Wix Reports Third Quarter 2023 Results
- None.
- None.
- Second consecutive quarter of positive GAAP net income positions Wix to achieve GAAP profitability for full year 2023 with GAAP profitability also expected to be achievable for full year 2024
- Total revenue in Q3 of
, up$393.8 million 14% y/y, ahead of expectations and marking the third consecutive quarter of year-over-year revenue growth acceleration - Incredible momentum in Partners business demonstrated by:
- Partners revenue1 of
, up$119.4 million 38% y/y, as growth accelerated for another quarter, with more Partners joining Wix and monetization continuing to increase - Current B2B partnerships increasingly driving growth; new multi-year strategic partnership with Intuit further underscoring Wix as the online presence partner of choice for global marquee brands empowering SMBs
- Early uptake of Wix Studio, the ultimate web creation platform for professionals, ahead of expectations with global rollout now complete
- Partners revenue1 of
- Strong revenue growth and continued benefits from completed operational efficiencies resulted in better than expected free cash flow ("FCF")2 of
, or$62.8 million 16% of revenue - Raising full year revenue and FCF guidance with full year FCF margin now expected to be ~
15% of revenue, as FCF margin is anticipated to accelerate to 20-21% of revenue in Q4, above the expectations of the three-year plan
"Wix's performance in the third quarter exceeded both growth and profitability expectations for another consecutive quarter, as we successfully executed on our strategic priorities while remaining diligent with managing expenses," said Avishai Abrahami, Wix Co-founder and CEO. "The strength in our Partners business is especially noteworthy with our team firing on all cylinders and revenue growth continuing to accelerate. We expect an extended growth period ahead for this business as we increase our penetration of the professionals market with higher monetization, particularly as Wix Studio continues to gain traction. Though early, we have seen a fantastic response to Wix Studio and excellent adoption thus far. Finally, we continue to make tremendous progress leveraging AI to create a frictionless experience for users with the recent launch of Conversational AI Chat Experience for Business, the first step in completely automating business management with AI to get businesses online more quickly and efficiently. This is just the first milestone launch in a string of very exciting AI product releases we have on the horizon."
"Since the events in
Lior Shemesh, CFO at Wix, added, "We carried forward our positive momentum into the back half of the year with another quarter of results that exceeded expectations, positioning us well to achieve positive GAAP net income in full year 2023 with GAAP profitability achievable in 2024. This milestone accelerates Wix's profitability ahead of our three-year plan and is driven by robust growth as well as continued benefits from the strong execution of our past efficiency initiatives. Revenue in the third quarter increased
Q3 2023 Financial Results
- Total revenue in the third quarter of 2023 was
, up$393.8 million 14% y/y- Creative Subscriptions revenue in the third quarter of 2023 was
, up$290.6 million 11% y/y - Creative Subscriptions ARR increased to
as of the end of the quarter, up$1.18 billion 10% y/y
- Creative Subscriptions revenue in the third quarter of 2023 was
- Business Solutions revenue in the third quarter of 2023 was
, up$103.2 million 22% y/y- Transaction revenue4 was
, up$44.1 million 22% y/y
- Transaction revenue4 was
- Partners revenue1 in the third quarter of 2023 was
, up$119.4 million 38% y/y - Total bookings in the third quarter of 2023 were
, up$389.1 million 10% y/y- Creative Subscriptions bookings in the third quarter of 2023 were
, up$283.9 million 5% y/y - Business Solutions bookings in the third quarter of 2023 were
, up$105.2 million 27% y/y
- Creative Subscriptions bookings in the third quarter of 2023 were
- Total gross margin on a GAAP basis in the third quarter of 2023 was
67% - Creative Subscriptions gross margin on a GAAP basis was
82% - Business Solutions gross margin on a GAAP basis was
27%
- Creative Subscriptions gross margin on a GAAP basis was
- Total non-GAAP gross margin in the third quarter of 2023 was
68% - Creative Subscriptions gross margin on a non-GAAP basis was
83% - Business Solutions gross margin on a non-GAAP basis was
28%
- Creative Subscriptions gross margin on a non-GAAP basis was
- GAAP net income in the third quarter of 2023 was
, or$7.0 million per basic and diluted share$0.12 - Non-GAAP net income in the third quarter of 2023 was
, or$65.1 million per basic share or$1.14 per diluted share$1.10 - Net cash provided by operating activities for the third quarter of 2023 was
, while capital expenditures totaled$64.1 million , leading to free cash flow of$19.4 million $44.8 million - Excluding the capex investment associated with our new headquarters office build out, free cash flow for the third quarter of 2023 would have been
, or$62.8 million 16% of revenue
____________________ | |
1 | Partners 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 LegalZoom or Vistaprint, and enterprise partners. We identify agencies and freelancers building sites or applications for others 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. |
2 | Free cash flow excluding one-time cash restructuring charges, if applicable, and expenses associated with the buildout of our new corporate headquarters. |
3 | Based on number of active live sites as reported by competitors' figures, independent third-party-data and internal data as of Q2 2023. |
4 | 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. |
Financial Outlook
Our exceptional outperformance in the first three quarters of the year highlights the strong fundamentals of our business and the continued momentum of our growth and profitability initiatives. As a result, we expect to finish 2023 ahead of our refreshed three-year plan presented at the Analyst & Investor Day in August while accelerating our path to achieving the Rule of 40 in 2025.
We expect Q4 revenue to be
Due to the outperformance we experienced in the first three quarters of 2023, we are increasing our full year revenue outlook to
This increased revenue growth outlook is expected to result in accelerating profitability as we exit 2023.
We continue to anticipate non-GAAP gross margin of approximately
Non-GAAP operating expenses are expected to decrease to 53
Impressively, following a second consecutive quarter of positive GAAP net income in Q3, we now expect to deliver positive GAAP net income for the full year 2023 with profitability also achievable for full year 2024, a goal previously set for 2025 per our three-year plan.
Due to stronger than expected revenue growth and continued benefits from completed operational efficiencies, we are increasing our outlook for free cash flow, excluding HQ and cash restructuring costs, for the full year to
Note that our revised FCF outlook excludes approximately
Finally, we continue to expect stock-based compensation to be
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Thursday, November 9, 2023. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BI682d39f0556247bd9e332dafd387b487. A replay of the call will be available through November 8, 2024 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 globally3 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:
ir@wix.com
Media Relations:
pr@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 Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative Subscriptions, other than domain registrations; (ii) the average revenue per month from domain registrations in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements and 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 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 expectations related to our ability to develop relevant and required products using Artificial Intelligence ("AI"), the regulatory environment impacting AI-related activities including privacy and intellectual property aspects, and potential competition from third-party AI tools which may impact our business; 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, in particular during the current turbulent macro-economic environment; our expectation regarding the successful impact of our previously announced Cost-Efficiency Plan and other cost saving measures we may take in the future; 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 that our recent downsizing of our Customer Care team will not affect our ability to continue attracting registered users and increase user retention, user engagement and sales; our plans to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our 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 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 COVID-19 and as a result of the military invasion of
Wix.com Ltd. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | |||||||
(In thousands, except loss per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | |||||||
Creative Subscriptions | $ 290,634 | $ 261,066 | $ 855,853 | $ 774,211 | |||
Business Solutions | 103,207 | 84,739 | 302,041 | 258,415 | |||
393,841 | 345,805 | 1,157,894 | 1,032,626 | ||||
Cost of Revenues | |||||||
Creative Subscriptions | 53,187 | 62,035 | 162,721 | 193,160 | |||
Business Solutions | 75,856 | 65,822 | 223,694 | 204,303 | |||
129,043 | 127,857 | 386,415 | 397,463 | ||||
Gross Profit | 264,798 | 217,948 | 771,479 | 635,163 | |||
Operating expenses: | |||||||
Research and development | 125,117 | 120,384 | 355,550 | 361,867 | |||
Selling and marketing | 100,765 | 117,448 | 295,935 | 394,942 | |||
General and administrative | 40,865 | 42,427 | 116,632 | 131,104 | |||
Impairment, restructuring and other costs | 3,843 | - | 29,511 | - | |||
Total operating expenses | 270,590 | 280,259 | 797,628 | 887,913 | |||
Operating loss | (5,792) | (62,311) | (26,149) | (252,750) | |||
Financial income (expenses), net | 14,583 | 21,142 | 56,013 | (170,257) | |||
Other income (expenses) | (474) | 131 | (299) | 235 | |||
Income (loss) before taxes on income | 8,317 | (41,038) | 29,565 | (422,772) | |||
Income tax expenses (benefit) | 1,342 | 6,323 | (618) | (36,884) | |||
Net income (loss) | $ 6,975 | $ (47,361) | $ 30,183 | $ (385,888) | |||
Basic net income (loss) per share | $ 0.12 | $ (0.81) | $ 0.53 | $ (6.66) | |||
Basic weighted-average shares used to compute net income (loss) per share | 56,837,917 | 58,355,542 | 56,666,881 | 57,930,336 | |||
Diluted net income (loss) per share | $ 0.12 | $ (0.81) | $ 0.52 | $ (6.66) | |||
Diluted weighted-average shares used to compute net income (loss) per share | 58,497,072 | 58,355,542 | 58,289,105 | 57,930,336 |
Wix.com Ltd. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
Period ended | |||
September 30, | December 31, | ||
2023 | 2022 | ||
Assets | (unaudited) | (audited) | |
Current Assets: | |||
Cash and cash equivalents | $ 504,793 | $ 244,686 | |
Short-term deposits | 243,384 | 526,328 | |
Restricted deposits | 2,893 | 13,669 | |
Marketable securities | 168,991 | 292,449 | |
Trade receivables | 54,600 | 42,086 | |
Prepaid expenses and other current assets | 40,452 | 28,519 | |
Total current assets | 1,015,113 | 1,147,737 | |
Long-Term Assets: | |||
Prepaid expenses and other long-term assets | 22,669 | 23,027 | |
Property and equipment, net | 136,942 | 108,738 | |
Marketable securities | 78,054 | 194,964 | |
Intangible assets and goodwill, net | 78,827 | 83,293 | |
Operating lease right-of-use assets | 413,064 | 200,608 | |
Total long-term assets | 729,556 | 610,630 | |
Total assets | $ 1,744,669 | $ 1,758,367 | |
Liabilities and Shareholders' Deficiency | |||
Current Liabilities: | |||
Trade payables | $ 23,184 | $ 96,071 | |
Employees and payroll accruals | 64,888 | 86,113 | |
Deferred revenues | 587,514 | 529,205 | |
Current portion of convertible notes, net | - | 361,621 | |
Accrued expenses and other current liabilities | 97,624 | 88,194 | |
Operating lease liabilities | 20,788 | 29,268 | |
Total current liabilities | 793,998 | 1,190,472 | |
Long Term Liabilities: | |||
Long-term deferred revenues | 85,690 | 70,594 | |
Long-term deferred tax liability | 8,155 | 14,902 | |
Convertible notes, net | 568,925 | 566,566 | |
Other long-term liabilities | 8,202 | 6,093 | |
Long-term operating lease liabilities | 374,440 | 172,982 | |
Total long-term liabilities | 1,045,412 | 831,137 | |
Total liabilities | 1,839,410 | 2,021,609 | |
Shareholders' Deficiency | |||
Ordinary shares | 106 | 108 | |
Additional paid-in capital | 1,480,849 | 1,274,968 | |
Treasury Stock | (500,174) | (431,862) | |
Accumulated other comprehensive loss | (32,704) | (33,455) | |
Accumulated deficit | (1,042,818) | (1,073,001) | |
Total shareholders' deficiency | (94,741) | (263,242) | |
Total liabilities and shareholders' deficiency | $ 1,744,669 | $ 1,758,367 |
Wix.com Ltd. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ 6,975 | $ (47,361) | $ 30,183 | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 4,348 | 3,845 | 13,767 | 11,402 | |||
Amortization | 1,489 | 1,581 | 4,466 | 4,735 | |||
Share based compensation expenses | 58,249 | 56,796 | 166,430 | 176,919 | |||
Amortization of debt discount and debt issuance costs | 787 | 1,305 | 3,405 | 3,908 | |||
Changes in accrued interest and exchange rate on short term and long term deposits | (1,937) | 172 | (1,829) | 7 | |||
Non-cash impairment, restructuring and other costs | 1,968 | - | 23,132 | - | |||
Amortization of premium and discount and accrued interest on marketable securities, net | (563) | 1,000 | 4,109 | 3,805 | |||
Remeasurement loss (gain) on Marketable equity | 2,400 | (10,182) | (20,312) | 196,383 | |||
Changes in deferred income taxes, net | 3,713 | 2,351 | (6,749) | (45,868) | |||
Changes in operating lease right-of-use assets | 8,905 | 8,141 | 20,057 | 26,716 | |||
Changes in operating lease liabilities | (13,705) | (8,675) | (48,034) | (33,847) | |||
Decrease (increase) in trade receivables | (1,332) | 5,004 | (12,514) | (5,429) | |||
Increase in prepaid expenses and other current and long-term assets | (6,402) | (5,280) | (9,260) | (32,625) | |||
Increase (decrease) in trade payables | (14,604) | (7,960) | (67,575) | 4,153 | |||
Increase (decrease) in employees and payroll accruals | 6,749 | (9,562) | (21,225) | (14,644) | |||
Increase in short term and long term deferred revenues | 387 | 6,023 | 73,405 | 51,306 | |||
Increase in accrued expenses and other current liabilities | 6,717 | 3,069 | 6,410 | 22,885 | |||
Net cash provided by (used in) operating activities | 64,144 | 267 | 157,866 | (16,082) | |||
INVESTING ACTIVITIES: | |||||||
Proceeds from short-term deposits and restricted deposits | 70,040 | 105,171 | 493,741 | 336,430 | |||
Investment in short-term deposits and restricted deposits | (134,732) | (57,180) | (198,192) | (448,152) | |||
Investment in marketable securities | (4,125) | (38,048) | (4,125) | (202,611) | |||
Proceeds from marketable securities | 42,901 | 51,619 | 217,270 | 191,869 | |||
Purchase of property and equipment and lease prepayment | (18,690) | (22,208) | (53,439) | (54,120) | |||
Capitalization of internal use of software | (686) | (666) | (2,620) | (1,895) | |||
Investment in other assets | - | (580) | (111) | (580) | |||
Proceeds from sale of equity securities | - | - | 49,468 | 3,193 | |||
Purchases of investments in privately held companies | (27) | (100) | (7,527) | (1,260) | |||
Net cash provided by (used in) investing activities | (45,319) | 38,008 | 494,465 | (177,126) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of options and ESPP shares | 17,931 | 19,779 | 38,762 | 41,793 | |||
Purchase of treasury stock | - | - | (68,319) | - | |||
Repayment of convertible notes | - | - | (362,667) | - | |||
Net cash provided by (used in) financing activities | 17,931 | 19,779 | (392,224) | 41,793 | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 36,756 | 58,054 | 260,107 | (151,415) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 468,037 | 241,886 | 244,686 | 451,355 | |||
CASH AND CASH EQUIVALENTS—End of period | $ 504,793 | $ 299,940 | $ 504,793 | $ 299,940 |
Wix.com Ltd. | |||||||
KEY PERFORMANCE METRICS | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions | 290,634 | 261,066 | 855,853 | 774,211 | |||
Business Solutions | 103,207 | 84,739 | 302,041 | 258,415 | |||
Total Revenues | $ 393,841 | $ 345,805 | $ 1,157,894 | $ 1,032,626 | |||
Creative Subscriptions | 283,917 | 269,937 | 891,275 | 839,645 | |||
Business Solutions | 105,178 | 82,527 | 311,224 | 260,661 | |||
Total Bookings | $ 389,095 | $ 352,464 | $ 1,202,499 | $ 1,100,306 | |||
Free Cash Flow | $ 44,768 | $ (22,607) | $ 101,807 | $ (72,097) | |||
Free Cash Flow excluding HQ build out and restructuring costs | $ 62,811 | $ 4,559 | $ 155,933 | $ (19,582) | |||
Creative Subscriptions ARR | $ 1,181,629 | $ 1,071,045 | $ 1,181,629 | $ 1,071,045 |
Wix.com Ltd. | |||||||
RECONCILIATION OF REVENUES TO BOOKINGS | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | $ 393,841 | $ 345,805 | $ 1,157,894 | $ 1,032,626 | |||
Change in deferred revenues | 387 | 6,023 | 73,405 | 51,306 | |||
Change in unbilled contractual obligations | (5,133) | 636 | (28,800) | 16,374 | |||
Bookings | $ 389,095 | $ 352,464 | $ 1,202,499 | $ 1,100,306 | |||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions Revenues | $ 290,634 | $ 261,066 | $ 855,853 | $ 774,211 | |||
Change in deferred revenues | (1,584) | 8,235 | 64,222 | 49,060 | |||
Change in unbilled contractual obligations | (5,133) | 636 | (28,800) | 16,374 | |||
Creative Subscriptions Bookings | $ 283,917 | $ 269,937 | $ 891,275 | $ 839,645 | |||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Business Solutions Revenues | $ 103,207 | $ 84,739 | $ 302,041 | $ 258,415 | |||
Change in deferred revenues | 1,971 | (2,212) | 9,183 | 2,246 | |||
Business Solutions Bookings | $ 105,178 | $ 82,527 | $ 311,224 | $ 260,661 |
Wix.com Ltd. | |||
RECONCILIATION OF COHORT BOOKINGS | |||
(In millions) | |||
Nine Months Ended | |||
September 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Q1 Cohort revenues | $ 30 | $ 29 | |
Q1 Change in deferred revenues | 21 | 18 | |
Q1 Cohort Bookings | $ 51 | $ 47 |
Wix.com Ltd. | |||
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | |||
(In thousands) | |||
Three Months Ended | |||
September 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Revenues | $ 393,841 | $ 345,805 | |
FX impact on Q3/23 using Y/Y rates | (901) | - | |
Revenues excluding FX impact | $ 392,940 | $ 345,805 | |
Y/Y growth | 14 % | ||
Three Months Ended | |||
September 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Bookings | $ 389,095 | $ 352,464 | |
FX impact on Q3/23 using Y/Y rates | (5,692) | - | |
Bookings excluding FX impact | $ 383,403 | $ 352,464 | |
Y/Y growth | 9 % |
Wix.com Ltd. | |||||||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(1) Share based compensation expenses: | (unaudited) | (unaudited) | |||||
Cost of revenues | $ 3,621 | $ 4,418 | $ 11,338 | $ 13,204 | |||
Research and development | 30,428 | 29,606 | 87,500 | 88,245 | |||
Selling and marketing | 10,835 | 9,261 | 30,045 | 29,155 | |||
General and administrative | 13,365 | 13,511 | 37,547 | 46,315 | |||
Total share based compensation expenses | 58,249 | 56,796 | 166,430 | 176,919 | |||
(2) Amortization | 1,489 | 1,581 | 4,466 | 4,735 | |||
(3) Acquisition related expenses | 23 | 585 | 463 | 3,471 | |||
(4) Amortization of debt discount and debt issuance costs | 787 | 1,305 | 3,405 | 3,908 | |||
(5) Impairment, restructuring and other costs | 3,843 | - | 29,511 | - | |||
(6) Sales tax accrual and other G&A expenses (income) | 146 | 183 | 611 | 544 | |||
(7) Unrealized loss (gain) on equity and other investments | 2,400 | (10,182) | 196,383 | ||||
(8) Non-operating foreign exchange expenses (income) | (8,283) | (1,675) | (13,788) | 183 | |||
(9) Provision for income tax effects related to non-GAAP adjustments | (552) | 2,342 | (6,705) | (45,902) | |||
Total adjustments of GAAP to Non GAAP | $ 58,102 | $ 50,935 | $ 164,081 | $ 340,241 |
Wix.com Ltd. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit | $ 264,798 | $ 217,948 | $ 771,479 | $ 635,163 | |||
Share based compensation expenses | 3,621 | 4,418 | 11,338 | 13,204 | |||
Acquisition related expenses | 17 | - | 224 | 140 | |||
Amortization | 668 | 759 | 2,002 | 2,279 | |||
Non GAAP Gross Profit | 269,104 | 223,125 | 785,043 | 650,786 | |||
Non GAAP Gross margin | 68 % | 65 % | 68 % | 63 % | |||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Creative Subscriptions | $ 237,447 | $ 199,031 | $ 693,132 | $ 581,051 | |||
Share based compensation expenses | 2,673 | 3,503 | 8,386 | 10,496 | |||
Non GAAP Gross Profit - Creative Subscriptions | 240,120 | 202,534 | 701,518 | 591,547 | |||
Non GAAP Gross margin - Creative Subscriptions | 83 % | 78 % | 82 % | 76 % | |||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Business Solutions | $ 27,351 | $ 18,917 | $ 78,347 | $ 54,112 | |||
Share based compensation expenses | 948 | 915 | 2,952 | 2,708 | |||
Acquisition related expenses | 17 | - | 224 | 140 | |||
Amortization | 668 | 759 | 2,002 | 2,279 | |||
Non GAAP Gross Profit - Business Solutions | 28,984 | 20,591 | 83,525 | 59,239 | |||
Non GAAP Gross margin - Business Solutions | 28 % | 24 % | 28 % | 23 % |
Wix.com Ltd. | |||||||
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS) | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Operating loss | $ (5,792) | $ (62,311) | $ (26,149) | $ (252,750) | |||
Adjustments: | |||||||
Share based compensation expenses | 58,249 | 56,796 | 166,430 | 176,919 | |||
Amortization | 1,489 | 1,581 | 4,466 | 4,735 | |||
Impairment, restructuring and other charges | 3,843 | - | 29,511 | - | |||
Sales tax accrual and other G&A expenses | 146 | 183 | 611 | 544 | |||
Acquisition related expenses | 23 | 585 | 463 | 3,471 | |||
Total adjustments | $ 63,750 | $ 59,145 | $ 201,481 | $ 185,669 | |||
Non GAAP operating income (loss) | $ 57,958 | $ (3,166) | $ 175,332 | $ (67,081) | |||
Non GAAP operating margin | 15 % | -1 % | 15 % | -6 % |
Wix.com Ltd. | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) PER SHARE | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Net income (loss) | $ 6,975 | $ (47,361) | $ 30,183 | $ (385,888) | |||
Share based compensation expenses and other Non GAAP adjustments | 58,102 | 50,935 | 164,081 | 340,241 | |||
Non-GAAP net income (loss) | $ 65,077 | $ 3,574 | $ 194,264 | $ (45,647) | |||
Basic Non GAAP net income (loss) per share | $ 1.14 | $ 0.06 | $ 3.43 | $ (0.79) | |||
Weighted average shares used in computing basic Non GAAP net income (loss) per share | 56,837,917 | 58,355,542 | 56,666,881 | 57,930,336 | |||
Diluted Non GAAP net income (loss) per share | $ 1.10 | $ 0.06 | $ 3.22 | $ (0.79) | |||
Weighted average shares used in computing diluted Non GAAP net income (loss) per share | 59,923,820 | 58,355,542 | 61,411,030 | 57,930,336 |
Wix.com Ltd. | |||||||
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||
(In thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Net cash provided by (used in) operating activities | $ 64,144 | $ 267 | $ 157,866 | $ (16,082) | |||
Capital expenditures, net | (19,376) | (22,874) | (56,059) | (56,015) | |||
Free Cash Flow | $ 44,768 | $ (22,607) | $ 101,807 | $ (72,097) | |||
Restructuring and other costs | - | - | 4,504 | - | |||
Capex related to HQ build out | 18,043 | 27,166 | 49,622 | 52,515 | |||
Free Cash Flow excluding HQ build out and restructuring costs | $ 62,811 | $ 4,559 | $ 155,933 | $ (19,582) |
Wix.com Ltd. | |||||||
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Basic weighted-average shares used to compute net income (loss) per share | 56,837,917 | 58,355,542 | 56,666,881 | 57,930,336 | |||
Effect of dilutive securities (included in the effect of dilutive securities is the assumed | 1,659,155 | - | 1,622,224 | - | |||
Diluted weighted-average shares used to compute net income (loss) per share | 58,497,072 | 58,355,542 | 58,289,105 | 57,930,336 | |||
The following items have been excluded from the diluted weighted average number of shares | |||||||
Stock options | 1,940,648 | 4,964,207 | 1,940,648 | 4,964,207 | |||
Restricted share units | 1,162,995 | 2,901,755 | 1,162,995 | 2,901,755 | |||
Convertible Notes (if-converted) | 1,426,748 | 3,969,514 | 1,426,748 | 3,969,514 | |||
63,027,463 | 70,191,018 | 62,819,496 | 69,765,812 |
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SOURCE Wix.com Ltd.
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