Wix Reports Second Quarter 2024 Results
Wix reported strong Q2 2024 results with total bookings of $458.4 million, a 15% y/y increase, driven by the success of Wix Studio, AI capabilities, and commerce platform expansion. Total revenue was $435.7 million, up 12% y/y, exceeding expectations. The company's Q2 FCF margin expanded to 27% due to operating leverage.
Partners revenue saw a 29% y/y growth, with a record take rate of 1.68% due to transaction revenue increasing by 21% y/y. Q2 GAAP net income stood at $39.5 million, while non-GAAP net income reached $99.6 million.
Wix raised its full-year FCF outlook to $460 - $470 million and updated its full-year bookings outlook to $1,802 - $1,822 million. The company expects to achieve the Rule of 40 milestone this year, driven by strong top-line growth and margin improvements.
Wix ha riportato risultati solidi per il secondo trimestre del 2024, con prenotazioni totali di 458,4 milioni di dollari, un aumento del 15% t/t, grazie al successo di Wix Studio, alle capacità di intelligenza artificiale e all'espansione della piattaforma commerciale. Il fatturato totale è stato di 435,7 milioni di dollari, in aumento del 12% t/t, superando le aspettative. Il margine FCF Q2 dell'azienda è aumentato al 27% a causa del leverage operativo.
I ricavi da partner hanno registrato una crescita del 29% t/t, con un tasso di acquisizione record dell'1,68%, grazie all'aumento del ricavo da transazioni che è aumentato del 21% t/t. L'utile netto GAAP per Q2 si è attestato a 39,5 milioni di dollari, mentre l'utile netto non GAAP ha raggiunto i 99,6 milioni di dollari.
Wix ha aumentato la sua previsione di FCF annuale a 460 - 470 milioni di dollari e ha aggiornato la previsione di prenotazioni annuale a 1.802 - 1.822 milioni di dollari. L'azienda prevede di raggiungere il traguardo della Regola del 40 quest'anno, grazie a una forte crescita dei ricavi e ai miglioramenti dei margini.
Wix reportó resultados sólidos para el segundo trimestre de 2024, con reservas totales de 458.4 millones de dólares, un aumento del 15% interanual, impulsado por el éxito de Wix Studio, las capacidades de inteligencia artificial y la expansión de la plataforma de comercio. Los ingresos totales fueron de 435.7 millones de dólares, un aumento del 12% interanual, superando las expectativas. El margen FCF Q2 de la compañía se expandió al 27% gracias al apalancamiento operativo.
Los ingresos de socios vieron un crecimiento del 29% interanual, con una tasa de adquisición récord del 1.68% debido a que los ingresos por transacciones aumentaron un 21% interanual. El ingreso neto GAAP del Q2 se situó en 39.5 millones de dólares, mientras que el ingreso neto no GAAP alcanzó los 99.6 millones de dólares.
Wix elevó su perspectiva de FCF anual a 460 - 470 millones de dólares y actualizó su perspectiva de reservas anual a 1,802 - 1,822 millones de dólares. La compañía espera alcanzar el hito de la Regla del 40 este año, impulsada por un fuerte crecimiento de los ingresos y mejoras en los márgenes.
Wix는 2024년 2분기 강력한 실적을 보고했으며, 총 예약액은 4억 5,840만 달러로, 전년 대비 15% 증가했습니다. 이는 Wix 스튜디오의 성공, 인공지능 기능, 및 상거래 플랫폼의 확장에 힘입은 것입니다. 총 수익은 4억 3,570만 달러로, 전년 대비 12% 증가하여 기대치를 초과했습니다. 회사의 2분기 FCF 마진은 운영 레버리지 덕분에 27%로 확장되었습니다.
파트너 수익은 전년 대비 29% 성장했으며, 거래 수익이 전년 대비 21% 증가하여 기록적인 취득률인 1.68%을 기록했습니다. 2분기 GAAP 순이익은 3,950만 달러였고, 비 GAAP 순이익은 9,960만 달러에 달했습니다.
Wix는 연간 FCF 전망을 4억 6천만 달러에서 4억 7천만 달러로 상향 조정했으며, 연간 예약 전망은 18억 2천만 달러에서 18억 2천 2백만 달러로 업데이트했습니다. 이 회사는 올해 40의 법칙 이정표를 달성할 것으로 예상하고 있으며, 이는 강력한 매출 성장과 마진 개선에 의해 추진됩니다.
Wix a rapporté de bons résultats pour le deuxième trimestre de 2024, avec des réservations totales de 458,4 millions de dollars, soit une augmentation de 15 % par rapport à l'année précédente, grâce au succès de Wix Studio, aux capacités d'intelligence artificielle et à l'expansion de la plateforme commerciale. Le chiffre d'affaires total s'élevait à 435,7 millions de dollars, en hausse de 12 % par rapport à l'année précédente, dépassant les attentes. La marge de FCF du Q2 de l'entreprise a augmenté à 27 % grâce à l'effet de levier opérationnel.
Les revenus des partenaires ont connu une croissance de 29 % par rapport à l'année précédente, avec un taux de commission record de 1,68 %, grâce à une augmentation de 21 % par rapport à l'année précédente des revenus de transaction. Le résultat net GAAP pour le Q2 s'élevait à 39,5 millions de dollars, tandis que le résultat net non GAAP atteignait 99,6 millions de dollars.
Wix a relevé ses prévisions de FCF annuelles à 460 - 470 millions de dollars et a mis à jour ses prévisions de réservations annuelles à 1 802 - 1 822 millions de dollars. L'entreprise s'attend à atteindre cette année le jalon de la règle des 40, soutenue par une forte croissance des revenus et des améliorations des marges.
Wix hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit Gesamtbuchungen von 458,4 Millionen Dollar, einem 15%igen Anstieg im Vergleich zum Vorjahr, der durch den Erfolg von Wix Studio, KI-Funktionen und die Erweiterung der Handelsplattform vorangetrieben wurde. Der Gesamtumsatz betrug 435,7 Millionen Dollar, ein Anstieg um 12% im Vergleich zum Vorjahr, was die Erwartungen übertraf. Die FCF-Marge im Q2 des Unternehmens stieg auf 27% dank des operativen Hebels.
Die Einnahmen aus Partnerschaften verzeichneten ein 29%iges Wachstum im Vergleich zum Vorjahr, mit einem Rekord Provisionensatz von 1,68%, da die Transaktionseinnahmen um 21% im Vergleich zum Vorjahr zunahmen. Der GAAP-Nettoeinkommen im Q2 lag bei 39,5 Millionen Dollar, während das Non-GAAP-Nettoeinkommen 99,6 Millionen Dollar erreichte.
Wix hat seine FCF-Prognose für das gesamte Jahr auf 460 - 470 Millionen Dollar angehoben und die Buchungsprognose für das gesamte Jahr auf 1.802 - 1.822 Millionen Dollar aktualisiert. Das Unternehmen erwartet, in diesem Jahr den Meilenstein der 40er Regel zu erreichen, unterstützt durch starkes Umsatzwachstum und Margenverbesserungen.
- Total bookings of $458.4 million, up 15% y/y.
- Total revenue of $435.7 million, up 12% y/y, exceeded expectations.
- Q2 FCF margin expanded to 27%.
- Partners revenue up 29% y/y.
- Transaction revenue increased by 21% y/y.
- High end of full-year FCF outlook: $460 - $470 million.
- Raised full-year bookings outlook to $1,802 - $1,822 million.
- None.
Accelerated bookings growth, driven by key product initiatives, and FCF margin expansion in Q2 builds momentum for 2H
- Meaningful bookings growth acceleration with total bookings of
$458.4 million 15% y/y, as a result of strong Wix Studio uptake, benefits from growing AI capabilities and commerce platform expansion as well as positive response to the price increase implemented earlier this year- Bookings growth accelerated across both Self Creators and Partners
- Continue to expect bookings growth acceleration to
16% y/y in 2H at the high end of full year guidance range
- Total revenue of
$435.7 million 12% y/y, driven by strong Partners growth of29% y/y - Record take rate of
1.68% , driven by transaction revenue growth of21% y/y as we added a new payment partner to Wix Payments - Continued margin expansion with Q2 FCF1 margin of
27% , driven by additional operating leverage- High end of increased full year FCF1 outlook positions us to achieve the Rule of 40 milestone this year, one full year ahead of plan
"Excellent Q2 results capped off a strong first half of 2024, fueled by successful execution of our strategic initiatives, solid business fundamentals and continued product innovation," said Avishai Abrahami, Wix Co-founder and CEO. "We made incredible strides towards our key growth pillars and drove significant bookings growth acceleration this quarter. First, Wix Studio continued to outperform expectations, as Studio subscription purchases accelerated, retention remained strong and the number of Studio accounts purchasing multiple subscriptions ramped. We also continued to execute against our AI strategy with the release of 17 AI business assistants so far this year. These assistants are improving the user creation experience while minimizing the amount of support resources required from us. With dozens more still slated to launch this year, AI assistants will soon be everywhere on our platform and in nearly every product. Finally, expansion of our commerce platform with the addition of a new Wix Payments partner resulted in record take rate of
"Strong execution of our key growth initiatives and solid business fundamentals drove incredible growth momentum and additional margin expansion this quarter," added Lior Shemesh, CFO at Wix. "Year-over-year bookings growth accelerated to
Q2 2024 Financial Results
- Total revenue in the second quarter of 2024 was
$435.7 million 12% y/y- Creative Subscriptions revenue in the second quarter of 2024 was
$312.1 million 9% y/y - Creative Subscriptions ARR increased to
$1.28 billion 10% y/y
- Creative Subscriptions revenue in the second quarter of 2024 was
- Business Solutions revenue in the second quarter of 2024 was
$123.6 million 20% y/y- Transaction revenue3 was
$53.9 million 21% y/y
- Transaction revenue3 was
- Partners revenue4 in the second quarter of 2024 was
$148.4 million 29% y/y - Total bookings in the second quarter of 2024 were
$458.4 million 15% y/y- Creative Subscriptions bookings in the second quarter of 2024 were
$329.0 million 12% y/y - Business Solutions bookings in the second quarter of 2024 were
$129.4 million 24% y/y
- Creative Subscriptions bookings in the second quarter of 2024 were
- Total gross margin on a GAAP basis in the second quarter of 2024 was
67% - Creative Subscriptions gross margin on a GAAP basis was
83% - Business Solutions gross margin on a GAAP basis was
28%
- Creative Subscriptions gross margin on a GAAP basis was
- Total non-GAAP gross margin in the second quarter of 2024 was
68% - Creative Subscriptions gross margin on a non-GAAP basis was
84% - 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 second quarter of 2024 was
$39.5 million $0.71 $0.68 - Non-GAAP net income in the second quarter of 2024 was
$99.6 million $1.80 $1.67 - Net cash provided by operating activities for the second quarter of 2024 was
$120.0 million $7.2 million $112.8 million - Excluding capital expenditures and other expenses associated with the build out of our new corporate headquarters, free cash flow for the second quarter of 2024 would have been
$117.8 million 27% of revenue - Completed
$225 million $1 billion - Total employee count at the end of Q2'24 was 5,242, flat 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 Q1 2024. |
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 guidance for the second half of the year reflects the momentum built up in the first six months, particularly from the strong traction of our key product initiatives and solid business fundamentals.
We are updating our full year bookings outlook to
Bookings acceleration in 2024 is expected to translate into y/y revenue growth acceleration in 2025.
We are also updating our full year revenue outlook to
We expect total revenue growth in Q3'24 of
For the full year 2024, we continue to expect non-GAAP total gross margin of 68
We now expect to generate free cash flow, excluding headquarters costs, of
As a result of strong top-line growth and incremental margin improvements, we are now poised to achieve the Rule of 40 milestone this year, if we achieve the high end of our guidance ranges.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, August 7, 2024. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BI95980ddbd705465cbdf5f8441a1352ac. A replay of the call will be available through August 6, 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 Israel-Hezbollah hostilities and/or the
Wix.com Ltd. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | |||||||
(In thousands, except loss per share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | |||||||
Creative Subscriptions | $ 312,125 | $ 287,089 | $ 616,418 | $ 565,219 | |||
Business Solutions | 123,621 | 102,888 | 239,104 | 198,834 | |||
435,746 | 389,977 | 855,522 | 764,053 | ||||
Cost of Revenues | |||||||
Creative Subscriptions | 53,039 | 52,050 | 107,842 | 109,534 | |||
Business Solutions | 88,635 | 75,844 | 171,129 | 147,838 | |||
141,674 | 127,894 | 278,971 | 257,372 | ||||
Gross Profit | 294,072 | 262,083 | 576,551 | 506,681 | |||
Operating expenses: | |||||||
Research and development | 119,257 | 115,490 | 243,502 | 230,433 | |||
Selling and marketing | 102,498 | 96,037 | 209,732 | 195,170 | |||
General and administrative | 43,712 | 37,250 | 85,042 | 75,767 | |||
Impairment, restructuring and other costs | - | 330 | - | 25,668 | |||
Total operating expenses | 265,467 | 249,107 | 538,276 | 527,038 | |||
Operating income (loss) | 28,605 | 12,976 | 38,275 | (20,357) | |||
Financial income, net | 12,383 | 20,053 | 31,267 | 41,430 | |||
Other income | 38 | 118 | 249 | 175 | |||
Income before taxes on income | 41,026 | 33,147 | 69,791 | 21,248 | |||
Income tax expenses (benefit) | 1,508 | (430) | 6,271 | (1,960) | |||
Net income | $ 39,518 | $ 33,577 | $ 63,520 | $ 23,208 | |||
Basic net income per share | $ 0.71 | $ 0.59 | $ 1.14 | $ 0.41 | |||
Basic weighted-average shares used to compute net income per share | 55,361,595 | 56,744,007 | 55,730,296 | 56,576,286 | |||
Diluted net income per share | $ 0.68 | $ 0.56 | $ 1.09 | $ 0.40 | |||
Diluted weighted-average shares used to compute net income per share | 59,526,418 | 62,186,895 | 58,373,454 | 58,180,044 | |||
Wix.com Ltd. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
Period ended | |||
June 30, | December 31, | ||
2024 | 2023 | ||
Assets | (unaudited) | (audited) | |
Current Assets: | |||
Cash and cash equivalents | $ 276,067 | $ 609,622 | |
Short-term deposits | 240,956 | 212,709 | |
Restricted deposits | 1,296 | 2,125 | |
Marketable securities | 270,104 | 140,563 | |
Trade receivables | 55,784 | 57,394 | |
Prepaid expenses and other current assets | 83,812 | 47,792 | |
Total current assets | 928,019 | 1,070,205 | |
Long-Term Assets: | |||
Prepaid expenses and other long-term assets | 25,466 | 34,296 | |
Property and equipment, net | 136,277 | 136,928 | |
Marketable securities | 13,953 | 64,806 | |
Intangible assets, net | 25,062 | 28,010 | |
Goodwill | 49,329 | 49,329 | |
Operating lease right-of-use assets | 412,903 | 420,562 | |
Total long-term assets | 662,990 | 733,931 | |
Total assets | $ 1,804,136 | ||
Liabilities and Shareholders' Deficiency | |||
Current Liabilities: | |||
Trade payables | $ 18,379 | $ 38,305 | |
Employees and payroll accruals | 67,842 | 56,581 | |
Deferred revenues | 650,878 | 592,608 | |
Accrued expenses and other current liabilities | 85,063 | 76,556 | |
Operating lease liabilities | 26,815 | 24,981 | |
Total current liabilities | 848,977 | 789,031 | |
Long Term Liabilities: | |||
Long-term deferred revenues | 91,859 | 83,384 | |
Long-term deferred tax liability | 902 | 7,167 | |
Convertible notes, net | 571,295 | 569,714 | |
Other long-term liabilities | 9,755 | 7,699 | |
Long-term operating lease liabilities | 390,931 | 401,626 | |
Total long-term liabilities | 1,064,742 | 1,069,590 | |
Total liabilities | 1,913,719 | 1,858,621 | |
Shareholders' Deficiency | |||
Ordinary shares | 103 | 110 | |
Additional paid-in capital | 1,682,419 | 1,539,952 | |
Treasury Stock | (1,025,167) | (558,875) | |
Accumulated other comprehensive loss | (3,721) | 4,192 | |
Accumulated deficit | (976,344) | (1,039,864) | |
Total shareholders' deficiency | (322,710) | (54,485) | |
Total liabilities and shareholders' deficiency | $ 1,804,136 | ||
Wix.com Ltd. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ 39,518 | $ 33,577 | $ 63,520 | $ 23,208 | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 6,427 | 4,497 | 12,869 | 9,419 | |||
Amortization | 1,465 | 1,489 | 2,948 | 2,977 | |||
Share based compensation expenses | 59,886 | 53,660 | 118,028 | 108,181 | |||
Amortization of debt discount and debt issuance costs | 791 | 1,310 | 1,581 | 2,618 | |||
Changes in accrued interest and exchange rate on short term and long term deposits | 890 | 133 | 1,770 | 108 | |||
Non-cash impairment, restructuring and other costs | - | 330 | - | 21,164 | |||
Amortization of premium and discount and accrued interest on marketable securities, net | 3,937 | 4,132 | 4,534 | 4,672 | |||
Remeasurement gain on Marketable equity | - | (8,814) | (3,367) | (22,712) | |||
Changes in deferred income taxes, net | (208) | (6,318) | (5,219) | (10,462) | |||
Changes in operating lease right-of-use assets | 5,286 | 5,356 | 10,310 | 11,152 | |||
Changes in operating lease liabilities | (7,860) | (26,208) | (11,512) | (34,329) | |||
Loss on foreign exchange, net | 1,598 | - | 2,151 | - | |||
Decrease (increase) in trade receivables | 491 | (708) | 1,610 | (11,182) | |||
Decrease (increase) in prepaid expenses and other current and long-term assets | (28,195) | 8,000 | (40,763) | (2,858) | |||
Decrease in trade payables | (14,502) | (11,301) | (16,625) | (52,971) | |||
Increase (decrease) in employees and payroll accruals | 13,690 | (17,932) | 11,261 | (27,974) | |||
Increase in short term and long term deferred revenues | 25,426 | 12,043 | 66,745 | 73,018 | |||
Increase (decrease) in accrued expenses and other current liabilities | 11,389 | (5,485) | 14,024 | (307) | |||
Net cash provided by operating activities | 120,029 | 47,761 | 233,865 | 93,722 | |||
INVESTING ACTIVITIES: | |||||||
Proceeds from short-term deposits and restricted deposits | 162 | 367,610 | 985 | 423,701 | |||
Investment in short-term deposits and restricted deposits | (11) | (4,480) | (30,173) | (63,460) | |||
Investment in marketable securities | (163,698) | - | (191,545) | - | |||
Proceeds from marketable securities | 38,350 | 115,979 | 91,155 | 174,369 | |||
Purchase of property and equipment and lease prepayment | (6,871) | (15,175) | (14,586) | (34,749) | |||
Capitalization of internal use of software | (324) | (576) | (734) | (1,934) | |||
Investment in other assets | - | (111) | - | (111) | |||
Proceeds from investment in other assets | 550 | - | 550 | - | |||
Proceeds from sale of equity securities | - | 17,607 | 22,148 | 49,468 | |||
Purchases of investments in privately held companies | (460) | - | (1,010) | (7,500) | |||
Net cash provided by investing activities | (132,302) | 480,854 | (123,210) | 539,784 | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of options and ESPP shares | 1,615 | 1,176 | 24,243 | 20,831 | |||
Purchase of treasury stock | (225,000) | (50,000) | (466,302) | (68,319) | |||
Repayment of convertible notes | - | (362,667) | - | (362,667) | |||
Net cash provided by (used in) financing activities | (223,385) | (411,491) | (442,059) | (410,155) | |||
Effect of exchange rates on cash, cash equivalent and restricted cash | (1,598) | - | (2,151) | - | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (237,256) | 117,124 | (333,555) | 223,351 | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 513,323 | 350,913 | 609,622 | 244,686 | |||
CASH AND CASH EQUIVALENTS—End of period | $ 276,067 | $ 468,037 | $ 276,067 | $ 468,037 | |||
Wix.com Ltd. | |||||||
KEY PERFORMANCE METRICS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions | 312,125 | 287,089 | 616,418 | 565,219 | |||
Business Solutions | 123,621 | 102,888 | 239,104 | 198,834 | |||
Total Revenues | $ 435,746 | $ 389,977 | $ 855,522 | $ 764,053 | |||
Creative Subscriptions | 328,967 | 293,929 | 663,604 | 607,358 | |||
Business Solutions | 129,432 | 104,570 | 252,076 | 206,046 | |||
Total Bookings | $ 458,399 | $ 398,499 | $ 915,680 | $ 813,404 | |||
Free Cash Flow | $ 112,834 | $ 32,010 | $ 218,545 | $ 57,039 | |||
Free Cash Flow excluding HQ build out and restructuring costs | $ 117,797 | $ 49,093 | $ 228,870 | $ 93,122 | |||
Creative Subscriptions ARR | $ 1,276,493 | $ 1,159,744 | $ 1,276,493 | $ 1,159,744 | |||
Wix.com Ltd. | |||||||
RECONCILIATION OF REVENUES TO BOOKINGS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | $ 435,746 | $ 389,977 | $ 855,522 | $ 764,053 | |||
Change in deferred revenues | 25,426 | 12,043 | 66,745 | 73,018 | |||
Change in unbilled contractual obligations | (2,773) | (3,521) | (6,587) | (23,667) | |||
Bookings | $ 458,399 | $ 398,499 | $ 915,680 | $ 813,404 | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions Revenues | $ 312,125 | $ 287,089 | $ 616,418 | $ 565,219 | |||
Change in deferred revenues | 19,615 | 10,361 | 53,773 | 65,806 | |||
Change in unbilled contractual obligations | (2,773) | (3,521) | (6,587) | (23,667) | |||
Creative Subscriptions Bookings | $ 328,967 | $ 293,929 | $ 663,604 | $ 607,358 | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Business Solutions Revenues | $ 123,621 | $ 102,888 | $ 239,104 | $ 198,834 | |||
Change in deferred revenues | 5,811 | 1,682 | 12,972 | 7,212 | |||
Business Solutions Bookings | $ 129,432 | $ 104,570 | $ 252,076 | $ 206,046 | |||
Wix.com Ltd. | |||
RECONCILIATION OF COHORT BOOKINGS | |||
(In millions) | |||
Six Months Ended | |||
June 30, | |||
2024 | 2023 | ||
(unaudited) | |||
Q1 Cohort revenues | $ 21 | $ 20 | |
Q1 Change in deferred revenues | 22 | 23 | |
Q1 Cohort Bookings | $ 43 | $ 43 | |
Wix.com Ltd. | |||
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | |||
(In thousands) | |||
Three Months Ended | |||
June 30, | |||
2024 | 2023 | ||
(unaudited) | |||
Revenues | $ 435,746 | $ 389,977 | |
FX impact on Q2/24 using Y/Y rates | 664 | - | |
Revenues excluding FX impact | $ 436,410 | $ 389,977 | |
Y/Y growth | 12 % | ||
Three Months Ended | |||
June 30, | |||
2024 | 2023 | ||
(unaudited) | |||
Bookings | $ 458,399 | $ 398,499 | |
FX impact on Q2/24 using Y/Y rates | 2,194 | - | |
Bookings excluding FX impact | $ 460,593 | $ 398,499 | |
Y/Y growth | 16 % | ||
Wix.com Ltd. | |||||||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(1) Share based compensation expenses: | (unaudited) | (unaudited) | |||||
Cost of revenues | $ 3,516 | $ 3,479 | $ 7,106 | $ 7,717 | |||
Research and development | 30,782 | 28,778 | 61,884 | 57,072 | |||
Selling and marketing | 9,206 | 9,652 | 19,689 | 19,210 | |||
General and administrative | 16,382 | 11,751 | 29,349 | 24,182 | |||
Total share based compensation expenses | 59,886 | 53,660 | 118,028 | 108,181 | |||
(2) Amortization | 1,465 | 1,489 | 2,948 | 2,977 | |||
(3) Acquisition related expenses | 1 | 244 | 6 | 440 | |||
(4) Amortization of debt discount and debt issuance costs | 791 | 1,310 | 1,581 | 2,618 | |||
(5) Impairment, restructuring and other costs | - | 330 | - | 25,668 | |||
(6) Sales tax accrual and other G&A expenses | 237 | 157 | 358 | 465 | |||
(7) Unrealized gain on equity and other investments | 831 | (8,814) | (2,536) | (22,712) | |||
(8) Non-operating foreign exchange income | (2,921) | (1,843) | (7,584) | (5,505) | |||
(9) Provision for income tax effects related to non-GAAP adjustments | (191) | (2,022) | 583 | (6,153) | |||
Total adjustments of GAAP to Non GAAP | $ 60,099 | $ 44,511 | $ 113,384 | $ 105,979 | |||
Wix.com Ltd. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit | $ 294,072 | $ 262,083 | $ 576,551 | $ 506,681 | |||
Share based compensation expenses | 3,516 | 3,479 | 7,106 | 7,717 | |||
Acquisition related expenses | - | 183 | - | 207 | |||
Amortization | 668 | 667 | 1,335 | 1,334 | |||
Non GAAP Gross Profit | 298,256 | 266,412 | 584,992 | 515,939 | |||
Non GAAP Gross margin | 68 % | 68 % | 68 % | 68 % | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Creative Subscriptions | $ 259,086 | $ 235,039 | $ 508,576 | $ 455,685 | |||
Share based compensation expenses | 2,519 | 2,562 | 5,188 | 5,713 | |||
Non GAAP Gross Profit - Creative Subscriptions | 261,605 | 237,601 | 513,764 | 461,398 | |||
Non GAAP Gross margin - Creative Subscriptions | 84 % | 83 % | 83 % | 82 % | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Business Solutions | $ 34,986 | $ 27,044 | $ 67,975 | $ 50,996 | |||
Share based compensation expenses | 997 | 917 | 1,918 | 2,004 | |||
Acquisition related expenses | - | 183 | - | 207 | |||
Amortization | 668 | 667 | 1,335 | 1,334 | |||
Non GAAP Gross Profit - Business Solutions | 36,651 | 28,811 | 71,228 | 54,541 | |||
Non GAAP Gross margin - Business Solutions | 30 % | 28 % | 30 % | 27 % | |||
Wix.com Ltd. | |||||||
RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Operating income (loss) | $ 28,605 | $ 12,976 | $ 38,275 | $ (20,357) | |||
Adjustments: | |||||||
Share based compensation expenses | 59,886 | 53,660 | 118,028 | 108,181 | |||
Amortization | 1,465 | 1,489 | 2,948 | 2,977 | |||
Impairment, restructuring and other charges | - | 330 | - | 25,668 | |||
Sales tax accrual and other G&A expenses | 237 | 157 | 358 | 465 | |||
Acquisition related expenses | 1 | 244 | 6 | 440 | |||
Total adjustments | $ 61,589 | $ 55,880 | $ 121,340 | $ 137,731 | |||
Non GAAP operating income | $ 90,194 | $ 68,856 | $ 159,615 | $ 117,374 | |||
Non GAAP operating margin | 21 % | 18 % | 19 % | 15 % | |||
Wix.com Ltd. | |||||||
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Net income | $ 39,518 | $ 33,577 | $ 63,520 | $ 23,208 | |||
Share based compensation expenses and other Non GAAP adjustments | 60,099 | 44,511 | 113,384 | 105,979 | |||
Non-GAAP net income | $ 99,617 | $ 78,088 | $ 176,904 | $ 129,187 | |||
Basic Non GAAP net income per share | $ 1.80 | $ 1.38 | $ 3.17 | $ 2.28 | |||
Weighted average shares used in computing basic Non GAAP net income per share | 55,361,595 | 56,744,007 | 55,730,296 | 56,576,286 | |||
Diluted Non GAAP net income per share | $ 1.67 | $ 1.26 | $ 2.96 | $ 2.08 | |||
Weighted average shares used in computing diluted Non GAAP net income per share | 59,526,418 | 62,186,895 | 59,800,202 | 62,149,558 | |||
Wix.com Ltd. | |||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Net cash provided by operating activities | $ 120,029 | $ 47,761 | $ 233,865 | $ 93,722 | |||
Capital expenditures, net | (7,195) | (15,751) | (15,320) | (36,683) | |||
Free Cash Flow | $ 112,834 | $ 32,010 | $ 218,545 | $ 57,039 | |||
Restructuring and other costs | - | 2,453 | - | 4,504 | |||
Capex related to HQ build out | 4,963 | 14,630 | 10,325 | 31,579 | |||
Free Cash Flow excluding HQ build out and restructuring costs | $ 117,797 | $ 49,093 | $ 228,870 | $ 93,122 | |||
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SOURCE Wix.com Ltd
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