● |
Strong start to the year with revenue and collections growth exceeding expectations
|
o |
Q1’21 Revenue of $304 million, up 41% y/y
|
o |
Q1’21 Collections of $351 million, up 41% y/y
|
● |
Continued strong demand across all types of users and online commerce businesses drove accelerating growth and cohort monetization
|
o |
Increased conversion of users to subscriptions and increased collections per subscription drove record Q1 2021 user cohort collections of $36.5 million, 32% higher than
the Q1 2020 user cohort in its first quarter
|
o |
Creative Subscriptions Revenue and Collections were both up 28% y/y, accelerating sequentially and over the year ago quarter
|
o |
Creative Subscriptions ARR increased to $926 million as of the end of Q1 2021, up 25% y/y, accelerating for the fifth consecutive quarter
|
● |
The nature of our horizontal platform led to increases in the adoption of business applications and higher GPV across a diverse base of users
|
o |
As expected, our horizontal online commerce platform has benefitted, and will continue to benefit, as global economies reopen
|
o |
Business Solutions Revenue and Collections up 97% y/y and 107% y/y, respectively
|
o |
Growth driven by strong performance of Wix Payments
|
● |
Raising guidance for the full year and introducing Q2 guidance to reflect an acceleration in growth over a groundbreaking year
|
● |
Total revenue in the first quarter of 2021 was $304.1 million, up 41% y/y
|
o |
Creative Subscriptions revenue in the first quarter of 2021 was $226.4 million, up 28% y/y
|
o |
Business Solutions revenue in the first quarter of 2021 was $77.7 million, up 97% y/y
|
● |
Creative Subscriptions ARR as of the end of Q1 2021 was $926.1 million, up 25% y/y
|
● |
Total collections in the first quarter of 2021 were $351.1 million, up 41% y/y
|
o |
Creative Subscriptions collections in the first quarter of 2021 were $268.1 million, up 28% y/y
|
o |
Business Solutions collections in the first quarter of 2021 were $83.1 million, up 107% y/y
|
● |
Total gross margin on a GAAP basis in the first quarter of 2021 was 62%
|
o |
Creative Subscriptions gross margin on a GAAP basis was 75%
|
o |
Business Solutions gross margin on a GAAP basis was 23%
|
● |
Total non-GAAP gross margin in the first quarter of 2021 was 63%
|
o |
Creative Subscriptions gross margin on a non-GAAP basis was 77%
|
o |
Business Solutions gross margin on a non-GAAP basis was 24%
|
● |
GAAP net loss in the first quarter of 2021 was $(121.8) million, or $(2.16) per share
|
● |
Non-GAAP net loss in the first quarter of 2021 was $(30.2) million, or $(0.54) per share
|
● |
Net cash provided by operating activities for the first quarter of 2021 was $18.5 million, while capital
expenditures totaled $3.8 million, leading to free cash flow of $14.6 million
|
o |
Excluding the capex investment associated with our new headquarters office build out, free cash flow would
have been $15.5 million
|
Q2 2021 Outlook
|
Y/Y growth
|
||
Revenue
|
$308 - 312 million
|
30 - 32%
|
|
Collections
|
$342 - 352 million
|
29 - 32%
|
Updated FY 2021 Outlook
|
Y/Y growth
|
Prior FY 2021 Outlook
|
|||
Revenue
|
$1,280 - 1,290 million
|
29 - 30%
|
$1,272 - 1,286 million
|
||
Collections
|
$1,440 - 1,460 million
|
31 - 32%
|
$1,435 - 1,455 million
|
||
Free Cash Flow (excluding capex for future Wix
HQ office build out)
|
$92 - 102 million
|
NM
|
$90 - 100 million
|
||
Free Cash Flow
|
$62 - 72 million
|
NM
|
$60 - 70 million
|
● |
Our free cash flow guidance is inclusive of approximately $60 million in incremental investments we plan in 2021 to
address the significant opportunities ahead of us. Specifically, our investments are focused on the continued expansion of Customer Care, advancing the evolution of our payments platform, building infrastructure to scale and globalize the
Wix POS and growing our Account Management team
|
Wix.com Ltd.
|
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
|
(In thousands, except loss per share data)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Revenue
|
||||||||
Creative Subscriptions
|
$
|
176,546
|
$
|
226,436
|
||||
Business Solutions
|
39,441
|
77,676
|
||||||
215,987
|
304,112
|
|||||||
Cost of Revenue
|
||||||||
Creative Subscriptions
|
35,390
|
55,746
|
||||||
Business Solutions
|
26,680
|
60,086
|
||||||
62,070
|
115,832
|
|||||||
Gross Profit
|
153,917
|
188,280
|
||||||
Operating expenses:
|
||||||||
Research and development
|
70,716
|
95,086
|
||||||
Selling and marketing
|
96,156
|
144,455
|
||||||
General and administrative
|
25,436
|
34,394
|
||||||
Total operating expenses
|
192,308
|
273,935
|
||||||
Operating loss
|
(38,391
|
)
|
(85,655
|
)
|
||||
Financial income (expenses), net
|
1,145
|
(28,013
|
)
|
|||||
Other income
|
31
|
65
|
||||||
Loss before taxes on income
|
(37,215
|
)
|
(113,603
|
)
|
||||
Taxes on income
|
1,938
|
8,149
|
||||||
Net loss
|
$
|
(39,153
|
)
|
$
|
(121,752
|
)
|
||
Basic and diluted net loss per share
|
$
|
(0.76
|
)
|
$
|
(2.16
|
)
|
||
Basic and diluted weighted-average shares used to compute net loss per share
|
51,838,314
|
56,280,561
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(In thousands)
|
Period ended
|
||||||||
December 31,
|
March 31,
|
|||||||
2020
|
2021
|
|||||||
Assets
|
(audited)
|
(unaudited)
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
168,858
|
$
|
415,843
|
||||
Short term deposits
|
577,138
|
439,123
|
||||||
Restricted cash and deposit
|
925
|
1,512
|
||||||
Marketable securities
|
289,927
|
269,260
|
||||||
Trade receivables
|
23,670
|
29,915
|
||||||
Prepaid expenses and other current assets
|
40,666
|
75,853
|
||||||
Total current assets
|
1,101,184
|
1,231,506
|
||||||
Long Term Assets:
|
||||||||
Property and equipment, net
|
35,863
|
37,281
|
||||||
Marketable securities
|
536,877
|
463,550
|
||||||
Prepaid expenses and other long-term assets
|
87,680
|
118,898
|
||||||
Intangible assets and goodwill, net
|
43,516
|
49,070
|
||||||
Operating lease right-of-use assets
|
88,406
|
84,904
|
||||||
Total long-term assets
|
792,342
|
753,703
|
||||||
Total assets
|
$
|
1,893,526
|
$
|
1,985,209
|
||||
Liabilities and Shareholder's Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade payables
|
$
|
79,881
|
$
|
77,781
|
||||
Employees and payroll accruals
|
70,814
|
103,692
|
||||||
Deferred revenues
|
373,521
|
412,368
|
||||||
Accrued expenses and other current liabilities
|
70,429
|
85,348
|
||||||
Operating lease liabilities
|
22,336
|
22,140
|
||||||
Total current liabilities
|
616,981
|
701,329
|
||||||
Long term deferred revenues
|
50,867
|
59,059
|
||||||
Long term deferred tax liability
|
15,343
|
22,382
|
||||||
Convertible notes, net
|
834,440
|
919,084
|
||||||
Long term operating lease liabilities
|
74,187
|
69,527
|
||||||
Total long term liabilities
|
974,837
|
1,070,052
|
||||||
Total liabilities
|
1,591,818
|
1,771,381
|
||||||
Shareholders' Equity
|
||||||||
Ordinary shares
|
107
|
110
|
||||||
Additional paid-in capital
|
862,134
|
851,065
|
||||||
Accumulated ther comprehensive income
|
9,406
|
817
|
||||||
Accumulated deficit
|
(569,939
|
)
|
(638,164
|
)
|
||||
Total shareholders' equity
|
301,708
|
213,828
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,893,526
|
$
|
1,985,209
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(39,153
|
)
|
$
|
(121,752
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
3,572
|
3,432
|
||||||
Amortization
|
566
|
599
|
||||||
Share based compensation expenses
|
30,718
|
46,631
|
||||||
Amortization of debt discount and debt issuance costs
|
5,433
|
62,345
|
||||||
Decrease in accrued interest and exchange rate on short term and long term deposits
|
47
|
15
|
||||||
Amortization of premium and discount and accrued interest on marketable securities, net
|
279
|
2,323
|
||||||
Deferred income taxes, net
|
(1,666
|
)
|
7,351
|
|||||
Changes in operating lease right-of-use assets
|
4,288
|
4,681
|
||||||
Changes in operating lease liabilities
|
(5,229
|
)
|
(6,035
|
)
|
||||
Decrease (increase) in trade receivables
|
148
|
(6,176
|
)
|
|||||
Increase in prepaid expenses and other current and long-term assets
|
(14,674
|
)
|
(73,916
|
)
|
||||
Increase (decrease) in trade payables
|
8,802
|
(3,262
|
)
|
|||||
Increase in employees and payroll accruals
|
12,109
|
40,554
|
||||||
Increase in short term and long term deferred revenues
|
32,871
|
46,997
|
||||||
Increase in accrued expenses and other current liabilities
|
6,916
|
14,701
|
||||||
Net cash provided by operating activities
|
45,027
|
18,488
|
||||||
INVESTING ACTIVITIES:
|
||||||||
Proceeds from short-term deposits and restricted deposits
|
17,000
|
138,015
|
||||||
Investment in short-term deposits and restricted deposits
|
(89,000
|
)
|
(602
|
)
|
||||
Investment in marketable securities
|
(129,301
|
)
|
-
|
|||||
Proceeds from marketable securities
|
89,255
|
90,097
|
||||||
Purchase of property and equipment
|
(4,943
|
)
|
(3,720
|
)
|
||||
Capitalization of software development costs
|
(132
|
)
|
(129
|
)
|
||||
Investment in other long-term assets
|
(5,000
|
)
|
-
|
|||||
Payment for Businesses acquired, net of acquired cash
|
(6,626
|
)
|
(5,586
|
)
|
||||
Purchases of investments in privately held companies
|
(100
|
)
|
-
|
|||||
Net cash used in investing activities
|
(128,847
|
)
|
218,075
|
|||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from exercise of options and ESPP shares
|
6,975
|
10,422
|
||||||
Net cash provided by financing activities
|
6,975
|
10,422
|
||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(76,845
|
)
|
246,985
|
|||||
CASH AND CASH EQUIVALENTS—Beginning of period
|
268,103
|
168,858
|
||||||
CASH AND CASH EQUIVALENTS—End of period
|
$
|
191,258
|
$
|
415,843
|
Wix.com Ltd.
|
KEY PERFORMANCE METRICS
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Creative Subscriptions
|
176,546
|
226,436
|
||||||
Business Solutions
|
39,441
|
77,676
|
||||||
Total Revenue
|
$
|
215,987
|
$
|
304,112
|
||||
Creative Subscriptions
|
208,797
|
268,059
|
||||||
Business Solutions
|
40,061
|
83,050
|
||||||
Total Collections
|
$
|
248,858
|
$
|
351,109
|
||||
Free Cash Flow
|
$
|
39,952
|
$
|
14,639
|
||||
Free Cash Flow, excluding capex related to future Wix HQ office build-out
|
$
|
40,435
|
$
|
15,474
|
||||
Creative Subscriptions ARR
|
$
|
739,457
|
$
|
926,103
|
Wix.com Ltd.
|
RECONCILIATION OF REVENUES TO COLLECTIONS
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Revenues
|
$
|
215,987
|
$
|
304,112
|
||||
Change in deferred revenues
|
32,871
|
46,997
|
||||||
Collections
|
$
|
248,858
|
$
|
351,109
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Creative Subscriptions Revenue
|
$
|
176,546
|
$
|
226,436
|
||||
Change in deferred revenues
|
32,251
|
41,623
|
||||||
Creative Subscriptions Collections
|
$
|
208,797
|
$
|
268,059
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Business Solutions Revenue
|
$
|
39,441
|
$
|
77,676
|
||||
Change in deferred revenues
|
620
|
5,374
|
||||||
Business Solutions Collections
|
$
|
40,061
|
$
|
83,050
|
Wix.com Ltd.
|
RECONCILIATION OF COHORT COLLECTIONS
|
(In millions)
|
Three Months Ended
|
||||||||
March 31
|
||||||||
2020
|
2021
|
|||||||
Q1 Cohort revenues
|
8
|
4
|
||||||
Q1 Change in deferred revenues
|
20
|
32
|
||||||
Q1 Cohort collections
|
$
|
28
|
$
|
36
|
Wix.com Ltd.
|
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(1) Share based compensation expenses:
|
(unaudited)
|
|||||||
Cost of revenues
|
$
|
1,631
|
$
|
3,501
|
||||
Research and development
|
16,185
|
23,288
|
||||||
Selling and marketing
|
4,568
|
7,442
|
||||||
General and administrative
|
8,334
|
12,400
|
||||||
Total share based compensation expenses
|
30,718
|
46,631
|
||||||
(2) Amortization
|
566
|
599
|
||||||
(3) Acquisition related expenses
|
939
|
1,705
|
||||||
(4) Amortization of debt discount and debt issuance costs
|
5,433
|
62,345
|
||||||
(5) Sales tax accrual and other G&A expenses (income)
|
1,974
|
452
|
||||||
(6) Unrealized gain on equity and other investments
|
-
|
(29,513
|
)
|
|||||
(7) Non-operating foreign exchange expenses (income)
|
(873
|
)
|
2,590
|
|||||
(8) Provision for income tax effects related to non-GAAP adjustments
|
-
|
6,788
|
||||||
Total adjustments of GAAP to Non GAAP
|
$
|
38,757
|
$
|
91,597
|
Wix.com Ltd.
|
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Gross Profit
|
$
|
153,917
|
$
|
188,280
|
||||
Share based compensation expenses
|
1,631
|
3,501
|
||||||
Acquisition related expenses
|
-
|
167
|
||||||
Amortization
|
-
|
97
|
||||||
Non GAAP Gross Profit
|
155,548
|
192,045
|
||||||
Non GAAP Gross margin
|
72
|
%
|
63
|
%
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Gross Profit - Creative Subscriptions
|
$
|
141,156
|
$
|
170,690
|
||||
Share based compensation expenses
|
1,322
|
2,586
|
||||||
Non GAAP Gross Profit - Creative Subscriptions
|
142,478
|
173,276
|
||||||
Non GAAP Gross margin - Creative Subscriptions
|
81
|
%
|
77
|
%
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Gross Profit - Business Solutions
|
$
|
12,761
|
$
|
17,590
|
||||
Share based compensation expenses
|
309
|
915
|
||||||
Acquisition related expenses
|
-
|
167
|
||||||
Amortization
|
-
|
97
|
||||||
Non GAAP Gross Profit - Business Solutions
|
13,070
|
18,769
|
||||||
Non GAAP Gross margin - Business Solutions
|
33
|
%
|
24
|
%
|
Wix.com Ltd.
|
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Operating loss
|
$
|
(38,391
|
)
|
$
|
(85,655
|
)
|
||
Adjustments:
|
||||||||
Share based compensation expenses
|
30,718
|
46,631
|
||||||
Amortization
|
566
|
599
|
||||||
Sales tax accrual and other G&A expenses (income)
|
1,974
|
452
|
||||||
Acquisition related expenses
|
939
|
1,705
|
||||||
Total adjustments
|
$
|
34,197
|
$
|
49,387
|
||||
Non GAAP operating income (loss)
|
$
|
(4,194
|
)
|
$
|
(36,268
|
)
|
Wix.com Ltd.
|
RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) PER SHARE
|
(In thousands, except per share data)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Net loss
|
$
|
(39,153
|
)
|
$
|
(121,752
|
)
|
||
Share based compensation expense and other Non GAAP adjustments
|
38,757
|
91,597
|
||||||
Non-GAAP net income (loss)
|
$
|
(396
|
)
|
$
|
(30,155
|
)
|
||
Basic Non GAAP net income (loss) per share
|
$
|
(0.01
|
)
|
$
|
(0.54
|
)
|
||
Weighted average shares used in computing basic Non GAAP net income (loss) per share
|
51,838,314
|
56,280,561
|
Wix.com Ltd.
|
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
(In thousands)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Net cash provided by operating activities
|
$
|
45,027
|
$
|
18,488
|
||||
Capital expenditures, net
|
(5,075
|
)
|
(3,849
|
)
|
||||
Free Cash Flow
|
$
|
39,952
|
$
|
14,639
|
||||
Capex related to future Wix HQ office build-out
|
483
|
835
|
||||||
Free Cash Flow, excluding capex related to future Wix HQ office build-out
|
$
|
40,435
|
$
|
15,474
|
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,
|
||||||||
2020
|
2021
|
|||||||
(unaudited)
|
||||||||
Basic and diluted weighted average number of shares outstanding
|
51,838,314
|
56,280,561
|
||||||
The following items have been excluded from the diluted weighted average number of shares outstanding because they
are anti-dilutive:
|
||||||||
Stock options
|
5,481,573
|
4,845,705
|
||||||
Restricted share units
|
2,228,786
|
2,067,705
|
||||||
Convertible Notes (if-converted)
|
3,104,251
|
3,969,514
|
||||||
62,652,924
|
67,163,485
|
Wix.com Ltd.
|
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
|
(In thousands)
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
June 30, 2021
|
December 31, 2021
|
|||||||||||||||
Low
|
High
|
Low
|
High
|
|||||||||||||
Projected revenues
|
308,000
|
312,000
|
1,280,000
|
1,290,000
|
||||||||||||
Projected change in deferred revenues
|
34,000
|
40,000
|
160,000
|
170,000
|
||||||||||||
Projected Collections
|
$
|
342,000
|
$
|
352,000
|
$
|
1,440,000
|
$
|
1,460,000
|