• Exceeded High End of Q1 Guidance for Collections, Revenue and Adjusted EBITDA
  
• Results Highlighted by a Unique Combination of Record Registered User Growth and Improved Conversion to Premium Subscriptions Driven by Recent Product Launches
• Added a Record 170,000 Net Premium Subscriptions to Reach 1.94 Million at Quarter End
• Added 5.3 Million Registered Users, the Highest Quarterly Additions in Company’s History
• Increased Financial Outlook for Full Year 2016

TEL AVIV, Israel, May 04, 2016 (GLOBE NEWSWIRE) -- Wix.com Ltd. (Nasdaq:WIX), a leading global software platform for small businesses operating online, today reported financial results for the first quarter ended March 31, 2016.  The Company also provided its outlook for the second quarter 2016 and increased its financial outlook for the full year 2016.

Q1 2016 Financial Summary

	Three months ended Mar. 31,
$ in thousands		2016			2015			Y/Y growth				Prior Q1 2016 Outlook
Collections (FX neutral to Q1 2015)	$	77,484		$	55,869				39	%		$75,000 - 76,000
Collections	$	75,694		$	55,869				35	%		$73,000 - 74,000
Revenue (FX neutral to Q1 2015)	$	62,722		$	44,524				41	%		N/A
Revenue	$	61,586		$	44,524				38	%		$60,000 - 61,000
Adjusted EBITDA	$	2,664		$	(493	)			NM			$1,000 - 2,000

“Our outstanding results this quarter reflect a unique combination of a record number of additions of over five million new registered users, an improvement in conversion to premium subscriptions, and an increase in collections per new premium subscription,” said Avishai Abrahami, CEO and Co-founder of Wix. “This exceptional performance is the result of the success of several new products introduced over the last two quarters and higher traffic due to an ongoing increase of global awareness of the Wix brand.”

Lior Shemesh, CFO of Wix, commented, “Our first quarter results demonstrate strong top-line growth and continued improvement in profitability and free cash flow compared to the first quarter last year. As a result of these positive trends, we are increasing our full year outlook.  We will continue to leverage our investments in product development to drive conversion and returns on our marketing spend.”

Q1 2016 Results and Highlights

• Collections on a constant currency basis, which excludes the impact of approximately $1.8 million related to year-over-year changes in foreign exchange rates, would have been $77.5 million, an increase of 39% versus the prior year 
  • Collections on a reported basis increased 35% to $75.7 million compared to $55.9 million for the first quarter last year
• Revenue on constant currency basis, which excludes the impact of approximately $1.1 million related to year-over-year changes in foreign exchange rates, would have been $62.7 million, an increase of 41% versus the prior year 
  • Reported GAAP revenue increased 38% to $61.6 million compared to $44.5 million for the first quarter last year
• Gross margin on non-GAAP basis was 84% compared to 83% in the first quarter of last year
• GAAP net loss was $19.9 million, or $(0.49) per share, compared to a net loss of $16.0 million, or $(0.41) per share, for the first quarter of 2015
• Non-GAAP net loss was $12.2 million, or $(0.30) per share, compared to a non-GAAP net loss of $11.7 million, or $(0.30) per share, for the first quarter of 2015
• Adjusted EBITDA was $2.7 million compared to $(0.5) million for the first quarter of 2015
• Free cash flow improved to $(2.1) million compared to $(2.7) million for the first quarter of 2015
• Added a record 170,000 net premium subscriptions in the period to reach 1.94 million as of March 31, 2016, a 41% increase over the first quarter of 2015
• Added a record 5.3 million registered users in the first quarter. Registered users as of March 31, 2016 were 82 million, representing a 32% increase compared to the first quarter of 2015

Recent Business Highlights

• Launched Wix Restaurants:  Wix launched Wix Restaurants, the first online order management product enabling restaurant owners to build and manage their business online, eliminating the reliance on commission-based food ordering marketplaces. Wix Restaurants provides a suite of products to address the unique needs of restaurants including online menus, commission-free online ordering, enhanced payment options, CRM capabilities, and tailored websites.
  
  
• Recognized as Google Apps Online Partner of the Year:  Wix was recognized by Google for Work as its Google Apps Online Partner of the Year for 2015 for its efforts in promoting and marketing Google Apps through the Wix platform.  Wix continues to enable small businesses and organizations to communicate and collaborate with a suite of cloud-based productivity tools, such as e-mail, document management and storage as they move their operations online.  This marks the second consecutive year Wix was recognized by Google for Work as a top partner.
  
  
• Launched global partnership with City Football Group:  Wix became City Football Group’s Official Website Design & Hosting Partner for its clubs Manchester City FC, New York City FC and Melbourne City FC. The partnership provides Wix with branding and sponsorship opportunities on match days at the Etihad Stadium – home of Manchester City FC – and fans of all three clubs the opportunity to engage with Wix’s innovative design platform. The first fan engagement activity encouraged fans to create videos to feature on the official website for Sergio Aguero created in partnership with Wix.
  
  
• Wix Mobile Growth:  Over 15.7 million mobile sites have been created on the Wix platform to date, making Wix among the largest mobile site development platforms globally.
  
  
• Increasing Platform Engagement:  Continued engagement with the Wix ecosystem illustrated by over 290 million contacts saved onto the Wix platform.  Leveraging Wix’s MyAccount CRM system, users track customer activity data, manage relationships and communicate using WixShoutOut.

       
Financial Outlook

The Company is introducing its outlook for the second quarter of 2016 and increasing its prior outlook for full year 2016 as follows: 

• For the second quarter of 2016:

	Q2 2016 Outlook		Y/Y growth
Collections (FX neutral to Q2 2015)	$79 - $80 million		38% - 39%
Collections	$77 - $78 million		34% - 36%
Revenue	$66 - $67 million		36% - 38%
Adjusted EBITDA	$6.5 - $7.5 million		NM

• For the full year 2016:

	FY 2016 Outlook
	Prior		Updated		Y/Y growth
Collections (FX neutral to 2015)	$320 - $326 million		$324 - $328 million		34% - 36%
Collections	$314 - $320 million		$320 - $324 million		32% - 34%
Revenue	$270 - $274 million		$274 - $277 million		35% - 36%
Adjusted EBITDA	$27 - $30 million		$30 - $32 million		104% - 117%

Conference Call and Webcast Information

Prior to today’s scheduled quarterly conference call, Wix will provide a supplemental data sheet and supporting slides. These materials provide shareholders and analysts with additional time and detail for analyzing results in advance of the quarterly conference call. The materials will be available before the conference call at https://investors.wix.com/results.cfm. 

Wix.com’s first quarter 2016 teleconference and webcast will be held at 8:30 a.m. ET on Wednesday, May 4, 2016 and will include brief comments by management followed by a question-and-answer session. 

To participate on the live call, analysts and investors should dial 866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call.  A telephonic replay of the call will be available through May 11, 2016 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 87463537.

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.com (NASDAQ:Wix) is a leading cloud-based web development platform with over 84 million registered users worldwide. Wix was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute.  Through free and premium subscriptions, Wix empowers millions of businesses, organizations, professionals and individuals to take their businesses, brands and workflow online. The Wix Editor and highly curated App Market enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in San Francisco, New York, Miami, Vilnius and Dnepropetrovsk.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: Collections, collections and revenue on a constant currency basis, adjusted EBITDA, free cash flow, non-GAAP net loss and non-GAAP net loss per share (collectively the "non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period. We adjust collections and revenue to measure them on a constant currency basis by assuming the same exchange rates as the prior period applied to the reported figures in the current period. Adjusted EBITDA is defined as net profit or loss before interest, bank charges and other financial expenses (income), net unrealized losses (gains) on hedging transactions, other expenses, taxes on income, depreciation amortization, and other unusual or non-recurring expenses, share-based compensation expense and including the effect of the changes in deferred revenue and prepaid domain registration costs. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.  Non-GAAP net loss represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense and other non-GAAP adjustments. Non-GAAP net loss per share represents non-GAAP net loss divided by the weighted average number of shares used in computing GAAP loss per share.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that it provides useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

For more information on the non-GAAP financial measures, please see the "Reconciliation of GAAP to Non-GAAP Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company has not reconciled adjusted EBITDA guidance to net profit because it does not provide guidance for net profit. As items that impact net profit are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to net profit is not available without unreasonable effort.

Forward-Looking Statements

This press release 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 and may be identified by words like “anticipate,” “assume,” “believe,” “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 press release 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; our ability to maintain and enhance our brand and reputation; our ability to manage the growth of our infrastructure effectively; changes to technologies used in our solutions or in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading “Risk Factors” in the Company’s 2015 annual report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2016. 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.
	CONDENSED CONSOLIDATED BALANCE SHEET
	(In thousands)
		Period ended
		December 31,				March 31,
			2015				2016
	Assets	(audited)				(unaudited)
	Current Assets:
	Cash and cash equivalents	$	39,226			$	38,179
	Short term deposits		70,773				75,167
	Restricted cash and deposit		3,851				1,921
	Trade receivables		6,461				5,483
	Prepaid expenses and other current assets		11,989				14,342
	Total current assets		132,300				135,092
	Property, equipment and software, net
	Long-Term Assets:
	Property and equipment, net		8,734				8,661
	Prepaid expenses and other long-term assets		2,200				2,368
	Intangible assets and goodwill, net		6,199				6,012
	Total long-term assets		17,133				17,041
	Total assets	$	149,433			$	152,133
	Liabilities and Shareholder's Deficiency
	Current Liabilities:
	Trade payables	$	12,280			$	16,866
	Employees and payroll accruals		15,210				15,432
	Deferred revenues		100,561				114,358
	Accrued expenses and other current liabilities		20,281				13,200
	Total current liabilities		148,332				159,856
	Long term deferred revenues		4,206				4,517
	Long term deferred tax liability		625				598
	Other long-term liabilities		75				75
	Total long-term liabilities		4,906				5,190
	Total liabilities		153,238				165,046
	Shareholders' Deficiency
	Ordinary shares		64				64
	Additional paid-in capital		192,791				202,424
	Other comprehensive loss		(248	)			923
	Accumulated deficit		(196,412	)			(216,324	)
	Total shareholders' deficiency		(3,805	)			(12,913	)
	Total liabilities and shareholders' deficiency	$	149,433			$	152,133

 

	Wix.com Ltd.
	CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
	(In thousands, except loss per share data)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Revenue	$	44,524			$	61,586
	Cost of revenue		7,811				10,507
	Gross Profit		36,713				51,079
	Operating expenses:
	Research and development		17,448				24,472
	Selling and marketing		32,006				40,454
	General and administrative		4,587				5,921
	Total operating expenses		54,041				70,847
	Operating loss		(17,328	)			(19,768	)
	Financial income (expenses), net		1,857				505
	Other income (expenses)		1				-
	Loss before taxes on income		(15,470	)			(19,263	)
	Taxes on income		556				649
	Net loss	$	(16,026	)		$	(19,912	)
	Basic and diluted net loss per share	$	(0.41	)		$	(0.49	)
	Basic and diluted weighted-average shares used to compute net loss per share		38,634,897				40,378,899
	Wix.com Ltd.
	ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP STATEMENT OF OPERATIONS
	(In thousands, except loss per share data)
		Three Months Ended
		March 31,
			2015				2016
	(1) Share based compensation expenses:	(unaudited)
	Cost of revenues	$	295			$	428
	Research and development		1,959				3,111
	Selling and marketing		599				981
	General and administrative		1,195				1,617
	Total share based compensation expenses		4,048				6,137
	(2) Amortization		155				187
	(3) Withdrawn secondary offering expenses		-				0
	(4) Acquisition related expenses		-				1,183
	(5) Taxes on income		112				175
	Total adjustments of GAAP to Non GAAP	$	4,315			$	7,682
	Wix.com Ltd.
	ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP COST OF REVENUES
	(In thousands, except loss per share data)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Gross Profit	$	36,713			$	51,079
	Share based compensation expenses		295				428
	Gross Profit -Non GAAP		37,008				51,507
	Gross margin -Non GAAP		83	%			84	%
	Wix.com Ltd.
	RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (NON-GAAP)
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Net Loss	$	(16,026	)		$	(19,912	)
	Adjustments:
	Interest, bank charges & other financial expenses (income), net		332				(587	)
	Unrealized gains on hedging transactions		(1,063	)			399
	Other expenses		(1	)			-
	Taxes on income		556				649
	Depreciation		925				1,244
	Amortization		155				187
	Withdrawn secondary offering expenses		-				-
	Acquisition related expenses		-				1,183
	Share based compensation expenses		4,048				6,137
	Change in deferred revenue		11,345				14,108
	Change in prepaid domain registration costs		(764	)			(744	)
	Total adjustments	$	15,533			$	22,576
	Adjusted EBITDA	$	(493	)		$	2,664
	Wix.com Ltd.
	RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER SHARE
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Net Loss	$	(16,026	)		$	(19,912	)
	Share based compensation expense and other Non GAAP adjustments		4,315				7,682
	Non-GAAP net loss	$	(11,711	)		$	(12,230	)
	Basic and diluted Non GAAP net loss per share	$	(0.30	)		$	(0.30	)
	Weighted average shares used in computing basic and diluted Non GAAP net loss per share		38,634,897				40,378,899

 

	Wix.com Ltd.
	KEY PERFORMANCE METRICS
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Revenues	$	44,524			$	61,586
	Collections	$	55,869			$	75,694
	Adjusted EBITDA	$	(493	)		$	2,664
	Number of registered users at period end		62,514				82,271
	Number of premium subscriptions at period end		1,371				1,938
	Wix.com Ltd.
	RECONCILIATION OF REVENUES TO COLLECTIONS
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Revenues	$	44,524			$	61,586
	Change in deferred revenues		11,345				14,108
	Collections	$	55,869			$	75,694
	Wix.com Ltd.
	RECONCILIATION OF COLLECTIONS EXCLUDING FX IMPACT
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Collections	$	55,869			$	75,694
	F/X impact on Q1/16 using Q1/15 rates		-				1,790
	Collections excluding FX impact	$	55,869			$	77,484
	Y/Y%						39	%
		Three Months Ended
		December 31,				March 31,
			2015				2016
		(unaudited)
	Collections	$	66,870			$	75,694
	F/X impact on Q1/16 using Q4/15 rates		-				(130	)
	Collections excluding FX impact	$	66,870			$	75,564
	Q/Q%						13	%
	Wix.com Ltd.
	RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)
	Net cash provided by (used in) operating activities	$	(581	)		$	(925	)
	Capital expenditures, net		(2,081	)			(1,209	)
	Free Cash Flow	$	(2,662	)		$	(2,134	)
	Wix.com Ltd.
	RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
	(In thousands)
		Three Months Ended								Year Ending
		June 30,2016								December 31,2016
		Low				High				Low				High
	Projected revenues	$	66,000			$	67,000			$	274,000			$	277,000
	Projected change in deferred revenues		11,000				11,000				46,000				47,000
	Projected collections	$	77,000			$	78,000			$	320,000			$	324,000

 

	Wix.com Ltd.
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	(In thousands)
		Three Months Ended
		March 31,
			2015				2016
		(unaudited)				(unaudited)
	OPERATING ACTIVITIES:
	Net loss	$	(16,026	)		$	(19,912	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Depreciation		925				1,244
	Amortization		155				187
	Share based compensation expenses		4,048				6,137
	Tax benefit related to exercise of share options		138				175
	Decrease (increase) in accrued interest and exchange rate on short term and long term deposits		328				(230	)
	Deferred income taxes, net		(28	)			(26	)
	Decrease (increase) in trade receivables		(2,100	)			978
	Increase in prepaid expenses and other current and long-term assets		(2,032	)			(1,589	)
	Increase in trade payables		6,123				4,624
	Increase (decrease) in employees and payroll accruals		(3,299	)			222
	Increase in short term and long term deferred revenues		11,694				14,108
	Decrease in accrued expenses and other current liabilities		(507	)			(6,843	)
	Net cash used in operating activities		(581	)			(925	)
	INVESTING ACTIVITIES:
	Proceeds from short-term deposits and restricted deposits		11,906				4,766
	Investment in short-term deposits and restricted deposits		(1,686	)			(7,000	)
	Purchase of property and equipment		(2,081	)			(1,209	)
	Net cash provided by (used in) investing activities		8,139				(3,443	)
	FINANCING ACTIVITIES:
	Proceeds from exercise of options and ESPP shares		1,780				3,321
	Net cash provided by financing activities		1,780				3,321
	EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(167	)			-
	INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		9,171				(1,047	)
	CASH AND CASH EQUIVALENTS—Beginning of period		40,200				39,226
	CASH AND CASH EQUIVALENTS—End of period	$	49,371			$	38,179

Investor Relations:
Joe Pollaro / Ryan Gee
Wix.com
ir@wix.com 
+1 415.449.4718 / +1 415.223.2610

Media Relations:
Vivian Hernandez
Wix.com
pr@wix.com 
+1 415.517.6539

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