Wix Reports Q4 and Full Year 2016 Results
“Our focused investment in technology and our superior marketing execution continue to have a meaningful positive impact on our growth and financial results,” said Avishai Abrahami, Co-founder and CEO of Wix. “In the last twelve months, this strategy delivered innovative products such as Wix ADI and the mobile Wix App, as well as growth in our brand and successful marketing execution, highlighted by our Super Bowl LI campaign. This strategic approach will enable us to further extend our technology leadership, acquire subscriptions efficiently and grow our brand globally in 2017 and beyond.”
Lior Shemesh, CFO of Wix, commented, “The re-acceleration in top line growth this quarter was exceptional -- a direct result of the improvement in conversion of registered users to premium subscriptions and higher collections per new subscriptions due to record adoption of our vertical solutions. The stronger than expected inflection to Q4 non-GAAP profitability highlights the flexibility and scalability of our low, fixed-cost model. We expect to deliver continued top line growth and higher free cash flow in 2017 and beyond by further leveraging our investments in technology and marketing.”
Q4 2016 and Full Year 2016 Financial Summary
Three months ended Dec 31, |
|||||||||||
$ in thousands | 2016 | 2015 | Y/Y growth |
Prior Q4 2016 Outlook |
|||||||
Revenue | $84,176 | $56,831 | 48% | $81,000 - 82,000 | |||||||
Collections | $97,652 | $66,870 | 46% | $93,000 - 94,000 | |||||||
Operating Loss | $(4,742) | $(10,163) | NM | ||||||||
Non-GAAP Operating Profit (Loss) | $3,879 | $(4,417) | NM | ||||||||
Adjusted EBITDA | $17,877 | $7,025 | 154% | $14,000 – 15,000 | |||||||
Free Cash Flow | $18,683 | $8,397 | 122% | ||||||||
Twelve months ended Dec 31, |
|||||||||||||
$ in thousands | 2016 | 2015 | Y/Y growth |
Prior 2016 Outlook |
|||||||||
Revenue | $290,103 | $203,518 | 43% | $287,000 - 288,000 | |||||||||
Collections | $342,069 | $241,687 | 42% | $337,000 - 338,000 | |||||||||
Operating Loss | $(44,032) | $(48,635) | NM | ||||||||||
Non-GAAP Operating Loss | $(12,529) | $(29,266) | NM | ||||||||||
Adjusted EBITDA | $42,588 | $14,721 | 189% | $38,500 – 39,500 | |||||||||
Free Cash Flow | $36,158 | $14,534 | 149% | ||||||||||
Q4 2016 Results and Highlights
- Revenue increased 48% to $84.2 million compared to $56.8 million for the fourth quarter last year
- Collections increased 46% to $97.7 million compared to $66.9 million for the fourth quarter last year
- Gross margin on a GAAP basis was 85% compared to 83% in the fourth quarter of last year. Non-GAAP gross profit was 87% of collections compared to 85% in the fourth quarter of last year
- GAAP operating loss was $4.7 million compared to loss of $10.2 million in the fourth quarter a year ago. On a non-GAAP basis, operating income was $3.9 million compared to an operating loss of $4.4 million in the fourth quarter last year
- GAAP net loss was $6.2 million, or $(0.14) per share, compared to a net loss of $11.3 million, or $(0.28) per share for the fourth quarter of 2015
- Non-GAAP net income was $2.7 million, or $0.06 per share, compared to a non-GAAP net loss of $5.4 million, or $(0.13) per share for the fourth quarter of 2015
- Adjusted EBITDA was $17.9 million compared to $7.0 million for the fourth quarter of 2015
- Free cash flow was $18.7 million compared to $8.4 million for the fourth quarter of 2015
- Added 171,000 net premium subscriptions in the period to reach 2.5 million as of December 31, 2016, a 39% increase over the fourth quarter of 2015
- Added 5.0 million registered users in the fourth quarter. Registered users as of December 31, 2016 were 97.0 million, representing a 27% increase compared to the fourth quarter of 2015
Recent Business Highlights
- Acquired flok to Enhance CRM Technology: Wix acquired flok, a customer loyalty and engagement platform. flok's solutions are designed to increase customer value, generate organic referrals and boost small and medium businesses' online presence and reputation. The move supports Wix's strategic plan to increase its portfolio of business technology solutions providing small and medium businesses easy ways to engage and reward their customers.
- Announced Integration with Square: Wix announced a partnership with Square to give Wix merchants and entrepreneurs in North America a new way to transact. The Square integration improves payment processing and allows both online and in-person payments via a mobile device based POS. In addition, a user can create a stunning Wix Store and, with a few clicks, manage its store and its catalog on the Wix App with the ability to accept payments online or in-person with Square.
- Launched #DisruptiveWorld campaign around Super Bowl LI: Wix launched its #DisruptiveWorld campaign in mid-January on YouTube and Facebook Live, the first company to launch a Super Bowl campaign using these live video platforms. The global campaign, starring Jason Statham and Gal Gadot, included numerous videos, user engagement opportunities, contests and social activations and was highlighted by a 30-second spot during the fourth quarter of Super Bowl LI. According to Visible Measures, Wix videos garnered more views online than any other brand prior to the airing of the Super Bowl.?
- Wix Mobile Growth: Wix users have created over 22 million mobile sites to date, making Wix one of the largest mobile site development platforms globally.
- Global E-commerce Platform: E-commerce subscriptions reached 332,000 during the quarter. Growth of e-commerce and transaction-enabled websites continues to exceed overall subscriptions growth, highlighting Wix’s broad reach with small businesses.
- Strong Platform Engagement: Continued engagement with the Wix ecosystem is illustrated by 480 million user contacts saved onto the Wix platform by users. Leveraging Wix’s MyAccount CRM system, business owners track customer activity data, manage relationships and communicate using Wix ShoutOut, Wix’s email marketing solution.
Financial Outlook
The Company is introducing its outlook for the first quarter of 2017 and for full year 2017 as follows:
- For the first quarter of 2017:
Q1 2017 Outlook | Y/Y growth | ||||
Revenue | $89 - $90 million | 45% – 46% | |||
Collections | $107 - $109 million | 41% – 44% | |||
- For the full year 2017:
2017 Outlook | Y/Y growth | ||||
Revenue | $409 - $411 million | 41% – 42% | |||
Collections | $452 - $458 million | 32% – 34% | |||
Free Cash Flow | $71 - $72 million | 96% – 100% | |||
As previously announced, in response to the U.S. Securities and Exchange Commission’s May 2016 Compliance and Disclosure Interpretations on non-GAAP financial measures, beginning with our earnings release for Q1 2017, we do not intend to provide guidance for or report adjusted EBITDA. We will continue to report free cash flow as a key non-GAAP financial measure of our business. We believe this change will assist investors in evaluating our ongoing performance and increase the comparability of our results with those of our peer companies. Please refer to the Shareholder Update posted on our investor relations website for a reconciliation of adjusted EBITDA to free cash flow.
Conference Call and Webcast Information
Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, February 15, 2017 to answer questions about the financial and operational performance of the business during the fourth quarter 2016. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter.
To participate on the live call, analysts and investors should dial 866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through February 22, 2017 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 60437734.
Upcoming Investor Conferences
Joe Pollaro, General Manager, US, will present at Cantor Fitzgerald’s 4th Annual Internet & Technology Services Conference in New York on Thursday, February 23, 2017, at 9:50 a.m. EST and at the JMP Securities Technology Conference in San Francisco on Monday, February 27, 2017, at 3:00 p.m. PST.
About Wix.com Ltd.
Wix.com is a leading global software platform for small businesses to operate online with over 100 million registered users worldwide. Wix was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations, professionals and individuals to take their businesses, brands and workflow online. Wix ADI, the Wix Editor and a highly curated App Market enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Be'er Sheva, San Francisco, New York, Miami, Berlin, Vilnius and Dnepropetrovsk.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: collections, collections and revenue on a constant currency basis, adjusted EBITDA, non-GAAP operating loss, free cash flow, non-GAAP net loss and non-GAAP net loss per share (collectively the "Non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period. We adjust collections and revenue to measure them on a constant currency basis by assuming the same exchange rates as the prior period applied to the reported figures in the current period. Non-GAAP operating loss represents operating loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss per share represents non-GAAP net loss divided by the weighted average number of shares used in computing GAAP loss per share. Adjusted EBITDA is defined as cash flow from operations before changes in working capital, prepaid domain registration costs, interest, bank charges and other financial expenses (income), net unrealized losses (gains) on hedging transactions, other income (expenses), taxes on income, and other unusual or non-recurring expenses. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. Beginning with our Q1 2017 earnings release, we do not intend to report or provide guidance for Adjusted EBITDA going forward. Adjusted EBITDA for 2016 and 2015 in this earnings release have been presented on the same basis.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that it provides useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
For more information on the non-GAAP financial measures, please see the "Reconciliation of GAAP to Non-GAAP Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company has not reconciled its guidance as to free cash flow to cash flow from operations because it does not provide guidance for cash flow from operations. As items that impact cash flow from operations are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to cash flow from operations is not available without unreasonable effort.
Wix.com Ltd. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
(In thousands) | ||||||||
Period ended | ||||||||
December 31, | December 31, | |||||||
2015 | 2016 | |||||||
Assets | (audited) | (unaudited) | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 39,226 | $ | 93,064 | ||||
Short term deposits | 70,773 | 78,240 | ||||||
Restricted cash and deposit | 3,851 | 931 | ||||||
Trade receivables | 6,461 | 8,279 | ||||||
Prepaid expenses and other current assets | 11,989 | 17,346 | ||||||
Total current assets | 132,300 | 197,860 | ||||||
Property, equipment and software, net | ||||||||
Long-Term Assets: | ||||||||
Property and equipment, net | 8,734 | 8,750 | ||||||
Prepaid expenses and other long-term assets | 2,200 | 2,916 | ||||||
Intangible assets and goodwill, net | 6,199 | 5,452 | ||||||
Total long-term assets | 17,133 | 17,118 | ||||||
Total assets | $ | 149,433 | $ | 214,978 | ||||
Liabilities and Shareholder's Deficiency | ||||||||
Current Liabilities: | ||||||||
Trade payables | $ | 12,280 | $ | 20,709 | ||||
Employees and payroll accruals | 15,210 | 20,292 | ||||||
Deferred revenues | 100,561 | 146,987 | ||||||
Accrued expenses and other current liabilities | 20,281 | 18,963 | ||||||
Total current liabilities | 148,332 | 206,951 | ||||||
Long term deferred revenues | 4,206 | 9,746 | ||||||
Long term deferred tax liability | 625 | 518 | ||||||
Other long-term liabilities | 75 | - | ||||||
Total long-term liabilities | 4,906 | 10,264 | ||||||
Total liabilities | 153,238 | 217,215 | ||||||
Shareholders' Deficiency | ||||||||
Ordinary shares | 64 | 64 | ||||||
Additional paid-in capital | 192,791 | 241,657 | ||||||
Other comprehensive loss | (248 | ) | (389 | ) | ||||
Accumulated deficit | (196,412 | ) | (243,569 | ) | ||||
Total shareholders' deficiency | (3,805 | ) | (2,237 | ) | ||||
Total liabilities and shareholders' deficiency | $ | 149,433 | $ | 214,978 | ||||
Wix.com Ltd. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | ||||||||||||||||
(In thousands, except loss per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue | $ | 56,831 | $ | 84,176 | $ | 203,518 | $ | 290,103 | ||||||||
Cost of revenue | 9,607 | 12,738 | 34,970 | 45,287 | ||||||||||||
Gross Profit | 47,224 | 71,438 | 168,548 | 244,816 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 21,901 | 28,877 | 77,647 | 105,368 | ||||||||||||
Selling and marketing | 30,330 | 40,022 | 120,010 | 156,512 | ||||||||||||
General and administrative | 5,156 | 7,281 | 19,526 | 26,968 | ||||||||||||
Total operating expenses | 57,387 | 76,180 | 217,183 | 288,848 | ||||||||||||
Operating loss | (10,163 | ) | (4,742 | ) | (48,635 | ) | (44,032 | ) | ||||||||
Financial income (expenses), net | (364 | ) | (451 | ) | 77 | 246 | ||||||||||
Other income (expenses) | (6 | ) | (5 | ) | (11 | ) | (4 | ) | ||||||||
Loss before taxes on income | (10,533 | ) | (5,198 | ) | (48,569 | ) | (43,790 | ) | ||||||||
Taxes on income | 772 | 984 | 2,765 | 3,367 | ||||||||||||
Net loss | $ | (11,305 | ) | $ | (6,182 | ) | $ | (51,334 | ) | $ | (47,157 | ) | ||||
Basic and diluted net loss per share | $ | (0.28 | ) | $ | (0.14 | ) | $ | (1.30 | ) | $ | (1.12 | ) | ||||
Basic and diluted weighted-average shares used to compute net loss per share | 40,116,511 | 43,907,388 | 39,408,928 | 42,032,818 | ||||||||||||
Wix.com Ltd. | ||||||||||||||||
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP STATEMENT OF OPERATIONS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(1) Share based compensation expenses: | (unaudited) | (unaudited) | ||||||||||||||
Cost of revenues | $ | 380 | $ | 429 | $ | 1,353 | $ | 1,798 | ||||||||
Research and development | 2,852 | 4,156 | 9,234 | 14,543 | ||||||||||||
Selling and marketing | 920 | 1,213 | 3,077 | 4,553 | ||||||||||||
General and administrative | 1,424 | 2,022 | 5,069 | 7,154 | ||||||||||||
Total share based compensation expenses | 5,576 | 7,820 | 18,733 | 28,048 | ||||||||||||
(2) Amortization | 170 | 187 | 636 | 747 | ||||||||||||
(3) Acquisition related expenses | - | 614 | - | 2,708 | ||||||||||||
(4) Taxes on income | 162 | 258 | 611 | 838 | ||||||||||||
Total adjustments of GAAP to Non GAAP | $ | 5,908 | $ | 8,879 | $ | 19,980 | $ | 32,341 | ||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operating loss | $ | (10,163 | ) | $ | (4,742 | ) | $ | (48,635 | ) | $ | (44,032 | ) | ||||
Adjustments: | ||||||||||||||||
Share based compensation expenses | 5,576 | 7,820 | 18,733 | 28,048 | ||||||||||||
Amortization | 170 | 187 | 636 | 747 | ||||||||||||
Acquisition related expenses | - | 614 | - | 2,708 | ||||||||||||
Total adjustments | $ | 5,746 | $ | 8,621 | $ | 19,369 | $ | 31,503 | ||||||||
Non GAAP operating income (loss) | $ | (4,417 | ) | $ | 3,879 | $ | (29,266 | ) | $ | (12,529 | ) | |||||
Wix.com Ltd. | ||||||||||||||||
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP COST OF REVENUES | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Gross Profit | $ | 47,224 | $ | 71,438 | $ | 168,548 | $ | 244,816 | ||||||||
Share based compensation expenses | 380 | 429 | 1,353 | 1,798 | ||||||||||||
Gross Profit -Non GAAP | 47,604 | 71,867 | 169,901 | 246,614 | ||||||||||||
Gross margin -Non GAAP | 84 | % | 85 | % | 83 | % | 85 | % | ||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER SHARE | ||||||||||||||||
(In thousands, except loss per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Net loss | $ | (11,305 | ) | $ | (6,182 | ) | $ | (51,334 | ) | $ | (47,157 | ) | ||||
Share based compensation expense and other Non GAAP adjustments | 5,908 | 8,879 | 19,980 | 32,341 | ||||||||||||
Non-GAAP net income (loss) | $ | (5,397 | ) | $ | 2,697 | $ | (31,354 | ) | $ | (14,816 | ) | |||||
Basic Non GAAP net income (loss) per share | $ | (0.13 | ) | $ | 0.06 | $ | (0.80 | ) | $ | (0.35 | ) | |||||
Weighted average shares used in computing basic Non GAAP net income(loss) per share | 40,116,511 | 43,907,388 | 39,408,928 | 42,032,818 | ||||||||||||
Wix.com Ltd. | ||||||||||||||||
KEY PERFORMANCE METRICS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenues | $ | 56,831 | $ | 84,176 | $ | 203,518 | $ | 290,103 | ||||||||
Collections | $ | 66,870 | $ | 97,652 | $ | 241,687 | $ | 342,069 | ||||||||
Adjusted EBITDA | $ | 7,025 | $ | 17,877 | $ | 14,721 | $ | 42,588 | ||||||||
Number of registered users at period end | 76,965 | 97,359 | 76,965 | 97,359 | ||||||||||||
Number of premium subscriptions at period end | 1,767 | 2,465 | 1,767 | 2,465 | ||||||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF REVENUES TO COLLECTIONS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenues | $ | 56,831 | $ | 84,176 | $ | 203,518 | $ | 290,103 | ||||||||
Change in deferred revenues | 10,039 | 13,476 | 38,169 | 51,966 | ||||||||||||
Collections | $ | 66,870 | $ | 97,652 | $ | 241,687 | $ | 342,069 | ||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF COLLECTIONS EXCLUDING FX IMPACT | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2015 | 2016 | |||||||||||||||
(unaudited) | ||||||||||||||||
Collections | $ | 66,870 | $ | 97,652 | ||||||||||||
F/X impact on Q4/16 using Q4/15 rates | - | 957 | ||||||||||||||
Collections excluding FX impact | $ | 66,870 | $ | 98,609 | ||||||||||||
Y/Y% | 47 | % | ||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2016 | 2016 | |||||||||||||||
(unaudited) | ||||||||||||||||
Collections | $ | 87,270 | $ | 97,652 | ||||||||||||
F/X impact on Q4/16 using Q3/16 rates | - | 865 | ||||||||||||||
Collections excluding FX impact | $ | 87,270 | $ | 98,517 | ||||||||||||
Q/Q% | 13 | % | ||||||||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF NON-GAAP OPERATING LOSS TO ADJUSTED EBITDA (NON-GAAP) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Non GAAP operating loss | $ | (4,417 | ) | $ | 3,879 | $ | (29,266 | ) | $ | (12,529 | ) | |||||
Adjustments: | ||||||||||||||||
Realized gains on hedging transactions | 516 | 167 | 3,492 | 791 | ||||||||||||
Depreciation | 1,399 | 890 | 4,999 | 4,538 | ||||||||||||
Change in deferred revenues | 10,039 | 13,476 | 38,169 | 51,966 | ||||||||||||
Change in prepaid domain registration costs | (512 | ) | (535 | ) | (2,673 | ) | (2,178 | ) | ||||||||
Total adjustments | $ | 11,442 | $ | 13,998 | $ | 43,987 | $ | 55,117 | ||||||||
Adjusted EBITDA | $ | 7,025 | $ | 17,877 | $ | 14,721 | $ | 42,588 | ||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Net cash provided by operating activities | $ | 9,522 | $ | 19,714 | $ | 20,876 | $ | 40,573 | ||||||||
Capital expenditures, net | (1,125 | ) | (1,031 | ) | (6,342 | ) | (4,415 | ) | ||||||||
Free Cash Flow | $ | 8,397 | $ | 18,683 | $ | 14,534 | $ | 36,158 | ||||||||
Wix.com Ltd. | ||||||||||||||||
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Year Ending | |||||||||||||||
March 31, 2017 | December 31, 2017 | |||||||||||||||
Low | High | Low | High | |||||||||||||
Projected revenues | $ | 89,000 | $ | 90,000 | $ | 409,000 | $ | 411,000 | ||||||||
Projected change in deferred revenues | 18,000 | 19,000 | 43,000 | 47,000 | ||||||||||||
Projected collections | $ | 107,000 | $ | 109,000 | $ | 452,000 | $ | 458,000 | ||||||||
Wix.com Ltd. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||
Net loss | $ | (11,305 | ) | $ | (6,182 | ) | $ | (51,334 | ) | $ | (47,157 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation | 1,399 | 890 | 4,999 | 4,538 | |||||||||||
Amortization | 170 | 187 | 636 | 747 | |||||||||||
Share based compensation expenses | 5,593 | 7,820 | 18,750 | 28,048 | |||||||||||
Tax benefit related to exercise of share options | 160 | 644 | 609 | 1,224 | |||||||||||
Increase in accrued interest and exchange rate on short term and long term deposits | (59 | ) | (116 | ) | (805 | ) | (669 | ) | |||||||
Deferred income taxes, net | (29 | ) | (537 | ) | (111 | ) | (611 | ) | |||||||
Decrease (increase) in trade receivables | 396 | (665 | ) | (5,411 | ) | (1,818 | ) | ||||||||
Decrease (increase) in prepaid expenses and other current and long-term assets | (1,251 | ) | 1,790 | (2,597 | ) | (6,284 | ) | ||||||||
Increase (decrease) in trade payables | (395 | ) | 3,435 | 7,483 | 8,290 | ||||||||||
Increase (decrease) in employees and payroll accruals | 2,575 | (3,189 | ) | 1,565 | 3,018 | ||||||||||
Increase in short term and long term deferred revenues | 10,039 | 13,476 | 38,169 | 51,966 | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities | 2,229 | 2,161 | 8,923 | (719 | ) | ||||||||||
Net cash provided by operating activities | 9,522 | 19,714 | 20,876 | 40,573 | |||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Proceeds from short-term deposits and restricted deposits | 9,346 | 13,881 | 60,162 | 49,392 | |||||||||||
Investment in short-term deposits and restricted deposits | (19,965 | ) | (3,863 | ) | (82,038 | ) | (53,270 | ) | |||||||
Purchase of property and equipment | (1,125 | ) | (1,031 | ) | (6,342 | ) | (4,415 | ) | |||||||
Acquisition of Intangible assets | (450 | ) | (100 | ) | (450 | ) | (100 | ) | |||||||
Net cash provided by (used in) investing activities | (12,194 | ) | 8,887 | (28,668 | ) | (8,393 | ) | ||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from exercise of options and ESPP shares | 1,489 | 6,515 | 6,818 | 21,658 | |||||||||||
Net cash provided by financing activities | 1,489 | 6,515 | 6,818 | 21,658 | |||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,183 | ) | 35,116 | (974 | ) | 53,838 | |||||||||
CASH AND CASH EQUIVALENTS—Beginning of period | 40,409 | 57,948 | 40,200 | 39,226 | |||||||||||
CASH AND CASH EQUIVALENTS—End of period | $ | 39,226 | $ | 93,064 | $ | 39,226 | $ | 93,064 | |||||||
Wix.com Ltd. | |||||||||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED EBITDA (NON-GAAP) | |||||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net cash provided by operating activities | $ | 9,522 | $ | 19,714 | $ | 20,876 | $ | 40,573 | |||||||
Changes in tax benefit related to exercise of share options | (160 | ) | (644 | ) | (609 | ) | (1,224 | ) | |||||||
Changes in accrued interest and exchange rate on short term and long term deposits | 59 | 116 | 805 | 669 | |||||||||||
Changes in deferred income taxes, net | 29 | 537 | 111 | 611 | |||||||||||
Changes in trade receivables | (396 | ) | 665 | 5,411 | 1,818 | ||||||||||
Changes in prepaid expenses and other current and long-term assets | 1,251 | (1,790 | ) | 2,597 | 6,284 | ||||||||||
Changes in trade payables | 395 | (3,435 | ) | (7,483 | ) | (8,290 | ) | ||||||||
Changes in employees and payroll accruals | (2,575 | ) | 3,189 | (1,565 | ) | (3,018 | ) | ||||||||
Changes in accrued expenses and other current liabilities | (2,229 | ) | (2,161 | ) | (8,923 | ) | 719 | ||||||||
Change in prepaid domain registration costs | (512 | ) | (535 | ) | (2,673 | ) | (2,178 | ) | |||||||
Other expenses | 6 | 5 | 11 | 4 | |||||||||||
Foreign currency exchange income | (17 | ) | - | (17 | ) | - | |||||||||
Taxes on income | 772 | 984 | 2,765 | 3,367 | |||||||||||
Acquisition related expenses | - | 614 | - | 2,708 | |||||||||||
Interest, bank charges & other financial expenses (income), net | 740 | 1,520 | 2,172 | 472 | |||||||||||
Unrealized gains on hedging transactions | 140 | (902 | ) | 1,243 | 73 | ||||||||||
Total adjustments | $ | (2,497 | ) | $ | (1,837 | ) | $ | (6,155 | ) | $ | 2,015 | ||||
Adjusted EBITDA | $ | 7,025 | $ | 17,877 | $ | 14,721 | $ | 42,588 | |||||||
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