Le Lézard
Classified in: Science and technology, Business
Subjects: ERN, ERP

Wix Reports Fourth Quarter and Full Year 2023 Results


Outperformance of 2023 targets as well as anticipated acceleration of top-line growth and overachievement of 2024 targets in three-year plan underpin expectation to significantly surpass the Rule of 40 in 2025

NEW YORK, Feb. 21, 2024 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform globally,3 today reported financial results for the fourth quarter and full year of 2023. In addition, the Company provided its initial outlook for the first quarter and full year 2024. Please visit the Wix Investor Relations website at https://investors.wix.com/ to view the Q4'23 Shareholder Update and other materials.

"We wrapped up an outstanding year of accelerating growth and record profitability with a strong fourth quarter underpinned by robust business fundamentals and anchored by incredible momentum in our Partners business," said Avishai Abrahami, Wix Co-founder and CEO. "Additionally, 2023 was a milestone year for innovation at Wix. Wix Studio has proven to be our highest-performing product release in recent history. In just six months, more than 500,000 agencies and freelancers have created Studio accounts, driving the number of Studio premium subscriptions to be ahead of plan. Most excitingly, nearly half of these Studio accounts were created by new Partners ? a powerful indication that Studio is successfully winning a new market of large agencies who had not built on Wix before. AI was another major focus of innovation in 2023, building on nearly a decade of leading AI research and development at Wix. We introduced a suite of new genAI and AI tools, including AI Chat Experience for Business, AI Code Assistant and, most recently, AI Site Generator, which has been in the hands of many of our users for a couple of months and is already generating fantastic feedback. Both Self Creators and Partners have shown excellent engagement with our AI products over the past year, with the majority of new users today using or interacting with at least one AI tool on their web creation journey. We expect continued momentum and ramping benefits from these milestone products coupled with our upcoming product pipeline to propel accelerating growth in 2024."

"Q4 capped off an incredibly strong year of sustained profitable growth with revenue in the fourth quarter increasing 14% y/y, driven by incredible Partners revenue growth of 38% y/y," added Lior Shemesh, CFO at Wix. "On top of this outperformance in 2023, I am extremely confident in our ability to comfortably beat our three-year plan ? let me walk you through my reasoning:

"First, we expect to drive accelerating profitable growth in 2024 and see a number of indicators of growth momentum today, including (1) improved visibility from a stable and positively-trending macro environment; (2) continued strong cohort behavior, particularly in our Partners business; and (3) ramping benefits from Studio and the milestone AI initiatives launched in 2023. Because of this visibility and confidence, we are reintroducing bookings guidance, which we expect to accelerate to 12-14% y/y growth in 2024 with 15% y/y growth in 2H.

"Second, this bookings acceleration in 2024, which we expect will primarily be driven by improved Creative Subscriptions performance, will position us for revenue acceleration in 2025. Higher revenue growth coupled with continued efficient business operations will, we anticipate, allow us to exceed the 2024 targets we shared in our August 2023 Analyst Day.

"Finally, outperformance of our 2023 targets as well as this anticipated top-line acceleration and overachievement of our profitability targets in 2024 gives us confidence that we will not just reach, but actually exceed our three-year plan and significantly surpass the Rule of 40 in 2025."

Q4 2023 Financial Results

FY 2023 Financial Results

____________________



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 (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.



2

Free cash flow excluding one-time cash restructuring charges, if applicable, and expenses associated with the buildout of our new corporate headquarters.



3

Based on number of active live sites as reported by competitors' figures, independent third-party-data and internal data as of Q2 2023.



4

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

Coming off of a strong year of significant product launches and strengthening fundamentals, we believe our business will experience strong top line growth of bookings in 2024 and more significantly in the second half of the year. This positive trend in bookings growth is expected to translate into y/y revenue growth acceleration in 2025.

This growth, paired with improved profitability targets due to a high degree of operating efficiency, leads to our expectation that our financial performance in 2024 and in 2025 will surpass the three-year plan we shared at our Analyst & Investor Day in August.

We now expect to significantly exceed the Rule of 40 in 2025.

We are reintroducing bookings guidance as we enter 2024 with improved visibility and a tremendous amount of confidence in our business as a result of a stable and positively-trending macro environment, strong cohort behavior, particularly in our Partners business, and most notably, ramping benefits from Studio and the milestone AI initiatives launched in 2023.

Our outlook for the full year 2024 is as follows:

We expect total bookings of $1.78 - $1.81 billion, up 12 - 14% y/y, an acceleration from 2023. We expect y/y growth of total bookings to accelerate in the second half of 2024 to 15% at the high end of the guidance range, positioning the business to achieve accelerating y/y revenue growth in 2025.

In particular, the acceleration is expected to be primarily in Creative Subscription bookings, bringing it to double digit y/y growth in the 2H24.

We expect total revenue to be $1.73 - $1.76 billion, up 11 - 13% y/y.

We expect total revenue in Q1 2024 of $415 - $419 million, up 11 - 12% y/y.

We continue to operate the business in an efficient manner as evidenced by the meaningful operating leverage -- on both a GAAP and non-GAAP basis -- generated throughout 2023 compared to 2022. We plan to operate with the same efficiency in 2024 and expect strong gross profit growth due to gross margin improvements on a y/y basis as well as minimal incremental operating expenses this year.

We expect non-GAAP total gross margin of 68 - 69% with non-GAAP business solutions gross margin to exceed 30% for the full year.

We expect non-GAAP operating expenses to be 51 - 52% of revenue for the full year, with non-GAAP sales and marketing to remain similar to 2023 at roughly 23 - 24% of revenue.

We believe we are ahead of our plan to achieve GAAP profitability. We expect GAAP operating profit in 2024 as well as a second consecutive year of GAAP net income.

We expect to generate free cash flow, excluding headquarters costs, of $370 - $400 million, or 21 - 23% of revenue in 2024.

As we continue to responsibly manage dilution, we expect stock-based compensation expenses to decline as a percent of revenue for the third consecutive year to approximately 13% of revenue in 2024, in line with our three-year plan.

We expect capital expenditures, excluding costs associated with our new headquarters build out, of approximately $7 - $10 million in 2024. We will incur the final costs for our new headquarters in the first half of the year and anticipate them to be roughly $8 - $10 million.

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 21, 2024. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BIefc01e3fb58f409e9a256960e4651d01. A replay of the call will be available through February 20, 2025 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 the leading SaaS website builder platform globally3 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:

[email protected]

Media Relations:

[email protected]

Non-GAAP Financial Measures and Key Operating Metrics

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: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow, as adjusted, free cash flow margins, free cash flow per share, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. 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 additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Free cash flow per share represents free cash flow, as adjusted, divided by total outstanding shares on a fully diluted basis. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

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 and/or bookings 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 and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Ukraine-Russia war and any escalations thereof; our planned level 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 next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities with these customer types as anticipated and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 30, 2023. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

Wix.com Ltd.











CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP











(In thousands, except loss per share data)





































Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Revenues











Creative Subscriptions




$       296,154


$       265,268


$   1,152,007


$   1,039,479

Business Solutions




107,617


89,772


409,658


348,187





403,771


355,040


1,561,665


1,387,666












Cost of Revenues











Creative Subscriptions




52,794


58,427


215,515


251,587

Business Solutions




73,319


70,337


297,013


274,640





126,113


128,764


512,528


526,227












Gross Profit




277,658


226,276


1,049,137


861,439












Operating expenses:











Research and development




125,743


120,994


481,293


482,861

Selling and marketing




103,642


97,944


399,577


492,886

General and administrative




43,401


39,941


160,033


171,045

Impairment, restructuring and other costs




3,103


-


32,614


-

Total operating expenses




275,889


258,879


1,073,517


1,146,792

Operating income (loss)




1,769


(32,603)


(24,380)


(285,353)

Financial income (expenses), net




6,461


(13,256)


62,474


(183,513)

Other income (expenses)




44


788


(255)


1,023

Income (loss) before taxes on income




8,274


(45,071)


37,839


(467,843)

Income tax expenses (benefit)




5,320


(6,096)


4,702


(42,980)

Net income (loss)




$            2,954


$       (38,975)


$         33,137


$     (424,863)























Basic net income (loss) per share




$              0.05


$            (0.67)


$              0.58


$            (7.33)

Basic weighted-average shares used to compute net income (loss) per share




57,317,815


58,189,246


56,829,962


57,993,364












Diluted net income (loss) per share




$              0.05


$            (0.67)


$              0.57


$            (7.33)

Diluted weighted-average shares used to compute net income (loss) per share




59,085,757


58,189,246


58,408,331


57,993,364

 

Wix.com Ltd.





CONDENSED CONSOLIDATED BALANCE SHEETS





(In thousands)












Period ended




December 31,


December 31,




2023


2022

Assets



(unaudited)


(audited)

Current Assets:






Cash and cash equivalents



$             609,622


$            244,686

Short-term deposits



212,709


526,328

Restricted deposits



2,125


13,669

Marketable securities



140,563


292,449

Trade receivables 



57,394


42,086

Prepaid expenses and other current assets



57,423


28,519

 Total current assets



1,079,836


1,147,737







Long-Term Assets:






Prepaid expenses and other long-term assets 



25,809


23,027

Property and equipment, net



136,928


108,738

Marketable securities



64,806


194,964

Intangible assets and goodwill, net



77,339


83,293

Operating lease right-of-use assets



420,562


200,608

 Total long-term assets



725,444


610,630







 Total assets



$          1,805,280


$        1,758,367







Liabilities and Shareholders' Deficiency






Current Liabilities:






Trade payables



$                39,449


$              96,071

Employees and payroll accruals



56,581


86,113

Deferred revenues



592,608


529,205

Current portion of convertible notes, net



-


361,621

Accrued expenses and other current liabilities



76,556


88,194

Operating lease liabilities



24,981


29,268

Total current liabilities



790,175


1,190,472

Long Term Liabilities:






Long-term deferred revenues



83,384


70,594

Long-term deferred tax liability



7,167


14,902

Convertible notes, net



569,714


566,566

Other long-term liabilities



7,699


6,093

Long-term operating lease liabilities



401,626


172,982

Total long-term liabilities



1,069,590


831,137







 Total liabilities



1,859,765


2,021,609







Shareholders' Deficiency






Ordinary shares



106


108

Additional paid-in capital



1,539,952


1,274,968

Treasury Stock



(558,871)


(431,862)

Accumulated other comprehensive loss



4,192


(33,455)

Accumulated deficit



(1,039,864)


(1,073,001)

Total shareholders' deficiency



(54,485)


(263,242)







Total liabilities and shareholders' deficiency



$          1,805,280


$        1,758,367

 

Wix.com Ltd.










CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS










(In thousands)




































Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

OPERATING ACTIVITIES:











Net income (loss) 




2,954


$     (38,975)


33,137


$  (424,863)

Adjustments to reconcile net loss to net cash provided by operating activities:











Depreciation 




6,725


5,209


20,492


16,611

Amortization




1,489


1,511


5,955


6,246

Share based compensation expenses




58,195


59,917


224,625


236,836

Amortization of debt discount and debt issuance costs




789


1,305


4,194


5,213

Changes in accrued interest and exchange rate on short term and long term deposits




(586)


(93)


(2,415)


(86)

Non-cash impairment, restructuring and other costs




3,567


-


26,699


-

Amortization of premium and discount and accrued interest on marketable securities, net




4,237


2,447


8,346


6,252

Remeasurement loss (gain) on Marketable equity




(10,296)


3,955


(30,608)


200,338

Changes in deferred income taxes, net




(2,035)


(11,997)


(8,784)


(57,865)

Changes in operating lease right-of-use assets




1,492


18,724


21,549


45,440

Changes in operating lease liabilities




11,517


(11,204)


(36,517)


(45,051)

Increase in trade receivables




(2,794)


(6,290)


(15,308)


(11,719)

Decrease (increase) in prepaid expenses and other current and long-term assets




(1,123)


26,713


(10,383)


(5,912)

Increase (decrease) in trade payables




16,263


(22,667)


(51,312)


(18,514)

Increase (decrease) in employees and payroll accruals




(8,307)


17,506


(29,532)


2,862

Increase in short term and long term deferred revenues




2,788


4,081


76,193


55,387

Increase in accrued expenses and other current liabilities




5,505


3,092


11,915


25,977

Net cash provided by operating activities




90,380


53,234


248,246


37,152

INVESTING ACTIVITIES:











Proceeds from short-term deposits and restricted deposits




131,754


308,379


625,495


644,809

Investment in short-term deposits and restricted deposits




(99,725)


(317,869)


(297,917)


(766,021)

Investment in marketable securities




(837)


-


(4,962)


(202,611)

Proceeds from marketable securities




31,920


98,244


249,190


290,113

Purchase of property and equipment and lease prepayment 




(9,582)


(14,434)


(63,021)


(68,554)

Capitalization of internal use of software




(408)


(215)


(3,028)


(2,110)

Investment in other assets




-


-


(111)


(580)

Proceeds from sale of equity securities




19,203


48,403


68,671


51,596

Payment for Businesses acquired, net of acquired cash




-


-


-


-

Purchases of investments in privately held companies




(76)


(40)


(7,603)


(1,300)

Net cash provided by (used in) investing activities




72,249


122,468


566,714


(54,658)

FINANCING ACTIVITIES:











Proceeds from exercise of options and ESPP shares




898


917


39,660


42,710

Purchase of treasury stock




(58,698)


(231,873)


(127,017)


(231,873)

Proceeds from issuance of convertible senior notes




-


-


-


-

Repayment of convertible notes




-


-


(362,667)


-

Payments of debt issuance costs




-


-


-


-

Purchase of capped call




-


-


-


-

Net cash used in financing activities




-           57,800


(230,956)


(450,024)


(189,163)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS




104,829


(55,254)


364,936


(206,669)

CASH AND CASH EQUIVALENTS?Beginning of period




504,793


299,940


244,686


451,355

CASH AND CASH EQUIVALENTS?End of period




609,622


$     244,686


$     609,622


$     244,686

 

Wix.com Ltd.










KEY PERFORMANCE METRICS










(In thousands)

























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Creative Subscriptions




296,154


265,268


1,152,007


1,039,479

Business Solutions




107,617


89,772


409,658


348,187

Total Revenues




$     403,771


$       355,040


$   1,561,665


$   1,387,666












Creative Subscriptions




283,501


281,766


1,174,776


1,121,411

Business Solutions




111,503


90,047


422,727


350,708

Total Bookings




$     395,004


$       371,813


$   1,597,503


$   1,472,119












Free Cash Flow




$       80,390


$         38,585


$       182,197


$       (33,512)

Free Cash Flow excluding HQ build out and restructuring costs




$       90,125


$         51,990


$       246,058


$         32,408

Creative Subscriptions ARR




$ 1,192,814


$   1,080,824


$   1,192,814


$   1,080,824

 

Wix.com Ltd.










RECONCILIATION OF REVENUES TO BOOKINGS










(In thousands)

























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Revenues




$     403,771


$       355,040


$   1,561,665


$   1,387,666

Change in deferred revenues




2,788


4,081


76,193


55,387

Change in unbilled contractual obligations




(11,555)


12,692


(40,355)


29,066

Bookings




$     395,004


$       371,813


$   1,597,503


$   1,472,119












B2B Partnership long-term bookings




-


(12,094)


-


(37,926)

Bookings excluding B2B Partnership long-term bookings




$     395,004


$       359,719


$   1,597,503


$   1,434,193
















10 %




11 %





























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Creative Subscriptions Revenues




$     296,154


$       265,268


$   1,152,007


$   1,039,479

Change in deferred revenues




(1,098)


3,806


63,124


52,866

Change in unbilled contractual obligations




(11,555)


12,692


(40,355)


29,066

Creative Subscriptions Bookings




$     283,501


$       281,766


$   1,174,776


$   1,121,411












B2B Partnership long-term bookings




-


(12,094)


-


(37,926)

Creative Subscriptions Bookings excluding B2B Partnership long-term bookings




$     283,501


$       269,672


$   1,174,776


$   1,083,485
















5 %




8 %


















Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Business Solutions Revenues




$     107,617


$         89,772


$       409,658


$       348,187

Change in deferred revenues




3,886


275


13,069


2,521

Business Solutions Bookings




$     111,503


$         90,047


$       422,727


$       350,708

 

Wix.com Ltd.










RECONCILIATION OF COHORT BOOKINGS










(In millions)


















Year Ended









December 31,









2023


2022









(unaudited)

Q1 Cohort revenues








$                  45


$                  41

Q1 Change in deferred revenues








15


15

Q1 Cohort Bookings








$                  60


$                  56

 

Wix.com Ltd.






RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT






(In thousands)










Three Months Ended





December 31,





2023


2022





(unaudited)

Revenues




$     403,771


$       355,040

FX impact on Q4/23 using Y/Y rates




(1,732)


-

Revenues excluding FX impact




$     402,039


$       355,040








Y/Y growth




13 %














Three Months Ended





December 31,





2023


2022





(unaudited)

Bookings




$     395,004


$       371,813

FX impact on Q4/23 using Y/Y rates




(4,325)


-

Bookings excluding FX impact




$     390,679


$       371,813








Y/Y growth




5 %



 

Wix.com Ltd.










TOTAL ADJUSTMENTS GAAP TO NON-GAAP










(In thousands)




































Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022

(1) Share based compensation expenses:




(unaudited)


(unaudited)

Cost of revenues




$          3,675


$            4,607


$         15,013


$         17,811

Research and development




$       31,982


32,335


119,482


120,580

Selling and marketing




$       11,232


9,559


41,277


38,714

General and administrative




$       11,306


13,416


48,853


59,731

Total share based compensation expenses




58,195


59,917


224,625


236,836

(2) Amortization




1,489


1,511


5,955


6,246

(3) Acquisition related expenses




9


1,656


472


5,127

(4) Amortization of debt discount and debt issuance costs




789


1,305


4,194


5,213

(5) Impairment, restructuring and other costs




3,103


-


32,614


-

(6) Sales tax accrual and other G&A expenses (income)




137


219


748


763

(7) Unrealized loss (gain) on equity and other investments




(10,296)


3,955


(30,608)


200,338

(8) Non-operating foreign exchange expenses (income)




15,287


6,220


1,499


6,403

(9) Provision for income tax effects related to non-GAAP adjustments




2,368


(176)


(4,337)


(46,078)

Total adjustments of GAAP to Non GAAP




$       71,081


$         74,607


$       235,162


$       414,848

 

Wix.com Ltd.










RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT










(In thousands)




































Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Gross Profit




$     277,658


$       226,276


$   1,049,137


$       861,439

Share based compensation expenses




3,675


4,607


15,013


17,811

Acquisition related expenses




5


-


229


140

Amortization 




667


689


2,669


2,968

Non GAAP Gross Profit 




282,005


231,572


1,067,048


882,358












Non GAAP Gross margin




70 %


65 %


68 %


64 %



























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Gross Profit - Creative Subscriptions




$     243,360


$       206,841


$       936,492


$       787,892

Share based compensation expenses




2,695


3,437


11,081


13,933

Non GAAP Gross Profit - Creative Subscriptions




246,055


210,278


947,573


801,825












Non GAAP Gross margin - Creative Subscriptions




83 %


79 %


82 %


77 %



























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Gross Profit - Business Solutions




$       34,298


$         19,435


$       112,645


$         73,547

Share based compensation expenses




980


1,170


3,932


3,878

Acquisition related expenses




5


-


229


140

Amortization 




667


689


2,669


2,968

Non GAAP Gross Profit - Business Solutions




35,950


21,294


119,475


80,533












Non GAAP Gross margin - Business Solutions




33 %


24 %


29 %


23 %

 

Wix.com Ltd.










RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS)










(In thousands)

























Three Months Ended


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Operating income (loss)




$          1,769


$       (32,603)


$       (24,380)


$     (285,353)

Adjustments:











Share based compensation expenses




58,195


59,917


224,625


236,836

Amortization 




1,489


1,511


5,955


6,246

Impairment, restructuring and other charges




3,103


-


32,614


-

Sales tax accrual and other G&A expenses




137


219


748


763

Acquisition related expenses




9


1,656


472


5,127

Total adjustments




$       62,933


$         63,303


$       264,414


$       248,972












Non GAAP operating income (loss)




$       64,702


$         30,700


$       240,034


$       (36,381)












Non GAAP operating margin




16 %


9 %


15 %


-3 %

 

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


Year Ended





December 31,


December 31,





2023


2022


2023


2022





(unaudited)


(unaudited)

Net income (loss)




$          2,954


$       (38,975)


$         33,137


$     (424,863)

Share based compensation expenses and other Non GAAP adjustments




71,081


74,607


235,162


414,848

Non-GAAP net income (loss)




$       74,035


$         35,632


$       268,299


$       (10,015)























Basic Non GAAP net income (loss) per share




$            1.29


$              0.61


$              4.72


$            (0.17)

Weighted average shares used in computing basic Non GAAP net income (loss) per share




57,317,815


58,189,246


56,829,962


57,993,364












Diluted Non GAAP net income (loss) per share




$            1.22


$              0.61


$              4.39


$            (0.17)

Weighted average shares used in computing diluted Non GAAP net income (loss) per share




60,512,505


58,189,246


61,106,462


57,993,364

 

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,





2023


2022


2023


2022





(unaudited)


(unaudited)

Net cash provided by operating activities




$       90,380


$         53,234


$       248,246


$         37,152

Capital expenditures, net




(9,990)


(14,649)


(66,049)


(70,664)

Free Cash Flow




$       80,390


$         38,585


$       182,197


$       (33,512)












Restructuring and other costs




1,411


-


5,915


-

Capex related to HQ build out




8,324


13,405


57,946


65,920

Free Cash Flow excluding HQ build out and restructuring costs




$       90,125


$         51,990


$       246,058


$         32,408

 

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,





2023


2022


2023


2022





(unaudited)


(unaudited)


































Basic weighted-average shares used to compute net income (loss) per share 




57,317,815


58,189,246


56,829,962


57,993,364

Effect of dilutive securities (included in the effect of dilutive securities is the assumed conversion of
employee stock options, employee RSUs and the Notes)




1,767,942


-


1,578,369


-

Diluted weighted-average shares used to compute net income (loss) per share 




59,085,757


58,189,246


58,408,331


57,993,364












The following items have been excluded from the diluted weighted average number of shares outstanding
because they are anti-dilutive:











Stock options




2,245,872


4,332,022


2,245,872


4,332,022

Restricted share units




818,288


3,123,019


818,288


3,123,019

 Convertible Notes (if-converted)




1,426,728


3,969,514


1,426,728


3,969,514





63,576,645


69,613,801


62,899,219


69,417,919

 

SOURCE Wix.com Ltd.


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