SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

______________________

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of August 2020

Commission File Number: 001-36158

Wix.com Ltd.
(Translation of registrant’s name into English)

40 Namal Tel Aviv St.,
Tel Aviv 6350671, Israel
 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ⌧                     Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   __

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   __

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐                           No ⌧

         If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-________



EXPLANATORY NOTE

On August 6, 2020, Wix.com Ltd. (NASDAQ: WIX) (the “Company”) issued a press release titled “Wix Reports Outstanding Second Quarter 2020 Results”. A copy of this press release is attached to this Form 6-K as Exhibit 99.1.

2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  WIX.COM LTD.  
       
Date: August 6, 2020
By:
/s/ Eitan Israeli  
    Name: Eitan Israeli  
    Title:   VP & General Counsel  
       

3


EXHIBIT INDEX
The following exhibit is filed as part of this Form 6-K:
 
Exhibit

Description

 

 4


 

Exhibit 99.1

Wix Reports Outstanding Second Quarter 2020 Results


Momentum across the platform led to a record breaking quarter


o
Added over 9.3 million registered users in Q2, an increase of 64% y/y

o
Revenue of $236.1 million, up 27% y/y; 28% y/y on a y/y constant currency basis

o
Collections of $265.9 million, up 33% y/y; 35% y/y on a y/y constant currency basis

o
Creative Subscriptions ARR increased 22% y/y to $790.9 million as of Q2

o
Net subscriptions additions of 346,000 in Q2, bringing total premium subscriptions to over 5 million; total net additions in 1H 2020 nearly as much as all of 2019


July 2020 results show strong growth continuing in Q3


Responding swiftly to opportunity with increasing marketing investment as the need for online creation and commerce rapidly grows


o
Investing capital into growth demonstrated by future collections of the Q2 user cohort over the next 8 years expected to be approximately 90% higher than the prior year’s cohort


Continued execution with significant product launches: expanded eCommerce capabilities and Editor X public release delivered on time to further help users create and grow online


Initiating Q3 outlook for revenue and collections, reflecting sustained momentum -- expecting revenue growth of 26-27% y/y and collections growth of 31-34% y/y in Q3

NEW YORK, August 6, 2020 -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the second quarter ended June 30, 2020, exceeding the high end of its guidance ranges for both revenue and collections. In addition, the Company provided its initial outlook for the third quarter of 2020.
 
“The trends that began in late March continued throughout the second quarter, driving record-setting results,” said Avishai Abrahami, Co-founder and CEO of Wix. “The need for business owners to move online quickly, communicate with customers, and deliver goods and services has never been more imminent, and the Wix platform continues to provide millions of users with the ability to thrive during these unprecedented times. Our focus remains on the success of our users, and we continue to deliver innovative products and technology, marked this quarter by the public launch of Editor X and our expanded eCommerce offering.”

Nir Zohar, President and COO of Wix added, “Throughout the second quarter, we continued to experience positive trends as a result of continued economic disruption globally. Our results in July tell us that these trends are continuing, potentially indicating a new baseline of growth for our business. We will continue to support our users in their needs so they can be successful throughout the ongoing disruptions to their lives and businesses.”

Lior Shemesh, CFO of Wix said, “Our business has seen an immense uplift in demand in recent months, driven by the rapidly increasing importance of having an online presence. We added a record 9.3 million users and 346,000 net premium subscriptions in the second quarter, reflecting this strong demand and our ability to meet the needs of our users. We are responding to this continued heightened demand by increasing our investment in marketing, which based on our historical data, will drive continued collections and revenue growth in the near future.”



Q2 2020 Financial Results

Total revenue in the second quarter of 2020 was $236.1 million, compared to $185.4 million in the second quarter of 2019, an increase of 27% y/y
 

o
On a y/y constant currency basis, Q2 revenue would have been $237.9 million, up 28% y/y
 

o
Creative Subscriptions revenue in the second quarter of 2020 was $190.2 million, compared to $157.0 million in the second quarter of 2019, an increase of 21% y/y
 

o
Business Solutions revenue in the second quarter of 2020 was $45.9 million, compared to $28.4 million in the second quarter of 2019, an increase of 62% y/y
 
Creative Subscriptions ARR was $790.9 million in the second quarter of 2020, compared to $648.2 million in the second quarter of 2019, an increase of 22% y/y
 
Total collections in the second quarter of 2020 were $265.9 million, compared to $199.6 million in the second quarter of 2019, an increase of 33% y/y
 

o
On a y/y constant currency basis, Q2 collections would have been $269.8 million, up 35% y/y
 

o
Creative Subscriptions collections in the second quarter of 2020 were $217.7 million, compared to $170.5 million in the second quarter of 2019, an increase of 28% y/y
 

o
Business Solutions collections in the second quarter of 2020 was $48.2 million, compared to $29.1 million in the second quarter of 2019, an increase of 66% y/y
 
Our Q2 user cohort generated $10 million in revenue and $38 million in collections in Q2, which are 66% higher than the year ago cohort. Users purchased Business and eCommerce subscription packages and annual and multi-year packages at a higher frequency
 
Total gross margin on a GAAP basis in the second quarter of 2020 was 70%, compared to 75% in the second quarter of 2019. Total GAAP gross margin declined y/y due to incremental investments in Customer Care and sequentially due to the faster revenue growth of the Business Solutions segment 
 



o
Creative Subscriptions gross margin on a GAAP basis was 80%, compared to 81% in the second quarter of 2019. The y/y decline was related to the investment in expanding our Customer Care organization
 

o
Business Solutions gross margin on a GAAP basis was 30% compared to 39% in the second quarter of 2019. The decline was related primarily to the growth of Wix Payments and the expansion of Customer Care
 
Total non-GAAP gross margin in the second quarter of 2020, calculated as non-GAAP gross profit as a percent of revenue, was 71%, compared to 76% in the second quarter of 2019. Total non-GAAP gross margin declined y/y due to incremental investments in Customer Care and sequentially due to the faster revenue growth of the Business Solutions segment
 

o
Creative Subscriptions gross margin on a non-GAAP basis was 81%, compared to 82% in the second quarter of 2019. The y/y decline was related to the investment in expanding our Customer Care organization
 

o
Business Solutions gross margin on a non-GAAP basis was 32%, compared to 40% in the second quarter of 2019. The decline was related primarily to the growth of Wix Payments and the expansion of Customer Care
 
GAAP net loss in the second quarter of 2020 was $(57.7) million, or $(1.06) per share, compared to a net loss of $(16.7) million, or $(0.33) per share, for the second quarter of 2019
 
Non-GAAP net loss in the second quarter of 2020 was $(14.2) million, or $(0.26) per share, compared to non-GAAP net income of $17.0 million, or $0.34 per share for the second quarter of 2019
 
Net cash provided by operating activities in the second quarter of 2020 was $50.0 million, while capital expenditures totaled $3.3 million, leading to free cash flow of $46.7 million, compared to $30.8 million of free cash flow in the second quarter of 2019, a 52% year-over-year increase
 

o
Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $47.1 million, up 53% y/y
 
Added 346,000 net premium subscriptions in the second quarter of 2020 to reach 5.0 million as of June 30, 2020, a 17% increase over the total number of premium subscriptions at the end of the second quarter of 2019
 
Added 9.3 million registered users in the second quarter of 2020. Registered users as of June 30, 2020 were 182 million, representing a 18% increase compared to the end of the second quarter of 2019
 
Recent Business Highlights
 
Launched extended eCommerce solution, offering merchants access to advanced online business tools, such as dropshipping, automated sales tax calculations, streamlined order and fulfillment, and integrated sales channels, including social media and marketplaces
 
Announced the official launch of a new brand and innovative website creation platform, Editor X. Previously available in a closed beta program and now open to the public, Editor X caters to web designers and agencies who are looking for advanced design capabilities
 
Launched eCommerce solution for U.S. based merchants selling hemp-derived cannabidiol (CBD) products online, enabling these merchants to create an eCommerce website, process payments online, manage and ship inventory and grow their CBD businesses where government and state regulations permit
 
Expanded Customer Care team to a new office in Denver, Colorado to bolster existing efforts to provide best-in-class service to millions of users
 
Conducted the third annual Wix Playground Academy, a three month intensive web design program taught by Wix professionals and award-winning designers, in a completely online format for the first time. The students participated in the Social Good Project, building websites for 14 non-profits
 


Financial Outlook
 
Our outlook for Q3 reflects continued momentum of new registered users as well as the growth in monetization of our user cohorts. We believe these behaviors will drive y/y collections growth above 31% in Q3.

During Q2, we increased advertising investment by approximately 90% y/y, and we acquired the largest user cohort in our history, which we expect will return future collections that are approximately 90% higher than the previous year’s Q2 cohort. This return supports our decision to be more aggressive with our marketing investment. We plan to continue the increased investment in advertising as long as positive returns continue.

Our Marketing team responded to the surge in demand quickly and aggressively, a testament to the strength of our team. We believe this level investment will drive higher revenue and collections over the coming years and will expand profitability and free cash flow over time as well.

We are introducing Q3 guidance as follows:

 
Q3 2020 Outlook
 
Y/Y growth
Revenue
$247 - 250 million
 
26 - 27%
Collections
$270 - 275 million
 
31 - 34%
Free Cash Flow
$15 - 17 million
 
(42) - (49)%
Free Cash Flow (excluding ~$1 million in capex for future Wix HQ office build out)
$16 - 18 million
 
(38) - (45)%

This guidance assumes FX rates as of today. We continue to experience trends that are tailwinds to our top line growth. However, given the uncertainty related to COVID-19 and macroeconomic conditions, it is difficult to predict how long and to what degree these trends will remain; therefore, we are only providing guidance for the third quarter at this time.
 
Conference Call and Webcast Information
 
Wix will host a conference call at 8:30 a.m. ET on Thursday, August 6, 2020 to answer questions about the financial and operational performance of the business for the second quarter ended June 30, 2020. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion of this call, the Company has posted a shareholder update and supporting slides to its Investor Relations website at https://investors.wix.com/. These materials provide shareholders and analysts with additional detail for analyzing results in advance of the quarterly conference call.


 
To participate on the live call, analysts and investors should dial +1-888-771-4371 (US/ Canada) or +1-847-585-4405 (US Toll) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through August 13, 2020 at 11:59 p.m. ET at https://onlinexperiences.com/Launch/QReg/ShowUUID=D0DBA6CF-E305-452B-976E-19713D114599&LangLocaleID=1033 with passcode 49852245.
 
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.

Learn more: Wix.com, in our Press Room and on our Investor Relations site

Visit us: on our blogFacebook, Twitter, Instagram, LinkedIn and Pinterest 

Download: Wix App is available for free on Google Play and in the App Store

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,   cumulative   cohort collections, collections  on  a  constant  currency  basis,  revenue  on  a  constant  currency  basis,  non-GAAP  gross  margin,  non-GAAP  operating  income (loss),  non-GAAP  net   income (loss),  non-GAAP  net  income (loss)  per  share,  free  cash  flow, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or FX neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Collections represent  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.  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. 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, 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 capital expenditures associated with our new headquarters. Free cash flow margins represent free cash flow divided by revenue. 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.


 
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 collections, 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.
 
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, collections 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 full year 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 ability to grow our user base and premium subscriptions, including through our Wix Partner Program; uncertainty surrounding the duration and severity of COVID-19 and its effects on our business, including changes in consumer dynamics shifting to online and increased GMV on our platform; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, and our ability to successfully enter into partnership agreements; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our share repurchases made pursuant to our share repurchase plan; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading “Risk Factors” in the Company’s 2019 annual report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2020. 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.

Investor Relations:
Maggie O’Donnell
ir@wix.com
914-267-7390

Media Relations:
pr@wix.com


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,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Revenue
                       
Creative Subscriptions
 
$
157,012
   
$
190,169
   
$
308,376
   
$
366,715
 
Business Solutions
   
28,407
     
45,890
     
51,333
     
85,331
 
     
185,419
     
236,059
     
359,709
     
452,046
 
                                 
Cost of Revenue
                               
Creative Subscriptions
   
29,296
     
38,510
     
55,943
     
73,900
 
Business Solutions
   
17,366
     
31,972
     
30,434
     
58,652
 
     
46,662
     
70,482
     
86,377
     
132,552
 
                                 
Gross Profit
   
138,757
     
165,577
     
273,332
     
319,494
 
                                 
Operating expenses:
                               
Research and development
   
61,486
     
75,464
     
119,669
     
146,180
 
Selling and marketing
   
71,329
     
119,333
     
157,047
     
215,489
 
General and administrative
   
20,103
     
24,531
     
38,569
     
49,967
 
Total operating expenses
   
152,918
     
219,328
     
315,285
     
411,636
 
Operating loss
   
(14,161
)
   
(53,751
)
   
(41,953
)
   
(92,142
)
Financial expenses, net
   
(580
)
   
(3,339
)
   
(2,310
)
   
(2,194
)
Other income (expenses)
   
8
     
28
     
32
     
59
 
Loss before taxes on income
   
(14,733
)
   
(57,062
)
   
(44,231
)
   
(94,277
)
Taxes on income
   
2,001
     
674
     
3,243
     
2,612
 
Net loss
 
$
(16,734
)
 
$
(57,736
)
 
$
(47,474
)
 
$
(96,889
)
                                 
Basic and diluted net loss per share
 
$
(0.33
)
 
$
(1.06
)
 
$
(0.95
)
 
$
(1.82
)
Basic and diluted weighted-average shares used to compute net loss per share
   
50,273,017
     
54,695,477
     
49,917,692
     
53,266,895
 



Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
             
   
Period ended
 
   
December 31,
   
June 30,
 
   
2019
   
2020
 
Assets
 
(audited)
   
(unaudited)
 
Current Assets:
           
Cash and cash equivalents
 
$
268,103
   
$
173,950
 
Short term deposits
   
294,096
     
406,033
 
Restricted cash and deposit
   
1,149
     
925
 
Marketable securities
   
164,301
     
174,624
 
Trade receivables
   
16,987
     
18,830
 
Prepaid expenses and other current assets
   
19,211
     
49,888
 
 Total current assets
   
763,847
     
824,250
 
 
               
Long Term Assets:
               
Property and equipment, net
   
31,706
     
32,926
 
Marketable securities
   
177,298
     
245,211
 
Prepaid expenses and other long-term assets
   
9,926
     
13,243
 
Intangible assets and goodwill, net
   
37,641
     
44,509
 
Operating lease assets
   
79,249
     
81,112
 
 Total long-term assets
   
335,820
     
417,001
 
 
               
 Total assets
 
$
1,099,667
   
$
1,241,251
 
                 
Liabilities and Shareholder's Equity
               
Current Liabilities:
               
Trade payables
 
$
37,687
   
$
73,059
 
Employees and payroll accruals
   
41,938
     
66,306
 
Deferred revenues
   
289,148
     
344,515
 
Accrued expenses and other current liabilities
   
56,464
     
65,036
 
Operating lease liabilities
   
18,949
     
17,372
 
Total current liabilities
   
444,186
     
566,288
 
 
               
Long term deferred revenues
   
21,969
     
29,265
 
Long term deferred tax liability
   
1,585
     
1,574
 
Convertible senior notes
   
358,715
     
369,664
 
Long term loan
   
1,219
     
1,219
 
Long term operating lease liabilities
   
64,244
     
68,402
 
Total long term liabilities
   
447,732
     
470,124
 
 
               
 Total liabilities
   
891,918
     
1,036,412
 
                 
Shareholders'  Equity
               
Ordinary shares
   
94
     
104
 
Additional paid-in capital
   
611,083
     
695,412
 
Other comprehensive loss
   
1,357
     
10,997
 
Accumulated deficit
   
(404,785
)
   
(501,674
)
Total shareholders' equity
   
207,749
     
204,839
 
 
               
Total liabilities and shareholders' equity
 
$
1,099,667
   
$
1,241,251
 

 


Wix.com Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
OPERATING ACTIVITIES:
                       
Net loss
 
$
(16,734
)
 
$
(57,736
)
 
$
(47,474
)
 
$
(96,889
)
Adjustments to reconcile net loss to net cash used in operating activities:
                               
Depreciation
   
2,927
     
3,537
     
5,585
     
7,109
 
Amortization
   
738
     
566
     
1,470
     
1,132
 
Share based compensation expenses
   
27,565
     
34,967
     
52,472
     
65,685
 
Amortization of debt discount and debt issuance costs
   
5,194
     
5,516
     
10,311
     
10,949
 
Decrease in accrued interest and exchange rate on short term and long term deposits
   
105
     
15
     
594
     
62
 
Amortization of premium and discount and accrued interest on marketable securities, net
   
(10
)
   
438
     
41
     
717
 
Deferred income taxes, net
   
402
     
(55
)
   
533
     
(1,721
)
Changes in operating lease right-of-use assets
   
-
     
5,158
     
-
     
9,446
 
Changes in operating lease liabilities
   
-
     
(4,588
)
   
-
     
(9,817
)
Decrease (increase) in trade receivables
   
161
     
(1,765
)
   
(4,532
)
   
(1,617
)
Increase in prepaid expenses and other current and long-term assets
   
(3,942
)
   
(6,931
)
   
(11,141
)
   
(21,605
)
Increase (decrease) in trade payables
   
(3,222
)
   
26,172
     
1,328
     
34,974
 
Increase in employees and payroll accruals
   
4,223
     
11,585
     
12,235
     
23,694
 
Increase in short term and long term deferred revenues
   
14,144
     
29,792
     
40,233
     
62,663
 
Increase in accrued expenses and other current liabilities
   
5,629
     
3,287
     
10,599
     
10,203
 
Net cash provided by operating activities
   
37,180
     
49,958
     
72,254
     
94,985
 
INVESTING ACTIVITIES:
                               
Proceeds from short-term deposits and restricted deposits
   
55,000
     
9,225
     
81,775
     
26,225
 
Investment in short-term deposits and restricted deposits
   
-
     
(49,000
)
   
(26,000
)
   
(138,000
)
Investment in marketable securities
   
(108,693
)
   
(100,867
)
   
(136,616
)
   
(230,168
)
Proceeds from marketable securities
   
21,601
     
65,656
     
29,056
     
154,911
 
Purchase of property and equipment
   
(6,235
)
   
(3,264
)
   
(11,065
)
   
(8,207
)
Capitalization of software development costs
   
(191
)
   
-
     
(389
)
   
(132
)
Investment in other short and long-term assets
   
(2,800
)
   
(643
)
   
(2,800
)
   
(5,643
)
Payment for Businesses acquired
   
-
     
-
     
-
     
(6,626
)
Purchases of investments in privately-held companies
   
-
     
(685
)
   
-
     
(785
)
Net cash used in investing activities
   
(41,318
)
   
(79,578
)
   
(66,039
)
   
(208,425
)
FINANCING ACTIVITIES:
                               
Proceeds from exercise of options and ESPP shares
   
7,512
     
12,312
     
14,190
     
19,287
 
Net cash provided by financing activities
   
7,512
     
12,312
     
14,190
     
19,287
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
3,374
     
(17,308
)
   
20,405
     
(94,153
)
CASH AND CASH EQUIVALENTS—Beginning of period
   
348,088
     
191,258
     
331,057
     
268,103
 
CASH AND CASH EQUIVALENTS—End of period
 
$
351,462
   
$
173,950
   
$
351,462
   
$
173,950
 


 
Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Creative Subscriptions
   
157,012
     
190,169
     
308,376
     
366,715
 
Business Solutions
   
28,407
     
45,890
     
51,333
     
85,331
 
Total Revenue
 
$
185,419
   
$
236,059
   
$
359,709
   
$
452,046
 
 
                               
Creative Subscriptions
   
170,493
     
217,696
     
347,387
     
426,493
 
Business Solutions
   
29,070
     
48,155
     
52,555
     
88,216
 
Total Collections
 
$
199,563
   
$
265,851
   
$
399,942
   
$
514,709
 
 
                               
Free Cash Flow
 
$
30,754
   
$
46,694
   
$
60,800
   
$
86,646
 
Creative Subscriptions ARR
 
$
648,176
   
$
790,916
   
$
648,176
   
$
790,916
 
Number of registered users at period end (*)
   
154,039
     
181,585
     
154,039
     
181,585
 
Number of premium subscriptions at period end (*)
   
4,295
     
5,007
     
4,295
     
5,007
 

                         
(*) Excludes users and subscriptions of DeviantArt

Wix.com Ltd.
RECONCILIATION OF REVENUES TO COLLECTIONS
(In thousands)

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Revenues
 
$
185,419
   
$
236,059
   
$
359,709
   
$
452,046
 
Change in deferred revenues
   
14,144
     
29,792
     
40,233
     
62,663
 
Collections
 
$
199,563
   
$
265,851
   
$
399,942
   
$
514,709
 

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Creative Subscriptions Revenue
 
$
157,012
   
$
190,169
   
$
308,376
   
$
366,715
 
Change in deferred revenues
   
13,481
     
27,527
     
39,011
     
59,778
 
Creative Subscriptions Collections
 
$
170,493
   
$
217,696
   
$
347,387
   
$
426,493
 

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Business Solutions Revenue
 
$
28,407
   
$
45,890
   
$
51,333
   
$
85,331
 
Change in deferred revenues
   
663
     
2,265
     
1,222
     
2,885
 
Business Solutions Collections
 
$
29,070
   
$
48,155
   
$
52,555
   
$
88,216
 

Wix.com Ltd.
RECONCILIATION OF REVENUES AND COLLECTIONS EXCLUDING FX IMPACT
(In thousands)

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Revenues
 
$
185,419
   
$
236,059
   
$
359,709
   
$
452,046
 
FX impact on Q2/20 using Q2/19 rates
   
-
     
1,824
     
-
     
3,335
 
Revenue excluding FX impact
 
$
185,419
   
$
237,883
   
$
359,709
   
$
455,381
 
 
                               
Y/Y%
           
28
%
           
27
%

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Collections
 
$
199,563
   
$
265,851
   
$
399,942
   
$
514,709
 
FX impact on Q2/20 using Q2/19 rates
   
-
     
3,922
     
-
     
6,271
 
Collections excluding FX impact
 
$
199,563
   
$
269,773
   
$
399,942
   
$
520,980
 
 
                               
Y/Y%
           
35
%
           
30
%



Wix.com Ltd.
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
(In thousands)

 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2019
   
2020
   
2019
   
2020
 
(1) Share based compensation expenses:
 
(unaudited)
   
(unaudited)
 
Cost of revenues
 
$
1,436
   
$
1,869
   
$
2,747
   
$
3,500
 
Research and development
   
14,119
     
18,216
     
26,375
     
34,401
 
Selling and marketing
   
4,506
     
5,395
     
9,254
     
9,963
 
General and administrative
   
7,504
     
9,487
     
14,096
     
17,821
 
Total share based compensation expenses
   
27,565
     
34,967
     
52,472
     
65,685
 
(2) Amortization
   
738
     
566
     
1,470
     
1,132
 
(3) Acquisition related expenses
   
53
     
1,697
     
53
     
2,636
 
(4) Amortization of debt discount and debt issuance costs
   
5,194
     
5,516
     
10,311
     
10,949
 
(5) Sales tax accrual and other G&A expenses (income)
   
-
     
(485
)
   
-
     
1,489
 
(6) Non-operating foreign exchange expenses (income)
   
140
     
1,305
     
1,592
     
432
 
Total adjustments of GAAP to Non GAAP
 
$
33,690
   
$
43,566
   
$
65,898
   
$
82,323
 

Wix.com Ltd.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(In thousands)

 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2019
   
2020
   
2019
   
2020
 
 
 
(unaudited)
   
(unaudited)
 
Gross Profit
 
$
138,757
   
$
165,577
   
$
273,332
   
$
319,494
 
Share based compensation expenses
   
1,436
     
1,869
     
2,747
     
3,500
 
Acquisition related expenses
   
-
     
305
     
-
     
305
 
Amortization
   
141
     
-
     
283
     
-
 
Non GAAP Gross Profit
   
140,334
     
167,751
     
276,362
     
323,299
 
 
                               
Non GAAP Gross margin
   
76
%
   
71
%
   
77
%
   
72
%

 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2019
   
2020
   
2019
   
2020
 
 
 
(unaudited)
   
(unaudited)
 
Gross Profit - Creative Subscriptions
 
$
127,716
   
$
151,659
   
$
252,433
   
$
292,815
 
Share based compensation expenses
   
1,226
     
1,485
     
2,375
     
2,807
 
Non GAAP Gross Profit - Creative Subscriptions
   
128,942
     
153,144
     
254,808
     
295,622
 
 
                               
Non GAAP Gross margin - Creative Subscriptions
   
82
%
   
81
%
   
83
%
   
81
%

 
 
Three Months Ended
   
Six Months Ended
 
 
 
June 30,
   
June 30,
 
 
 
2019
   
2020
   
2019
   
2020
 
 
 
(unaudited)
   
(unaudited)
 
Gross Profit - Business Solutions
 
$
11,041
   
$
13,918
   
$
20,899
   
$
26,679
 
Share based compensation expenses
   
210
     
384
     
372
     
693
 
Acquisition related expenses
   
-
     
305
     
-
     
305
 
Amortization
   
141
     
-
     
283
     
-
 
Non GAAP Gross Profit - Business Solutions
   
11,392
     
14,607
     
21,554
     
27,677
 
 
                               
Non GAAP Gross margin - Business Solutions
   
40
%
   
32
%
   
42
%
   
32
%

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,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Operating loss
 
$
(14,161
)
 
$
(53,751
)
 
$
(41,953
)
 
$
(92,142
)
Adjustments:
                               
Share based compensation expenses
   
27,565
     
34,967
     
52,472
     
65,685
 
Amortization
   
738
     
566
     
1,470
     
1,132
 
Sales tax accrual and other G&A expenses (income)
   
-
     
(485
)
   
-
     
1,489
 
Acquisition related expenses
   
53
     
1,697
     
53
     
2,636
 
Total adjustments
 
$
28,356
   
$
36,745
   
$
53,995
   
$
70,942
 
 
                               
Non GAAP operating income (loss)
 
$
14,195
   
$
(17,006
)
 
$
12,042
   
$
(21,200
)



Wix.com Ltd.
RECONCILIATION OF NET 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,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Net loss
 
$
(16,734
)
 
$
(57,736
)
 
$
(47,474
)
 
$
(96,889
)
Share based compensation expense and other Non GAAP adjustments
   
33,690
     
43,566
     
65,898
     
82,323
 
Non-GAAP net income (loss)
 
$
16,956
   
$
(14,170
)
 
$
18,424
   
$
(14,566
)
 
                               
Basic  Non GAAP net income (loss) per share
 
$
0.34
   
$
(0.26
)
 
$
0.37
   
$
(0.27
)
Weighted average shares used in computing basic Non GAAP net income (loss) per share
   
50,273,017
     
54,695,477
     
49,917,692
     
53,266,895
 

Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)

   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
Net cash provided by operating activities
 
$
37,180
   
$
49,958
   
$
72,254
   
$
94,985
 
Capital expenditures, net
   
(6,426
)
   
(3,264
)
   
(11,454
)
   
(8,339
)
Free Cash Flow
 
$
30,754
   
$
46,694
   
$
60,800
   
$
86,646
 
 
                               
Capex related to future Wix HQ office build-out
   
-
     
408
     
-
     
891
 
Free Cash Flow, excluding capex related to future Wix HQ office build-out
 
$
30,754
   
$
47,102
   
$
60,800
   
$
87,537
 

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,
 
   
2019
   
2020
   
2019
   
2020
 
   
(unaudited)
   
(unaudited)
 
 
                       
Basic and diluted weighted average number of shares outstanding
   
50,273,017
     
54,695,477
     
49,917,692
     
53,266,895
 
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:
                               
Stock options
   
7,744,708
     
4,906,490
     
7,744,708
     
4,906,490
 
Restricted share units
   
2,289,069
     
2,190,991
     
2,289,069
     
2,190,991
 
Convertible Notes (if-converted)
   
3,104,251
     
3,104,251
     
3,104,251
     
3,104,251
 
 
   
63,411,045
     
64,897,209
     
63,055,720
     
63,468,627
 



Wix.com Ltd.
RECONCILIATION OF REVENUES TO COLLECTIONS
(In thousands)

   
Three Months Ended
 
   
September 30,
 
   
2019
 
   
(unaudited)
 
Revenues
 
$
196,791
 
Change in deferred revenues
   
9,069
 
Collections
 
$
205,860
 

Wix.com Ltd.
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
(In thousands)

   
Three Months Ended
 
   
September 30, 2020
 
 
 
Low
   
High
 
 
           
Projected revenues
   
247,000
     
250,000
 
Projected change in deferred revenues
   
23,000
     
25,000
 
Projected Collections
 
$
270,000
   
$
275,000
 

Wix.com Ltd.
RECONCILIATION OF COHORT COLLECTIONS
(In millions)

   
Three Months Ended
 
   
June 30,
 
 
 
2019
   
2020
 
 
           
Q2 Cohort revenues
   
6
     
10
 
Q2 Change in deferred revenues
   
17
     
28
 
Q2 Cohort Collections
 
$
23
   
$
38