Wix Reports Second Quarter 2023 Results
- Total revenue of $390.0 million exceeded expectations, up 13% y/y
- Introduction of Wix Studio, a new AI-powered platform for professionals
- Expansion of AI product suite with the introduction of AI Site Generator, AI Assistant for Business, and more
- Expected acceleration of revenue growth and higher FCF margin in 2H vs. 1H
- None.
- Outperformance continued in the second quarter with total revenue of
exceeding expectations, up$390.0 million 13% y/y as Creative Subscriptions and Business Solutions revenue growth accelerated for third consecutive quarter - Growing number of Partners1 building on Wix and higher usage of Wix for projects with improved monetization driving growth acceleration of Partners revenue to
, up$115.2 million 36% y/y - Benefits from operational efficiencies completed over the past year across the organization drove continued profitability improvements, resulting in higher than expected FCF2 margin of
13% and leading to expected acceleration of FCF margin in 2H23 - Total non-GAAP gross profit up
23% y/y leading to non-GAAP gross margin of68% and non-GAAP Creative Subscriptions gross margin of83% , both well ahead of expectations - First quarter of positive GAAP operating income in our history totaling
, or$13.0 million 3% of revenue and new high-water mark for non-GAAP operating income - Launched Wix Studio, a revolutionary all-in-one new platform with deep design control, advanced capabilities, workflow management tools and AI products designed specifically for professionals to create, manage and grow more efficiently than ever before
- Expansion of AI and genAI-driven product suite with the introduction of AI Site Generator, AI Assistant for Business, and more
"It has been an incredible past six months at Wix on many fronts as we generated accelerating profitable growth through execution excellence and focused operational discipline. As a result, Q2 again performed above expectations and exceeded our revenue growth and FCF margin guides. In addition to this outperformance, we also made remarkable strides in our product evolution with the introduction of our new cornerstone Partner product, Wix Studio," said Avishai Abrahami, Wix Co-founder and CEO. "Wix Studio revolutionizes the way professionals build and manage projects at scale by combining AI-powered features, the latest design and development capabilities and seamless workflows for multi-site management to help freelancers and agencies complete projects with greater quality and velocity and scale their business faster. Our innovation did not stop there this quarter, as we continued to be at the forefront of AI technology with the introduction of exciting AI and gen-AI-driven products coming soon to all Wix users, including AI Site Generator and AI Assistant for Business, among others. With these incredible accomplishments and the momentum we've generated this year so far, I am very excited for what is still to come as we continue to build a place for any business, community or person to create their dreams online."
Lior Shemesh, CFO at Wix, added, "Strong results in Q2 capped off an outstanding first half of 2023 as we delivered consecutive quarters of accelerating profitable growth. Underpinned by strong momentum in our Partners business, improved GPV growth, and encouraging performance of our new cohorts, we exceeded the top end of our guidance expectations with Q2 revenue increasing
Wix's management team and business leaders will host a virtual Analyst & Investor Day and will share more about Wix's newest product releases, Wix's plans to further incorporate generative AI into our platform, an updated financial framework and commitment to achieving the Rule of 40 in 2025, and planned initiatives to enhance shareholder value.
Prepared video presentations along with accompanying materials will be available after market close on Wednesday, August 9 on https://investors.wix.com/ with a live Q&A event accessible through https://investors.wix.com/ on Thursday, August 10 at 8:30 a.m. ET. Wix management will answer both live and submitted questions. Upon viewing the prepared presentations, analysts and investors are encouraged to submit questions to ir@wix.com. The RSVP form for the Q&A event can be found here.
Q2 2023 Financial Results
- Total revenue in the second quarter of 2023 was
, up$390.0 million 13% y/y - Creative Subscriptions revenue in the second quarter of 2023 was
, up$287.1 million 11% y/y - Creative Subscriptions ARR increased to
as of the end of the quarter, up$1.16 billion 10% y/y - Business Solutions revenue in the second quarter of 2023 was
, up$102.9 million 18% y/y - Transaction revenue3 was
, up$44.5 million 21% y/y - Partners revenue1 in the second quarter of 2023 was
, up$115.2 million 36% y/y - Total bookings in the second quarter of 2023 were
, up$398.5 million 12% y/y - Creative Subscriptions bookings in the second quarter of 2023 were
, up$293.9 million 9% y/y - Business Solutions bookings in the second quarter of 2023 were
, up$104.6 million 23% y/y - Total gross margin on a GAAP basis in the second quarter of 2023 was
67% - Creative Subscriptions gross margin on a GAAP basis was
82% - Business Solutions gross margin on a GAAP basis was
26% - Total non-GAAP gross margin in the second quarter of 2023 was
68% - Creative Subscriptions gross margin on a non-GAAP basis was
83% - Business Solutions gross margin on a non-GAAP basis was
28% - GAAP net income in the second quarter of 2023 was
, or$33.6 million per basic share or$0.59 per diluted share$0.56 - Non-GAAP net income in the second quarter of 2023 was
, or$78.1 million per basic share or$1.38 per diluted share$1.26 - Net cash provided by operating activities for the second quarter of 2023 was
, while capital expenditures totaled$47.8 million , leading to free cash flow of$15.8 million $32.0 million - Excluding one-time cash restructuring charges and the capex investment associated with our new headquarters office build out, free cash flow for the second quarter of 2023 would have been
, or$49.1 million 13% of revenue - Completed
share repurchase program authorized by the Board of Directors in September 2022. Repurchased 3.6 million ordinary Wix shares in total, representing$300 million 6% of total shares outstanding, at an approximate volume-weighted average price per share of$82.48 - Total employee count at the end of Q2'23 was 5,036, down
14% y/y
____________________
1 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint, and enterprise partners. We identify agencies and freelancers building sites or applications for others using multiple criteria including but not limited to the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used. Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses
2 Free cash flow excluding one-time cash restructuring charges and expenses associated with the buildout of our new corporate headquarters
3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions
Financial Outlook
Our outperformance in Q2 builds on the momentum we experienced in the first quarter and provides confidence in our ability to exceed our prior guidance for the year. We expect to accelerate top-line growth and margin expansion through the back half of the year on top of a very strong first half.
We remain committed to achieving the Rule of 40 in 2025, with expectations of continued revenue and free cash flow growth.
We expect Q3 revenue to be
Due to the outperformance we experienced in the first half of 2023, we are increasing our full year revenue outlook to
We expect this higher revenue growth outlook will drive increasing profitability throughout 2023 and beyond.
We now anticipate non-GAAP gross margin of approximately
We now anticipate Creative Subscriptions non-GAAP gross margin of approximately
Non-GAAP operating expenses are expected to decrease to 56
Non-GAAP sales and marketing expenses are now expected to be approximately 25
As a result of accelerating revenue and incremental profitability improvements through the back half of the year, we are increasing our outlook for free cash flow, excluding HQ and cash restructuring costs, for the year to
Note that our revised outlook excludes
Finally, stock-based compensation is expected to decrease to
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Thursday, August 3rd, 2023. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BI43da875845cc4cc985840bc36c0cd273. A replay of the call will be available through August 2nd, 2024 via the registration link.
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 a leading platform to create, manage and grow a digital presence. What began as a website builder in 2006 is now a complete platform providing users with enterprise-grade performance, security and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, Wix enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, anyone can build a powerful digital presence to fulfill their dreams on Wix.
For more about Wix, please visit our Press Room
Investor Relations:
Media Relations:
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidated financial statements, which are prepared and presented in accordance with
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 bookings, 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.
Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. 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 Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative Subscriptions, other than domain registrations; (ii) the average revenue per month from domain registrations in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements and enterprise partners.
Forward-Looking Statements
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, bookings 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 quarterly and annual 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 expectation that we will be able to attract and retain registered users and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectations related to our ability to develop relevant and required products using Artificial Intelligence ("AI"), the regulatory environment impacting AI related activities including privacy and intellectual property aspects, and potential competition from third-party AI tools which may impact our business; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during the current turbulent macro-economic environment; our expectation regarding the successful impact of our previously announced Cost-Efficiency Plan and other cost saving measures we may take in the future; our prediction of the future revenues generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and that our recent downsizing of our Customer Care team will not affect our ability to continue attracting registered users and increase user retention, user engagement and sales; our plans to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of COVID-19 and as a result of the military invasion of
Wix.com Ltd. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP | |||||||
(In thousands, except loss per share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | |||||||
Creative Subscriptions | $ 287,089 | $ 258,177 | $ 565,219 | $ 513,145 | |||
Business Solutions | 102,888 | 87,047 | 198,834 | 173,676 | |||
389,977 | 345,224 | 764,053 | 686,821 | ||||
Cost of Revenues | |||||||
Creative Subscriptions | 52,050 | 66,252 | 109,534 | 131,125 | |||
Business Solutions | 75,844 | 68,605 | 147,838 | 138,481 | |||
127,894 | 134,857 | 257,372 | 269,606 | ||||
Gross Profit | 262,083 | 210,367 | 506,681 | 417,215 | |||
Operating expenses: | |||||||
Research and development | 115,490 | 121,618 | 230,433 | 241,483 | |||
Selling and marketing | 96,037 | 120,780 | 195,170 | 277,494 | |||
General and administrative | 37,250 | 42,991 | 75,767 | 88,677 | |||
Impairment, restructuring and other costs | 330 | - | 25,668 | - | |||
Total operating expenses | 249,107 | 285,389 | 527,038 | 607,654 | |||
Operating income (loss) | 12,976 | (75,022) | (20,357) | (190,439) | |||
Financial income (expenses), net | 20,053 | (46,926) | 41,430 | (191,399) | |||
Other income | 118 | 58 | 175 | 104 | |||
Income (loss) before taxes on income | 33,147 | (121,890) | 21,248 | (381,734) | |||
Income tax benefit | (430) | (10,652) | (1,960) | (43,207) | |||
Net income (loss) | $ 33,577 | $ (111,238) | $ 23,208 | $ (338,527) | |||
Basic net income (loss) per share | $ 0.59 | $ (1.92) | $ 0.41 | $ (5.87) | |||
Basic weighted-average shares used to compute net income (loss) per share | 56,744,007 | 57,943,140 | 56,576,286 | 57,712,372 | |||
Diluted net income (loss) per share | $ 0.56 | $ (1.92) | $ 0.40 | $ (5.87) | |||
Diluted weighted-average shares used to compute net income (loss) per share | 62,186,895 | 57,943,140 | 58,180,044 | 57,712,372 |
Wix.com Ltd. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
June 30, | December 31, | ||
2023 | 2022 | ||
Assets | (unaudited) | (audited) | |
Current Assets: | |||
Cash and cash equivalents | $ 468,037 | $ 244,686 | |
Short-term deposits | 176,429 | 526,328 | |
Restricted deposits | 3,219 | 13,669 | |
Marketable securities | 184,458 | 292,449 | |
Trade receivables | 53,268 | 42,086 | |
Prepaid expenses and other current assets | 38,819 | 28,519 | |
Total current assets | 924,230 | 1,147,737 | |
Long-Term Assets: | |||
Prepaid expenses and other long-term assets | 23,766 | 23,027 | |
Property and equipment, net | 125,401 | 108,738 | |
Marketable securities | 101,520 | 194,964 | |
Intangible assets and goodwill, net | 80,316 | 83,293 | |
Operating lease right-of-use assets | 420,073 | 200,608 | |
Total long-term assets | 751,076 | 610,630 | |
Total assets | $ 1,675,306 | $ 1,758,367 | |
Liabilities and Shareholders' Deficiency | |||
Current Liabilities: | |||
Trade payables | $ 41,467 | $ 96,071 | |
Employees and payroll accruals | 58,139 | 86,113 | |
Deferred revenues | 584,028 | 529,205 | |
Current portion of convertible notes, net | - | 361,621 | |
Accrued expenses and other current liabilities | 88,414 | 88,194 | |
Operating lease liabilities | 18,461 | 29,268 | |
Total current liabilities | 790,509 | 1,190,472 | |
Long Term Liabilities: | |||
Long-term deferred revenues | 88,789 | 70,594 | |
Long-term deferred tax liability | 8,725 | 14,902 | |
Convertible notes, net | 568,138 | 566,566 | |
Other long-term liabilities | 9,708 | 6,093 | |
Long-term operating lease liabilities | 386,608 | 172,982 | |
Total long-term liabilities | 1,061,968 | 831,137 | |
Total liabilities | 1,852,477 | 2,021,609 | |
Shareholders' Deficiency | |||
Ordinary shares | 104 | 108 | |
Additional paid-in capital | 1,404,479 | 1,274,968 | |
Treasury Stock | (500,174) | (431,862) | |
Accumulated other comprehensive loss | (31,787) | (33,455) | |
Accumulated deficit | (1,049,793) | (1,073,001) | |
Total shareholders' deficiency | (177,171) | (263,242) | |
Total liabilities and shareholders' deficiency | $ 1,675,306 | $ 1,758,367 |
Wix.com Ltd. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ 33,577 | $ 23,208 | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 4,497 | 4,022 | 9,419 | 7,557 | |||
Amortization | 1,489 | 1,580 | 2,977 | 3,154 | |||
Share based compensation expenses | 53,660 | 59,139 | 108,181 | 120,123 | |||
Amortization of debt discount and debt issuance costs | 1,310 | 1,302 | 2,618 | 2,603 | |||
Changes in accrued interest and exchange rate on short term and long term deposits | 133 | (210) | 108 | (165) | |||
Non-cash impairment, restructuring and other costs | 330 | - | 21,164 | - | |||
Amortization of premium and discount and accrued interest on marketable securities, net | 4,132 | 1,256 | 4,672 | 2,805 | |||
Remeasurement loss (gain) on Marketable equity | (8,814) | 54,920 | (22,712) | 206,565 | |||
Deferred income taxes, net | (6,318) | (12,644) | (10,462) | (48,219) | |||
Changes in operating lease right-of-use assets | 5,356 | 9,737 | 11,152 | 18,575 | |||
Changes in operating lease liabilities | (26,208) | (15,525) | (34,329) | (25,172) | |||
Decrease (increase) in trade receivables | (708) | 1,216 | (11,182) | (10,433) | |||
Decrease (increase) in prepaid expenses and other current and long-term assets | 8,000 | (15,032) | (2,858) | (27,345) | |||
Increase (decrease) in trade payables | (11,301) | (9,573) | (52,971) | 12,113 | |||
Decrease in employees and payroll accruals | (17,932) | (342) | (27,974) | (5,082) | |||
Increase in short term and long term deferred revenues | 12,043 | 7,731 | 73,018 | 45,283 | |||
Increase (decrease) in accrued expenses and other current liabilities | (5,485) | 20,974 | (307) | 19,816 | |||
Net cash provided by (used in) operating activities | 47,761 | (2,687) | 93,722 | (16,349) | |||
INVESTING ACTIVITIES: | |||||||
Proceeds from short-term deposits and restricted deposits | 367,610 | 126,259 | 423,701 | 231,259 | |||
Investment in short-term deposits and restricted deposits | (4,480) | (240,972) | (63,460) | (390,972) | |||
Investment in marketable securities | - | (92,408) | - | (164,563) | |||
Proceeds from marketable securities | 115,979 | 78,870 | 174,369 | 140,250 | |||
Purchase of property and equipment and lease prepayment | (15,175) | (12,629) | (34,749) | (31,912) | |||
Capitalization of internal use of software | (576) | (588) | (1,934) | (1,229) | |||
Investment in other assets | (111) | - | (111) | - | |||
Proceeds from sale of equity securities | 17,607 | - | 49,468 | 3,193 | |||
Purchases of investments in privately held companies | - | (1,000) | (7,500) | (1,160) | |||
Net cash provided by (used in) investing activities | 480,854 | (142,468) | 539,784 | (215,134) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of options and ESPP shares | 1,176 | 432 | 20,831 | 22,014 | |||
Purchase of treasury stock | (50,000) | - | (68,319) | - | |||
Repayment of convertible notes | (362,667) | - | (362,667) | - | |||
Net cash provided by (used in) financing activities | (411,491) | 432 | (410,155) | 22,014 | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 117,124 | (144,723) | 223,351 | (209,469) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 350,913 | 386,609 | 244,686 | 451,355 | |||
CASH AND CASH EQUIVALENTS—End of period | $ 468,037 | $ 241,886 | $ 468,037 | $ 241,886 |
Wix.com Ltd. | |||||||
KEY PERFORMANCE METRICS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions | 287,089 | 258,177 | 565,219 | 513,145 | |||
Business Solutions | 102,888 | 87,047 | 198,834 | 173,676 | |||
Total Revenues | $ 389,977 | $ 345,224 | $ 764,053 | $ 686,821 | |||
Creative Subscriptions | 293,929 | 269,921 | 607,358 | 569,708 | |||
Business Solutions | 104,570 | 84,673 | 206,046 | 178,134 | |||
Total Bookings | $ 398,499 | $ 354,594 | $ 813,404 | $ 747,842 | |||
Free Cash Flow | $ 32,010 | $ (15,904) | $ 57,039 | $ (49,490) | |||
Free Cash Flow excluding HQ build out, impairment and restructuring costs | $ 49,093 | $ (5,993) | $ 93,122 | $ (24,141) | |||
Creative Subscriptions ARR | $ 1,159,744 | $ 1,052,852 | $ 1,159,744 | $ 1,052,852 |
Wix.com Ltd. | |||||||
RECONCILIATION OF REVENUES TO BOOKINGS | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Revenues | $ 389,977 | $ 345,224 | $ 764,053 | $ 686,821 | |||
Change in deferred revenues | 12,043 | 7,731 | 73,018 | 45,283 | |||
Change in unbilled contractual obligations | (3,521) | 1,639 | (23,667) | 15,738 | |||
Bookings | $ 398,499 | $ 354,594 | $ 813,404 | $ 747,842 | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Creative Subscriptions Revenues | $ 287,089 | $ 258,177 | $ 565,219 | $ 513,145 | |||
Change in deferred revenues | 10,361 | 10,105 | 65,806 | 40,825 | |||
Change in unbilled contractual obligations | (3,521) | 1,639 | (23,667) | 15,738 | |||
Creative Subscriptions Bookings | $ 293,929 | $ 269,921 | $ 607,358 | $ 569,708 | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Business Solutions Revenues | $ 102,888 | $ 87,047 | $ 198,834 | $ 173,676 | |||
Change in deferred revenues | 1,682 | (2,374) | 7,212 | 4,458 | |||
Business Solutions Bookings | $ 104,570 | $ 84,673 | $ 206,046 | $ 178,134 |
Wix.com Ltd. | |||
RECONCILIATION OF COHORT BOOKINGS | |||
(In millions) | |||
Six Months Ended | |||
June 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Q1 Cohort revenues | $ 20 | $ 19 | |
Q1 Change in deferred revenues | 23 | 21 | |
Q1 Cohort Bookings | $ 43 | $ 40 |
Wix.com Ltd. | |||
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | |||
(In thousands) | |||
Three Months Ended | |||
June 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Revenues | $ 389,977 | $ 345,224 | |
FX impact on Q2/23 using Y/Y rates | 1,157 | - | |
Revenues excluding FX impact | $ 391,134 | $ 345,224 | |
Y/Y growth | 13 % | ||
Three Months Ended | |||
June 30, | |||
2023 | 2022 | ||
(unaudited) | |||
Bookings | $ 398,499 | $ 354,594 | |
FX impact on Q2/23 using Y/Y rates | (135) | - | |
Bookings excluding FX impact | $ 398,364 | $ 354,594 | |
Y/Y growth | 12 % |
Wix.com Ltd. | |||||||
TOTAL ADJUSTMENTS GAAP TO NON-GAAP | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(1) Share based compensation expenses: | (unaudited) | (unaudited) | |||||
Cost of revenues | $ 3,479 | $ 4,555 | $ 7,717 | $ 8,786 | |||
Research and development | $ 28,778 | 29,919 | 57,072 | 58,639 | |||
Selling and marketing | $ 9,652 | 10,019 | 19,210 | 19,894 | |||
General and administrative | $ 11,751 | 14,646 | 24,182 | 32,804 | |||
Total share based compensation expenses | 53,660 | 59,139 | 108,181 | 120,123 | |||
(2) Amortization | 1,489 | 1,580 | 2,977 | 3,154 | |||
(3) Acquisition related expenses | 244 | 1,187 | 440 | 2,886 | |||
(4) Amortization of debt discount and debt issuance costs | 1,310 | 1,302 | 2,618 | 2,603 | |||
(5) Impairment, restructuring and other costs | 330 | - | 25,668 | - | |||
(6) Sales tax accrual and other G&A expenses (income) | 157 | 189 | 465 | 361 | |||
(7) Unrealized loss (gain) on equity and other investments | (8,814) | 54,920 | (22,712) | 206,565 | |||
(8) Non-operating foreign exchange expenses (income) | (1,843) | (2,274) | (5,505) | 1,858 | |||
(9) Provision for income tax effects related to non-GAAP adjustments | (2,022) | (12,632) | (6,153) | (48,244) | |||
Total adjustments of GAAP to Non GAAP | $ 44,511 | $ 103,411 | $ 105,979 | $ 289,306 |
Wix.com Ltd. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit | $ 262,083 | $ 210,367 | $ 506,681 | $ 417,215 | |||
Share based compensation expenses | 3,479 | 4,555 | 7,717 | 8,786 | |||
Acquisition related expenses | 183 | 59 | 207 | 140 | |||
Amortization | 667 | 759 | 1,334 | 1,520 | |||
Non GAAP Gross Profit | 266,412 | 215,740 | 515,939 | 427,661 | |||
Non GAAP Gross margin | 68 % | 62 % | 68 % | 62 % | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Creative Subscriptions | $ 235,039 | $ 191,925 | $ 455,685 | $ 382,020 | |||
Share based compensation expenses | 2,562 | 3,608 | 5,713 | 6,993 | |||
Non GAAP Gross Profit - Creative Subscriptions | 237,601 | 195,533 | 461,398 | 389,013 | |||
Non GAAP Gross margin - Creative Subscriptions | 83 % | 76 % | 82 % | 76 % | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Gross Profit - Business Solutions | $ 27,044 | $ 18,442 | $ 50,996 | $ 35,195 | |||
Share based compensation expenses | 917 | 947 | 2,004 | 1,793 | |||
Acquisition related expenses | 183 | 59 | 207 | 140 | |||
Amortization | 667 | 759 | 1,334 | 1,520 | |||
Non GAAP Gross Profit - Business Solutions | 28,811 | 20,207 | 54,541 | 38,648 | |||
Non GAAP Gross margin - Business Solutions | 28 % | 23 % | 27 % | 22 % |
Wix.com Ltd. | |||||||
RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS) | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Operating income (loss) | $ 12,976 | $ (75,022) | $ (20,357) | $ (190,439) | |||
Adjustments: | |||||||
Share based compensation expenses | 53,660 | 59,139 | 108,181 | 120,123 | |||
Amortization | 1,489 | 1,580 | 2,977 | 3,154 | |||
Impairment, restructuring and other charges | 330 | - | 25,668 | - | |||
Sales tax accrual and other G&A expenses | 157 | 189 | 465 | 361 | |||
Acquisition related expenses | 244 | 1,187 | 440 | 2,886 | |||
Total adjustments | $ 55,880 | $ 62,095 | $ 137,731 | $ 126,524 | |||
Non GAAP operating income (loss) | $ 68,856 | $ (12,927) | $ 117,374 | $ (63,915) | |||
Non GAAP operating margin | 18 % | -4 % | 15 % | -9 % |
Wix.com Ltd. | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) PER SHARE | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Net INCOME (loss) | $ 33,577 | $ (111,238) | $ 23,208 | $ (338,527) | |||
Share based compensation expenses and other Non GAAP adjustments | 44,511 | 103,411 | 105,979 | 289,306 | |||
Non-GAAP net income (loss) | $ 78,088 | $ (7,827) | $ 129,187 | $ (49,221) | |||
Basic Non GAAP net income (loss) per share | $ 1.38 | $ (0.14) | $ 2.28 | $ (0.85) | |||
Weighted average shares used in computing basic Non GAAP net income (loss) per share | 56,744,007 | 57,943,140 | 56,576,286 | 57,712,372 | |||
Diluted Non GAAP net income (loss) per share | $ 1.26 | $ (0.14) | $ 2.08 | $ (0.85) | |||
Weighted average shares used in computing diluted Non GAAP net income (loss) per share | 62,186,895 | 57,943,140 | 62,149,558 | 57,712,372 |
Wix.com Ltd. | |||||||
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||
(In thousands) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Net cash provided by (used in) operating activities | $ 47,761 | $ (2,687) | $ 93,722 | $ (16,349) | |||
Capital expenditures, net | (15,751) | (13,217) | (36,683) | (33,141) | |||
Free Cash Flow | $ 32,010 | $ (15,904) | $ 57,039 | $ (49,490) | |||
Impairment, restructuring and other costs | 2,453 | - | 4,504 | - | |||
Capex related to HQ build out | 14,630 | 9,911 | 31,579 | 25,349 | |||
Free Cash Flow excluding HQ build out, impairment and restructuring costs | $ 49,093 | $ (5,993) | $ 93,122 | $ (24,141) |
Wix.com Ltd. | |||||||
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | ||||||
Basic weighted-average shares used to compute net income (loss) per share | 56,744,007 | 57,943,140 | 56,576,286 | 57,712,372 | |||
Effect of dilutive securities (included in the effect of dilutive securities is the assumed conversion of employee stock options, employee RSUs and the Notes) | 5,442,888 | - | 1,603,758 | - | |||
Diluted weighted-average shares used to compute net income (loss) per share | 62,186,895 | 57,943,140 | 58,180,044 | 57,712,372 | |||
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: | |||||||
Stock options | 1,982,546 | 5,024,271 | 1,982,546 | 5,024,271 | |||
Restricted share units | 1,263,342 | 3,009,354 | 1,263,342 | 3,009,354 | |||
Convertible Notes (if-converted) | - | 3,969,514 | 1,426,748 | 3,969,514 | |||
65,432,783 | 69,946,279 | 62,852,680 | 69,715,511 |
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SOURCE Wix.com Ltd.
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