Wix Reports Fourth Quarter and Full Year 2022 Results
Wix.com Ltd. reported Q4 2022 total revenue of $355 million, up 6% year-over-year, and achieved the highest free cash flow in its history at $52 million. The company expects to generate an additional $50 million in cost savings in 2023, accelerating its path to profitability. Wix aims for positive GAAP net income by FY 2025 and anticipates a free cash flow margin of 10-11% for 2023, improving to 12-13% by year-end. Despite reducing acquisition marketing by 50%, new cohort bookings remained stable, showcasing brand strength. The company executed $243 million in share repurchases, indicating management's confidence in future performance.
- Q4 2022 revenue of $355 million, up 6% y/y.
- Strongest free cash flow quarter in Wix history at $52 million.
- Expected additional $50 million in cost savings for 2023.
- Targeting positive GAAP net income by FY 2025.
- Projected free cash flow margin of 10-11% for 2023, increasing to 12-13%.
- Executed $243 million in share repurchases, representing 5% of total shares outstanding.
- GAAP net loss of $(39 million), or $(0.67) per share in Q4 2022.
- Full year 2022 GAAP net loss of $(424.9 million), or $(7.33) per share.
- Finished 2022 ahead of guidance, with total revenue of
$355.0 million 6% y/y; total revenue was$361.4 million 8% y/y on a constant currency basis - Q4'22 was the most profitable FCF quarter in Wix history with FCF1 of
$52.0 million - Cost efficiencies expected to generate an additional
$50 million ~ annualized), accelerating path to profitability$65 million - Creative Subscriptions non-GAAP gross margin expected to reach
80% in FY 2023 - Expecting FCF1 margin of 10
-11% of revenue for full year 2023, increasing each quarter and exiting the year at 12-13% - Accelerated profitability drives new goal of achieving positive GAAP net income in FY 2025, ahead of plan
- Confident and committed to achieving "Rule of 40" in FY 2025 under varying future growth scenarios
- Exceptional brand strength of Wix enabling an evolution in our marketing strategy and demonstrating our category leadership -- despite reducing acquisition marketing spend by ~
50% in Q4, we have seen stable new cohort bookings - Executed
$243 million 5% of our total ordinary shares outstanding, underscoring board and management conviction in our current and future ability to generate strong free cash flow
"In the face of a dynamic macroeconomic environment this year, we shifted our focus toward tightening spending and becoming more efficient in the execution of our priorities. Through all of this, we continued to lead through innovation. We released hundreds of new products and features throughout 2022 to improve our platform for self creators and partners. Among the most notable releases this year were
Accelerated Path to Profitability
We are confident in and committed to achieving "Rule of 40" in FY2025 under varying future growth scenarios with the acceleration of our path to profitability through additional cost reduction measures.
On top of the
As a result of these actions, we now expect to achieve key financial milestones approximately 2 years sooner than previously anticipated in our three-year plan:
- Non-GAAP gross margin is expected to increase to
66% in FY2023 with an exit margin of67% . Creative Subscriptions non-GAAP gross margin is expected to reach80% in FY2023 - Non-GAAP operating expenses are expected to be down to 59
-60% of revenue for FY2023 – a level previously anticipated for FY2025 - More than
$100 million - Positive GAAP operating income and net income expected for FY2025 – targets previously anticipated beyond the three-year horizon
- Partners business expected to generate positive FCF by mid-FY2024 – more than a year ahead of our three-year plan shared in
May 2022
With increased efficiency across our business as well as improved technological capabilities achieved over the last couple of years, we made the difficult decision to rightsize the organization to meet current demand needs. As a result, we heavy-heartedly parted ways with approximately 370 of our employees last week, or nearly
This headcount reduction, in addition to the efficiency efforts and savings implemented throughout 2022, will bring our total headcount from nearly 6,100 at the end of Q1'22 to roughly 5,200 at the end of this process, reflecting a
Success in Evolving our Marketing Strategy
As mentioned last quarter, in September we began tests to adjust our marketing approach to focus on higher-intent users. We accelerated this testing throughout Q4, and in doing so, we reduced investment in acquisition marketing in the quarter by nearly
The results were outstanding. Despite reducing acquisition marketing spend by
We believe the driver of this success is the strength of our brand. Our investments in building a global, scaled brand over the past 15 years have made Wix synonymous with relevant general keywords on the internet. So when people are searching for a "website builder", for example, they are actually searching for Wix.
Based on these phenomenal results, we plan to continue executing this new marketing strategy and expect investment in acquisition marketing to remain at these reduced levels throughout 2023. We also plan to shift dollars to invest more into our brand going forward in order to drive future growth. We will continue developing plans throughout 1H23 for this new marketing strategy and expect brand marketing investment to be higher in 2H23. We currently estimate this increased brand marketing investment to be roughly 3
Q4 2022 Financial Results
- Total revenue in the fourth quarter of 2022 was
$355.0 million 6% y/y - Total revenue on a y/y constant currency basis was
$361.4 million 8% y/y - Creative Subscriptions revenue in the fourth quarter of 2022 was
$265.3 million 8% y/y - Creative Subscriptions ARR increased to
$1.08 billion 7% y/y - Business Solutions revenue in the fourth quarter of 2022 was
$89.8 million 3% y/y - Transaction revenue3 was
$38.9 million 8% y/y - Partners revenue4 in the fourth quarter of 2022 was
$94.6 million 23% y/y - Total bookings in the fourth quarter of 2022 were
$371.8 million 6% y/y - Total bookings on a y/y constant currency basis were
$385.8 million 10% y/y - Creative Subscriptions bookings in the fourth quarter of 2022 were
$281.8 million 7% y/y - Business Solutions bookings in the fourth quarter of 2022 were
$90.0 million 3% y/y - Total gross margin on a GAAP basis in the fourth quarter of 2022 was
64% - Creative Subscriptions gross margin on a GAAP basis was
78% - Business Solutions gross margin on a GAAP basis was
22% - Total non-GAAP gross margin in the fourth quarter of 2022 was
65% - Creative Subscriptions gross margin on a non-GAAP basis was
79% - Business Solutions gross margin on a non-GAAP basis was
24% - GAAP net loss in the fourth quarter of 2022 was
$(39.0) million $(0.67) - Non-GAAP net income in the fourth quarter of 2022 was
$35.6 million $0.61 - Net cash provided by operating activities for the fourth quarter of 2022 was
$53.2 million $14.6 million $38.6 million - Excluding the capex investment associated with our new headquarters office build out, free cash flow for the fourth quarter of 2022 would have been
$52.0 million - Executed
$243 million 5% of total shares outstanding, under Board-authorized$300 million
FY 2022 Financial Results
- Total revenue for the full year 2022 was
$1.39 billion 9% y/y - Total revenue on a y/y constant currency basis was
$1.40 billion 11% y/y - Creative Subscriptions revenue for the full year 2022 was
$1.04 billion 9% y/y - Business Solutions revenue for the full year 2022 was
$348.2 million 9% y/y - Transaction revenue3 for the full year was
$148.2 million 14% y/y - Partners revenue4 for the full year 2022 was
$348.2 million 29% y/y - Total bookings for the full year 2022 were
$1.47 billion 4% y/y - Total bookings on a y/y constant currency basis were
$1.52 billion 7% y/y - Creative Subscriptions bookings for the full year 2022 were
$1.12 billion 3% y/y - Business Solutions bookings for the full year 2022 were
$350.7 million 6% y/y - Total gross margin on a GAAP basis for the full year 2022 was
62% - Creative Subscriptions gross margin on a GAAP basis was
76% - Business Solutions gross margin on a GAAP basis was
21% - Total non-GAAP gross margin for the full year 2022 was
64% - Creative Subscriptions gross margin on a non-GAAP basis was
77% - Business Solutions gross margin on a non-GAAP basis was
23% - GAAP net loss for the full year 2022 was
$(424.9) million $(7.33) - Non-GAAP net loss for the full year 2022 was
$(10.0) million $(0.17) - Net cash provided by operating activities for the full year 2022 was
$37.2 million $70.7 million $(33.5) million - Excluding the capex investment associated with our new headquarters office build out, free cash flow for the full year 2022 would have been
$32.4 million - Added 96 thousand net premium subscriptions in full year 2022 to reach nearly 6.1 million as of
December 31, 2022 , a2% increase over the total number of premium subscriptions atDecember 31, 2021 - Registered users as of
December 31, 2022 were 243 million, representing a10% increase compared toDecember 31, 2021 - Total employee headcount as of
December 31, 2022 of 5,516, including 152 part time employees, down7% y/y
____________________ |
1Free cash flow excluding the capex investment and related costs for the buildout of our new corporate headquarters |
2Cash settlement of share repurchase transactions executed in Q4'22 totaled approximately |
3Transaction 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 |
4Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users as well as revenue generated through B2B partnerships, such as |
Financial Outlook
We are encouraged by the strong fundamentals of our business.
Assuming no deterioration in the macro environment, we expect total revenue in Q1'23 to be
For the full year, we expect total revenue to be
Our focus in 2023 will continue to be on driving cost efficiencies across the business while innovating industry-first products for our users. As a result of the
Non-GAAP gross margin is expected to increase to ~
Non-GAAP operating expenses are expected to be slightly down y/y to 59
We expect depreciation expenses of approximately
As a result, free cash flow excluding HQ investments is expected to be roughly
Finally, stock-based compensation is expected to decrease to
The accelerated profitability expected in 2023 will put us on the path to achieve the "Rule of 40" in 2025.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at
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 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.
For more about Wix, please visit our
Investor Relations:
ir@wix.com
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) 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 in effect on the last day of the period; (ii) the average revenue per month from domain registrations; (iii) monthly revenue from other partnership agreements.
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
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | |||||||||
(In thousands, except loss per share data) | |||||||||
Three Months Ended | Year Ended | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
(unaudited) | (unaudited) | ||||||||
Revenues | |||||||||
Creative Subscriptions | $ 265,268 | $ 246,669 | $ 1,039,479 | $ 950,299 | |||||
Business Solutions | 89,772 | 86,744 | 348,187 | 319,358 | |||||
Marketable securities | 355,040 | 333,413 | 1,387,666 | 1,269,657 | |||||
Cost of Revenues | |||||||||
Creative Subscriptions | 58,427 | 60,789 | 251,587 | 232,619 | |||||
Business Solutions | 70,337 | 71,103 | 274,640 | 255,960 | |||||
128,764 | 131,892 | 526,227 | 488,579 | ||||||
Gross Profit | 226,276 | 201,521 | 861,439 | 781,078 | |||||
Operating expenses: | |||||||||
Research and development | 120,994 | 116,329 | 482,861 | 424,937 | |||||
Selling and marketing | 97,944 | 124,560 | 492,886 | 512,027 | |||||
General and administrative | 39,941 | 56,926 | 171,045 | 169,648 | |||||
Total operating expenses | 258,879 | 297,815 | 1,146,792 | 1,106,612 | |||||
Operating loss | (32,603) | (96,294) | (285,353) | (325,534) | |||||
Financial income (expenses), net | (13,256) | (16,868) | (183,513) | 271,943 | |||||
Other income | 788 | 391 | 1,023 | 584 | |||||
Loss before taxes on income | (45,071) | (112,771) | (467,843) | (53,007) | |||||
Taxes on income (tax benefit) | (6,096) | (3,730) | (42,980) | 64,202 | |||||
Net loss | $ (38,975) | $ (109,041) | $ (424,863) | $ (117,209) | |||||
Basic and diluted net loss per share | $ (0.67) | $ (1.91) | $ (7.33) | $ (2.06) | |||||
Basic and diluted weighted-average shares used to compute net loss per share | 58,189,246 | 57,103,278 | 57,993,364 | 57,004,154 | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(In thousands) | ||||
Period ended | ||||
2022 | 2021 | |||
Assets | (unaudited) | (audited) | ||
Current Assets: | ||||
Cash and cash equivalents | $ 244,686 | $ 451,355 | ||
Short-term deposits | 526,328 | 411,687 | ||
Restricted deposits | 13,669 | 7,012 | ||
Marketable securities | 292,449 | 456,515 | ||
Trade receivables | 42,086 | 30,367 | ||
Prepaid expenses and other current assets | 28,519 | 32,877 | ||
Total current assets | 1,147,737 | 1,389,813 | ||
Long-Term Assets: | ||||
Prepaid expenses and other long-term assets | 23,027 | 41,554 | ||
Property and equipment, net | 108,738 | 50,437 | ||
Marketable securities | 194,964 | 387,341 | ||
Intangible assets and goodwill, net | 83,293 | 89,547 | ||
Operating lease right-of-use assets | 200,608 | 101,095 | ||
Total long-term assets | 610,630 | 669,974 | ||
Total assets | $ 1,758,367 | $ 2,059,787 | ||
Liabilities and Shareholders' Equity (deficiency) | ||||
Current Liabilities: | ||||
Trade payables | $ 96,071 | $ 114,584 | ||
Employees and payroll accruals | 86,113 | 83,251 | ||
Deferred revenues | 529,205 | 484,446 | ||
Current portion of convertible notes, net | 361,621 | - | ||
Accrued expenses and other current liabilities | 88,194 | 62,816 | ||
Operating lease liabilities | 29,268 | 29,201 | ||
Total current liabilities | 1,190,472 | 774,298 | ||
Long Term Liabilities: | ||||
Long-term deferred revenues | 70,594 | 59,966 | ||
Long-term deferred tax liability | 14,902 | 72,803 | ||
Convertible notes, net | 566,566 | 922,974 | ||
Other long-term liabilities | 6,093 | 2,267 | ||
Long-term operating lease liabilities | 172,982 | 81,764 | ||
Total long-term liabilities | 831,137 | 1,139,774 | ||
Total liabilities | 2,021,609 | 1,914,072 | ||
Shareholders' Equity (deficiency) | ||||
Ordinary shares | 108 | 111 | ||
Additional paid-in capital | 1,274,968 | 994,795 | ||
Treasury Stock | (431,862) | (199,997) | ||
Accumulated other comprehensive income | (33,455) | (1,056) | ||
Accumulated deficit | (1,073,001) | (648,138) | ||
Total shareholders' equity (deficiency) | (263,242) | 145,715 | ||
Total liabilities and shareholders' equity | $ 1,758,367 | $ 2,059,787 | ||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
OPERATING ACTIVITIES: | ||||||||
Net loss | $ (38,975) | $ (109,041) | $ (424,863) | $ (117,209) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Marketable securities | 5,209 | 3,524 | 16,611 | 13,929 | ||||
Amortization | 1,511 | 462 | 6,246 | 4,952 | ||||
Share based compensation expenses | 59,917 | 71,294 | 236,836 | 221,391 | ||||
Amortization of debt discount and debt issuance costs | 1,305 | 1,298 | 5,213 | 5,298 | ||||
Changes in accrued interest and exchange rate on short term and long term deposits | (93) | 85 | (86) | (20) | ||||
Amortization of premium and discount and accrued interest on marketable securities, net | 2,447 | 1,642 | 6,252 | 7,843 | ||||
Remeasurement loss (gain) on Marketable equity | 3,955 | 17,718 | 200,338 | (166,323) | ||||
Deferred income taxes, net | (11,997) | (6,760) | (57,865) | 54,454 | ||||
Changes in operating lease right-of-use assets | 18,724 | 9,474 | 45,440 | 28,441 | ||||
Changes in operating lease liabilities | (11,204) | (7,013) | (45,051) | (26,688) | ||||
Increase in trade receivables | (6,290) | (2,379) | (11,719) | (6,250) | ||||
Decrease (increase) in prepaid expenses and other current and long-term assets | 26,713 | 3,029 | (5,912) | (98,468) | ||||
Increase (decrease) in trade payables | (22,667) | 20,896 | (18,514) | 26,595 | ||||
Increase in employees and payroll accruals | 17,506 | 6,872 | 2,862 | 19,391 | ||||
Increase in short term and long term deferred revenues | 4,081 | 6,522 | 55,387 | 82,361 | ||||
Increase in accrued expenses and other current liabilities | 3,092 | 3,418 | 25,977 | 15,988 | ||||
Net cash provided by operating activities | 53,234 | 21,041 | 37,152 | 65,685 | ||||
INVESTING ACTIVITIES: | ||||||||
Proceeds from short-term deposits and restricted deposits | 308,379 | 285,000 | 644,809 | 732,015 | ||||
Investment in short-term deposits and restricted deposits | (317,869) | (155,500) | (766,021) | (572,631) | ||||
Investment in marketable securities | - | (29,377) | (202,611) | (29,377) | ||||
Proceeds from marketable securities | 98,244 | 50,633 | 290,113 | 312,201 | ||||
Purchase of property and equipment and payment of prepaid expenses | (14,434) | (12,789) | (68,554) | (35,770) | ||||
Capitalization of internal use of software | (215) | (913) | (2,110) | (1,930) | ||||
Investment in other short-term assets | - | - | (580) | - | ||||
Proceeds from equity securities | 48,403 | - | 51,596 | 18,771 | ||||
Payment for Businesses acquired, net of acquired cash | - | (115) | - | (42,729) | ||||
Purchases of investments in privately held companies | (40) | (181) | (1,300) | (3,681) | ||||
Net cash provided by (used in) investing activities | 122,468 | 136,758 | (54,658) | 376,869 | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from exercise of options and ESPP shares | 917 | 6,389 | 42,710 | 39,943 | ||||
Purchase of treasury stock | (231,873) | - | (231,873) | (200,000) | ||||
Net cash provided by (used in) financing activities | (230,956) | 6,389 | (189,163) | (160,057) | ||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (55,254) | 164,188 | (206,669) | 282,497 | ||||
CASH AND CASH EQUIVALENTS—Beginning of period | 299,940 | 287,167 | 451,355 | 168,858 | ||||
CASH AND CASH EQUIVALENTS—End of period | $ 244,686 | $ 451,355 | $ 244,686 | $ 451,355 | ||||
KEY PERFORMANCE METRICS | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Creative Subscriptions | 265,268 | 246,669 | 1,039,479 | 950,299 | ||||
Business Solutions | 89,772 | 86,744 | 348,187 | 319,358 | ||||
Total Revenues | $ 355,040 | $ 333,413 | $ 1,387,666 | $ 1,269,657 | ||||
Marketable securities | 281,766 | 264,038 | 1,121,411 | 1,087,879 | ||||
Business Solutions | 90,047 | 87,518 | 350,708 | 330,944 | ||||
Total Bookings | $ 371,813 | $ 351,556 | $ 1,472,119 | $ 1,418,823 | ||||
Free Cash Flow | $ 38,585 | $ 7,339 | $ (33,512) | $ 27,985 | ||||
Free Cash Flow, excluding Capex and other cash costs related to HQ build out | $ 51,990 | $ 17,386 | $ 32,408 | $ 51,434 | ||||
Creative Subscriptions ARR | $ 1,080,824 | $ 1,009,576 | $ 1,080,824 | $ 1,009,576 | ||||
RECONCILIATION OF REVENUES TO BOOKINGS | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Revenues | $ 355,040 | $ 333,413 | $ 1,387,666 | $ 1,269,657 | ||||
Change in deferred revenues | 4,081 | 6,522 | 55,387 | 82,361 | ||||
Change in unbilled contractual obligations | 12,692 | 11,621 | 29,066 | 66,805 | ||||
Bookings | $ 371,813 | $ 351,556 | $ 1,472,119 | $ 1,418,823 | ||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Creative Subscriptions Revenues | $ 265,268 | $ 246,669 | $ 1,039,479 | $ 950,299 | ||||
Change in deferred revenues | 3,806 | 5,748 | 52,866 | 70,775 | ||||
Change in unbilled contractual obligations | 12,692 | 11,621 | 29,066 | 66,805 | ||||
Creative Subscriptions Bookings | $ 281,766 | $ 264,038 | $ 1,121,411 | $ 1,087,879 | ||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Business Solutions Revenues | $ 89,772 | $ 86,744 | $ 348,187 | $ 319,358 | ||||
Change in deferred revenues | 275 | 774 | 2,521 | 11,586 | ||||
Business Solutions Bookings | $ 90,047 | $ 87,518 | $ 350,708 | $ 330,944 | ||||
RECONCILIATION OF COHORT BOOKINGS | ||||||||
(In millions) | ||||||||
Year Ended | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
Q1 Cohort revenues | $ 41 | $ 53 | ||||||
Q1 Change in deferred revenues | 15 | 18 | ||||||
Q1 Cohort Bookings | $ 56 | $ 71 | ||||||
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | ||||||||
(In thousands) | ||||||||
Three Months Ended | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
Revenues | $ 355,040 | $ 333,413 | ||||||
FX impact on Q4/22 using Y/Y rates | 6,397 | - | ||||||
Revenues excluding FX impact | $ 361,437 | $ 333,413 | ||||||
Y/Y growth | 8 % | |||||||
Three Months Ended | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
Bookings | $ 371,813 | $ 351,556 | ||||||
FX impact on Q4/22 using Y/Y rates | 14,011 | - | ||||||
Bookings excluding FX impact | $ 385,824 | $ 351,556 | ||||||
Y/Y growth | 10 % | |||||||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(1) Share based compensation expenses: | (unaudited) | (unaudited) | ||||||
Cost of revenues | $ 4,607 | $ 4,095 | $ 17,811 | $ 15,462 | ||||
Research and development | 32,335 | 28,028 | 120,580 | 102,056 | ||||
Selling and marketing | 9,559 | 9,483 | 38,714 | 33,853 | ||||
General and administrative | 13,416 | 29,688 | 59,731 | 70,020 | ||||
Total share based compensation expenses | 59,917 | 71,294 | 236,836 | 221,391 | ||||
(2) Amortization | 1,511 | 462 | 6,246 | 4,952 | ||||
(3) Acquisition related expenses | 1,656 | 2,045 | 5,127 | 8,680 | ||||
(4) Amortization of debt discount and debt issuance costs | 1,305 | 1,298 | 5,213 | 5,298 | ||||
(5) Sales tax accrual and other G&A expenses (income) | 219 | 320 | 763 | 1,692 | ||||
(6) Unrealized loss (gain) on equity and other investments | 3,955 | 16,195 | 200,338 | (267,831) | ||||
(7) Non-operating foreign exchange expenses (income) | 6,220 | 2,013 | 6,403 | 6,711 | ||||
(8) Provision for income tax effects related to non-GAAP adjustments | (176) | (3,725) | (46,078) | 57,283 | ||||
Total adjustments of GAAP to Non GAAP | $ 74,607 | $ 89,902 | $ 414,848 | $ 38,176 | ||||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Gross Profit | $ 226,276 | $ 201,521 | $ 861,439 | $ 781,078 | ||||
Share based compensation expenses | 4,607 | 4,095 | 17,811 | 15,462 | ||||
Acquisition related expenses | - | 97 | 140 | 484 | ||||
Amortization | 689 | 645 | 2,968 | 2,030 | ||||
Non GAAP Gross Profit | 231,572 | 206,358 | 882,358 | 799,054 | ||||
Non GAAP Gross margin | 65 % | 62 % | 64 % | 63 % | ||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Gross Profit - Creative Subscriptions | $ 206,841 | $ 185,880 | $ 787,892 | $ 717,680 | ||||
Share based compensation expenses | 3,437 | 3,026 | 13,933 | 11,446 | ||||
Non GAAP Gross Profit - Creative Subscriptions | 210,278 | 188,906 | 801,825 | 729,126 | ||||
Non GAAP Gross margin - Creative Subscriptions | 79 % | 77 % | 77 % | 77 % | ||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Gross Profit - Business Solutions | $ 19,435 | $ 15,641 | $ 73,547 | $ 63,398 | ||||
Share based compensation expenses | 1,170 | 1,069 | 3,878 | 4,016 | ||||
Acquisition related expenses | - | 97 | 140 | 484 | ||||
Amortization | 689 | 645 | 2,968 | 2,030 | ||||
Non GAAP Gross Profit - Business Solutions | 21,294 | 17,452 | 80,533 | 69,928 | ||||
Non GAAP Gross margin - Business Solutions | 24 % | 20 % | 23 % | 22 % | ||||
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS) | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Operating loss | $ (32,603) | $ (96,294) | $ (285,353) | $ (325,534) | ||||
Adjustments: | ||||||||
Share based compensation expenses | 59,917 | 71,294 | 236,836 | 221,391 | ||||
Amortization | 1,511 | 462 | 6,246 | 4,952 | ||||
Sales tax accrual and other G&A expenses | 219 | 320 | 763 | 1,692 | ||||
Acquisition related expenses | 1,656 | 2,045 | 5,127 | 8,680 | ||||
Total adjustments | $ 63,303 | $ 74,121 | $ 248,972 | $ 236,715 | ||||
Non GAAP operating income (loss) | $ 30,700 | $ (22,173) | $ (36,381) | $ (88,819) | ||||
Non GAAP operating margin | 9 % | -7 % | -3 % | -7 % | ||||
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 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Net loss | $ (38,975) | $ (109,041) | $ (424,863) | $ (117,209) | ||||
Share based compensation expenses and other Non GAAP adjustments | 74,607 | 89,902 | 414,848 | 38,176 | ||||
Non-GAAP net income (loss) | $ 35,632 | $ (19,139) | $ (10,015) | $ (79,033) | ||||
Basic and diluted Non GAAP net income (loss) per share | $ 0.61 | $ (0.34) | $ (0.17) | $ (1.39) | ||||
Weighted average shares used in computing basic and diluted Non GAAP net income (loss) per | 58,189,246 | 57,103,278 | 57,993,364 | 57,004,154 | ||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||
(In thousands) | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Net cash provided by operating activities | $ 53,234 | $ 21,041 | $ 37,152 | $ 65,685 | ||||
Capital expenditures, net | (14,649) | (13,702) | (70,664) | (37,700) | ||||
Free Cash Flow | $ 38,585 | $ 7,339 | $ (33,512) | $ 27,985 | ||||
Capex and other cash costs related to HQ build out | 13,405 | 10,047 | 65,920 | 23,449 | ||||
Free Cash Flow, excluding Capex and other cash costs related to HQ build out | $ 51,990 | $ 17,386 | $ 32,408 | $ 51,434 | ||||
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||
Three Months Ended | Year Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
(unaudited) | (unaudited) | |||||||
Basic and diluted weighted-average shares used to compute net loss per share | 58,189,246 | 57,103,278 | 57,993,364 | 57,004,154 | ||||
The following items have been excluded from the diluted weighted average number of shares | ||||||||
Stock options | 4,332,022 | 4,720,600 | 4,332,022 | 4,720,600 | ||||
Restricted share units | 3,123,019 | 2,225,516 | 3,123,019 | 2,225,516 | ||||
Convertible Notes (if-converted) | 3,969,514 | 3,969,514 | 3,969,514 | 3,969,514 | ||||
69,613,801 | 68,018,908 | 69,417,919 | 67,919,784 | |||||
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