets and
goodwill,
net 37,641 43,516
Operating
lease assets 79,249 88,406
Total long-
term assets 335,820 725,633
Total assets $1,099,667 $1,826,817
===
Liabilities and Shareholder's Equity
Current Liabilities:
Trade
payables $37,687 $79,881
Employees and
payroll
accruals 41,938 70,814
Deferred
revenues 289,148 373,521
Accrued
expenses and
other
current
liabilities 56,464 70,429
Operating
lease
liabilities 18,949 22,336
Total current
liabilities 444,186 616,981
Long term
deferred
revenues 21,969 50,867
Other long
term
liabilities 2,804 -
Convertible
senior notes 358,715 834,440
Long term
operating
lease
liabilities 64,244 74,187
Total long
term
liabilities 447,732 959,494
Total
liabilities 891,918 1,576,475
Shareholders' Equity
Ordinary
shares 94 107
Additional
paid-in
capital 611,083 862,134
Other
comprehensive
loss 1,357 9,406
Accumulated
deficit (404,785) (621,305)
Total
shareholders'
equity 207,749 250,342
Total
liabilities
and
shareholders'
equity $1,099,667 $1,826,817
===
Wix.com Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(audited)
(unaudited)
OPERATING ACTIVITIES:
Net loss $(21,573) $(62,789) $(86,414) $(216,520)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 3,347 3,789 12,126 14,610
Amortization 2,385 619 4,588 2,577
Share based compensation expenses 28,473 42,706 109,337 147,313
Amortization of debt discount and debt issuance costs 5,353 11,411 20,938 29,954
Decrease (increase) in accrued interest and exchange rate on short term and long term deposits 17 (69) 748 (43)
Amortization of premium and discount and accrued interest on marketable securities, net (247) 2,532 (346) 4,471
Deferred income taxes, net 748 163 935 (3,254)
Changes in operating lease right-of-use assets 18,225 4,514 18,225 17,867
Changes in operating lease liabilities (15,376) (2,613) (15,376) (15,807)
Increase in trade receivables (956) (511) (3,459) (6,457)
Decrease (increase) in prepaid expenses and other current and long-term assets 7,656 6,111 (5,168) (22,677)
Increase (decrease) in trade payables (11,166) 10,324 (7,560) 41,967
Increase (decrease) in employees and payroll accruals (4,563) (12,382) 7,781 25,326
Increase in short term and long term deferred revenues 22,095 23,847 71,397 113,271
Increase in accrued expenses and other current liabilities 6,819 898 21,812 15,451
Net cash provided by operating activities 41,237 28,550 149,564 148,049
---
INVESTING ACTIVITIES:
Proceeds from short-term deposits and restricted deposits 103,000 93,000 348,775 294,225
Investment in short-term deposits and restricted deposits (93,000) (129,790) (296,100) (577,000)
Investment in marketable securities (138,191) (64,940) (402,774) (763,581)
Proceeds from marketable securities 71,603 77,320 132,905 277,335
Purchase of property and equipment (3,650) (5,268) (21,427) (18,403)
Capitalization of software development costs (116) (112) (639) (450)
Investment in other short and long-term assets (191) (891) (5,643)
Payment for Businesses acquired (6,626)
Proceeds from investments in privately-held companies 1,098 1,098
Purchases of investments in privately-held companies (3,600) (400) (3,862) (1,185)
Net cash used in investing activities (64,145) (29,092) (244,013) (800,230)
---
FINANCING ACTIVITIES:
Proceeds from exercise of options and ESPP shares 7,853 10,944 31,495 39,649
Proceeds from issuance of convertible senior notes 575,000
Payments of debt issuance costs (15,713)
Purchase of capped call (46,000)
Net cash provided by financing activities 7,853 10,944 31,495 552,936
---
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (15,055) 10,402 (62,954) (99,245)
CASH AND CASH EQUIVALENTS-Beginning of period 283,158 158,456 331,057 268,103
CASH AND CASH EQUIVALENTS-End of period $268,103 $168,858 $268,103 $168,858
Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Creative Subscriptions 171,355 213,745 644,491 783,456
Business Solutions 33,233 68,789 116,597 205,304
---
Total Revenue $204,588 $282,534 $761,088 $988,760
Creative Subscriptions 190,805 236,420 711,763 891,240
Business Solutions 35,878 69,961 120,722 210,791
---
Total Collections $226,683 $306,381 $832,485 $1,102,031
Free Cash Flow $37,471 $23,170 $127,498 $129,196
Creative Subscriptions ARR $707,202 $878,036 $707,202 $878,036
Number of registered users at period end (*) 165,341 196,747 165,341 196,747
Number of premium subscriptions at period end (*) 4,499 5,494 4,499 5,494
(*) Excludes users and subscriptions of DeviantArt
Wix.com Ltd.
RECONCILIATION OF REVENUES TO COLLECTIONS
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Revenues $204,588 $282,534 $761,088 $988,760
Change in deferred
revenues 22,095 23,847 71,397 113,271
Collections $226,683 $306,381 $832,485 $1,102,031
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Creative
Subscriptions
Revenue $171,355 $213,745 $644,491 $783,456
Change in deferred
revenues 19,450 22,675 67,272 107,784
Creative
Subscriptions
Collections $190,805 $236,420 $711,763 $891,240
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Business Solutions
Revenue $33,233 $68,789 $116,597 $205,304
Change in deferred
revenues 2,645 1,172 4,125 5,487
Business Solutions
Collections $35,878 $69,961 $120,722 $210,791
Wix.com Ltd.
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(1) Share based compensation expenses:
(unaudited)
(unaudited)
Cost of revenues $1,582 $3,172 $5,854 $9,127
Research and development 14,900 22,170 56,161 76,883
Selling and marketing 4,614 6,774 18,458 22,845
General and administrative 7,377 10,590 28,864 38,458
Total share based compensation expenses 28,473 42,706 109,337 147,313
---
(2) Amortization 2,385 619 4,588 2,577
(3) Acquisition related expenses 1,868 1,686 2,485 5,811
(4) Amortization of debt discount and debt issuance costs 5,353 11,411 20,938 29,954
(5) Sales tax accrual and other G&A expenses (income) 2,135 2,810 5,309 4,299
(6) Non-operating foreign exchange expenses (income) 1,257 1,925 2,905 2,352
Total adjustments of GAAP to Non GAAP $41,471 $61,157 $145,562 $192,306
Wix.com Ltd.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Gross Profit $147,353 $179,227 $564,181 $673,061
Share based compensation expenses 1,582 3,172 5,854 9,127
Acquisition related expenses 260 765
Amortization 1,526 90 1,951 316
Non GAAP Gross Profit 150,461 182,749 571,986 683,269
---
Non GAAP Gross margin 74% 65% 75% 69%
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Gross Profit - Creative Subscriptions $137,935 $163,467 $523,586 $615,917
Share based compensation expenses 1,334 2,386 4,994 7,140
Non GAAP Gross Profit - Creative Subscriptions 139,269 165,853 528,580 623,057
---
Non GAAP Gross margin - Creative Subscriptions 81% 78% 82% 80%
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Gross Profit - Business Solutions $9,418 $15,760 $40,595 $57,144
Share based compensation expenses 248 786 860 1,987
Acquisition related expenses 260 765
Amortization 1,526 90 1,951 316
Non GAAP Gross Profit - Business Solutions 11,192 16,896 43,406 60,212
---
Non GAAP Gross margin - Business Solutions 34% 25% 37% 29%
Wix.com Ltd.
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Operating loss $(17,692) $(55,460) $(80,250) $(197,342)
Adjustments:
Share based compensation expenses 28,473 42,706 109,337 147,313
Amortization 2,385 619 4,588 2,577
Sales tax accrual and other G&A expenses (income) 2,135 2,810 5,309 4,299
Acquisition related expenses 1,868 1,686 2,485 5,811
Total adjustments $34,861 $47,821 $121,719 $160,000
Non GAAP operating income (loss) $17,169 $(7,639) $41,469 $(37,342)
Wix.com Ltd.
RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) PER SHARE
(In thousands, except per share data)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Net loss $(21,573) $(62,789) $(86,414) $(216,520)
Share based compensation expense and other Non GAAP adjustments 41,471 61,157 145,562 192,306
Non-GAAP net income (loss) $19,898 $(1,632) $59,148 $(24,214)
Basic Non GAAP net income (loss) per share $0.39 $(0.03) $1.17 $(0.44)
Weighted average shares used in computing basic Non GAAP net income (loss) per share 51,321,155 55,809,471 50,504,698 54,425,056
===
Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Net cash provided by operating activities $41,237 $28,550 $149,564 $148,049
Capital expenditures, net (3,766) (5,380) (22,066) (18,853)
Free Cash Flow $37,471 $23,170 $127,498 $129,196
Capex related to future Wix HQ office build-out 792 2,462
Free Cash Flow, excluding capex related to future Wix HQ office build-out $37,471 $23,962 $127,498 $131,658
Wix.com Ltd.
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Three Months Ended
Year Ended
December 31,
December 31,
---
2019 2020 2019 2020
---
(unaudited)
(unaudited)
Basic and
diluted
weighted
average number
of shares
outstanding 51,321,155 55,809,471 50,504,698 54,425,056
===
The following items have been excluded from
the diluted weighted average number of shares
outstanding because they are anti-dilutive:
Stock options 7,447,519 4,621,780 7,447,519 4,621,780
Restricted share
units 2,125,440 2,078,427 2,125,440 2,078,427
Convertible
Notes (if-
converted) 3,104,251 4,428,999 3,104,251 4,428,999
63,998,365 66,938,677 63,181,908 65,554,262
===
Wix.com Ltd.
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
(In thousands)
Three Months Ended
Year Ended
March 31, 2021 December 31, 2021
Low
High
Low
High
---
Projected
revenues 291,000 296,000 1,272,000 1,286,000
Projected
change in
deferred
revenues 49,000 54,000 163,000 169,000
Projected
Collections $340,000 $350,000 $1,435,000 $1,455,000
===
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SOURCE Wix.com Ltd.
