“ 2020 and 2021 bring unprecedented changes, challenges and opportunities for about every business cosmopolitan due to uncertainty and excitability brought on by the pandemic. now, as we enter our third base year of COVID-19, the world has begun to transition once again, ” said Avishai Abrahami, Co-founder and CEO of Wix. “ We exited 2021 with fundamentals of our occupation at much higher levels than when we entered the pandemic, positioning us for achiever in the coming years, and we are clear on what needs to be done to maintain this momentum. We are putting our best foundation forward to increase our growth by expanding our grocery store leadership with self-creators, strengthening our reach through partners, and doubling down on our commerce platform. ”
“ The investments made over the last two years in our growth initiatives are beginning to generate growth. For 2022, we expect modest improvement in spare cash stream margin with much more meaningful improvement to come in 2023, ” added Lior Shemesh, CFO of Wix .
Q4 2021 Financial Results
- Total revenue in the fourth quarter of 2021 was $ 328.3 million, up 16% y/y
- Creative Subscriptions revenue in the fourth quarter of 2021 was $ 246.7 million, up 15% y/y
- Business Solutions revenue in the fourth quarter of 2021 was $ 81.7 million, up 19% y/y
- Transaction revenue in the fourth quarter of 2021 was $ 36.1 million, up 35% y/y
- Partners revenue in the fourth quarter of 2021 was $ 73.3 million, up 53% y/y
- Creative Subscriptions ARR was $ 1.010 billion as of the end of the fourth quarter of 2021, an increase of 15% y/y
- Total bookings in the fourth quarter of 2021 were $ 351.6 million, up 15% y/y
- Creative Subscriptions bookings in the fourth quarter of 2021 were $ 264.0 million, up 12% y/y, including a change in unbilled contractual obligations of $ 11.6 million
- Business Solutions bookings in the fourth quarter of 2021 were $ 87.5 million, up 25% y/y
- Total gross margin on a GAAP basis in the fourth quarter of 2021 was 61%
- Creative Subscriptions gross margin on a GAAP basis was 75%
- Business Solutions gross margin on a GAAP basis was 17%
- Total non-GAAP gross margin in the fourth quarter of 2021 was 62%
- Creative Subscriptions gross margin on a non-GAAP basis was 77%
- Business Solutions gross margin on a non-GAAP basis was 19%
- GAAP net loss in the fourth quarter of 2021 was $ ( 111.0 ) million, or $ ( 1.94 ) per share
- Includes approximately $ 12.5 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 fourth quarter of 2021 was $ ( 21.1 ) million, or $ ( 0.37 ) per share
- Net cash provided by operating activities in the fourth quarter of 2021 was $ 21.0 million, while capital expenditures totaled $ 13.7 million, leading to free cash flow of $ 7.3 million
- Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $ 17.4 million, a decrease of 27% y/y
FY 2021 Financial Results
- Total revenue for the full year 2021 was $ 1.270 billion, up 29% y/y
- Creative Subscriptions revenue for the full year 2021 was $ 950.3 million, up 21% y/y
- Business Solutions revenue for the full year 2021 was $ 319.4 million, up 59% y/y
- Transaction revenue for the full year 2021 was $ 130.3 million, up 134% y/y and up ~12x from the full year 2019
- Partners revenue for the full year 2021 was $ 256.6 million, up 75% y/y and up 199% from the full year 2019
- Total bookings for the full year 2021 were $ 1.419 billion, up 29% y/y
- Creative Subscriptions bookings for the full year 2021 were $ 1.088 billion, up 22% y/y, including a change in unbilled contractual obligations of $ 66.8 million
- Business Solutions bookings for the full year 2021 were $ 330.9 million, up 57% y/y
- Total gross margin on a GAAP basis for the full year 2021 was 62%
- Creative Subscriptions gross margin on a GAAP basis was 76%
- Business Solutions gross margin on a GAAP basis was 20%
- Total non-GAAP gross margin for the full year 2021 was 63%
- Creative Subscriptions gross margin on a non-GAAP basis was 77%
- Business Solutions gross margin on a non-GAAP basis was 22%
- GAAP net loss for the full year 2021 was $ ( 117.2 ) million, or $ ( 2.06 ) per share
- GAAP net loss in 2021 included realized and unrealized gains, net of taxes, of approximately $ 210.5 million in FY 2021 from our equity investments, primarily attributed to the decrease in share price of monday.com (Nasdaq: MNDY), which were excluded from non-GAAP results
- Non-GAAP net loss for the full year 2021 was $ ( 79.0 ) million, or $ ( 1.39 ) per share
- Net cash provided by operating activities for the full year 2021 was $ 65.7 million, while capital expenditures totaled $ 37.7 million, leading to free cash flow of $ 28.0 million
- Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $ 51.4 million
- Added 478 thousand net premium subscriptions in full year 2021 to reach 6.0 million as of December 31, 2021, a 9% increase over the total number of premium subscriptions at December 31, 2020
- Registered users as of December 31, 2021 were 222 million, representing a 13% increase compared to December 31, 2020
fiscal Outlook
We have experienced a much higher tied of excitability in requirement for on-line services over the last year and a half due to COVID. As a solution, we are not able to forecast our business with the same degree of confidence as we have historically been able to pre-COVID, even as fundamentals remain strong. Given this volatility and continue doubt, we are adjusting our stream steering exercise .
ampere long as we are in a period of heightened volatility, we will not be providing annual steering for bookings, tax income or free cash stream. We will issue quarterly guidance for entire gross to provide updates on our advancement to drive growth. We will besides provide extra color around fore expectations in our quarterly earnings releases .
As of today, we expect entire tax income in Q1 2022 to be $ 338M – $ 343M, representing 11 % – 13 % y/y increase. Given Q1 2021 saw gross grow 41 % y/y, it is the most unmanageable y/y comparable we face in 2022, and we expect y/y emergence of sum tax income to accelerate each quarter through the goal of 2022 .
FCF plan for the next two years
Our business has evolved enormously over the past 3-5 years as Wix expanded into new markets, new products and new services. In order to get to where we are today, and more importantly, continue to evolve and drive profitable growth, over the last two years, we have made meaningful investments in our business across all fronts, particularly in customer care, technology infrastructure, partners and Wix Payments. These initiatives are still in their early on stages of growth, and we expect more growth in the future .
We estimate these incremental investments lowered our exempt cash flow by approximately $ 80 million in 2020 and $ 110 million in 2021 .
These increase investments enabled us to put in station the head count and infrastructure needed to generate long term tax income growth. While we have begun to see the early stages of top-line emergence from these initiatives, we believe there is much more to come .
We do not need to invest in our new growth initiatives in 2022 or subsequent years at the same level we have the past two years. Combined with the predict gross emergence of these new initiatives and operating leverage, we expect FCF margins ( excluding capex related to our new HQ build-out ) to increase to approximately 5 % of gross in 2022 and to approximately 8-10 % of tax income in 2023 .
league call and Webcast Information
Wix will host a conference call at 8:30 a.m. ET on Wednesday, February 16, 2022 to answer questions about the fiscal and functional operation of the business for the one-fourth quarter and full class ended December 31, 2021. The conference call will include a abbreviated statement by management and will focus on answering questions about our results during the quarter. To enhance the Q & A share of this shout, the Company has posted a stockholder update and supporting slides to its Investor Relations website at hypertext transfer protocol : //investors.wix.com/. These materials provide shareholders and analysts with extra 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 originate prison term of the call and reference Conference ID 6553878. A telephonic replay of the call will be available through February 23, 2022 at 11:30 a.m. ET by dialing +1 ( 855 ) 859-2056 and providing Conference ID 6553878 .
Wix will besides offer a exist and archived webcast of the conference call, accessible from the “ investor Relations ” section of the Company ‘s web site at hypertext transfer protocol : //investors.wix.com/ .
About Wix.com Ltd .
Wix is leading the way with a cloud-based web site development chopine for over 220 million registered users worldwide today. The Wix web site builder was founded on the impression that the Internet should be accessible to everyone to develop, make and lend. Through release and premium subscriptions, Wix empowers millions of businesses, organizations, artists, and individuals to take their businesses, brands and work flow on-line. The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix and Velo by Wix enable users to build and manage a in full integrated and active digital presence. Wix ‘s headquarter are in Tel Aviv with offices in Austin, Be’er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kyiv, Kraków, Los Angeles, Miami, New York, Phoenix, San Francisco, São Paulo, Tokyo and Vilnius .
Visit us : on our web log, Facebook, Twitter, Instagram, LinkedIn and Pinterest.
Download : Wix App is available for unblock on Google Play and in the App Store.
For more about Wix please visit our Press Room
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidate fiscal statements, which are organize and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP fiscal measures : bookings, accumulative age group bookings, , non-GAAP crying margin, non-GAAP operating income ( loss ), non-GAAP net income ( passing ), non-GAAP net income ( personnel casualty ) per partake, release cash flow, detached 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 function expenses, non-GAAP price of gross expense, non-GAAP tax expense ( jointly the “ Non-GAAP fiscal measures ” ). Measures presented on a constant currency or FX impersonal basis have been adjusted to exclude the effect of y/y changes in alien currency exchange pace fluctuations. Bookings is a non-GAAP fiscal measure calculated by adding the change in postpone revenues for a particular period to revenues for the like time period. Bookings include cash receipts for premium subscriptions purchased by cross-file users arsenic good, cash we collect for payments and extra products and services, angstrom well as payments ascribable to us under the terms of contractual agreements for obligations we have fulfilled. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the extra products and services ( other than Google Workspace ) are recognised as revenues upon acknowledge. commit payments are recognised angstrom gross as we fulfill our debt instrument under the terms of the contractual agreement. Non-GAAP megascopic margin represents arrant profit calculated in accord with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by tax income. Non-GAAP operating income ( loss ) represents operating income ( loss ) calculated in accordance with GAAP as adjusted for the impact of share-based recompense expense, amortization, acquisition-related expenses and sales tax expense accumulation and early G & A expenses ( income ). Non-GAAP net income ( loss ) represents net loss calculated in accord with GAAP as adjusted for the impact of share-based recompense expense, amortization, sales tax expense accumulation and other G & A expenses ( income ), amortization of debt deduction and debt issue costs and acquisition-related expenses and non-operating extraneous exchange expenses ( income ). Non-GAAP net income income ( loss ) per share represents non-GAAP net income ( loss ) divided by the weighted average numeral of shares used in computing GAAP loss per share. release cash flow represents web cash provided by ( used in ) operate activities less das kapital expenditures. free cash flow, as adjusted, represents dislodge cash flow promote adjusted to exclude das kapital expenditures associated with our new headquarters. release cash flow margins represent release cash hang divided by gross. Non-GAAP monetary value of tax income represents monetary value of gross 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 accord with GAAP as adjusted for the impact of share-based recompense expense, acquisition-related expenses and amortization. Non-GAAP S & M expenses represent S & M expenses calculated in accord with GAAP as adjusted for the impingement of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G & A expenses act G & A expenses calculated in accord with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operational 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 display of this fiscal information is not intended to be considered in isolation or as a substitute for, or superior to, the fiscal information prepared and presented in accord with GAAP. The company uses these non-GAAP fiscal measures for fiscal and operational decision make and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide utilitarian information about operate results, enhance the overall agreement of by fiscal performance and future prospects, and allow for greater foil with respect to key metrics used by management in its fiscal and operational decision make .
For more data on the non-GAAP fiscal measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP fiscal measures that are most directly comparable to non-GAAP fiscal measures and the refer reconciliations between these fiscal measures. The company is ineffective to provide reconciliations of free cash stream, unblock cash run, as adjusted, accumulative cohort bookings, non-GAAP crude margin, and non-GAAP tax expense to their most directly comparable GAAP fiscal measures on a advanced basis without unreasonable campaign because items that impact those GAAP fiscal measures are out of the Company ‘s control condition and/or can not be reasonably predicted. such information may have a significant, and potentially unpredictable, impact on our future fiscal results .
Wix besides uses creative Subscriptions Annualized Recurring Revenue ( ARR ), Business Solutions ARR and Gross Payment volume ( GPV ) as keystone operating metrics. creative Subscriptions ARR is calculated as creative Subscriptions Monthly Recurring Revenue ( MRR ) multiplied by 12. creative Subscriptions MRR is calculated as the total of ( i ) all active creative Subscriptions in effect on the last day of the period, multiplied by the monthly gross of such creative Subscriptions, other than knowledge domain registrations ; ( two ) the median tax income per month from world registrations ; ( three ) monthly tax income from partnership agreements. Business Solutions ARR is calculated as Business Solutions MRR multiplied by 12. Business Solutions MRR is calculated as the entire of all active subscriptions to Ascend, G-Suite, TPAs, FB Ads or Wix apps products in effect on the last day of the time period, multiplied by the monthly gross of such subscriptions. GPV includes the total value, in US dollars, of transactions facilitated by our platform .
advanced Statements
This text file contains advanced statements, within the mean of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. such advanced statements may include projections regarding our future operation, including, but not limited to gross, bookings and free cash flow, and may be identified by words like “ anticipate, ” “ assume, ” “ believe, ” “ aim, ” “ bode, ” “ indication, ” “ continue, ” “ could, ” “ estimate, ” “ expect, ” “ mean, ” “ may, ” “ plan, ” “ potential, ” “ bode, ” “ project, ” “ lookout, ” “ future, ” “ will, ” “ seek ” and like terms or phrases. The advanced statements contained in this document, including the quarterly and annual steering, are based on management ‘s stream expectations, which are subject to uncertainty, risks and changes in circumstances that are unmanageable 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 advanced statements include, among others, our ability to attract and retain registered users and generate new premium subscriptions ; our ability to increase the gross we derive from the sale of bounty subscriptions and business solutions through our partners ; our expectation that new products and developments, including third-party products offered within our platform, will receive customer credence and satisfaction, including the growth in commercialize adoption of our on-line department of commerce solutions ; our presumption that long-run agreements with partners will become a more significant part of our business in the future and that the expect accounts receivable from such long terminus partners agreement will ultimately be received ; our premise that historical user demeanor can be extrapolated to predict future exploiter behavior ; our prediction of the future revenues generated by our user cohorts and our ability to maintain and increase such gross growth ; our ability to maintain and enhance our brand and reputation ; our ability to attract and retain modify employees and key personnel ; our ability to enter into new markets and attract new customer demographics, including new partners ; our arithmetic mean that our products created for markets outside of North America will continue to generate emergence in those markets ; the impact of fluctuations in alien currency exchange rates on our business ; our ability to effectively execute our initiatives to scale and improve our exploiter support function through our Customer Care team, and thereby increase user memory, drug user battle and sales ; the consolidation and performance of acquisitions ; our ability to successfully localize our products, including by making our product, back and communication channels available in extra languages and to expand our requital infrastructure to transact in extra local anesthetic currencies and accept extra payment methods ; our ability to effectively manage the increase of our infrastructure ; the shock on our business and operations of the COVID-19 pandemic, including doubt relating to expected consumer dynamics after the COVID-19 pandemic subsides and the anticipate GPV on our platform, the effectiveness of politics policies, vaccine administration rates and other factors ; changes to technologies used in our solutions ; any regulative investigations or litigation ; our expectations regarding changes in our cost of revenues and our operate expenses on an absolute footing and as a share of our revenues ; changes in the ball-shaped, national, regional or local economic, business, competitive, commercialize, and regulative landscape, including as a resultant role of COVID-19 ; our planned horizontal surface of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the adjacent 12 months and other factors discussed under the bearing “ risk Factors ” in the Company ‘s 2020 annual report on Form 20-F filed with the Securities and Exchange Commission on March 25, 2021. Any advanced statement made by us in this press free 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 potential for us to predict all of them. We undertake no debt instrument to publicly update any advanced statements, whether as a consequence of newfangled data, future developments or otherwise .
Immaterial prior year adjustment
We revised the previously reported fiscal statements to reflect tax income recognition timing differences related to the sale of Google Workspace solutions. This rewrite has an immaterial impingement on previously issued fiscal statements .
investor Relations :
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Media Relations :
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1 We define partners gross as gross generated through agencies and freelancers that build sites or applications for early users vitamin a well as tax income generated through B2B partnerships, such as Vistaprint or NTT. We identify agencies and freelancers building sites or applications for others using multiple criteria including but not limited to the count of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used, among early criteria. Partners gross includes tax income from both the creative Subscriptions and Business Solutions segments.
2 Transaction tax income is a share of Business Solutions gross, and we define transaction gross as all tax income generated through transaction facilitation, chiefly from Wix Payments deoxyadenosine monophosphate well as Wix POS, shipping solutions and multi-channel department of commerce and endowment card solutions.
3 Beginning with this earnings free, we are renaming our anterior “ collections ” measurement as ” bookings ”. This is merely a terminology adjustment and does NOT change the calculation or the components previously comprising this measure. Past years ‘ reported collections results are directly comparable to bookings. We believe that the term bookings better reflects this measure as it includes not only cash collected by us but besides unbilled contractual obligations we secure from partners .
| Wix.com Ltd. | |||||||
| amalgamate STATEMENTS OF OPERATIONS – generally accepted accounting principles | |||||||
| ( In thousands, except loss per contribution data ) | |||||||
| Three Months Ended | year Ended | ||||||
| December 31, | December 31, | ||||||
| 2020 | 2021 | 2020 | 2021 | ||||
| ( unaudited ) | ( unaudited ) | ||||||
| Revenue | |||||||
| creative Subscriptions | $ 213,745 | $ 246,669 | $ 783,456 | $ 950,299 | |||
| business Solutions | 68,789 | 81,673 | 200,911 | 319,358 | |||
| 282,534 | 328,342 | 984,367 | 1,269,657 | ||||
| Cost of Revenue | |||||||
| creative Subscriptions | 50,278 | 60,789 | 167,539 | 232,619 | |||
| business Solutions | 53,029 | 68,010 | 145,480 | 255,960 | |||
| 103,307 | 128,799 | 313,019 | 488,579 | ||||
| Gross net income | 179,227 | 199,543 | 671,348 | 781,078 | |||
| manoeuver expenses : | |||||||
| inquiry and development | 89,625 | 116,329 | 320,278 | 424,937 | |||
| Selling and market | 109,629 | 124,560 | 438,210 | 512,027 | |||
| General and administrative | 35,433 | 56,926 | 111,915 | 169,648 | |||
| sum manoeuver expenses | 234,687 | 297,815 | 870,403 | 1,106,612 | |||
| engage loss | ( 55,460 ) | ( 98,272 ) | ( 199,055 ) | ( 325,534 ) | |||
| fiscal income ( expenses ), net | 56,551 | ( 16,868 ) | 47,059 | 271,943 | |||
| other income | 34 | 391 | 118 | 584 | |||
| Income ( loss ) before taxes on income | 1,125 | ( 114,749 ) | ( 151,878 ) | ( 53,007 ) | |||
| Taxes on income | 12,548 | ( 3,730 ) | 14,989 | 64,202 | |||
| net personnel casualty | $ ( 11,423 ) | $ ( 111,019 ) | $ ( 166,867 ) | $ ( 117,209 ) | |||
| Basic and diluted web loss per parcel | $ ( 0.20 ) | $ ( 1.94 ) | $ ( 3.07 ) | $ ( 2.06 ) | |||
| Basic and diluted weighted-average shares used to compute net income passing per share | 55,809,471 | 57,103,278 | 54,425,056 | 57,004,154 | |||
| Wix.com Ltd. | ||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||
| ( In thousands ) | ||||
| period ended | ||||
| December 31, | December 31, | |||
| 2020 | 2021 | |||
| Assets | ( audited ) | ( unaudited ) | ||
| current Assets : | ||||
| Cash and cash equivalents | $ 168,858 | $ 451,355 | ||
| short term deposits | 577,138 | 411,687 | ||
| Restricted cash and deposit | 925 | 7,012 | ||
| marketable securities | 289,927 | 456,515 | ||
| Trade receivables | 23,670 | 30,367 | ||
| Prepaid expenses and other current assets | 40,666 | 32,877 | ||
| total stream assets | 1,101,184 | 1,389,813 | ||
| long Term Assets : | ||||
| property and equipment, net | 35,863 | 50,437 | ||
| marketable securities | 536,877 | 387,341 | ||
| Prepaid expenses and other long-run assets | 87,680 | 41,554 | ||
| intangible assets and good will, internet | 43,516 | 89,547 | ||
| Operating lease right-of-use assets | 88,406 | 101,095 | ||
| sum long-run assets | 792,342 | 669,974 | ||
| full assets | $ 1,893,526 | $ 2,059,787 | ||
| Liabilities and Shareholder’s Equity | ||||
| stream Liabilities : | ||||
| Trade payables | $ 79,881 | $ 114,584 | ||
| Employees and payroll accruals | 70,814 | 83,251 | ||
| Deferred revenues | 409,698 | 484,446 | ||
| Accrued expenses and other current liabilities | 48,769 | 62,816 | ||
| Operating lease liabilities | 22,336 | 29,201 | ||
| entire current liabilities | 631,498 | 774,298 | ||
| retentive term deferred revenues | 50,867 | 59,966 | ||
| long terminus deferred tax liability | 15,343 | 72,803 | ||
| convertible notes, net | 834,440 | 922,974 | ||
| other farseeing term liabilities | – | 2,267 | ||
| retentive terminus operating rent liabilities | 74,187 | 81,764 | ||
| sum long term liabilities | 974,837 | 1,139,774 | ||
| total liabilities | 1,606,335 | 1,914,072 | ||
| Shareholders’ Equity | ||||
| ordinary shares | 107 | 111 | ||
| extra paid-in capital | 862,134 | 994,795 | ||
| Treasury Stock | – | ( 199,997 ) | ||
| Accumulated other comprehensive examination income | 9,406 | ( 1,056 ) | ||
| Accumulated deficit | ( 584,456 ) | ( 648,138 ) | ||
| entire shareholders ‘ equity | 287,191 | 145,715 | ||
| total liabilities and shareholders ‘ equity | $ 1,893,526 | $ 2,059,787 | ||
| Wix.com Ltd. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| ( In thousands ) | |||||||
| Three Months Ended | year Ended | ||||||
| December 31, | December 31, | ||||||
| 2020 | 2021 | 2020 | 2021 | ||||
| ( unaudited ) | ( unaudited ) | ||||||
| engage action : | |||||||
| net loss | $ ( 11,423 ) | $ ( 111,019 ) | $ ( 166,867 ) | $ ( 117,209 ) | |||
| Adjustments to reconcile net loss to net income cash used in operate activities : | |||||||
| depreciation | 3,789 | 3,524 | 14,610 | 13,929 | |||
| amortization | 619 | 462 | 2,577 | 4,952 | |||
| share based compensation expenses | 42,706 | 71,294 | 147,313 | 221,391 | |||
| amortization of debt dismiss and debt issue costs | 11,411 | 1,298 | 29,954 | 5,298 | |||
| Decrease ( increase ) in accrued interest and exchange rate on short-circuit term and long condition deposits | ( 69 ) | 85 | ( 43 ) | ( 20 ) | |||
| amortization of agio and discount rate and accrue interest on marketable securities, final | 2,532 | 1,642 | 4,471 | 7,843 | |||
| advance on equity securities | – | 17,718 | – | ( 166,323 ) | |||
| submit income taxes, net | 15,506 | ( 6,760 ) | 12,089 | 54,454 | |||
| Changes in operate rent right-of-use assets | 4,514 | 9,474 | 17,867 | 28,441 | |||
| Changes in engage lease liabilities | ( 2,613 ) | ( 7,013 ) | ( 15,807 ) | ( 26,688 ) | |||
| Increase in craft receivables | ( 511 ) | ( 2,379 ) | ( 6,457 ) | ( 6,250 ) | |||
| Decrease ( increase ) in postpaid expenses and other stream and long-run assets | ( 60,598 ) | 3,029 | ( 89,386 ) | ( 98,468 ) | |||
| Increase in trade wind payables | 10,324 | 20,896 | 41,967 | 26,595 | |||
| Increase ( decrease ) in employees and payroll accruals | ( 12,382 ) | 6,872 | 25,326 | 19,391 | |||
| addition in short-change terminus and retentive term deferred revenues | 23,847 | 11,593 | 117,664 | 82,361 | |||
| increase in accrued expenses and other current liabilities | 898 | 325 | 12,771 | 15,988 | |||
| net income cash provided by engage activities | 28,550 | 21,041 | 148,049 | 65,685 | |||
| investing bodily process : | |||||||
| Proceeds from short-run deposits and restricted deposits | 93,000 | 285,000 | 294,225 | 732,015 | |||
| investment in short-run deposits and restricted deposits | ( 129,790 ) | ( 155,500 ) | ( 577,000 ) | ( 572,631 ) | |||
| investment in marketable securities | ( 64,940 ) | ( 29,377 ) | ( 763,581 ) | ( 29,377 ) | |||
| Proceeds from marketable securities | 77,320 | 50,633 | 277,335 | 312,201 | |||
| purchase of place and equipment | ( 5,268 ) | ( 12,789 ) | ( 18,403 ) | ( 35,770 ) | |||
| capitalization of software development costs | ( 112 ) | ( 913 ) | ( 450 ) | ( 1,930 ) | |||
| investment in other long-run assets | – | – | ( 5,643 ) | – | |||
| Proceed from equity securities | – | – | – | 18,771 | |||
| payment for Businesses acquired, net of acquired cash | – | ( 115 ) | ( 6,626 ) | ( 42,729 ) | |||
| proceed from investments in privately held companies | 1,098 | – | 1,098 | – | |||
| Purchases of investments in privately held companies | ( 400 ) | ( 181 ) | ( 1,185 ) | ( 3,681 ) | |||
| net cash provided by ( used in ) invest activities | ( 29,092 ) | 136,758 | ( 800,230 ) | 376,869 | |||
| finance ACTIVITIES : | |||||||
| Proceeds from use of options and ESPP shares | 10,944 | 6,389 | 39,649 | 39,943 | |||
| purchase of treasury breed | – | – | – | ( 200,000 ) | |||
| Proceeds from issue of convertible senior notes | – | – | 575,000 | – | |||
| Payments of debt issue costs | – | – | ( 15,713 ) | – | |||
| purchase of capped call | – | – | ( 46,000 ) | – | |||
| final cash provided by ( used in ) finance activities | 10,944 | 6,389 | 552,936 | ( 160,057 ) | |||
| INCREASE ( DECREASE ) IN CASH AND CASH EQUIVALENTS | 10,402 | 164,188 | ( 99,245 ) | 282,497 | |||
| CASH AND CASH EQUIVALENTS—Beginning of period | 158,456 | 287,167 | 268,103 | 168,858 | |||
| CASH AND CASH EQUIVALENTS—End of menstruation | $ 168,858 | $ 451,355 | $ 168,858 | $ 451,355 | |||
| Wix.com Ltd. | ||||||||
| key PERFORMANCE METRICS | ||||||||
| ( In thousands ) | ||||||||
| Three Months Ended | year Ended
Read more: The Power of Putting People First |
|||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| creative Subscriptions | 213,745 | 246,669 | 783,456 | 950,299 | ||||
| commercial enterprise Solutions | 68,789 | 81,673 | 200,911 | 319,358 | ||||
| Total Revenue | $ 282,534 | $ 328,342 | $ 984,367 | $ 1,269,657 | ||||
| creative Subscriptions | 236,420 | 264,038 | 891,240 | 1,087,879 | ||||
| occupation Solutions | 69,961 | 87,518 | 210,791 | 330,944 | ||||
| Total Bookings | $ 306,381 | $ 351,556 | $ 1,102,031 | $ 1,418,823 | ||||
| free Cash Flow | $ 23,170 | $ 7,339 | $ 129,196 | $ 27,985 | ||||
| free Cash Flow, excluding capex related to future Wix HQ office build-out | $ 23,962 | $ 17,386 | $ 131,658 | $ 51,434 | ||||
| creative Subscriptions ARR | $ 878,036 | $ 1,009,576 | $ 878,036 | $ 1,009,576 | ||||
| Wix.com Ltd. | ||||||||
| RECONCILIATION OF REVENUE TO BOOKINGS | ||||||||
| ( In thousands ) | ||||||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| tax income | $ 282,534 | $ 328,342 | $ 984,367 | $ 1,269,657 | ||||
| change in postpone gross | 23,847 | 11,593 | 117,664 | 82,361 | ||||
| change in unbilled contractual obligations | – | 11,621 | – | 66,805 | ||||
| Bookings | $ 306,381 | $ 351,556 | $ 1,102,031 | $ 1,418,823 | ||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| creative Subscriptions gross | $ 213,745 | $ 246,669 | $ 783,456 | $ 950,299 | ||||
| change in postpone tax income | 22,675 | 5,748 | 107,784 | 70,775 | ||||
| change in unbilled contractual obligations | – | 11,621 | – | 66,805 | ||||
| creative Subscriptions Bookings | $ 236,420 | $ 264,038 | $ 891,240 | $ 1,087,879 | ||||
| Three Months Ended | class Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| commercial enterprise Solutions Revenue | $ 68,789 | $ 81,673 | $ 200,911 | $ 319,358 | ||||
| change in submit tax income | 1,172 | 5,845 | 9,880 | 11,586 | ||||
| commercial enterprise Solutions Bookings | $ 69,961 | $ 87,518 | $ 210,791 | $ 330,944 | ||||
| Wix.com Ltd. | ||||||
| RECONCILIATION OF COHORT BOOKINGS | ||||||
| ( In millions ) | ||||||
| class Ended | ||||||
| December 31, | ||||||
| 2019 | 2020 | 2021 | ||||
| Q1 Cohort tax income | 30 | 44 | 53 | |||
| Q1 Change in postpone gross | 22 | 16 | 18 | |||
| Q1 Cohort Bookings | $ 52 | $ 60 | $ 71 | |||
| Wix.com Ltd. | ||||||||
| sum ADJUSTMENTS GAAP TO NON-GAAP | ||||||||
| ( In thousands ) | ||||||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( 1 ) share based compensation expenses : | ( unaudited ) | ( unaudited ) | ||||||
| cost of tax income | $ 3,172 | $ 4,095 | $ 9,127 | $ 15,462 | ||||
| inquiry and development | 22,170 | 28,028 | 76,883 | 102,056 | ||||
| Selling and marketing | 6,774 | 9,483 | 22,845 | 33,853 | ||||
| General and administrative | 10,590 | 29,688 | 38,458 | 70,020 | ||||
| total share based compensation expenses | 42,706 | 71,294 | 147,313 | 221,391 | ||||
| ( 2 ) amortization | 619 | 462 | 2,577 | 4,952 | ||||
| ( 3 ) Acquisition related expenses | 1,686 | 2,045 | 5,811 | 8,680 | ||||
| ( 4 ) amortization of debt deduction and debt issue costs | 11,411 | 1,298 | 29,954 | 5,298 | ||||
| ( 5 ) Sales tax accumulation and other G & A expenses ( income ) | 2,810 | 320 | 4,299 | 1,692 | ||||
| ( 6 ) Unrealized profit ( personnel casualty ) on fairness and other investments | ( 66,709 ) | 16,195 | ( 66,709 ) | ( 267,831 ) | ||||
| ( 7 ) Non-operating extraneous exchange expenses ( income ) | 1,925 | 2,013 | 2,352 | 6,711 | ||||
| ( 8 ) provision for income tax effects related to non-GAAP adjustments | 15,343 | ( 3,725 ) | 15,343 | 57,283 | ||||
| entire adjustments of GAAP to Non GAAP | $ 9,791 | $ 89,902 | $ 140,940 | $ 38,176 | ||||
| Wix.com Ltd. | ||||||||
| RECONCILIATION OF GAAP TO NON-GAAP GROSS profit | ||||||||
| ( In thousands ) | ||||||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| Gross profit | $ 179,227 | $ 199,543 | $ 671,348 | $ 781,078 | ||||
| partake based compensation expenses | 3,172 | 4,095 | 9,127 | 15,462 | ||||
| Acquisition related expenses | 260 | 97 | 765 | 484 | ||||
| amortization | 90 | 645 | 316 | 2,030 | ||||
| Non GAAP Gross profit | 182,749 | 204,380 | 681,556 | 799,054 | ||||
| Non GAAP Gross margin | 65 % | 62 % | 69 % | 63 % | ||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| Gross Profit – creative Subscriptions | $ 163,467 | $ 185,880 | $ 615,917 | $ 717,680 | ||||
| share based compensation expenses | 2,386 | 3,026 | 7,140 | 11,446 | ||||
| Non GAAP Gross Profit – creative Subscriptions | 165,853 | 188,906 | 623,057 | 729,126 | ||||
| Non GAAP Gross margin – creative Subscriptions | 78 % | 77 % | 80 % | 77 % | ||||
| Three Months Ended | class Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| Gross Profit – business Solutions | $ 15,760 | $ 13,663 | $ 55,431 | $ 63,398 | ||||
| parcel based compensation expenses | 786 | 1,069 | 1,987 | 4,016 | ||||
| Acquisition related expenses | 260 | 97 | 765 | 484 | ||||
| amortization | 90 | 645 | 316 | 2,030 | ||||
| Non GAAP Gross Profit – business Solutions | 16,896 | 15,474 | 58,499 | 69,928 | ||||
| Non GAAP Gross margin – business Solutions | 25 % | 19 % | 29 % | 22 % | ||||
| Wix.com Ltd. | ||||||||
| RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS | ||||||||
| ( In thousands ) | ||||||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| operational personnel casualty | $ ( 55,460 ) | $ ( 98,272 ) | $ ( 199,055 ) | $ ( 325,534 ) | ||||
| Adjustments : | ||||||||
| share based recompense expenses | 42,706 | 71,294 | 147,313 | 221,391 | ||||
| amortization | 619 | 462 | 2,577 | 4,952 | ||||
| Sales tax accumulation and early G & A expenses ( income ) | 2,810 | 320 | 4,299 | 1,692 | ||||
| Acquisition related expenses | 1,686 | 2,045 | 5,811 | 8,680 | ||||
| sum adjustments | $ 47,821 | $ 74,121 | $ 160,000 | $ 236,715 | ||||
| Non GAAP operating personnel casualty | $ ( 7,639 ) | $ ( 24,151 ) | $ ( 39,055 ) | $ ( 88,819 ) | ||||
| 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 | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| net loss | $ ( 11,423 ) | $ ( 111,019 ) | $ ( 166,867 ) | $ ( 117,209 ) | ||||
| share based recompense expense and other Non GAAP adjustments | 9,791 | 89,902 | 140,940 | 38,176 | ||||
| Non-GAAP net passing | $ ( 1,632 ) | $ ( 21,117 ) | $ ( 25,927 ) | $ ( 79,033 ) | ||||
| Basic and diluted Non GAAP internet loss per share | $ ( 0.03 ) | $ ( 0.37 ) | $ ( 0.48 ) | $ ( 1.39 ) | ||||
| slant average shares used in computing basic and load Non GAAP net loss per share | 55,809,471 | 57,103,278 | 54,425,056 | 57,004,154 | ||||
| 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, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| net income cash provided by operate activities | $ 28,550 | $ 21,041 | $ 148,049 | $ 65,685 | ||||
| capital expenditures, net | ( 5,380 ) | ( 13,702 ) | ( 18,853 ) | ( 37,700 ) | ||||
| release Cash Flow | $ 23,170 | $ 7,339 | $ 129,196 | $ 27,985 | ||||
| Capex related to future Wix HQ agency build-out | 792 | 10,047 | 2,462 | 23,449 | ||||
| exempt Cash Flow, excluding capex related to future Wix HQ office build-out | $ 23,962 | $ 17,386 | $ 131,658 | $ 51,434 | ||||
| Wix.com Ltd. | ||||||||
| RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||
| Three Months Ended | year Ended | |||||||
| December 31, | December 31, | |||||||
| 2020 | 2021 | 2020 | 2021 | |||||
| ( unaudited ) | ( unaudited ) | |||||||
| Basic and diluted weighted-average shares used to compute net loss per contribution | 55,809,471 | 57,103,278 | 54,425,056 | 57,004,154 | ||||
| The postdate items have been excluded from the diluted leaden average number of shares outstanding because they are anti-dilutive : | ||||||||
| stock options | 4,621,780 | 4,720,600 | 4,621,780 | 4,720,600 | ||||
| Restricted share units | 2,078,427 | 2,225,516 | 2,078,427 | 2,225,516 | ||||
| convertible Notes ( if-converted ) | 4,530,284 | 3,969,514 | 4,530,284 | 3,969,514 | ||||
| 67,039,962 | 68,018,908 Read more: The Power of Putting People First |
65,655,547 | 67,919,784 | |||||
SOURCE Wix.com Ltd .
