[May 10, 2017] |
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Wix First Quarter 2017 Results Exceed Expectations as Business Continues to Accelerate - Raises Full Year 2017 Financial Outlook
Wix.com
Ltd. (Nasdaq: WIX), a leading global software platform for small
businesses to operate online, today reported another strong quarter of
financial results for the first quarter ended March 31, 2017. In
addition, the Company provided its initial outlook for its financial
performance in the second quarter of 2017 and raised its expectations
for the full year 2017.
"Our growth acceleration continues as we begin 2017 with a very strong
first quarter," said Avishai Abrahami, Co-founder and CEO of Wix. "We
continued to extend our technology leadership through product
innovation, efficiently acquire new subscriptions, and grow our brand
globally. Continued investment in our platform resulted in the strongest
net premium subscriptions additions in our company's history, and we
surpassed the 100 million registered user milestone - an amazing
achievement. We also launched our newest product Wix Video, a unique and
innovative solution that enables our users to display and distribute
video in a fully customized way. We continue to execute very well
against our strategic priorities and believe the pipeline of innovation
planned for 2017 will result in an even more robust product and
technology platform."
Lior Shemesh, CFO of Wix, commented, "Our top-line growth accelerated
again this quarter driven by an increased number of registered users and
improved overall conversion of registered users to premium
subscriptions. These increases drove 40% growth in the net subscriptions
we generated from our Q1 2017 user cohort on a year-over-year basis
while maintaining the same TROI of 7 to 9 months. We also generated
significant free cash flow while continuing to invest in advancing our
platform and broader marketing activities, including our Super Bowl
campaign. We are raising our full-year financial outlook to reflect our
strong Q1 performance and our confidence in the momentum of our business
for the remainder of 2017."
Q1 2017 Financial Summary
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Three months ended Mar 31,
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$ in thousands
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2017
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2016
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Y/Y growth
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Prior Q1 2017 Outlook
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Revenue
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$92,538
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$61,586
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50%
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$89,000 - 90,000
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Collections
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$114,546
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$75,694
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51%
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$107,000 - 109,000
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Free Cash Flow
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$14,781
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($2,134)
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NM
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Operating Loss
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($20,471)
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($19,768)
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NM
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Non-GAAP Operating Loss
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($7,538)
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($12,261)
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NM
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Q1 2017 Results and Highlights
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Revenue increased 50% to $92.5 million compared to $61.6 million for
the first quarter last year
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Collections increased 51% to $114.5 million compared to $75.7 million
for the first quarter last year
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Gross margin on a GAAP basis was 84%, compared to 83% in the first
quarter of last year. Non-GAAP gross margin was 85%, compared to 84%
in the first quarter of last year
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GAAP operating loss was $20.5 million compared to loss of $19.8
million in the first quarter a year ago. On a non-GAAP basis,
operating loss was $7.5 million compared to an operating loss of $12.3
million in the first quarter last year
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GAAP net loss was $20.9 million, or $(0.47) per share, compared to a
net loss of $19.9 million, or $(0.49) per share for the first quarter
of 2016
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Non-GAAP net loss was $8.0 million, or $(0.18) per share, compared to
a non-GAAP net loss of $12.2 million, or $(0.30) per share for the
first quarter of 2016
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Free cash flow was $14.8 million compared to $(2.1) million for the
first quarter of 2016. Excluding incremental investments and one-time
costs related to the acquisitions of flok and DeviantArt, free cash
flow was $17.5 million
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Added 208,000 net premium subscriptions in the period to reach 2.7
million as of March 31, 2017, a 38% increase over the first quarter of
2016
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Added 5.9 million registered users in the first quarter. Registered
users as of March 31, 2017 were 103 million, representing a 25%
increase compared to the first quarter of 2016
Recent Business Highlights
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Launched Another Significant Product - Wix Video: As video
becomes pervasive online, Wix has launched Wix Video, an
industry-first product that gives video creators and business owners
the power to fully customize and monetize their content. Wix
Video provides users with an industry-leading solution for showcasing,
sharing and selling videos online. It enables users to combine hosted
and third-party videos into a single playlist and ensure high quality
streaming and smooth playback due to its adaptive streaming
technology. Wix Video also allows users to keep all the revenue they
generate and the ability to deliver videos to their customers via
subscriptions, rentals or individual purchases.
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Acquired DeviantArt, Pairing Wix Capabilities with Creative Global
Community: Wix acquired DeviantArt, one of the world's
largest online communities dedicated to artists, art enthusiasts and
designers. Wix believes that the acquisition represents inherent
opportunities in key growth areas for Wix including product
development, brand recognition and increased traffic potential. Wix
will provide technology and marketing expertise to the DeviantArt
universe enabling its users to further their reach and increase
engagement, both online and on mobile.
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Launched Multi-Country Campaign with Manchester City All-Stars in
Latin America: Wix and the English Premier League's Manchester
City teamed up for an all-star campaign, featuring the Club's star
players, to reward a Wix user in Latin America. The multi-country
campaign granted an amazing opportunity to a user and football fan to
promote their winning brand throughout Latin America and beyond.
Manchester City players Sergio Agüero, Gabriel Jesus, Claudio Bravo
and Aleix Garcia served as spokespeople for the campaign.
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Announcing Timeline for New Platform-Wide Product: Wix intends
to launch a closed beta of a new major product in June and publicly
reveal the product in the following months.
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Initiated Comprehensive Scaling of Support Infrastructure: To
meet the growth in numbers of registered users and premium
subscriptions, Wix has launched several initiatives to scale and
improve its global user support function. These initiatives include
product improvements, greater automation and an increased number of
support agents. Wix believes that these initiatives will reduce the
occurrence of common user issues and help resolve issues faster for
users across the globe.
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Wix Mobile Growth: Wix users have created over 24 million
mobile sites to date, making Wix one of the largest mobile site
development platforms globally.
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Global E-commerce Platform: E-commerce subscriptions reached
357,000 during the quarter. Growth of e-commerce and
transaction-enabled websites continues to exceed overall subscriptions
growth and accelerated during the quarter, highlighting Wix's broad
reach with small businesses.
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Strong Platform Engagement: Continued engagement with the Wix
ecosystem is illustrated by 533 million user contacts saved onto the
Wix platform by users. Leveraging Wix's MyAccount CRM system, business
owners track customer activity data, manage relationships and
communicate using Wix ShoutOut, Wix's email marketing solution.
Financial Outlook
The Company is introducing its outlook for the second quarter of 2017
and is increasing its outlook for the full year 2017 as follows:
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For the second quarter of 2017:
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Q2 2017 Outlook
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Y/Y growth
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Revenue
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$101 - $102 million
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47% - 48%
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Collections
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$116 - $117 million
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42% - 44%
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FY 2017 Outlook
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Prior1
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Updated 2
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Y/Y growth
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Revenue
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$417 - $419 million
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$421 - $423 million
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45% - 46%
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Collections
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$461 - $467 million
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$473 - $477 million
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38% - 39%
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Free Cash Flow
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$63 - $64 million
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$67 - $68 million
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85% - 88%
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Conference Call and Webcast Information
Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, May
10, 2017 to answer questions about the financial and operational
performance of the business during the first quarter 2017. The
conference call will include a brief statement by management and will
focus on answering questions about our results during the quarter. To
enhance the Q&A portion of this call, the company has posted a
shareholder update, supplemental data sheet and supporting slides to its
Investor Relations website at https://investors.wix.com/results.cfm.
These materials provide shareholders and analysts with additional detail
for analyzing results in advance of the quarterly conference call.
To participate on the live call, analysts and investors should dial
866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362
(Israel) at least ten minutes prior to the start time of the call. A
telephonic replay of the call will be available through May 17, 2017 at
11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406
(International) and providing Conference ID: 7871041.
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.com is a leading global software platform for small businesses to
operate online with over 105 million registered users worldwide. Wix was
founded on the belief that the Internet should be accessible to everyone
to develop, create and contribute. Through free and premium
subscriptions, Wix empowers millions of businesses, organizations,
professionals and individuals to take their businesses, brands and
workflow online. Wix ADI, the Wix Editor and a highly curated App Market
enable users to build and manage a fully integrated and dynamic digital
presence. Wix's headquarters are in Tel Aviv with offices in Be'er
Sheva, Berlin, Dnepropetrovsk, Kiev, Los Angeles, Miami, New York, San
Francisco, Sào Paulo, and Vilnius.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared
and presented in accordance with U.S. GAAP, Wix uses the following
non-GAAP financial measures: collections, non-GAAP gross margin,
non-GAAP operating loss, free cash flow, non-GAAP net loss and non-GAAP
net loss per share (collectively the "Non-GAAP financial measures").
Collections represents the total cash collected by us from our customers
in a given period and is calculated by adding the change in deferred
revenues for a particular period to revenues for the same period.
Non-GAAP gross margin represents gross profit calculated in accordance
with GAAP as adjusted for the impact of share-based compensation expense
and acquisition-related costs divided by revenue. Non-GAAP operating
loss represents operating loss calculated in accordance with GAAP as
adjusted for the impact of share-based compensation expense,
amortization, and acquisition-related costs. Non-GAAP net loss
represents net loss calculated in accordance with GAAP as adjusted for
the impact of share-based compensation expense, amortization, and
acquisition-related costs. Non-GAAP net loss per share represents
non-GAAP net loss divided by the weighted average number of shares used
in computing GAAP loss per share. Free cash flow represents net cash
provided by (used in) operating activities less capital expenditures.
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 of GAAP to Non-GAAP Financial Measures" table in this
press release. This accompanying table has 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 has not reconciled its guidance as to
free cash flow to cash flow from operations because it does not provide
guidance for cash flow from operations. As items that impact cash flow
from operations are out of the Company's control and/or cannot be
reasonably predicted, the Company is unable to provide such guidance.
Accordingly, a reconciliation to cash flow from operations is not
available without unreasonable effort.
Forward-Looking Statements
This press release 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 and may be identified by words like "anticipate," "assume,"
"believe," "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 press release are based on management's current
expectations, which are subject to uncertainty, risks and changes in
circumstances that are difficult to predict, including the timing of
product releases, 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 ability to grow our user base and premium
subscriptions; our ability to maintain and enhance our brand and
reputation; our ability to manage the growth of our infrastructure
effectively; our ability to effectively execute our initiatives to scale
and improve our user support function; changes to technologies used in
our solutions or in global, national, regional or local economic,
business, competitive, market, regulatory and other factors discussed
under the heading "Risk Factors" in the Company's 2016 annual report on
Form 20-F filed with the Securities and Exchange Commission on March 28,
2017. Any forward-looking statement made by us in this press release
speaks only as of the date hereof. Factors or events that could cause
our actual results to differ may emerge from time to time, and it is not
possible for us to predict all of them. We undertake no obligation to
publicly update any forward-looking statements, whether as a result of
new information, future developments or otherwise.
1 Registered Users and Premium Subscriptions exclude members
and subscriptions from DeviantArt.
2Prior and updated outlook reflects the revised guidance
announced in connection with our acquisition of DeviantArt in February
2017, which was furnished on Form 6-K on February 23, 2017. As
previously disclosed, this outlook reflects incremental contributions
from the DeviantArt acquisition of $9 million to collections and $8
million to revenue and a reduction in previous 2017 free cash flow
outlook of $8 million. We anticipate that incremental investments into
DeviantArt for the next two to three years including 2017 will be up to
$20 million and that the impact will be breakeven at some point in 2019.
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Wix.com Ltd.
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CONDENSED CONSOLIDATED BALANCE SHEET
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(In thousands)
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Period ended
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December 31,
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March 31,
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2016
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2017
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Assets
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(audited)
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(unaudited)
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Current Assets:
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Cash and cash equivalents
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$
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93,064
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$
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90,897
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Short term deposits
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78,240
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72,674
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Restricted cash and deposit
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931
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1,085
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Trade receivables
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8,279
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9,828
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Prepaid expenses and other current assets
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17,346
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24,229
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Total current assets
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197,860
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198,713
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Property, equipment and software, net
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Long-Term Assets:
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Property and equipment, net
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8,750
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9,168
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Prepaid expenses and other long-term assets
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2,622
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3,003
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Intangible assets and goodwill, net
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5,452
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46,551
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Total long-term assets
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16,824
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58,722
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Total assets
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$
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214,684
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$
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257,435
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Liabilities and Shareholder's Deficiency
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Current Liabilities:
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Trade payables
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$
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20,709
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$
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26,277
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Employees and payroll accruals
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20,230
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27,978
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Deferred revenues
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146,987
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169,708
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Accrued expenses and other current liabilities
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18,847
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21,877
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Total current liabilities
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206,773
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245,840
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Long term deferred revenues
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9,746
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12,039
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Long term deferred tax liability
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634
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426
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Long-term loan
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-
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1,219
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Total long-term liabilities
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10,380
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13,684
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Total liabilities
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217,153
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259,524
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Shareholders' Deficiency
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Ordinary shares
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74
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74
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Additional paid-in capital
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241,154
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259,138
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Other comprehensive income (loss)
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(389)
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2,892
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Accumulated deficit
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(243,308)
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(264,193)
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Total shareholders' deficiency
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(2,469)
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(2,089)
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Total liabilities and shareholders' deficiency
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$
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214,684
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$
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257,435
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Wix.com Ltd.
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CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
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(In thousands, except loss per share data)
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Three Months Ended
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March 31,
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2016
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2017
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(unaudited)
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Revenue
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$
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61,586
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$
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92,538
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Cost of revenue
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10,507
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14,863
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Gross Profit
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51,079
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77,675
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Operating expenses:
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Research and development
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24,472
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32,669
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Selling and marketing
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40,454
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54,329
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General and administrative
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5,921
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|
11,148
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Total operating expenses
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70,847
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|
98,146
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Operating loss
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(19,768
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)
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|
(20,471
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)
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Financial income, net
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|
505
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|
148
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Other income (expenses)
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|
-
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-
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Loss before taxes on income
|
|
|
|
(19,263
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)
|
|
|
|
(20,323
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)
|
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Taxes on income
|
|
|
|
649
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|
|
|
|
562
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Net loss
|
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|
$
|
(19,912
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)
|
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|
$
|
(20,885
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)
|
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Basic and diluted net loss per share
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$
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(0.49
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)
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$
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(0.47
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)
|
|
Basic and diluted weighted-average shares used to compute net loss
per share
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40,378,899
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44,695,951
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Wix.com Ltd.
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ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP OPERATING LOSS
AND NET LOSS
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(In thousands)
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|
|
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|
|
|
|
|
|
|
|
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|
Three Months Ended
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|
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March 31,
|
|
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|
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2016
|
|
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2017
|
|
(1) Share based compensation expenses:
|
|
|
(unaudited)
|
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Cost of revenues
|
|
|
$
|
428
|
|
|
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$
|
506
|
|
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Research and development
|
|
|
|
3,111
|
|
|
|
|
4,726
|
|
|
Selling and marketing
|
|
|
|
981
|
|
|
|
|
1,419
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|
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General and administrative
|
|
|
|
1,617
|
|
|
|
|
2,331
|
|
|
Total share based compensation expenses
|
|
|
|
6,137
|
|
|
|
|
8,982
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|
(2) Amortization
|
|
|
|
187
|
|
|
|
|
186
|
|
|
(3) Acquisition related expenses
|
|
|
|
1,183
|
|
|
|
|
3,765
|
|
|
(4) Taxes on income
|
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|
|
175
|
|
|
|
|
-
|
|
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Total adjustments of GAAP to Non GAAP
|
|
|
$
|
7,682
|
|
|
|
$
|
12,933
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
Operating loss
|
|
|
$
|
(19,768
|
)
|
|
|
$
|
(20,471
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Share based compensation expenses
|
|
|
|
6,137
|
|
|
|
|
8,982
|
|
|
Amortization
|
|
|
|
187
|
|
|
|
|
186
|
|
|
Acquisition related expenses
|
|
|
|
1,183
|
|
|
|
|
3,765
|
|
|
Total adjustments
|
|
|
$
|
7,507
|
|
|
|
$
|
12,933
|
|
|
|
|
|
|
|
|
|
|
Non GAAP operating loss
|
|
|
$
|
(12,261
|
)
|
|
|
$
|
(7,538
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
Gross Profit
|
|
|
$
|
51,079
|
|
|
|
$
|
77,675
|
|
|
Share based compensation expenses
|
|
|
|
428
|
|
|
|
|
506
|
|
|
Acquisition related expenses
|
|
|
|
-
|
|
|
|
|
28
|
|
|
Non GAAP Gross Profit
|
|
|
|
51,507
|
|
|
|
|
78,209
|
|
|
|
|
|
|
|
|
|
|
Non GAAP Gross margin
|
|
|
|
84
|
%
|
|
|
|
85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET
LOSS PER SHARE
|
(In thousands, except loss per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
Net loss
|
|
|
$
|
(19,912
|
)
|
|
|
$
|
(20,885
|
)
|
|
Share based compensation expense and other Non GAAP adjustments
|
|
|
|
7,682
|
|
|
|
|
12,933
|
|
|
Non-GAAP net loss
|
|
|
$
|
(12,230
|
)
|
|
|
$
|
(7,952
|
)
|
|
|
|
|
|
|
|
|
|
Basic Non GAAP net loss per share
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
(0.18
|
)
|
|
Weighted average shares used in computing basic Non GAAP net loss
per share
|
|
|
|
40,378,899
|
|
|
|
|
44,695,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
KEY PERFORMANCE METRICS
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
61,586
|
|
|
|
$
|
92,538
|
|
|
|
|
|
|
|
|
Collections
|
|
|
$
|
75,694
|
|
|
|
$
|
114,546
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
$
|
(2,134
|
)
|
|
|
$
|
14,781
|
|
|
|
|
|
|
|
|
Number of registered users at period end (*)
|
|
|
|
82,271
|
|
|
|
|
103,234
|
|
|
|
|
|
|
|
|
Number of premium subscriptions at period end (*)
|
|
|
|
1,938
|
|
|
|
|
2,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) the numbers without DeviantArt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
RECONCILIATION OF REVENUES TO COLLECTIONS
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
61,586
|
|
|
|
$
|
92,538
|
|
|
|
|
|
|
|
|
Change in deferred revenues
|
|
|
|
14,108
|
|
|
|
|
22,008
|
|
|
|
|
|
|
|
|
Collections
|
|
|
$
|
75,694
|
|
|
|
$
|
114,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOW
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
(925
|
)
|
|
|
$
|
16,397
|
|
|
|
|
|
|
|
|
Capital expenditures, net
|
|
|
|
(1,209
|
)
|
|
|
|
(1,616
|
)
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
$
|
(2,134
|
)
|
|
|
$
|
14,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
FREE CASH FLOW EXCLUDING DEVIANTART ACQUISITION COSTS
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
(925
|
)
|
|
|
$
|
16,397
|
|
|
|
|
|
|
|
|
Capital expenditures, net
|
|
|
|
(1,209
|
)
|
|
|
|
(1,616
|
)
|
|
|
|
|
|
|
|
DeviantArt acquisition costs
|
|
|
|
-
|
|
|
|
|
2,738
|
|
|
|
|
|
|
|
|
Free Cash Flow excluding DeviantArt acquisition costs
|
|
|
$
|
(2,134
|
)
|
|
|
$
|
17,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wix.com Ltd.
|
|
|
|
|
|
|
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ending
|
|
|
|
|
June 30, 2017
|
|
|
December 31, 2017
|
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected revenues
|
|
|
$
|
101,000
|
|
|
|
$
|
102,000
|
|
|
|
$
|
421,000
|
|
|
$
|
423,000
|
|
Projected change in deferred revenues
|
|
|
$
|
15,000
|
|
|
|
$
|
15,000
|
|
|
|
|
52,000
|
|
|
|
54,000
|
|
Projected collections
|
|
|
$
|
116,000
|
|
|
|
$
|
117,000
|
|
|
|
$
|
473,000
|
|
|
$
|
477,000
|
|
|
|
|
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
(unaudited)
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(19,912
|
)
|
|
|
$
|
(20,885
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
|
|
|
1,244
|
|
|
|
|
1,297
|
|
|
Amortization
|
|
|
|
187
|
|
|
|
|
320
|
|
|
Share based compensation expenses
|
|
|
|
6,137
|
|
|
|
|
8,982
|
|
|
Tax benefit related to exercise of share options
|
|
|
|
175
|
|
|
|
|
-
|
|
|
Increase in accrued interest and exchange rate on short term and
long term deposits
|
|
|
|
(230
|
)
|
|
|
|
(114
|
)
|
|
Deferred income taxes, net
|
|
|
|
(26
|
)
|
|
|
|
(213
|
)
|
|
Decrease (increase) in trade receivables
|
|
|
|
978
|
|
|
|
|
(364
|
)
|
|
Increase in prepaid expenses and other current and long-term assets
|
|
|
|
(1,589
|
)
|
|
|
|
(3,913
|
)
|
|
Increase in trade payables
|
|
|
|
4,624
|
|
|
|
|
4,508
|
|
|
Increase in employees and payroll accruals
|
|
|
|
222
|
|
|
|
|
4,955
|
|
|
Increase in short term and long term deferred revenues
|
|
|
|
14,108
|
|
|
|
|
22,008
|
|
|
Decrease in accrued expenses and other current liabilities
|
|
|
|
(6,843
|
)
|
|
|
|
(184
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
(925
|
)
|
|
|
|
16,397
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from short-term deposits and restricted deposits
|
|
|
|
4,766
|
|
|
|
|
16,386
|
|
|
Investment in short-term deposits and restricted deposits
|
|
|
|
(7,000
|
)
|
|
|
|
(10,650
|
)
|
|
Purchase of property and equipment
|
|
|
|
(1,209
|
)
|
|
|
|
(1,616
|
)
|
|
Payment for Businesses acquired
|
|
|
|
-
|
|
|
|
|
(29,834
|
)
|
|
Net cash used in investing activities
|
|
|
|
(3,443
|
)
|
|
|
|
(25,714
|
)
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from exercise of options and ESPP shares
|
|
|
|
3,321
|
|
|
|
|
7,320
|
|
|
Credit line repayment
|
|
|
|
-
|
|
|
|
|
(170
|
)
|
|
Net cash provided by financing activities
|
|
|
|
3,321
|
|
|
|
|
7,150
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
(1,047
|
)
|
|
|
|
(2,167
|
)
|
|
CASH AND CASH EQUIVALENTS-Beginning of period
|
|
|
|
39,226
|
|
|
|
|
93,064
|
|
|
CASH AND CASH EQUIVALENTS-End of period
|
|
|
$
|
38,179
|
|
|
|
$
|
90,897
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170509006672/en/
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