Wix Reports First Quarter 2024 Results
Wix reported strong Q1 2024 results, with total revenue of $419.8 million, up 12% year-over-year (y/y), and total bookings of $457.3 million, a 10% y/y increase. The company's Creative Subscriptions revenue rose by 9% to $304.3 million, while Business Solutions revenue surged by 20% to $115.5 million. Wix achieved a record free cash flow (FCF) margin of 26%, driven by stable costs and robust product traction, particularly from AI offerings and Wix Studio. GAAP operating income reached $9.7 million, marking the second consecutive quarter of GAAP operating profit. Looking ahead, Wix raised its full-year bookings outlook to $1,796-$1,826 million and revenue forecast to $1,738-$1,761 million. The company anticipates strong bookings growth in the second half of 2024, driven by AI products and Wix Studio.
- Total revenue of $419.8 million, up 12% y/y.
- Total bookings of $457.3 million, up 10% y/y.
- Record FCF margin of 26%, well ahead of the three-year plan.
- GAAP operating income of $9.7 million, marking the second consecutive quarter of GAAP operating profit.
- Creative Subscriptions revenue increased by 9% to $304.3 million.
- Business Solutions revenue surged by 20% to $115.5 million.
- Non-GAAP net income was $77.3 million, or $1.38 per basic share.
- Raised full-year bookings outlook to $1,796-$1,826 million.
- Increased full-year revenue forecast to $1,738-$1,761 million.
- Achieved significant usage of AI Website Builder and Wix Studio.
- Total employee count decreased by 1% quarter-over-quarter.
- Stock-based compensation expected to remain approximately 13% of revenue in 2024.
Insights
Wix's first quarter 2024 results showcase a robust financial performance that exceeded expectations. The company reported total bookings of $457.3 million, a 10% year-over-year increase and total revenue of $419.8 million, marking a 12% growth compared to the previous year. Furthermore, the free cash flow (FCF) margin reached a record 26%, notably ahead of the anticipated timeline. This exceptional performance is likely to boost investor confidence in Wix, reflecting strong product traction and effective cost management.
In particular, the significant uptake in Wix Studio and AI products, with a high conversion rate to premium subscriptions, indicates a successful product strategy. The company's revised outlook, expecting a 16% bookings growth in the second half and an FCF margin of 26% for the full year 2024, underscores its growth trajectory and financial health. This is a positive signal for investors, suggesting that Wix is well-positioned for sustained growth and profitability.
Analyzing the market dynamics, Wix's achievements in Q1 2024 are indicative of its growing market share and the effectiveness of its strategic initiatives. The 33% year-over-year growth in Partners revenue and the 20% growth in Business Solutions revenue demonstrate Wix's ability to diversify its revenue streams and capture new market segments. The strong performance of its AI and Studio products highlights Wix's innovation capabilities and its appeal to professional users, which could have long-term positive implications for market positioning.
The increase in the company's full-year bookings outlook, driven by higher renewal rates and retention of existing users, suggests a stable and loyal customer base. This stability, coupled with the expected acceleration in revenue growth in 2025, paints a promising picture for Wix's market prospects. Investors should note the potential for continued market share gains as Wix leverages its innovative products and strategic partnerships.
From a technological perspective, Wix's advancements in AI and the success of its Wix Studio product are noteworthy. The rapid adoption of the AI Website Builder, with hundreds of thousands of sites created within a few months, showcases the platform's appeal and the substantial value it offers to users. The AI tools' ability to enhance user experience and streamline website creation processes is a significant competitive advantage in the SaaS website builder market.
Moreover, the high conversion rates of Wix Studio users to premium subscriptions indicate that the product meets the demands of professional designers and developers. This could lead to increased user engagement and higher lifetime value of customers. The emphasis on AI and advanced design capabilities positions Wix well to capitalize on future technological trends and maintain its leadership in the market.
Record increase to FCF outlook driven by Q1 outperformance and expected 2H bookings acceleration – now anticipating
- Strong start to year with total bookings of
$457.3 million 10% y/y driven by reacceleration of Creative Subscriptions growth - Total revenue of
$419.8 million 12% y/y driven by continued momentum in the Partners business – reflecting market share gains and stronger than anticipated Wix Studio uptake - Robust top-line growth coupled with stable optimized cost structure drove record FCF1 margin of
26% in the most recent quarter- GAAP operating income of
$9.7 million
- GAAP operating income of
- Expect acceleration of both Self Creators and Partners bookings growth in second half of 2024, driven by strong traction of expanding AI product suite and Studio, as well as encouraging business fundamentals
- Increasing 2024 bookings outlook with 2H bookings growth expected to accelerate to
16% y/y vs.15% previously expected - Increasing 2024 FCF1 margin outlook to ~
26% – well ahead of three-year plan as25% + FCF margin target was previously anticipated for 2025
- Increasing 2024 bookings outlook with 2H bookings growth expected to accelerate to
"Building on the milestones achieved in 2023, we carried that momentum into the first quarter and delivered a strong start to 2024 with results demonstrating the efficacy of our product strategy, solid execution of our growth initiatives, and steadfast commitment to balanced profitable growth. As a result, Q1 results outperformed expectations across the board," said Avishai Abrahami, Wix Co-founder and CEO. "This outperformance was underpinned by robust business fundamentals as well as strong product traction, particularly for our expansive AI product offering and Wix Studio. Notably, we saw extremely strong usage of our AI Website Builder that was launched earlier in the quarter with hundreds of thousands of sites already created using the tool over just a few months. Wix Studio also continues to perform ahead of plan, with over one million Studio accounts created since our August launch. Importantly, these accounts have resulted in more Studio premium subscriptions than anticipated as Studio users have converted at a high rate. This high conversion of Studio users is a testament to the powerful design, creation and workflow management capabilities that professionals cannot get anywhere else. We continue to expect AI and Studio to be increasingly more meaningful drivers of growth in 2024 and the years to come."
"We kicked off 2024 with a strong start to the year with top-line growth and profitability exceeding expectations in Q1, positioning us within close reach of the Rule of 40," added Lior Shemesh, CFO at Wix. "Of note, bookings growth accelerated to
Encouraged by the Q1 outperformance and strong cohort behavior across our business, we are raising bookings, revenue and FCF outlook for the year. Bookings growth is now expected to accelerate to
This improved bookings trend is expected to translate into strong y/y revenue growth acceleration in 2025. As a result of this broad-based strength and the maintenance of our stable cost structure, we are confident that we will significantly surpass the Rule of 40 in 2025."
Q1 2024 Financial Results
- Total revenue in the first quarter of 2024 was
$419.8 million 12% y/y- Creative Subscriptions revenue in the first quarter of 2024 was
$304.3 million 9% y/y - Creative Subscriptions ARR increased to
$1.24 billion 10% y/y
- Creative Subscriptions revenue in the first quarter of 2024 was
- Business Solutions revenue in the first quarter of 2024 was
$115.5 million 20% y/y- Transaction revenue3 was
$49.5 million 17% y/y
- Transaction revenue3 was
- Partners revenue4 in the first quarter of 2024 was
$138.4 million 33% y/y - Total bookings in the first quarter of 2024 were
$457.3 million 10% y/y- Creative Subscriptions bookings in the first quarter of 2024 were
$334.6 million 7% y/y - Business Solutions bookings in the first quarter of 2024 were
$122.6 million 21% y/y
- Creative Subscriptions bookings in the first quarter of 2024 were
- Total gross margin on a GAAP basis in the first quarter of 2024 was
67% - Creative Subscriptions gross margin on a GAAP basis was
82% - Business Solutions gross margin on a GAAP basis was
29%
- Creative Subscriptions gross margin on a GAAP basis was
- Total non-GAAP gross margin in the first quarter of 2024 was
68% - Creative Subscriptions gross margin on a non-GAAP basis was
83% - Business Solutions gross margin on a non-GAAP basis was
30%
- Creative Subscriptions gross margin on a non-GAAP basis was
- GAAP net income in the first quarter of 2024 was
$24.0 million $0.43 $0.41 - Non-GAAP net income in the first quarter of 2024 was
$77.3 million $1.38 $1.29 - Net cash provided by operating activities for the first quarter of 2024 was
$113.8 million $8.1 million $105.7 million - Excluding capital expenditures and other expenses associated with the build out of our new corporate headquarters free cash flow for the first quarter of 2024 would have been
$111.1 million 26% of revenue - As previously announced in February, we completed
$300 million $124.91 - Total employee count at the end of Q1'24 was 5,235, down
1% q/q
____________________ | |
1 | Free cash flow excluding expenses associated with the buildout of our new corporate headquarters. |
2 | Based on the number of active live sites as reported by key competitors' figures, independent third-party-data and internal data as of Q4 2023. |
3 | Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions. |
4 | Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users ("Agencies") as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint ("Resellers"). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses. |
* | In Q1 2024, the definition was slightly revised to exclude revenue generated from agreements with enterprise users that by their nature are more suitable to be categorized under revenue generated by Self Creators. Such revision had an immaterial impact on prior period amounts. |
Financial Outlook
Our outstanding Q1 results, which exceeded expectations, demonstrate the strong traction of our marquee products, efficacy of our key strategic initiatives, and robust underlying business fundamentals against a stable macro backdrop. We remain confident in our ability to significantly surpass the Rule of 40 in 2025.
Given Q1 outperformance along with continued robust cohort behavior and strong business trends, we are increasing full year bookings outlook to
This increase reflects 2H24 y/y bookings growth acceleration in both Self Creators and Partners. Self Creators growth acceleration is expected to be propelled by AI products driving higher conversion and product attach. Partners growth acceleration is expected to be primarily driven by Studio ramping and contributing more meaningfully through the year than initially planned. This increase in outlook also reflects better than expected dynamics around the price increase we implemented this quarter as renewals prove to be stickier and retention of existing users higher than expected. We now expect total bookings in the second half of 2024 to accelerate to
This improved bookings trend is expected to translate into y/y revenue growth acceleration in 2025.
We are also increasing our full year revenue outlook to
We expect total revenue in Q2 2024 of
For the full year 2024, we continue to expect non-GAAP total gross margin of 68
We now expect non-GAAP operating expenses to be 50
We continue to expect positive GAAP operating income in 2024 as well as a second consecutive year of GAAP net income.
We now expect to generate free cash flow, excluding headquarters costs, of
Given increased share repurchase activity as well as continued share count management, we anticipate to end 2024 with 62 - 63 million of fully diluted shares.
Expected stronger cash flow generation in conjunction with this share count forecast, translates to a higher expected FCF per share trajectory for the full year than previously anticipated.
Finally, we continue to expect stock-based compensation to be approximately
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Monday, May 20, 2024. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BI339cba3199544dd8849f139294973ae9. A replay of the call will be available through May 19, 2025 via the registration link.
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 the leading SaaS website builder platform globally2 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.
For more about Wix, please visit our Press Room
Investor Relations:
Media Relations:
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidated financial statements, which are prepared and presented in accordance with
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 bookings, 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) as a key operating metric. 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) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.
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 partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including 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 and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence ("AI"), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability 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 expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends 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 our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; 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 and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the
Wix.com Ltd. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | |||
(In thousands, except loss per share data) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Revenues | |||
Creative Subscriptions | $ 304,293 | $ 278,130 | |
Business Solutions | 115,483 | 95,946 | |
419,776 | 374,076 | ||
Cost of Revenues | |||
Creative Subscriptions | 54,803 | 57,484 | |
Business Solutions | 82,494 | 71,994 | |
137,297 | 129,478 | ||
Gross Profit | 282,479 | 244,598 | |
Operating expenses: | |||
Research and development | 124,245 | 114,943 | |
Selling and marketing | 107,234 | 99,133 | |
General and administrative | 41,330 | 38,517 | |
Impairment, restructuring and other costs | 0 | 25,338 | |
Total operating expenses | 272,809 | 277,931 | |
Operating income (loss) | 9,670 | (33,333) | |
Financial income, net | 18,884 | 21,377 | |
Other income | 211 | 57 | |
Income (loss) before taxes on income | 28,765 | (11,899) | |
Income tax expenses (benefit) | 4,763 | (1,530) | |
Net income (loss) | $ 24,002 | $ (10,369) | |
Basic net income (loss) per share | $ 0.43 | $ (0.18) | |
Basic weighted-average shares used to compute net income (loss) per share | 56,098,997 | 56,408,677 | |
Diluted net income (loss) per share | $ 0.41 | $ (0.18) | |
Diluted weighted-average shares used to compute net income (loss) per share | 58,647,238 | 56,408,677 | |
Wix.com Ltd. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
Period ended | |||
March 31, | December 31, | ||
2024 | 2023 | ||
Assets | (unaudited) | (audited) | |
Current Assets: | |||
Cash and cash equivalents | $ 513,323 | $ 609,622 | |
Short-term deposits | 241,987 | 212,709 | |
Restricted deposits | 1,306 | 2,125 | |
Marketable securities | 126,910 | 140,563 | |
Trade receivables | 56,275 | 57,394 | |
Prepaid expenses and other current assets | 60,075 | 47,792 | |
Total current assets | 999,876 | 1,070,205 | |
Long-Term Assets: | |||
Prepaid expenses and other long-term assets | 28,292 | 34,296 | |
Property and equipment, net | 136,981 | 136,928 | |
Marketable securities | 34,935 | 64,806 | |
Intangible assets, net | 26,527 | 28,010 | |
Goodwill | 49,329 | 49,329 | |
Operating lease right-of-use assets | 416,140 | 420,562 | |
Total long-term assets | 692,204 | 733,931 | |
Total assets | $ 1,692,080 | $ 1,804,136 | |
Liabilities and Shareholders' Deficiency | |||
Current Liabilities: | |||
Trade payables | $ 34,434 | $ 38,305 | |
Employees and payroll accruals | 54,152 | 56,581 | |
Deferred revenues | 626,081 | 592,608 | |
Current portion of convertible notes, net | - | - | |
Accrued expenses and other current liabilities | 74,974 | 76,556 | |
Operating lease liabilities | 23,494 | 24,981 | |
Total current liabilities | 813,135 | 789,031 | |
Long Term Liabilities: | |||
Long-term deferred revenues | 91,230 | 83,384 | |
Long-term deferred tax liability | 1,595 | 7,167 | |
Convertible notes, net | 570,504 | 569,714 | |
Other long-term liabilities | 9,759 | 7,699 | |
Long-term operating lease liabilities | 400,063 | 401,626 | |
Total long-term liabilities | 1,073,151 | 1,069,590 | |
Total liabilities | 1,886,286 | 1,858,621 | |
Shareholders' Deficiency | |||
Ordinary shares | 107 | 110 | |
Additional paid-in capital | 1,620,838 | 1,539,952 | |
Treasury Stock | (800,172) | (558,875) | |
Accumulated other comprehensive loss | 883 | 4,192 | |
Accumulated deficit | (1,015,862) | (1,039,864) | |
Total shareholders' deficiency | (194,206) | (54,485) | |
Total liabilities and shareholders' deficiency | $ 1,692,080 | $ 1,804,136 | |
Wix.com Ltd. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
OPERATING ACTIVITIES: | |||
Net income (loss) | $ 24,002 | $ (10,369) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | $ 6,442 | 4,922 | |
Amortization | $ 1,483 | 1,488 | |
Share based compensation expenses | $ 58,142 | 54,521 | |
Amortization of debt discount and debt issuance costs | $ 790 | 1,308 | |
Changes in accrued interest and exchange rate on short term and long term deposits | $ 880 | (25) | |
Non-cash impairment, restructuring and other costs | $ - | 20,834 | |
Amortization of premium and discount and accrued interest on marketable securities, net | $ 597 | 540 | |
Remeasurement gain on Marketable equity | $ (3,367) | (13,898) | |
Changes in deferred income taxes, net | $ (5,011) | (4,144) | |
Changes in operating lease right-of-use assets | $ 5,024 | 5,796 | |
Changes in operating lease liabilities | $ (3,652) | (8,121) | |
Loss on foreign exchange, net | $ 553 | - | |
Decrease (increase) in trade receivables | $ 1,119 | (10,474) | |
Increase in prepaid expenses and other current and long-term assets | $ (12,568) | (10,858) | |
Decrease in trade payables | $ (2,123) | (41,670) | |
Decrease in employees and payroll accruals | $ (2,429) | (10,042) | |
Increase in short term and long term deferred revenues | $ 41,319 | 60,975 | |
Increase in accrued expenses and other current liabilities | $ 2,635 | 5,178 | |
Net cash provided by operating activities | $ 113,836 | 45,961 | |
INVESTING ACTIVITIES: | |||
Proceeds from short-term deposits and restricted deposits | $ 823 | 56,091 | |
Investment in short-term deposits and restricted deposits | $ (30,162) | (58,980) | |
Investment in marketable securities | $ (27,847) | - | |
Proceeds from marketable securities | $ 52,805 | 58,390 | |
Purchase of property and equipment and lease prepayment | $ (7,715) | (19,574) | |
Capitalization of internal use of software | $ (410) | (1,358) | |
Proceeds from sale of equity securities | $ 22,148 | 31,861 | |
Purchases of investments in privately held companies | $ (550) | (7,500) | |
Net cash provided by investing activities | $ 9,092 | 58,930 | |
FINANCING ACTIVITIES: | |||
Proceeds from exercise of options and ESPP shares | $ 22,628 | 19,655 | |
Purchase of treasury stock | $ (241,302) | (18,319) | |
Net cash provided by (used in) financing activities | $ (218,674) | 1,336 | |
Effect of exchange rates on cash, cash equivalent and restricted cash | $ (553) | - | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $ (96,299) | 106,227 | |
CASH AND CASH EQUIVALENTS—Beginning of period | $ 609,622 | 244,686 | |
CASH AND CASH EQUIVALENTS—End of period | $ 513,323 | $ 350,913 | |
Wix.com Ltd. | |||
KEY PERFORMANCE METRICS | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Creative Subscriptions | 304,293 | 278,130 | |
Business Solutions | 115,483 | 95,946 | |
Total Revenues | $ 419,776 | $ 374,076 | |
Creative Subscriptions | 334,637 | 313,429 | |
Business Solutions | 122,644 | 101,476 | |
Total Bookings | $ 457,281 | $ 414,905 | |
Free Cash Flow | $ 105,711 | $ 25,029 | |
Free Cash Flow excluding HQ build out and restructuring costs | $ 111,073 | $ 44,029 | |
Creative Subscriptions ARR | $ 1,244,264 | $ 1,134,662 | |
Wix.com Ltd. | |||
RECONCILIATION OF REVENUES TO BOOKINGS | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Revenues | $ 419,776 | $ 374,076 | |
Change in deferred revenues | 41,319 | 60,975 | |
Change in unbilled contractual obligations | (3,814) | (20,146) | |
Bookings | $ 457,281 | $ 414,905 | |
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Creative Subscriptions Revenues | $ 304,293 | $ 278,130 | |
Change in deferred revenues | 34,158 | 55,445 | |
Change in unbilled contractual obligations | (3,814) | (20,146) | |
Creative Subscriptions Bookings | $ 334,637 | $ 313,429 | |
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Business Solutions Revenues | $ 115,483 | $ 95,946 | |
Change in deferred revenues | 7,161 | 5,530 | |
Business Solutions Bookings | $ 122,644 | $ 101,476 | |
Wix.com Ltd. | |||
RECONCILIATION OF COHORT BOOKINGS | |||
(In millions) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
Q1 Cohort revenues | $ 9 | $ 8 | |
Q1 Change in deferred revenues | 23 | 22 | |
Q1 Cohort Bookings | $ 32 | $ 30 | |
Wix.com Ltd. | |||
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Revenues | $ 419,776 | $ 374,076 | |
FX impact on Q1/24 using Y/Y rates | (1,422) | - | |
Revenues excluding FX impact | $ 418,354 | $ 374,076 | |
Y/Y growth | 12 % | ||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Bookings | $ 457,281 | $ 414,905 | |
FX impact on Q1/24 using Y/Y rates | (1,115) | - | |
Bookings excluding FX impact | $ 456,166 | $ 414,905 | |
Y/Y growth | 10 % | ||
Wix.com Ltd. | |||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(1) Share based compensation expenses: | (unaudited) | ||
Cost of revenues | $ 3,590 | $ 4,238 | |
Research and development | 31,102 | 28,294 | |
Selling and marketing | 10,483 | 9,558 | |
General and administrative | 12,967 | 12,431 | |
Total share based compensation expenses | 58,142 | 54,521 | |
(2) Amortization | 1,483 | 1,488 | |
(3) Acquisition related expenses | 5 | 196 | |
(4) Amortization of debt discount and debt issuance costs | 790 | 1,308 | |
(5) Impairment, restructuring and other costs | - | 25,338 | |
(6) Sales tax accrual and other G&A expenses | 121 | 308 | |
(7) Unrealized gain on equity and other investments | (3,367) | (13,898) | |
(8) Non-operating foreign exchange income | (4,663) | (3,662) | |
(9) Provision for income tax effects related to non-GAAP adjustments | 774 | (4,131) | |
Total adjustments of GAAP to Non GAAP | $ 53,285 | $ 61,468 | |
Wix.com Ltd. | |||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Gross Profit | $ 282,479 | $ 244,598 | |
Share based compensation expenses | 3,590 | 4,238 | |
Acquisition related expenses | - | 24 | |
Amortization | 667 | 667 | |
Non GAAP Gross Profit | 286,736 | 249,527 | |
Non GAAP Gross margin | 68 % | 67 % | |
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Gross Profit - Creative Subscriptions | $ 249,490 | $ 220,646 | |
Share based compensation expenses | 2,669 | 3,151 | |
Non GAAP Gross Profit - Creative Subscriptions | 252,159 | 223,797 | |
Non GAAP Gross margin - Creative Subscriptions | 83 % | 80 % | |
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Gross Profit - Business Solutions | $ 32,989 | $ 23,952 | |
Share based compensation expenses | 921 | 1,087 | |
Acquisition related expenses | - | 24 | |
Amortization | 667 | 667 | |
Non GAAP Gross Profit - Business Solutions | 34,577 | 25,730 | |
Non GAAP Gross margin - Business Solutions | 30 % | 27 % | |
Wix.com Ltd. | |||
RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Operating income (loss) | $ 9,670 | $ (33,333) | |
Adjustments: | |||
Share based compensation expenses | 58,142 | 54,521 | |
Amortization | 1,483 | 1,488 | |
Impairment, restructuring and other charges | - | 25,338 | |
Sales tax accrual and other G&A expenses | 121 | 308 | |
Acquisition related expenses | 5 | 196 | |
Total adjustments | $ 59,751 | $ 81,851 | |
Non GAAP operating income | $ 69,421 | $ 48,518 | |
Non GAAP operating margin | 17 % | 13 % | |
Wix.com Ltd. | |||
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE | |||
(In thousands, except per share data) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Net income (loss) | $ 24,002 | $ (10,369) | |
Share based compensation expenses and other Non GAAP adjustments | 53,285 | 61,468 | |
Non-GAAP net income | $ 77,287 | $ 51,099 | |
Basic Non GAAP net income per share | $ 1.38 | $ 0.91 | |
Weighted average shares used in computing basic Non GAAP net income per share | 56,098,997 | 56,408,677 | |
Diluted Non GAAP net income per share | $ 1.29 | $ 0.91 | |
Weighted average shares used in computing diluted Non GAAP net income per share | 60,073,986 | 56,408,677 | |
Wix.com Ltd. | |||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||
(In thousands) | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Net cash provided by operating activities | $ 113,836 | $ 45,961 | |
Capital expenditures, net | (8,125) | (20,932) | |
Free Cash Flow | $ 105,711 | $ 25,029 | |
Restructuring and other costs | - | 2,051 | |
Capex related to HQ build out | 5,362 | 16,949 | |
Free Cash Flow excluding HQ build out and restructuring costs | $ 111,073 | $ 44,029 | |
Wix.com Ltd. | |||
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER | |||
Three Months Ended | |||
March 31, | |||
2024 | 2023 | ||
(unaudited) | |||
Basic weighted-average shares used to compute net income (loss) per share | 56,098,997 | 56,408,677 | |
Effect of dilutive securities (included in the effect of dilutive securities is the assumed conversion of employee stock | 2,548,241 | - | |
Diluted weighted-average shares used to compute net income (loss) per share | 58,647,238 | 56,408,677 | |
The following items have been excluded from the diluted weighted average number of shares outstanding because | |||
Stock options | 1,315,926 | 4,149,981 | |
Restricted share units | 406,968 | 3,538,527 | |
Convertible Notes (if-converted) | 1,426,748 | 3,969,514 | |
61,796,880 | 68,066,699 | ||
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SOURCE Wix.com Ltd.
FAQ
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