Wix Announces Court Approved Extension of Share Repurchase Program and Provides Update on Repurchase Activity through Q4 2022

Rhea-AI Summary

Wix.com Ltd. (Nasdaq: WIX) announced on January 4, 2023, that an Israeli court has approved an extension of its share repurchase program by six months, now ending on July 4, 2023. The program allows for the repurchase of up to $110 million in ordinary shares and convertible notes. As of December 31, 2022, Wix repurchased 2,928,611 shares for a total of $243 million under a previously authorized $300 million program. The continuation reflects management's confidence in generating free cash flow and aims to enhance shareholder value.

Positive

• Court approval for an additional $110 million in share repurchases demonstrates confidence in free cash flow.
• Previous repurchase of 2,928,611 shares highlights commitment to managing dilution and increasing shareholder value.

Negative

• Limited to a remaining balance of $57 million under the existing repurchase program before the new court authorization.

NEW YORK, Jan. 5, 2023 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX), a leading global SaaS platform to create, manage and grow an online presence, today announced that, on January 4, 2023, the Israeli court authorized the Company to extend the Company's repurchase program for an additional six months through July 4, 2023. This authorization provides for the repurchase of up to $110 million of Company ordinary shares and/or convertible notes. The Company may file extension requests with the court on an ongoing basis as required. This new authorization by the court replaces the prior repurchase authorization, which expired December 31, 2022.

Pursuant to the $300 million share repurchase program authorized by the board and announced on October 20, 2022, as of December 31, 2022, the Company repurchased 2,928,611 ordinary shares representing approximately 5% of the Company's total ordinary shares issued and outstanding, for an aggregate purchase price of $243 million, or an average price per share of $83. This new authorization by the court will allow the Company, from time to time in its discretion, to continue to repurchase the Company's ordinary shares up to the $57 million remaining balance under the approved repurchase program. The Company cannot repurchase securities beyond the amount authorized by the board and would need additional board authorization to use the entire $110 million authorized by the court.

"Our share repurchase activity to date demonstrates confidence in our ability to generate free cash flow and our ongoing commitment to managing dilution and increasing shareholder value," said Lior Shemesh, CFO of Wix.

Under the board authorized repurchase program, Company securities may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws and regulations. The repurchase program does not obligate the Company to acquire any particular amount of securities, and the repurchase program may be suspended or discontinued at any time at the Company's discretion. The Company may repurchase all or a portion of the authorized repurchase amount pursuant to a plan that is compliant with Rule 10b5-1 under the United States Securities Exchange Act of 1934, as amended, that is designed to facilitate these purchases. The actual timing, number and value of securities repurchased depend on a number of factors, including the market price of the Company's ordinary shares, general market and economic conditions and other corporate considerations.

About Wix.com Ltd.

Wix is a leading platform to create, manage and grow a digital presence. What began as a website builder in 2006 is now a complete platform providing users with enterprise-grade performance, security and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, Wix enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, anyone can build a powerful digital presence to fulfill their dreams on Wix.

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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, bookings 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 quarterly and annual 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 expectation that we will be able to attract and retain registered users and generate new premium subscriptions; our expectation that we will be able to increase the revenue we derive from the sale of premium subscriptions and business solutions, through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions; our assumption that historical user behavior can be extrapolated to predict future user behavior; our expectations regarding execution of our multi-year strategic plan and cost reduction plan; our prediction of the future revenues generated by our user cohorts and our ability to maintain and increase such revenue growth; our expectation to maintain and enhance our brand and reputation; and thereby increase user retention, user engagement and sales; our expectation that our products created for markets outside of North America will continue to generate growth in those markets; our plans to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectations regarding the extent of the impact on our business and operations of the COVID-19 pandemic, including uncertainty relating to expected consumer dynamics after the COVID-19 pandemic subsides, the effectiveness of government policies, vaccine administration rates and other factors; our expectation regarding the impact of fluctuations in foreign currency exchange rates on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage the growth of our infrastructure; changes we expect may occur to technologies used in our solutions; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of increasing interest rates and inflationary pressures, lasting effects of COVID-19, and as a result of the military invasion of Ukraine by Russia; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners and grow our partner activities as anticipated and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F for the year ended December 31, 2021 filed with the Securities and Exchange Commission on April 1, 2022. 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.

 

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SOURCE Wix.com Ltd.

FAQ

What is the amount authorized for Wix's share repurchase program?

Wix's share repurchase program is authorized for up to $110 million as of January 4, 2023.

When does Wix's extended share repurchase program expire?

The extended share repurchase program expires on July 4, 2023.

How many shares has Wix repurchased under the previous program?

Wix repurchased 2,928,611 shares for a total of $243 million under the previous $300 million program.

What does Wix's share repurchase activity indicate?

Wix's share repurchase activity indicates confidence in generating free cash flow and a commitment to enhancing shareholder value.

What is the remaining balance under Wix's current repurchase authorization?

Wix has a remaining balance of $57 million under the current repurchase authorization.