EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

Wix Reports Fourth Quarter and Full Year 2016 Results -
Collections Growth Accelerates to 42% Y/Y in 2016, Revenue Grows 43%

·
Collections Growth Accelerates to 46% Y/Y in Q4’16, Revenue Accelerates to 48% Y/Y
·
Free Cash Flow was a Record $18.7 million in Q4’16, up 122% Y/Y
·
Delivered First Ever Quarter of Non-GAAP Profitability
·
Grew Premium Subscriptions 39% Y/Y to 2.5 Million
·
Initial 2017 Outlook Highlighted by Robust Top Line Growth and Strong Free Cash Flow

NEW YORK, February 15, 2017 -- 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 fourth quarter and full year ended December 31, 2016.  In addition, the Company provided its initial outlook and expectations for its financial performance in the first quarter and full year 2017.

“Our focused investment in technology and our superior marketing execution continue to have a meaningful positive impact on our growth and financial results,” said Avishai Abrahami, Co-founder and CEO of Wix. “In the last twelve months, this strategy delivered innovative products such as Wix ADI and the mobile Wix App, as well as growth in our brand and successful marketing execution, highlighted by our Super Bowl LI campaign. This strategic approach will enable us to further extend our technology leadership, acquire subscriptions efficiently and grow our brand globally in 2017 and beyond.”

Lior Shemesh, CFO of Wix, commented, “The re-acceleration in top line growth this quarter was exceptional -- a direct result of the improvement in conversion of registered users to premium subscriptions and higher collections per new subscriptions due to record adoption of our vertical solutions. The stronger than expected inflection to Q4 non-GAAP profitability highlights the flexibility and scalability of our low, fixed-cost model. We expect to deliver continued top line growth and higher free cash flow in 2017 and beyond by further leveraging our investments in technology and marketing.”

Q4 2016 and Full Year 2016 Financial Summary
 
   
Three months ended Dec 31,
           Prior Q4 2016  
$ in thousands
  
2016
    
2015
    
Y/Y growth
    
 Outlook
  
Revenue
  
$
84,176
    
$
56,831
      
48
%
  
$
81,000 - 82,000
  
Collections
  
$
97,652
    
$
66,870
      
46
%
  
$
93,000 - 94,000
  
Operating Loss
  
$
(4,742
)
  
$
(10,163
)
  
NM
          
Non-GAAP Operating Profit (Loss)
  
$
3,879
    
$
(4,417
)
  
NM
          
Adjusted EBITDA
  
$
17,877
    
$
7,025
      
154
%
  
$
14,000 – 15,000
  
Free Cash Flow
  
$
18,683
    
$
8,397
      
122
%
        

   
Twelve months ended Dec 31,
           Prior 2016  
$ in thousands
  
2016
    
2015
    
Y/Y growth
    
 Outlook
  
Revenue
  
$
290,103
    
$
203,518
      
43
%
  
$
287,000 - 288,000
  
Collections
  
$
342,069
    
$
241,687
      
42
%
  
$
337,000 - 338,000
  
Operating Loss
  
$
(44,032
)
  
$
(48,635
)
  
NM
          
Non-GAAP Operating Loss
  
$
(12,529
)
  
$
(29,266
)
  
NM
          
Adjusted EBITDA
  
$
42,588
    
$
14,721
      
189
%
  
$
38,500 – 39,500
  
Free Cash Flow
  
$
36,158
    
$
14,534
      
149
%
        

Q4 2016 Results and Highlights

·
Revenue increased 48% to $84.2 million compared to $56.8 million for the fourth quarter last year
 
·
Collections increased 46% to $97.7 million compared to $66.9 million for the fourth quarter last year
 
·
Gross margin on a GAAP basis was 85% compared to 83% in the fourth quarter of last year. Non-GAAP gross profit was 87% of collections compared to 85% in the fourth quarter of last year
 
·
GAAP operating loss was $4.7 million compared to loss of $10.2 million in the fourth quarter a year ago. On a non-GAAP basis, operating income was $3.9 million compared to an operating loss of $4.4 million in the fourth quarter last year
 
·
GAAP net loss was $6.2 million, or $(0.14) per share, compared to a net loss of $11.3 million, or $(0.28) per share for the fourth quarter of 2015
 
·
Non-GAAP net income was $2.7 million, or $0.06 per share, compared to a non-GAAP net loss of $5.4 million, or $(0.13) per share for the fourth quarter of 2015
 
·
Adjusted EBITDA was $17.9 million compared to $7.0 million for the fourth quarter of 2015
 
·
Free cash flow was $18.7 million compared to $8.4 million for the fourth quarter of 2015
 
·
Added 171,000 net premium subscriptions in the period to reach 2.5 million as of December 31, 2016, a 39% increase over the fourth quarter of 2015
 
·
Added 5.0 million registered users in the fourth quarter. Registered users as of December 31, 2016 were 97.0 million, representing a 27% increase compared to the fourth quarter of 2015

Recent Business Highlights

·
Acquired flok to Enhance CRM Technology: Wix acquired flok, a customer loyalty and engagement platform. flok's solutions are designed to increase customer value, generate organic referrals and boost small and medium businesses' online presence and reputation. The move supports Wix's strategic plan to increase its portfolio of business technology solutions providing small and medium businesses easy ways to engage and reward their customers.

·
Announced Integration with Square: Wix announced a partnership with Square to give Wix merchants and entrepreneurs in North America a new way to transact. The Square integration improves payment processing and allows both online and in-person payments via a mobile device based POS. In addition, a user can create a stunning Wix Store and, with a few clicks, manage its store and its catalog on the Wix App with the ability to accept payments online or in-person with Square.

·
Launched #DisruptiveWorld campaign around Super Bowl LI:  Wix launched its #DisruptiveWorld campaign in mid-January on YouTube and Facebook Live, the first company to launch a Super Bowl campaign using these live video platforms. The global campaign, starring Jason Statham and Gal Gadot, included numerous videos, user engagement opportunities, contests and social activations and was highlighted by a 30-second spot during the fourth quarter of Super Bowl LI.  According to Visible Measures, Wix videos garnered more views online than any other brand prior to the airing of the Super Bowl. 

·
Wix Mobile Growth:  Wix users have created over 22 million mobile sites to date, making Wix one of the largest mobile site development platforms globally.

·
Global E-commerce Platform: E-commerce subscriptions reached 332,000 during the quarter. Growth of e-commerce and transaction-enabled websites continues to exceed overall subscriptions growth, highlighting Wix’s broad reach with small businesses.

·
Strong Platform Engagement: Continued engagement with the Wix ecosystem is illustrated by 480 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 first quarter of 2017 and for full year 2017 as follows:

·
For the first quarter of 2017:
 
 
Q1 2017 Outlook
  
Y/Y growth
Revenue
$89 - $90 million
  
45% – 46%
Collections
$107 - $109 million
  
41% – 44%

·
For the full year 2017:
 
 
2017 Outlook
  
Y/Y growth
Revenue
$409 - $411 million
  
41% – 42%
Collections
$452 - $458 million
  
32% – 34%
Free Cash Flow
$71 - $72 million
  
96% – 99%

As previously announced, in response to the U.S. Securities and Exchange Commission’s May 2016 Compliance and Disclosure Interpretations on non-GAAP financial measures, beginning with our earnings release for Q1 2017, we do not intend to provide guidance for or report adjusted EBITDA.  We will continue to report free cash flow as a key non-GAAP financial measure of our business.  We believe this change will assist investors in evaluating our ongoing performance and increase the comparability of our results with those of our peer companies. Please refer to the Shareholder Update posted on our investor relations website for a reconciliation of adjusted EBITDA to free cash flow.

Conference Call and Webcast Information

Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, February 15, 2017 to answer questions about the financial and operational performance of the business during the fourth quarter 2016. 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 February 22, 2017 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 60437734.

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/.

Upcoming Investor Conferences
 
Joe Pollaro, General Manager, US, will present at Cantor Fitzgerald’s 4th Annual Internet & Technology Services Conference in New York on Thursday, February 23, 2017, at 9:50 a.m. EST and at the JMP Securities Technology Conference in San Francisco on Monday, February 27, 2017, at 3:00 p.m. PST.
 
Both events will be available via live audio webcast and archived on Wix's investor relations 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 100 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, San Francisco, New York, Miami, Berlin, Vilnius and Dnepropetrovsk.
 
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, collections and revenue on a constant currency basis, adjusted EBITDA, 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. We adjust collections and revenue to measure them on a constant currency basis by assuming the same exchange rates as the prior period applied to the reported figures in the current period. 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. Adjusted EBITDA is defined as cash flow from operations before changes in working capital, prepaid domain registration costs, interest, bank charges and other financial expenses (income), net unrealized losses (gains) on hedging transactions, other income (expenses), taxes on income, and other unusual or non-recurring expenses. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. Beginning with our Q1 2017 earnings release, we do not intend to report or provide guidance for Adjusted EBITDA going forward.  Adjusted EBITDA for 2016 and 2015 in this earnings release have been presented on the same basis.
 
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 it provides 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 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; 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 2015 annual report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2016. 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.
 
Investor Relations:
Ryan Gee
Wix.com
ir@wix.com
415-223-2610

Media Relations:
Vivian Hernandez
Wix.com
pr@wix.com
415-517-6539
 
Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
 
   
Period ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
  
 
(audited)
    
(unaudited)
  
Assets
            
Current Assets:
            
Cash and cash equivalents
  
$
39,226
    
$
93,064
  
Short term deposits
    
70,773
      
78,240
  
Restricted cash and deposit
    
3,851
      
931
  
Trade receivables
    
6,461
      
8,279
  
Prepaid expenses and other current assets
    
11,989
      
17,346
  
 Total current assets
    
132,300
      
197,860
  
Property, equipment and software, net
                
Long-Term Assets:
                
Property and equipment, net
    
8,734
      
8,750
  
Prepaid expenses and other long-term assets
    
2,200
      
2,916
  
Intangible assets and goodwill, net
    
6,199
      
5,452
  
 Total long-term assets
    
17,133
      
17,118
  
 
                
 Total assets
  
$
149,433
    
$
214,978
  
                 
Liabilities and Shareholder's Deficiency
                
Current Liabilities:
                
Trade payables
  
$
12,280
    
$
20,709
  
Employees and payroll accruals
    
15,210
      
20,292
  
Deferred revenues
    
100,561
      
146,987
  
Accrued expenses and other current liabilities
    
20,281
      
18,963
  
Total current liabilities
    
148,332
      
206,951
  
 
                
Long term deferred revenues
    
4,206
      
9,746
  
Long term deferred tax liability
    
625
      
518
  
Other long-term liabilities
    
75
      
-
  
Total long-term liabilities
    
4,906
      
10,264
  
 
                
 Total liabilities
    
153,238
      
217,215
  
                 
Shareholders' Deficiency
                
Ordinary shares
    
64
      
64
  
Additional paid-in capital
    
192,791
      
241,657
  
Other comprehensive loss
    
(248
)
    
(389
)
Accumulated deficit
    
(196,412
)
    
(243,569
)
Total shareholders' deficiency
    
(3,805
)
    
(2,237
)
 
                
Total liabilities and shareholders' deficiency
  
$
149,433
    
$
214,978
  
 
 
Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(In thousands, except loss per share data)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
                         
Revenue
  
$
56,831
    
$
84,176
    
$
203,518
    
$
290,103
  
Cost of revenue
    
9,607
      
12,738
      
34,970
      
45,287
  
Gross Profit
    
47,224
      
71,438
      
168,548
      
244,816
  
                                 
Operating expenses:
                                
Research and development
    
21,901
      
28,877
      
77,647
      
105,368
  
Selling and marketing
    
30,330
      
40,022
      
120,010
      
156,512
  
General and administrative
    
5,156
      
7,281
      
19,526
      
26,968
  
Total operating expenses
    
57,387
      
76,180
      
217,183
      
288,848
  
Operating loss
    
(10,163
)
    
(4,742
)
    
(48,635
)
    
(44,032
)
Financial income (expenses), net
    
(364
)
    
(451
)
    
77
      
246
  
Other income (expenses)
    
(6
)
    
(5
)
    
(11
)
    
(4
)
Loss before taxes on income
    
(10,533
)
    
(5,198
)
    
(48,569
)
    
(43,790
)
Taxes on income
    
772
      
984
      
2,765
      
3,367
  
Net loss
  
$
(11,305
)
  
$
(6,182
)
  
$
(51,334
)
  
$
(47,157
)
 
                                
Basic and diluted net loss per share
  
$
(0.28
)
  
$
(0.14
)
  
$
(1.30
)
  
$
(1.12
)
Basic and diluted weighted-average shares used to compute net loss per share
    
40,116,511
      
43,907,388
      
39,408,928
      
42,032,818
  
 
Wix.com Ltd.
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP STATEMENT OF OPERATIONS
(In thousands)
 
 
  
Three Months Ended
    
Year Ended
  
 
  
December 31,
    
December 31,
  
 
  
2015
    
2016
    
2015
    
2016
  
 
(unaudited)
    
(unaudited)
  
(1) Share based compensation expenses:
            
Cost of revenues
  
$
380
    
$
429
    
$
1,353
    
$
1,798
  
Research and development
    
2,852
      
4,156
      
9,234
      
14,543
  
Selling and marketing
    
920
      
1,213
      
3,077
      
4,553
  
General and administrative
    
1,424
      
2,022
      
5,069
      
7,154
  
Total share based compensation expenses
    
5,576
      
7,820
      
18,733
      
28,048
  
(2) Amortization
    
170
      
187
      
636
      
747
  
(3) Acquisition related expenses
    
-
      
614
      
-
      
2,708
  
(4) Taxes on income
    
162
      
258
      
611
      
838
  
Total adjustments of GAAP to Non GAAP
  
$
5,908
    
$
8,879
    
$
19,980
    
$
32,341
  
 
Wix.com Ltd.
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Operating loss
  
$
(10,163
)
  
$
(4,742
)
  
$
(48,635
)
  
$
(44,032
)
Adjustments:
                                
Share based compensation expenses
    
5,576
      
7,820
      
18,733
      
28,048
  
Amortization
    
170
      
187
      
636
      
747
  
Acquisition related expenses
    
-
      
614
      
-
      
2,708
  
Total adjustments
  
$
5,746
    
$
8,621
    
$
19,369
    
$
31,503
  
 
                                
Non GAAP operating income (loss)
  
$
(4,417
)
  
$
3,879
    
$
(29,266
)
  
$
(12,529
)
 
Wix.com Ltd.
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP COST OF REVENUES
(In thousands)
 
 
  
Three Months Ended
    
Year Ended
  
 
  
December 31,
    
December 31,
  
 
  
2015
    
2016
    
2015
    
2016
  
 
  
(unaudited)
    
(unaudited)
  
Gross Profit
  
$
47,224
    
$
71,438
    
$
168,548
    
$
244,816
  
Share based compensation expenses
    
380
      
429
      
1,353
      
1,798
  
Gross Profit -Non GAAP
    
47,604
      
71,867
      
169,901
      
246,614
  
 
                                
Gross margin -Non GAAP
    
84
%
    
85
%
    
83
%
    
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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Net loss
  
$
(11,305
)
  
$
(6,182
)
  
$
(51,334
)
  
$
(47,157
)
Share based compensation expense and other Non GAAP adjustments
    
5,908
      
8,879
      
19,980
      
32,341
  
Non-GAAP net income (loss)
  
$
(5,397
)
  
$
2,697
    
$
(31,354
)
  
$
(14,816
)
 
                                
Basic  Non GAAP net income (loss) per share
  
$
(0.13
)
  
$
0.06
    
$
(0.80
)
  
$
(0.35
)
Weighted average shares used in computing basic Non GAAP net income(loss) per share
    
40,116,511
      
43,907,388
      
39,408,928
      
42,032,818
  
 
 
Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Revenues
  
$
56,831
    
$
84,176
    
$
203,518
    
$
290,103
  
Collections
  
$
66,870
    
$
97,652
    
$
241,687
    
$
342,069
  
Adjusted EBITDA
  
$
7,025
    
$
17,877
    
$
14,721
    
$
42,588
  
Number of registered users at period end
    
76,965
      
97,359
      
76,965
      
97,359
  
Number of premium subscriptions at period end
    
1,767
      
2,465
      
1,767
      
2,465
  
 
Wix.com Ltd.
RECONCILIATION OF REVENUES TO COLLECTIONS
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Revenues
  
$
56,831
    
$
84,176
    
$
203,518
    
$
290,103
  
Change in deferred revenues
    
10,039
      
13,476
      
38,169
      
51,966
  
Collections
  
$
66,870
    
$
97,652
    
$
241,687
    
$
342,069
  
 
Wix.com Ltd.
RECONCILIATION OF COLLECTIONS EXCLUDING FX IMPACT
(In thousands)
 
   
Three Months Ended
              
   
December 31,
              
   
2015
    
2016
              
   
(unaudited)
              
Collections
  
$
66,870
    
$
97,652
      
 
      
 
  
F/X impact on Q4/16 using Q4/15 rates
    
-
      
957
                  
Collections excluding FX impact
  
$
66,870
    
$
98,609
                  
 
                                
Y/Y%
            
47
%
                
 
   
Three Months Ended
              
   
September 30,
    
December 31,
              
   
2016
    
2016
              
   
(unaudited)
              
Collections
  
$
87,270
    
$
97,652
      
 
      
 
  
F/X impact on Q4/16 using Q3/16 rates
    
-
      
865
                  
Collections excluding FX impact
  
$
87,270
    
$
98,517
                  
 
                                
Q/Q%
            
13
%
                
 
Wix.com Ltd.
RECONCILIATION OF NON-GAAP OPERATING LOSS TO ADJUSTED EBITDA (NON-GAAP)
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Non GAAP operating loss
  
$
(4,417
)
  
$
3,879
    
$
(29,266
)
  
$
(12,529
)
Adjustments:
                                
Realized gains on hedging transactions
    
516
      
167
      
3,492
      
791
  
Depreciation
    
1,399
      
890
      
4,999
      
4,538
  
Change in deferred revenues
    
10,039
      
13,476
      
38,169
      
51,966
  
Change in prepaid domain registration costs
    
(512
)
    
(535
)
    
(2,673
)
    
(2,178
)
Total adjustments
  
$
11,442
    
$
13,998
    
$
43,987
    
$
55,117
  
 
                                
 Adjusted EBITDA
  
$
7,025
    
$
17,877
    
$
14,721
    
$
42,588
  
 

Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
Net cash provided by operating activities
  
$
9,522
    
$
19,714
    
$
20,876
    
$
40,573
  
Capital expenditures, net
    
(1,125
)
    
(1,031
)
    
(6,342
)
    
(4,415
)
Free Cash Flow
  
$
8,397
    
$
18,683
    
$
14,534
    
$
36,158
  
 
Wix.com Ltd.
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
(In thousands)
 
   
Three Months Ended
    
Year Ending
  
   
March 31,2017
    
December 31,2017
  
 
  
Low
    
High
    
Low
    
High
  
 
                        
Projected revenues
  
$
89,000
    
$
90,000
    
$
409,000
    
$
411,000
  
Projected change in deferred revenues
    
18,000
      
19,000
      
43,000
      
47,000
  
Projected collections
  
$
107,000
    
$
109,000
    
$
452,000
    
$
458,000
  
 

Wix.com Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2015
    
2016
    
2015
    
2016
  
   
(unaudited)
    
(unaudited)
  
OPERATING ACTIVITIES:
                        
Net loss
  
$
(11,305
)
  
$
(6,182
)
  
$
(51,334
)
  
$
(47,157
)
Adjustments to reconcile net loss to net cash used in operating activities:
                                
Depreciation
    
1,399
      
890
      
4,999
      
4,538
  
Amortization
    
170
      
187
      
636
      
747
  
Share based compensation expenses
    
5,593
      
7,820
      
18,750
      
28,048
  
Tax benefit related to exercise of share options
    
160
      
644
      
609
      
1,224
  
Increase in accrued interest and exchange rate on short term and long term deposits
    
(59
)
    
(116
)
    
(805
)
    
(669
)
Deferred income taxes, net
    
(29
)
    
(537
)
    
(111
)
    
(611
)
Decrease (increase) in trade receivables
    
396
      
(665
)
    
(5,411
)
    
(1,818
)
Decrease (increase) in prepaid expenses and other current and long-term assets
    
(1,251
)
    
1,790
      
(2,597
)
    
(6,284
)
Increase (decrease) in trade payables
    
(395
)
    
3,435
      
7,483
      
8,290
  
Increase (decrease) in employees and payroll accruals
    
2,575
      
(3,189
)
    
1,565
      
3,018
  
Increase in short term and long term deferred revenues
    
10,039
      
13,476
      
38,169
      
51,966
  
Increase (decrease) in accrued expenses and other current liabilities
    
2,229
      
2,161
      
8,923
      
(719
)
Net cash provided by operating activities
    
9,522
      
19,714
      
20,876
      
40,573
  
INVESTING ACTIVITIES:
                                
Proceeds from short-term deposits and restricted deposits
    
9,346
      
13,881
      
60,162
      
49,392
  
Investment in short-term deposits and restricted deposits
    
(19,965
)
    
(3,863
)
    
(82,038
)
    
(53,270
)
Purchase of property and equipment
    
(1,125
)
    
(1,031
)
    
(6,342
)
    
(4,415
)
Acquisition of Intangible assets
    
(450
)
    
(100
)
    
(450
)
    
(100
)
Net cash provided by (used in) investing activities
    
(12,194
)
    
8,887
      
(28,668
)
    
(8,393
)
FINANCING ACTIVITIES:
                                
Proceeds from exercise of options and ESPP shares
    
1,489
      
6,515
      
6,818
      
21,658
  
Net cash provided by financing activities
    
1,489
      
6,515
      
6,818
      
21,658
  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
(1,183
)
    
35,116
      
(974
)
    
53,838
  
CASH AND CASH EQUIVALENTS—Beginning of period
    
40,409
      
57,948
      
40,200
      
39,226
  
CASH AND CASH EQUIVALENTS—End of period
  
$
39,226
    
$
93,064
    
$
39,226
    
$
93,064
  
 
Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED EBITDA (NON-GAAP)
(In thousands)
 
 
  
Three Months Ended
    
Year Ended
  
 
  
December 31,
    
December 31,
  
 
  
2015
    
2016
    
2015
    
2016
  
 
  
(unaudited)
    
(unaudited)
  
Net cash provided by operating activities
  
$
9,522
    
$
19,714
    
$
20,876
    
$
40,573
  
Changes in tax benefit related to exercise of share options
    
(160
)
    
(644
)
    
(609
)
    
(1,224
)
Changes in accrued interest and exchange rate on short term and long term deposits
    
59
      
116
      
805
      
669
  
Changes in deferred income taxes, net
    
29
      
537
      
111
      
611
  
Changes in trade receivables
    
(396
)
    
665
      
5,411
      
1,818
  
Changes in prepaid expenses and other current and long-term assets
    
1,251
      
(1,790
)
    
2,597
      
6,284
  
Changes in trade payables
    
395
      
(3,435
)
    
(7,483
)
    
(8,290
)
Changes in employees and payroll accruals
    
(2,575
)
    
3,189
      
(1,565
)
    
(3,018
)
Changes in accrued expenses and other current liabilities
    
(2,229
)
    
(2,161
)
    
(8,923
)
    
719
  
Change in prepaid domain registration costs
    
(512
)
    
(535
)
    
(2,673
)
    
(2,178
)
Other expenses
    
6
      
5
      
11
      
4
  
Foreign currency exchange income
    
(17
)
    
-
      
(17
)
    
-
  
Taxes on income
    
772
      
984
      
2,765
      
3,367
  
Acquisition related expenses
    
-
      
614
      
-
      
2,708
  
Interest, bank charges & other financial expenses (income), net
    
740
      
1,520
      
2,172
      
472
  
Unrealized gains on hedging transactions
    
140
      
(902
)
    
1,243
      
73
  
Total adjustments
  
$
(2,497
)
  
$
(1,837
)
  
$
(6,155
)
  
$
2,015
  
 
                                
Adjusted EBITDA
  
$
7,025
    
$
17,877
    
$
14,721
    
$
42,588