Wix Reports Third Quarter 2020 Results

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Creative Subscriptions ARR increased 24% y/y to $840.5 million

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Future collections expected from existing cohorts increased 43% versus a year ago to over $9.2 billion over the next 8 years

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Strong growth in Wix Stores subscriptions in Q3, increasing over 2x overall subscriptions

NEW YORK, November 12, 2020 -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the third quarter ended September 30, 2020, exceeding the high end of its guidance ranges for revenue, collections and free cash flow. In addition, the Company provided its outlook for the fourth quarter of 2020.

 

“Demand for an online presence continues to remain at high levels,” said Avishai Abrahami, Co-founder and CEO of Wix. “Businesses are using Wix more than ever before, and we are seeing them utilize our platform to not only help them create a website, but also to support them as they manage their business and grow their brands. Our web creation products and business solutions have enabled millions of our users to achieve success despite the ongoing difficulties that they are facing.”

Lior Shemesh, CFO of Wix, added, “Our strong results in Q3 were driven by continued high levels of demand from new users for our website creation products and business solutions as well as the ongoing monetization of users who joined Wix over the most recent quarters. Users that joined Wix during Q3 purchased subscriptions at higher rates that we have seen in several years and at higher prices. This significant growth in new users, as well as our continued execution in product development and marketing, position us well to drive growth in 2021 and beyond.”

Nir Zohar, President and COO, said, “Throughout Q3, even as parts of the world began re-opening economies, we experienced strong growth, which demonstrates the new state of mind for people and businesses about the need for an online presence. Our teams across the globe continue to execute at their highest levels throughout this tumultuous time, providing world class solutions for those in need of an online presence. We remain focused on meeting the needs of users who come to Wix to create, manage and grow their businesses and brands online.”

Q3 2020 Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Despite the continued uncertainty surrounding the pandemic, we remain focused on being a destination for creators and businesses to move and grow online. Our Q4 guidance reflects the new state of mind of creators and businesses about the importance of an online presence and the continuation of demand for our offering.

Our outlook is also underscored by continued gains from investments in our business, including improving and growing our Customer Care organization, bolstering our hosting infrastructure and increasing marketing activities. We believe these investments will continue to drive positive returns.

We are introducing Q4 guidance as follows:

 

Wix will host a conference call at 8:30 a.m. ET on Thursday, November 12, 2020 to answer questions about the financial and operational performance of the business for the third quarter ended September 30, 2020. 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 and supporting slides to its Investor Relations website at https://investors.wix.com/. 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 +1-877-667-0467 (US/ Canada), +1-346- 354-0953 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call and reference Conference ID 4409229. A telephonic replay of the call will be available through November 19, 2020 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 4409229.

 

Wix will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the Company’s website at https://investors.wix.com/.

 

About Wix.com Ltd.

Wix is leading the way with a cloud-based website development platform for over 189 million registered users worldwide today. The Wix website builder 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, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a highly curated App Market, Ascend by Wix and Corvid by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Austin, Be'er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kiev, Los Angeles, Miami, New York, San Francisco, São Paulo, Tokyo and Vilnius. 

Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn and Pinterest 

Download: Wix App is available for free on Google Play and in the App Store 

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,   cumulative   cohort collections, collections  on  a  constant  currency  basis,  revenue  on  a  constant  currency  basis,  non-GAAP  gross  margin,  non-GAAP  operating  income (loss),  non-GAAP  net   income (loss),  non-GAAP  net  income (loss)  per  share,  free  cash  flow, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or FX neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Collections represent  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, acquisition-related expenses and amortization, divided  by  revenue.  Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of  share-based  compensation  expense,  amortization,  acquisition-related  expenses  and  sales tax expense  accrual. Non-GAAP  net  income (loss) represents  net  loss  calculated  in  accordance  with  GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual, amortization of  debt  discount  and  debt  issuance  costs  and  acquisition-related  expenses  and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (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. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude capital expenditures associated with our new headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization.

 

The presentation of this financial  information  is  not  intended  to  be considered in isolation or as a substitute for, or superior to, the financial information  prepared  and  presented  in  accordance  with  GAAP.  The  Company uses these non-GAAP financial measures for financial and operational decision  making  and  as  a means to  evaluate  period-to-period  comparisons.  The  Company  believes  that  these  measures  provide  useful information about operating results, enhance  the overall understanding of past financial performance  and  future  prospects,  and  allow  for  greater  transparency with respect to key metrics used by management in its financial and operational decision making.

 

For more information on the  non-GAAP  financial  measures,  please  see  the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures  that  are  most  directly  comparable  to  non-GAAP  financial  measures  and  the  related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, cumulative cohort collections, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company's control and/or cannot be reasonably predicted.  Such information may have a significant, and potentially unpredictable, impact on our future financial results.

 

 

This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, collections and free cash flow, and may be identified by words like “anticipate,” “assume,” “believe,” “aim,” “forecast,” “indication,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this document, including the fourth quarter guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions, including through our Wix Partner Program; uncertainty surrounding the duration and severity of COVID-19 and its effects on our business, including changes in consumer dynamics shifting to online and increased GMV on our platform; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, and our ability to successfully enter into partnership agreements; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our share repurchases made pursuant to our share repurchase plan; 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, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading “Risk Factors” in the Company’s 2019 annual report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2020. 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:

Maggie O’Donnell

914-267-7390

Media Relations:

Wix.com Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(In thousands, except loss per share data)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Revenue
Creative Subscriptions		$	164,761			$	202,996			$	473,137			$	569,711
Business Solutions			32,030				51,184				83,363				136,515
			196,791				254,180				556,500				706,226
Cost of Revenue
Creative Subscriptions			31,542				43,361				87,485				117,261
Business Solutions			21,753				36,479				52,187				95,131
			53,295				79,840				139,672				212,392
Gross Profit			143,496				174,340				416,828				493,834
Operating expenses:
Research and development			64,488				84,473				184,157				230,653
Selling and marketing			75,862				113,092				232,909				328,581
General and administrative			23,751				26,515				62,320				76,482
Total operating expenses			164,101				224,080				479,386				635,716
Operating loss			(20,605	)			(49,740	)			(62,558	)			(141,882	)
Financial expenses, net			1,242				(7,298	)			(1,068	)			(9,492	)
Other income (expenses)			117				25				149				84
Loss before taxes on income			(19,246	)			(57,013	)			(63,477	)			(151,290	)
Taxes on income			(1,879	)			(171	)			1,364				2,441
Net loss		$	(17,367	)		$	(56,842	)		$	(64,841	)		$	(153,731	)
Basic and diluted net loss per share		$	(0.34	)		$	(1.03	)		$	(1.29	)		$	(2.85	)
Basic and diluted weighted-average shares used to compute net loss per share			50,862,253				55,356,961				50,232,546				53,963,584

Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

		Period ended
		December 31,				September 30,
		2019				2020
Assets		(audited)				(unaudited)
Current Assets:
Cash and cash equivalents		$	268,103			$	158,456
Short term deposits			294,096				540,069
Restricted cash and deposit			1,149				1,135
Marketable securities			164,301				299,743
Trade receivables			16,987				23,159
Prepaid expenses and other current assets			19,211				57,481
Total current assets			763,847				1,080,043
Long Term Assets:
Property and equipment, net			31,706				35,028
Marketable securities			177,298				540,047
Prepaid expenses and other long-term assets			9,926				13,290
Intangible assets and goodwill, net			37,641				44,135
Operating lease assets			79,249				82,582
Total long-term assets			335,820				715,082
Total assets		$	1,099,667			$	1,795,125
Liabilities and Shareholder's Equity
Current Liabilities:
Trade payables		$	37,687			$	70,346
Employees and payroll accruals			41,938				74,642
Deferred revenues			289,148				359,761
Accrued expenses and other current liabilities			56,464				68,699
Operating lease liabilities			18,949				19,111
Total current liabilities			444,186				592,559
Long term deferred revenues			21,969				40,780
Long term deferred tax liability			1,585				693
Convertible senior notes			358,715				823,029
Long term loan			1,219				1,219
Long term operating lease liabilities			64,244				69,348
Total long term liabilities			447,732				935,069
Total liabilities			891,918				1,527,628
Shareholders'  Equity
Ordinary shares			94				106
Additional paid-in capital			611,083				817,006
Other comprehensive loss			1,357				8,901
Accumulated deficit			(404,785	)			(558,516	)
Total shareholders' equity			207,749				267,497
Total liabilities and shareholders' equity		$	1,099,667			$	1,795,125

Wix.com Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
OPERATING ACTIVITIES:
Net loss		$	(17,367	)		$	(56,842	)		$	(64,841	)		$	(153,731	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			3,194				3,712				8,779				10,821
Amortization			733				826				2,203				1,958
Share based compensation expenses			28,392				38,922				80,864				104,607
Amortization of debt discount and debt issuance costs			5,274				7,594				15,585				18,543
Decrease in accrued interest and exchange rate on short term and long term deposits			137				(36	)			731				26
Amortization of premium and discount and accrued interest on marketable securities, net			(140	)			1,222				(99	)			1,939
Deferred income taxes, net			(346	)			(1,696	)			187				(3,417	)
Changes in operating lease right-of-use assets			-				3,907				-				13,353
Changes in operating lease liabilities			-				(3,377	)			-				(13,194	)
Decrease (increase) in trade receivables			2,029				(4,329	)			(2,503	)			(5,946	)
Increase in prepaid expenses and other current and long-term assets			(1,683	)			(7,183	)			(12,824	)			(28,788	)
Increase (decrease) in trade payables			2,278				(3,331	)			3,606				31,643
Increase in employees and payroll accruals			109				14,014				12,344				37,708
Increase in short term and long term deferred revenues			9,069				26,761				49,302				89,424
Increase in accrued expenses and other current liabilities			4,394				4,350				14,993				14,553
Net cash provided by operating activities			36,073				24,514				108,327				119,499
INVESTING ACTIVITIES:
Proceeds from short-term deposits and restricted deposits			164,000				175,000				245,775				201,225
Investment in short-term deposits and restricted deposits			(175,000	)			(309,210	)			(203,100	)			(447,210	)
Investment in marketable securities			(127,967	)			(468,473	)			(264,583	)			(698,641	)
Proceeds from marketable securities			32,246				45,104				61,302				200,015
Purchase of property and equipment			(6,712	)			(4,928	)			(17,777	)			(13,135	)
Capitalization of software development costs			(134	)			(206	)			(523	)			(338	)
Investment in other short and long-term assets			-				-				(700	)			(5,643	)
Payment for Businesses acquired			-				-				-				(6,626	)
Purchases of investments in privately-held companies			(262	)			-				(262	)			(785	)
Net cash used in investing activities			(113,829	)			(562,713	)			(179,868	)			(771,138	)
FINANCING ACTIVITIES:
Proceeds from exercise of options and ESPP shares			9,452				9,418				23,642				28,705
Proceeds from issuance of convertible senior notes			-				575,000				-				575,000
Payments of debt issuance costs			-				(15,713	)			-				(15,713	)
Purchase of capped call			-				(46,000	)			-				(46,000	)
Net cash provided by financing activities			9,452				522,705				23,642				541,992
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(68,304	)			(15,494	)			(47,899	)			(109,647	)
CASH AND CASH EQUIVALENTS—Beginning of period			351,462				173,950				331,057				268,103
CASH AND CASH EQUIVALENTS—End of period		$	283,158			$	158,456			$	283,158			$	158,456

Wix.com Ltd.

KEY PERFORMANCE METRICS

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Creative Subscriptions			164,761				202,996				473,137				569,711
Business Solutions			32,030				51,184				83,363				136,515
Total Revenue		$	196,791			$	254,180			$	556,500			$	706,226
Creative Subscriptions			173,571				228,327				520,958				654,820
Business Solutions			32,289				52,614				84,844				140,830
Total Collections		$	205,860			$	280,941			$	605,802			$	795,650
Free Cash Flow		$	29,227			$	19,380			$	90,027			$	106,026
Creative Subscriptions ARR		$	680,377			$	840,512			$	680,377			$	840,512
Number of registered users at period end (*)			159,543				189,390				159,543				189,390
Number of premium subscriptions at period end (*)			4,410				5,309				4,410				5,309

(*) Excludes users and subscriptions of DeviantArt

Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Revenues		$	196,791			$	254,180			$	556,500			$	706,226
Change in deferred revenues			9,069				26,761				49,302				89,424
Collections		$	205,860			$	280,941			$	605,802			$	795,650

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Creative Subscriptions Revenue		$	164,761			$	202,996			$	473,137			$	569,711
Change in deferred revenues			8,810				25,331				47,821				85,109
Creative Subscriptions Collections		$	173,571			$	228,327			$	520,958			$	654,820

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Business Solutions Revenue		$	32,030			$	51,184			$	83,363			$	136,515
Change in deferred revenues			259				1,430				1,481				4,315
Business Solutions Collections		$	32,289			$	52,614			$	84,844			$	140,830

Wix.com Ltd.

TOTAL ADJUSTMENTS GAAP TO NON-GAAP

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
(1) Share based compensation expenses:		(unaudited)								(unaudited)
Cost of revenues		$	1,525			$	2,455			$	4,272			$	5,955
Research and development			14,886				20,312				41,261				54,713
Selling and marketing			4,590				6,108				13,844				16,071
General and administrative			7,391				10,047				21,487				27,868
Total share based compensation expenses			28,392				38,922				80,864				104,607
(2) Amortization			733				826				2,203				1,958
(3) Acquisition related expenses			564				1,489				617				4,125
(4) Amortization of debt discount and debt issuance costs			5,274				7,594				15,585				18,543
(5) Sales tax accrual and other G&A expenses (income)			3,174				-				3,174				1,489
(6) Non-operating foreign exchange expenses (income)			56				(5	)			1,648				427
Total adjustments of GAAP to Non GAAP		$	38,193			$	48,826			$	104,091			$	131,149

Wix.com Ltd.

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit		$	143,496			$	174,340			$	416,828			$	493,834
Share based compensation expenses			1,525				2,455				4,272				5,955
Acquisition related expenses			-				200				-				505
Amortization			142				226				425				226
Non GAAP Gross Profit			145,163				177,221				421,525				500,520
Non GAAP Gross margin			74	%			70	%			76	%			71	%

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit - Creative Subscriptions		$	133,219			$	159,635			$	385,652			$	452,450
Share based compensation expenses			1,285				1,947				3,660				4,754
Non GAAP Gross Profit - Creative Subscriptions			134,504				161,582				389,312				457,204
Non GAAP Gross margin - Creative Subscriptions			82	%			80	%			82	%			80	%

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit - Business Solutions		$	10,277			$	14,705			$	31,176			$	41,384
Share based compensation expenses			240				508				612				1,201
Acquisition related expenses			-				200				-				505
Amortization			142				226				425				226
Non GAAP Gross Profit - Business Solutions			10,659				15,639				32,213				43,316
Non GAAP Gross margin - Business Solutions			33	%			31	%			39	%			32	%

Wix.com Ltd.

RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Operating loss		$	(20,605	)		$	(49,740	)		$	(62,558	)		$	(141,882	)
Adjustments:
Share based compensation expenses			28,392				38,922				80,864				104,607
Amortization			733				826				2,203				1,958
Sales tax accrual and other G&A expenses (income)			3,174				-				3,174				1,489
Acquisition related expenses			564				1,489				617				4,125
Total adjustments		$	32,863			$	41,237			$	86,858			$	112,179
Non GAAP operating income (loss)		$	12,258			$	(8,503	)		$	24,300			$	(29,703	)

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								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Net loss		$	(17,367	)		$	(56,842	)		$	(64,841	)		$	(153,731	)
Share based compensation expense and other Non GAAP adjustments			38,193				48,826				104,091				131,149
Non-GAAP net income (loss)		$	20,826			$	(8,016	)		$	39,250			$	(22,582	)
Basic  Non GAAP net income (loss) per share		$	0.41			$	(0.14	)		$	0.78			$	(0.42	)
Weighted average shares used in computing basic Non GAAP net income (loss) per share			50,862,253				55,356,961				50,232,546				53,963,584

Wix.com Ltd.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Net cash provided by operating activities		$	36,073			$	24,514			$	108,327			$	119,499
Capital expenditures, net			(6,846	)			(5,134	)			(18,300	)			(13,473	)
Free Cash Flow		$	29,227			$	19,380			$	90,027			$	106,026
Capex related to future Wix HQ office build-out			-				779				-				1,670
Free Cash Flow, excluding capex related to future Wix HQ office build-out		$	29,227			$	20,159			$	90,027			$	107,696

Wix.com Ltd.

RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Basic and diluted weighted average number of shares outstanding			50,862,253				55,356,961				50,232,546				53,963,584
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:
Stock options			7,571,765				4,741,271				7,571,765				4,741,271
Restricted share units			2,231,470				2,109,920				2,231,470				2,109,920
Convertible Notes (if-converted)			3,104,251				4,428,999				3,104,251				4,428,999
			63,769,739				66,637,151				63,140,032				65,243,774

Wix.com Ltd.

RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS

(In thousands)

		Three Months Ended								Year Ended
		December 31, 2020								December 31, 2020
		Low				High				Low				High
Projected revenues			266,000				271,000				972,000				977,000
Projected change in deferred revenues			29,000				34,000				118,000				123,000
Projected Collections		$	295,000			$	305,000			$	1,090,000			$	1,100,000