OREANDA-NEWS. Wix.com Ltd. (Nasdaq:WIX), a leading global web development platform, today reported financial results for the fourth quarter and full year ended December 31, 2015.  The company also introduced its financial outlook for 2016.

  • Collections on a constant currency basis grew 43% Y/Y in Q4 and grew 51% Y/Y in 2015
  • Adjusted EBITDA of $7.0 million in Q4, a Q/Q increase of 50%, and $14.7 million in 2015
  • Free cash flow of $8.4 million in Q4, a Q/Q increase of 55%, and $14.5 million in 2015
  • Added net premium subscriptions of 125,000 in Q4 and a record 535,000 in 2015 for a total of 1.77 million at year end
  • Added registered users of 4.7 million in Q4 and 19 million in 2015 for a total of 77 million at year end
  • Financial outlook for 2016 highlighted by continued growth and increased profitability

“In 2015, we added a record 19 million registered users and 535,000 net premium subscriptions.  It is clear that our focus on innovative product development and impactful marketing is driving significant growth and returns,” said Avishai Abrahami, CEO and Co-founder of Wix.  “During the year, we introduced eight new products, most notably the new Wix Editor, Wix Music and Wix Bookings.  These new products, combined with over 100 new applications and enhancements to existing products, extended our position as the leading global software platform to build, manage and grow any business online.”

Lior Shemesh, CFO of Wix, commented, “We concluded 2015 with a very strong fourth quarter, exceeding our prior outlook on all metrics once again. This track record of predictability, highlighted by strong recurring subscription revenue, illustrates the SaaS nature of our business model and our strong execution. Additionally, we generated significant expense leverage in 2015, well beyond original expectations, with cash flow from operations of nearly $21 million for the full year and nearly $10 million in the fourth quarter.”

Q4 2015 and Full Year 2015 Financial Summary

  Three months ended
Dec. 31,		        
$ in thousands 2014 2015   Y/Y growth   Prior Q4 2015
outlook
Collections (FX neutral to Q4 '14)   $ 70,707       43 %   $69,000 - 70,000
Collections $ 49,279   $ 66,870       36 %   $66,000 - 67,000
             
Revenue (FX neutral to Q4 '14)   $ 59,773       44 %   n/a
Revenue $ 41,559   $ 56,831       37 %   $55,000 - 56,000
             
Adjusted EBITDA $ (1,309 ) $ 7,025       NM     $5,000 - 6,000
             
             
  Full Year        
$ in thousands 2014 2015   Y/Y growth   Prior 2015 outlook
Collections (FX neutral to 2014)   $ 257,790       51 %   $256,000 - 257,000
Collections $ 171,255   $ 241,687       41 %   $241,000 - 242,000
             
Revenue (FX neutral to 2014)   $ 212,260       50 %   n/a
Revenue $ 141,841   $ 203,518       43 %   $202,000 - 203,000
             
Adjusted EBITDA $ (11,260 ) $ 14,721       NM     $12,000 - 13,000

  

Q4 2015 Results and Highlights

  • Excluding the impact of year-over-year changes in foreign exchange rates, collections would have been$70.7 million, an increase of 43% versus the prior year
    • Collections on a reported basis increased 36% to $66.9 million compared to $49.3 million for the fourth quarter last year
  • Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have been$59.8 million, an increase of 44% versus the prior year
    • GAAP revenues increased 37% to $56.8 million compared to $41.6 million for the fourth quarter last year
  • GAAP net loss was $(11.3) million, or $(0.28) per share, compared to a net loss of $(15.1) million, or $(0.39) per share, for the fourth quarter of 2014
  • Non-GAAP net loss was $(5.4) million, or $(0.13) per share, compared to a non-GAAP net loss of $(9.6) million, or $(0.25) per share, for the fourth quarter of 2014
  • Adjusted EBITDA was $7.0 million compared to $(1.3) million for the fourth quarter of 2014
  • Free cash flow increased to $8.4 million, an improvement over $0.1 million for the fourth quarter of 2014
  • Added 125,000 net premium subscriptions in the period to reach 1.77 million as of December 31, 2015, a 43% increase over the prior year
  • Added 4.7 million registered users in the fourth quarter to reach 77 million as of December 31, 2015, a 33% increase compared to the prior year

Full Year 2015 Results and Highlights

  • Excluding the impact of year-over-year changes in foreign exchange rates, collections would have been$257.8 million, an increase of 51% over 2014
    • Collections on a reported basis increased 41% to $241.7 million compared to $171.3 million for the full year 2014
  • Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have been$212.3 million, an increase of 50% versus 2014
    • GAAP revenues increased 43% to $203.5 million compared to $141.8 million for the full year 2014
  • GAAP net loss was $(51.3) million, or $(1.30) per share, compared to a net loss of $(56.6) million, or $(1.49) per share, for the full year 2014
  • Non-GAAP net loss was $(31.4) million, or $(0.80) per share, compared to non-GAAP net loss of $(40.2) million, or $(1.06) per share, for the full year 2014
  • Adjusted EBITDA was $14.7 million compared to $(11.3) million for 2014
  • Free cash flow was $14.5 million compared to $(6.4) million for the full year 2014
  • Added 535,000 net premium subscriptions and over 19 million registered users in 2015, the largest annual increases in the company’s history

Recent Business Highlights

  • Launched Wix Bookings: To help owners grow their business online, Wix launched Wix Bookings, an end-to-end online appointment booking solution that is seamlessly integrated into a business’s website. Wix Bookings offers small businesses an easy and effective way to connect with customers, manage appointments and group bookings, and win more business by allowing customers to book online
  • Launched Super Bowl 50 campaign in partnership with DreamWorks Animation: Wix launched its Super Bowl 50 marketing campaign in partnership with DreamWorks Animation. Wix’s #StartStunning campaign focuses on a global audience and featured characters from DreamWorks’ Kung Fu Panda 3. In addition to the well-received TV spot that aired during the game, the campaign includes exclusive online content and social media activations.  According to Visible Measures, Wix.com’s video content has been viewed more times online than that of any other brand that ran a commercial during the game
  • Enhanced WixHotels with TripAdvisor Instant Booking: Wix expanded its existing partnership with TripAdvisor to power instant booking for hotel clients, making it possible for properties using WixHotels to acquire bookings directly on TripAdvisor
  • Wix Mobile growth: Over 13.5 million mobile sites have been created on the Wix platform to date, making Wix among the largest mobile site development platforms globally
  • Increasing platform engagement: Continued engagement with the Wix ecosystem illustrated by over 250 million contacts saved onto the Wix platform.  Leveraging Wix’s MyAccount CRM system, users track customer activity data, manage relationships and communicate using WixShoutOut 

       
Financial Outlook

The company is introducing its outlook for full year 2016 and first quarter 2016 as follows:

  • For the first quarter of 2016:
  Q1 2016 Outlook   Y/Y growth
Collections (FX neutral to Q1 '15) $75 - $76 million   34% - 36%
Collections $73 - $74 million   31% - 32%
Revenue $60 - $61 million   35% - 37%
Adjusted EBITDA $1 - $2 million   NM
  • For the full year 2016:
    FY 2016 Outlook   Y/Y growth
Collections (FX neutral to 2015)   $320 - $326 million   32% - 35%
Collections   $314 - $320 million   30% - 32%
Revenue   $270 - $274 million   33% - 35%
Adjusted EBITDA   $27 - $30 million   83% - 104%

 About Wix.com Ltd.

Wix.com is a leading cloud-based web development platform with over 78 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. The Wix Editor and 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 San Francisco, New York, Miami, Vilnius and Dnepropetrovsk.