WIX.COM LTD.
|
|||
By:
|
/s/ Naama Kaenan
|
||
Name: Naama Kaenan
|
|||
Title: General Counsel
|
Exhibit |
Description |
● |
Q1’22 total revenue of $342 million, up 14% y/y and representing a two-year CAGR of 27%
|
● |
Q1’22 total bookings of $393 million, up 12% y/y and representing a two-year CAGR of 26%
|
● |
Continued execution of long-term strategy illustrated by increased revenue generated through partners1 in Q1’22 of $82 million, up 41% y/y and transaction revenue2 of $36.6 million, an increase of 24% y/y
|
● |
Adopted board-approved financial plan to reach 20% FCF margins by 2025
|
● |
Total revenue in the first quarter of 2022 was $341.6 million, up 14% y/y and representing a two-year CAGR of 27%
|
○ |
Total revenue on a y/y constant currency basis was $343.2 million, up 14% y/y
|
○ |
Creative Subscriptions revenue in the first quarter of 2022 was $255 million, up 13% y/y and representing a two-year CAGR of 20%
|
○ |
Creative Subscriptions ARR increased to $1.04 billion, up 12% y/y
|
○ |
Business Solutions revenue in the first quarter of 2022 was $86.6 million, up 17% y/y and representing a two-year CAGR of 54%
|
● |
Total bookings in the first quarter of 2022 were $393.2 million, up 12% y/y and representing a two-year CAGR of 22%
|
○ |
Total bookings on a y/y constant currency basis was $399.4 million, up 14% y/y
|
○ |
Creative Subscriptions bookings in the first quarter of 2022 were $299.8 million, up 12% y/y and representing a two-year CAGR of 20%, including a change in unbilled contractual obligations of $14.1 million
|
○ |
Business Solutions bookings in the first quarter of 2022 were $93.5 million, up 13% y/y and representing a two-year CAGR of 53%
|
● |
Total gross margin on a GAAP basis in the first quarter of 2022 was 61%
|
○ |
Creative Subscriptions gross margin on a GAAP basis was 75%
|
○ |
Business Solutions gross margin on a GAAP basis was 19%
|
● |
Total non-GAAP gross margin in the first quarter of 2022 was 62%
|
○ |
Creative Subscriptions gross margin on a non-GAAP basis was 76%
|
○ |
Business Solutions gross margin on a non-GAAP basis was 21%
|
● |
GAAP net loss in the first quarter of 2022 was $(227.3) million, or $(3.95) per share
|
○ |
Includes approximately $116 million of unrealized losses, net of taxes, from our equity investments, primarily attributed to the decrease in share price of monday.com (Nasdaq: MNDY), which was excluded from non-GAAP results
|
● |
Non-GAAP net loss in the first quarter of 2022 was $(41.4) million, or $(0.72) per share
|
● |
Net cash used in operating activities for the first quarter of 2022 was $13.7 million, while capital expenditures totaled $19.9 million, leading to free cash flow of $(33.6) million
|
○ |
Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $(18.1) million
|
Wix.com Ltd.
|
|||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
|
|||
(In thousands, except loss per share data)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
Revenues
|
||||||||
Creative Subscriptions
|
$
|
226,436
|
$
|
254,968
|
||||
Business Solutions
|
74,343
|
86,629
|
||||||
|
300,779
|
341,597
|
||||||
|
||||||||
Cost of Revenues
|
||||||||
Creative Subscriptions
|
55,746
|
64,873
|
||||||
Business Solutions
|
58,053
|
69,876
|
||||||
|
113,799
|
134,749
|
||||||
|
||||||||
Gross Profit
|
186,980
|
206,848
|
||||||
Operating expenses:
|
||||||||
Research and development
|
95,086
|
119,865
|
||||||
Selling and marketing
|
144,455
|
156,714
|
||||||
General and administrative
|
34,394
|
45,686
|
||||||
Total operating expenses
|
273,935
|
322,265
|
||||||
Operating loss
|
(86,955
|
)
|
(115,417
|
)
|
||||
Financial income (expenses), net
|
32,925
|
(144,473
|
)
|
|||||
Other income
|
65
|
46
|
||||||
Income (loss) before taxes on income
|
(53,965
|
)
|
(259,844
|
)
|
||||
Taxes on income (tax benefit)
|
8,149
|
(32,555
|
)
|
|||||
Net loss
|
$
|
(62,114
|
)
|
$
|
(227,289
|
)
|
||
|
||||||||
Basic and diluted net loss per share
|
$
|
(1.10
|
)
|
$
|
(3.95
|
)
|
||
Basic and diluted weighted-average shares used to compute net loss per share
|
56,280,561
|
57,479,429
|
Wix.com Ltd.
|
|||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||
(In thousands)
|
Period ended
|
||||||||
December 31,
|
March 31,
|
|||||||
2021
|
2022
|
|||||||
|
(audited)
|
(unaudited)
|
||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
451,355
|
$
|
386,609
|
||||
Short-term deposits
|
411,687
|
456,644
|
||||||
Restricted cash and deposits
|
7,012
|
7,010
|
||||||
Marketable securities
|
456,515
|
356,380
|
||||||
Trade receivables
|
30,367
|
42,016
|
||||||
Prepaid expenses and other current assets
|
32,877
|
55,264
|
||||||
Total current assets
|
1,389,813
|
1,303,923
|
||||||
|
||||||||
Long-Term Assets:
|
||||||||
Prepaid expenses and other long-term assets
|
41,554
|
44,045
|
||||||
Property and equipment, net
|
50,437
|
57,081
|
||||||
Marketable securities
|
387,341
|
333,853
|
||||||
Intangible assets and goodwill, net
|
89,547
|
87,964
|
||||||
Operating lease right-of-use assets
|
101,095
|
108,929
|
||||||
Total long-term assets
|
669,974
|
631,872
|
||||||
|
||||||||
Total assets
|
$
|
2,059,787
|
$
|
1,935,795
|
||||
Liabilities and Shareholders' Equity (deficiency)
|
||||||||
Current Liabilities:
|
||||||||
Trade payables
|
$
|
114,584
|
$
|
134,754
|
||||
Employees and payroll accruals
|
83,251
|
78,503
|
||||||
Deferred revenues
|
484,446
|
517,550
|
||||||
Accrued expenses and other current liabilities
|
62,816
|
61,334
|
||||||
Operating lease liabilities
|
29,201
|
31,477
|
||||||
Total current liabilities
|
774,298
|
823,618
|
||||||
|
||||||||
Long-term deferred revenues
|
59,966
|
64,414
|
||||||
Long-term deferred tax liability
|
72,803
|
37,176
|
||||||
Convertible notes, net
|
922,974
|
924,275
|
||||||
Other long-term liabilities
|
2,267
|
2,282
|
||||||
Long-term operating lease liabilities
|
81,764
|
86,513
|
||||||
Total long-term liabilities
|
1,139,774
|
1,114,660
|
||||||
|
||||||||
Total liabilities
|
1,914,072
|
1,938,278
|
||||||
Shareholders' Equity (deficiency)
|
||||||||
Ordinary shares
|
111
|
113
|
||||||
Additional paid-in capital
|
994,795
|
1,077,536
|
||||||
Treasury Stock
|
(199,997
|
)
|
(199,997
|
)
|
||||
Accumulated other comprehensive income
|
(1,056
|
)
|
(4,708
|
)
|
||||
Accumulated deficit
|
(648,138
|
)
|
(875,427
|
)
|
||||
Total shareholders' equity (deficiency)
|
145,715
|
(2,483
|
)
|
|||||
|
||||||||
Total liabilities and shareholders' equity
|
$
|
2,059,787
|
$
|
1,935,795
|
Wix.com Ltd.
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(62,114
|
)
|
$
|
(227,289
|
)
|
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||
Depreciation
|
3,432
|
3,535
|
||||||
Amortization
|
599
|
1,574
|
||||||
Share based compensation expenses
|
46,631
|
60,984
|
||||||
Amortization of debt discount and debt issuance costs
|
1,407
|
1,301
|
||||||
Changes in accrued interest and exchange rate on short term and long term deposits
|
15
|
45
|
||||||
Amortization of premium and discount and accrued interest on marketable securities, net
|
2,323
|
1,549
|
||||||
Revaluation on Marketable equity securities
|
-
|
151,645
|
||||||
Deferred income taxes, net
|
7,351
|
(35,575
|
)
|
|||||
Changes in operating lease right-of-use assets
|
4,681
|
8,838
|
||||||
Changes in operating lease liabilities
|
(6,035
|
)
|
(9,647
|
)
|
||||
Increase in trade receivables
|
(6,176
|
)
|
(11,649
|
)
|
||||
Increase in prepaid expenses and other current and long-term assets
|
(73,916
|
)
|
(12,313
|
)
|
||||
Increase (decrease) in trade payables
|
(3,262
|
)
|
21,686
|
|||||
Increase (decrease) in employees and payroll accruals
|
40,554
|
(4,740
|
)
|
|||||
Increase in short term and long term deferred revenues
|
50,330
|
37,552
|
||||||
Increase (decrease) in accrued expenses and other current liabilities
|
12,668
|
(1,158
|
)
|
|||||
Net cash provided by (used in) operating activities
|
18,488
|
(13,662
|
)
|
|||||
INVESTING ACTIVITIES:
|
||||||||
Proceeds from short-term deposits and restricted deposits
|
138,015
|
105,000
|
||||||
Investment in short-term deposits and restricted deposits
|
(602
|
)
|
(150,000
|
)
|
||||
Investment in marketable securities
|
-
|
(72,155
|
)
|
|||||
Proceeds from marketable securities
|
90,097
|
61,380
|
||||||
Purchase of property and equipment and payment of prepaid expenses
|
(3,720
|
)
|
(19,283
|
)
|
||||
Capitalization of internal use of software
|
(129
|
)
|
(641
|
)
|
||||
Proceeds from sale of marketable equity securities
|
-
|
3,193
|
||||||
Payment for Businesses acquired, net of acquired cash
|
(5,586
|
)
|
-
|
|||||
Purchases of investments in privately held companies
|
-
|
(160
|
)
|
|||||
Net cash provided by (used in) investing activities
|
218,075
|
(72,666
|
)
|
|||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from exercise of options and ESPP shares
|
10,422
|
21,582
|
||||||
Net cash provided by financing activities
|
10,422
|
21,582
|
||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
246,985
|
(64,746
|
)
|
|||||
CASH AND CASH EQUIVALENTS—Beginning of period
|
168,858
|
451,355
|
||||||
CASH AND CASH EQUIVALENTS—End of period
|
$
|
415,843
|
$
|
386,609
|
Wix.com Ltd.
|
||||
KEY PERFORMANCE METRICS
|
||||
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
Creative Subscriptions
|
226,436
|
254,968
|
||||||
Business Solutions
|
74,343
|
86,629
|
||||||
Total Revenues
|
$
|
300,779
|
$
|
341,597
|
||||
|
||||||||
Creative Subscriptions
|
268,059
|
299,787
|
||||||
Business Solutions
|
83,050
|
93,461
|
||||||
Total Bookings
|
$
|
351,109
|
$
|
393,248
|
||||
|
||||||||
Free Cash Flow
|
$
|
14,639
|
$
|
(33,586
|
)
|
|||
Free Cash Flow, excluding capex related to future Wix HQ office build-out
|
$
|
15,474
|
$
|
(18,148
|
)
|
|||
Creative Subscriptions ARR
|
$
|
926,103
|
$
|
1,037,713
|
Wix.com Ltd.
|
||||
RECONCILIATION OF REVENUES TO BOOKINGS
|
||||
(In thousands)
|
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2020
|
2021
|
2022
|
||||||||||
(unaudited)
|
||||||||||||
Revenues
|
$
|
213,104
|
$
|
300,779
|
$
|
341,597
|
||||||
Change in deferred revenues
|
35,753
|
50,330
|
37,552
|
|||||||||
Change in unbilled contractual obligations
|
-
|
-
|
14,099
|
|||||||||
Bookings
|
$
|
248,857
|
$
|
351,109
|
$
|
393,248
|
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2020
|
2021
|
2022
|
||||||||||
(unaudited)
|
||||||||||||
Creative Subscriptions Revenues
|
$
|
176,546
|
$
|
226,436
|
$
|
254,968
|
||||||
Change in deferred revenues
|
32,251
|
41,623
|
30,720
|
|||||||||
Change in unbilled contractual obligations
|
-
|
-
|
14,099
|
|||||||||
Creative Subscriptions Bookings
|
$
|
208,797
|
$
|
268,059
|
$
|
299,787
|
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2020
|
2021
|
2022
|
||||||||||
(unaudited)
|
||||||||||||
Business Solutions Revenues
|
$
|
36,558
|
$
|
74,343
|
$
|
86,629
|
||||||
Change in deferred revenues
|
3,502
|
8,707
|
6,832
|
|||||||||
Business Solutions Bookings
|
$
|
40,060
|
$
|
83,050
|
$
|
93,461
|
Wix.com Ltd.
|
RECONCILIATION OF COHORT BOOKINGS
|
(In millions)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Q1 Cohort revenues
|
4
|
7
|
||||||
Q1 Change in deferred revenues
|
32
|
21
|
||||||
Q1 Cohort Bookings
|
$
|
36
|
$
|
28
|
Wix.com Ltd.
|
||||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
|
||||
(In thousands)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
(unaudited)
|
|||||||
(1) Share based compensation expenses:
|
||||||||
Cost of revenues
|
$
|
3,501
|
$
|
4,231
|
||||
Research and development
|
23,288
|
28,720
|
||||||
Selling and marketing
|
7,442
|
9,875
|
||||||
General and administrative
|
12,400
|
18,158
|
||||||
Total share based compensation expenses
|
46,631
|
60,984
|
||||||
(2) Amortization
|
599
|
1,574
|
||||||
(3) Acquisition related expenses
|
1,705
|
1,699
|
||||||
(4) Amortization of debt discount and debt issuance costs
|
1,407
|
1,301
|
||||||
(5) Sales tax accrual and other G&A expenses (income)
|
452
|
172
|
||||||
(6) Unrealized loss (gain) on equity and other investments
|
(29,513
|
)
|
151,645
|
|||||
(7) Non-operating foreign exchange expenses (income)
|
2,590
|
4,132
|
||||||
(8) Provision for income tax effects related to non-GAAP adjustments
|
6,788
|
(35,612
|
)
|
|||||
Total adjustments of GAAP to Non GAAP
|
$
|
30,659
|
$
|
185,895
|
Wix.com Ltd.
|
||||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
|
||||
(In thousands)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
(unaudited)
|
|||||||
Gross Profit
|
$
|
186,980
|
$
|
206,848
|
||||
Share based compensation expenses
|
3,501
|
4,231
|
||||||
Acquisition related expenses
|
167
|
81
|
||||||
Amortization
|
97
|
761
|
||||||
Non GAAP Gross Profit
|
190,745
|
211,921
|
||||||
|
||||||||
Non GAAP Gross margin
|
63
|
%
|
62
|
%
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
(unaudited)
|
|||||||
Gross Profit - Creative Subscriptions
|
$
|
170,690
|
$
|
190,095
|
||||
Share based compensation expenses
|
2,586
|
3,385
|
||||||
Non GAAP Gross Profit - Creative Subscriptions
|
173,276
|
193,480
|
||||||
|
||||||||
Non GAAP Gross margin - Creative Subscriptions
|
77
|
%
|
76
|
%
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
(unaudited)
|
|||||||
Gross Profit - Business Solutions
|
$
|
16,290
|
$
|
16,753
|
||||
Share based compensation expenses
|
915
|
846
|
||||||
Acquisition related expenses
|
167
|
81
|
||||||
Amortization
|
97
|
761
|
||||||
Non GAAP Gross Profit - Business Solutions
|
17,469
|
18,441
|
||||||
|
||||||||
Non GAAP Gross margin - Business Solutions
|
23
|
%
|
21
|
%
|
Wix.com Ltd.
|
||||
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
||||
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
Operating loss
|
$
|
(86,955
|
)
|
$
|
(115,417
|
)
|
||
Adjustments:
|
||||||||
Share based compensation expenses
|
46,631
|
60,984
|
||||||
Amortization
|
599
|
1,574
|
||||||
Sales tax accrual and other G&A expenses
|
452
|
172
|
||||||
Acquisition related expenses
|
1,705
|
1,699
|
||||||
Total adjustments
|
$
|
49,387
|
$
|
64,429
|
||||
|
||||||||
Non GAAP operating loss
|
$
|
(37,568
|
)
|
$
|
(50,988
|
)
|
Wix.com Ltd.
|
||||
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER SHARE
|
||||
(In thousands, except per share data)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
Net loss
|
$
|
(62,114
|
)
|
$
|
(227,289
|
)
|
||
Share based compensation expenses and other Non GAAP adjustments
|
30,659
|
185,895
|
||||||
Non-GAAP net loss
|
$
|
(31,455
|
)
|
$
|
(41,394
|
)
|
||
|
||||||||
Basic and diluted Non GAAP net loss per share
|
$
|
(0.56
|
)
|
$
|
(0.72
|
)
|
||
Weighted average shares used in computing basic and diluted Non GAAP net loss per share
|
56,280,561
|
57,479,429
|
Wix.com Ltd.
|
||||
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW
|
||||
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
18,488
|
$
|
(13,662
|
)
|
|||
Capital expenditures, net
|
(3,849
|
)
|
(19,924
|
)
|
||||
Free Cash Flow
|
$
|
14,639
|
$
|
(33,586
|
)
|
|||
|
||||||||
Capex related to future Wix HQ office build-out
|
835
|
15,438
|
||||||
Free Cash Flow, excluding capex related to future Wix HQ office build-out
|
$
|
15,474
|
$
|
(18,148
|
)
|
Wix.com Ltd.
|
||||
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(unaudited)
|
||||||||
|
||||||||
Basic and diluted weighted-average shares used to compute net loss per share
|
56,280,561
|
57,479,429
|
||||||
|
||||||||
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:
|
||||||||
Stock options
|
4,845,705
|
5,099,095
|
||||||
Restricted share units
|
2,067,705
|
2,799,022
|
||||||
Convertible Notes (if-converted)
|
3,969,514
|
3,969,514
|
||||||
|
67,163,485
|
69,347,060
|