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 May 2021

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 May 12, 2021, Wix.com Ltd. (NASDAQ: WIX) (the “Company”) issued a press release titled “Wix Reports First Quarter 2021 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.

Date: May 12, 2021
WIX.COM LTD.

By:  /s/  Eitan Israeli
        Name: Eitan Israeli
        Title:   Chief Legal Officer

3


EXHIBIT INDEX
 
The following exhibit is filed as part of this Form 6-K:
             
Exhibit
Description
 
 
4


Exhibit 99.1

Wix Reports First Quarter 2021 Results


Strong start to the year with revenue and collections growth exceeding expectations

o
Q1’21 Revenue of $304 million, up 41% y/y

o
Q1’21 Collections of $351 million, up 41% y/y


Continued strong demand across all types of users and online commerce businesses drove accelerating growth and cohort monetization

o
Increased conversion of users to subscriptions and increased collections per subscription drove record Q1 2021 user cohort collections of $36.5 million, 32% higher than the Q1 2020 user cohort in its first quarter

o
Creative Subscriptions Revenue and Collections were both up 28% y/y, accelerating sequentially and over the year ago quarter

o
Creative Subscriptions ARR increased to $926 million as of the end of Q1 2021, up 25% y/y, accelerating for the fifth consecutive quarter


The nature of our horizontal platform led to increases in the adoption of business applications and higher GPV across a diverse base of users

o
As expected, our horizontal online commerce platform has benefitted, and will continue to benefit, as global economies reopen

o
Business Solutions Revenue and Collections up 97% y/y and 107% y/y, respectively

o
Growth driven by strong performance of Wix Payments


Raising guidance for the full year and introducing Q2 guidance to reflect an acceleration in growth over a groundbreaking year

NEW YORK, May 12, 2021 -- Wix.com Ltd. (Nasdaq: WIX) today reported financial results for the first quarter ended March 31, 2021 exceeding the high end of its guidance ranges for revenue and collections. In addition, the Company provided its initial outlook for the second quarter and updated its outlook for the full year of 2021. Please visit the Wix investor relations website at https://investors.wix.com/ to view the Q1’21 Shareholder Update.

“Three months ago I stated my belief that Wix is becoming the main engine of the internet, and that in the next 5-7 years, 50% of anything new built on the internet will be done on Wix. We are starting off 2021 in a very strong position and are making strides in achieving these goals. Wix is taking a leading role in facilitating the global shift online and changing the way web presences are built,” said Avishai Abrahami, Co-founder and CEO of Wix. “We strive to be a horizontal platform that offers the best solution for any type of user and any type of business to not only create but also grow and succeed online. Many types of businesses are relying on Wix today, and we expect that our diversified approach to online commerce will benefit Wix as global economies reopen.”

Lior Shemesh, CFO of Wix, added, “Our first quarter 2021 results build on the growth we experienced in 2020 and serve as evidence of the positive returns we are generating from our investments in product development, marketing and support. These investments have driven an increase in conversion and collections per subscription, illustrated by the strength of the collections from the Q1 2021 user cohort, which were 32% higher than the Q1 2020 user cohort generated in its first quarter. We now expect that future collections from existing cohorts will be approximately $14.2 billion over the next 10 years. We are raising our full year guidance to reflect the conviction we have in our position as the best platform for any type or user and any type of business to move online.”


Q1 2021 Financial Results


Total revenue in the first quarter of 2021 was $304.1 million, up 41% y/y

o
Creative Subscriptions revenue in the first quarter of 2021 was $226.4 million, up 28% y/y

o
Business Solutions revenue in the first quarter of 2021 was $77.7 million, up 97% y/y


Creative Subscriptions ARR as of the end of Q1  2021 was $926.1 million, up 25% y/y


Total collections in the first quarter of 2021 were $351.1 million, up 41% y/y

o
Creative Subscriptions collections in the first quarter of 2021 were $268.1 million, up 28% y/y

o
Business Solutions collections in the first quarter of 2021 were $83.1 million, up 107% y/y


Total gross margin on a GAAP basis in the first quarter of 2021 was 62%

o
Creative Subscriptions gross margin on a GAAP basis was 75%

o
Business Solutions gross margin on a GAAP basis was 23%


Total non-GAAP gross margin in the first quarter of 2021 was 63%

o
Creative Subscriptions gross margin on a non-GAAP basis was 77%

o
Business Solutions gross margin on a non-GAAP basis was 24%


GAAP net loss in the first quarter of 2021 was $(121.8) million, or $(2.16) per share


Non-GAAP net loss in the first quarter of 2021 was $(30.2) million, or $(0.54) per share


 Net cash provided by operating activities for the first quarter of 2021 was $18.5 million, while capital expenditures totaled $3.8 million, leading to free cash flow of $14.6 million


o
Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $15.5 million

Financial Outlook
 
Following the strong start to 2021, we are excited about the remainder of the year ahead. As the need for an online presence continues while businesses increasingly require online commerce capabilities, we believe our growth will continue throughout the year.

As countries continue to administer vaccines to their populations and economies reopen and improve, we believe our horizontal platform positions us for growth. Our online commerce platform encompasses businesses of all types -- over 40% of Gross Payments Volume (GPV) in Q1 was from non-retail store businesses like restaurants, fitness, beauty and events. As these businesses begin to capture more consumer spending, subscriptions and GPV on Wix will continue to grow.


Considering these factors, our initial Q2 2021 outlook as well as our revised full year 2021 outlook reflects sustained growth and momentum from the expansion we experienced in 2020, underscoring the continued strong demand for our solutions as well as positive returns from investments in product development, support and marketing.

We are introducing second quarter 2021 guidance as follows:

 
Q2 2021 Outlook
 
Y/Y growth
Revenue
$308 - 312 million
 
30 - 32%
Collections
$342 - 352 million
 
29 - 32%

We are updating our full year 2021 guidance as follows:

 
Updated FY 2021 Outlook
 
Y/Y growth
 
Prior FY 2021 Outlook
Revenue
$1,280  - 1,290 million
 
29 - 30%
 
$1,272  - 1,286 million
Collections
$1,440 - 1,460 million
 
31 - 32%
 
$1,435 - 1,455 million
Free Cash Flow (excluding capex for future Wix HQ office build out)
$92 - 102 million
 
NM
 
$90 - 100 million
Free Cash Flow
$62 - 72 million
 
NM
 
$60 - 70 million


Our free cash flow guidance is inclusive of approximately $60 million in incremental investments we plan in 2021 to address the significant opportunities ahead of us. Specifically, our investments are focused on the continued expansion of Customer Care, advancing the evolution of our payments platform, building infrastructure to scale and globalize the Wix POS and growing our Account Management team



Conference Call and Webcast Information
 
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, May 12, 2021. To participate on the live call, analysts and investors should dial +1-877-667-0467 (US/ Canada), +1-346- 354-0953 (International) or 1-809-315-362 (Israel) and reference Conference ID 3484525. A telephonic replay of the call will be available through May 19, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 3484525.
 
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 leading the way with a cloud-based website development platform for over 200 million registered users worldwide today. The Wix website builder 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, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix, Wix Payments and Velo by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Austin, Be'er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kiev, Los Angeles, Miami, New York, Phoenix, San Francisco, São Paulo, Tokyo and Vilnius. 

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 
For more about Wix please visit our Press Room

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:   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 financial 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 is a non-GAAP financial measure calculated by adding the change in deferred revenues for a particular period to revenues for the same period. Collections include cash receipts for premium subscriptions purchased by registered users as well as cash we collect for payments and additional products and services, 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 majority of the additional products and services are recognised as revenues upon receipt. Committed payments are recognised as revenue as we fulfil our obligation under the terms of the contractual agreement.  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 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. 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 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.

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 active 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; (iii) monthly revenue from partnership agreements.

 
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 annual and quarterly 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 attract and retain registered users and generate new premium subscriptions; our ability to increase the revenue we derive from the sale of premium subscriptions and business solutions through our partners; our expectation that new products and developments, including third-party products offered 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; our prediction of the future revenues generated by our user cohorts and our ability to maintain and increase such revenue growth; our ability to maintain and enhance our brand and reputation; our ability to attract and retain qualified employees and key personnel; our ability to enter into new markets and attract new customer demographics, including new partners; our expectation that our products created for markets outside of North America will continue to generate growth in those markets; the impact of fluctuations in foreign currency exchange rates on our business; our ability to effectively execute our initiatives to scale and improve our user support function through our Customer Care team, and thereby increase user retention, user engagement and sales; the integration and performance of acquisitions; risks relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase plan; our ability 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 ability to effectively manage the growth of our infrastructure; the impact on our business and operations of the COVID-19 pandemic, including uncertainty relating to expected consumer dynamics after the COVID-19 pandemic subsides and the anticipated GPV on our platform, the effectiveness of government policies, vaccine administration rates and other factors; changes to technologies used in our solutions; any regulatory investigations or litigation; our expectations regarding changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues; changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of COVID-19; 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 other factors discussed under the heading “Risk Factors” in the Company’s 2020 annual report on Form 20-F filed with the Securities and Exchange Commission on March 25, 2021. 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

Media Relations:
pr@wix.com

Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(In thousands, except loss per share data)

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Revenue
           
Creative Subscriptions
 
$
176,546
   
$
226,436
 
Business Solutions
   
39,441
     
77,676
 
     
215,987
     
304,112
 
                 
Cost of Revenue
               
Creative Subscriptions
   
35,390
     
55,746
 
Business Solutions
   
26,680
     
60,086
 
     
62,070
     
115,832
 
                 
Gross Profit
   
153,917
     
188,280
 
                 
Operating expenses:
               
Research and development
   
70,716
     
95,086
 
Selling and marketing
   
96,156
     
144,455
 
General and administrative
   
25,436
     
34,394
 
Total operating expenses
   
192,308
     
273,935
 
Operating loss
   
(38,391
)
   
(85,655
)
Financial income (expenses), net
   
1,145
     
(28,013
)
Other income
   
31
     
65
 
Loss before taxes on income
   
(37,215
)
   
(113,603
)
Taxes on income
   
1,938
     
8,149
 
Net loss
 
$
(39,153
)
 
$
(121,752
)
                 
Basic and diluted net loss per share
 
$
(0.76
)
 
$
(2.16
)
Basic and diluted weighted-average shares used to compute net loss per share
   
51,838,314
     
56,280,561
 


Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

   
Period ended
 
   
December 31,
   
March 31,
 
   
2020
   
2021
 
Assets
 
(audited)
   
(unaudited)
 
Current Assets:
           
Cash and cash equivalents
 
$
168,858
   
$
415,843
 
Short term deposits
   
577,138
     
439,123
 
Restricted cash and deposit
   
925
     
1,512
 
Marketable securities
   
289,927
     
269,260
 
Trade receivables
   
23,670
     
29,915
 
Prepaid expenses and other current assets
   
40,666
     
75,853
 
 Total current assets
   
1,101,184
     
1,231,506
 
                 
Long Term Assets:
               
Property and equipment, net
   
35,863
     
37,281
 
Marketable securities
   
536,877
     
463,550
 
Prepaid expenses and other long-term assets
   
87,680
     
118,898
 
Intangible assets and goodwill, net
   
43,516
     
49,070
 
Operating lease right-of-use assets
   
88,406
     
84,904
 
 Total long-term assets
   
792,342
     
753,703
 
                 
 Total assets
 
$
1,893,526
   
$
1,985,209
 
                 
Liabilities and Shareholder's Equity
               
Current Liabilities:
               
Trade payables
 
$
79,881
   
$
77,781
 
Employees and payroll accruals
   
70,814
     
103,692
 
Deferred revenues
   
373,521
     
412,368
 
Accrued expenses and other current liabilities
   
70,429
     
85,348
 
Operating lease liabilities
   
22,336
     
22,140
 
 Total current liabilities
   
616,981
     
701,329
 
                 
Long term deferred revenues
   
50,867
     
59,059
 
Long term deferred tax liability
   
15,343
     
22,382
 
Convertible notes, net
   
834,440
     
919,084
 
Long term operating lease liabilities
   
74,187
     
69,527
 
 Total long term liabilities
   
974,837
     
1,070,052
 
                 
 Total liabilities
   
1,591,818
     
1,771,381
 
                 
Shareholders'  Equity
               
Ordinary shares
   
107
     
110
 
Additional paid-in capital
   
862,134
     
851,065
 
Accumulated ther comprehensive income
   
9,406
     
817
 
Accumulated deficit
   
(569,939
)
   
(638,164
)
Total shareholders' equity
   
301,708
     
213,828
 
                 
Total liabilities and shareholders' equity
 
$
1,893,526
   
$
1,985,209
 


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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
OPERATING ACTIVITIES:
           
Net loss
 
$
(39,153
)
 
$
(121,752
)
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation
   
3,572
     
3,432
 
Amortization
   
566
     
599
 
Share based compensation expenses
   
30,718
     
46,631
 
Amortization of debt discount and debt issuance costs
   
5,433
     
62,345
 
Decrease in accrued interest and exchange rate on short term and long term deposits
   
47
     
15
 
Amortization of premium and discount and accrued interest on marketable securities, net
   
279
     
2,323
 
Deferred income taxes, net
   
(1,666
)
   
7,351
 
Changes in operating lease right-of-use assets
   
4,288
     
4,681
 
Changes in operating lease liabilities
   
(5,229
)
   
(6,035
)
Decrease (increase) in trade receivables
   
148
     
(6,176
)
Increase in prepaid expenses and other current and long-term assets
   
(14,674
)
   
(73,916
)
Increase (decrease) in trade payables
   
8,802
     
(3,262
)
Increase in employees and payroll accruals
   
12,109
     
40,554
 
Increase in short term and long term deferred revenues
   
32,871
     
46,997
 
Increase in accrued expenses and other current liabilities
   
6,916
     
14,701
 
Net cash provided by operating activities
   
45,027
     
18,488
 
INVESTING ACTIVITIES:
               
Proceeds from short-term deposits and restricted deposits
   
17,000
     
138,015
 
Investment in short-term deposits and restricted deposits
   
(89,000
)
   
(602
)
Investment in marketable securities
   
(129,301
)
   
-
 
Proceeds from marketable securities
   
89,255
     
90,097
 
Purchase of property and equipment
   
(4,943
)
   
(3,720
)
Capitalization of software development costs
   
(132
)
   
(129
)
Investment in other long-term assets
   
(5,000
)
   
-
 
Payment for Businesses acquired, net of acquired cash
   
(6,626
)
   
(5,586
)
Purchases of investments in privately held companies
   
(100
)
   
-
 
Net cash used in investing activities
   
(128,847
)
   
218,075
 
FINANCING ACTIVITIES:
               
Proceeds from exercise of options and ESPP shares
   
6,975
     
10,422
 
Net cash provided by financing activities
   
6,975
     
10,422
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
(76,845
)
   
246,985
 
CASH AND CASH EQUIVALENTS—Beginning of period
   
268,103
     
168,858
 
CASH AND CASH EQUIVALENTS—End of period
 
$
191,258
   
$
415,843
 


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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Creative Subscriptions
   
176,546
     
226,436
 
Business Solutions
   
39,441
     
77,676
 
Total Revenue
 
$
215,987
   
$
304,112
 
                 
Creative Subscriptions
   
208,797
     
268,059
 
Business Solutions
   
40,061
     
83,050
 
Total Collections
 
$
248,858
   
$
351,109
 
                 
Free Cash Flow
 
$
39,952
   
$
14,639
 
Free Cash Flow, excluding capex related to future Wix HQ office build-out
 
$
40,435
   
$
15,474
 
Creative Subscriptions ARR
 
$
739,457
   
$
926,103
 

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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Revenues
 
$
215,987
   
$
304,112
 
Change in deferred revenues
   
32,871
     
46,997
 
Collections
 
$
248,858
   
$
351,109
 

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Creative Subscriptions Revenue
 
$
176,546
   
$
226,436
 
Change in deferred revenues
   
32,251
     
41,623
 
Creative Subscriptions Collections
 
$
208,797
   
$
268,059
 

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Business Solutions Revenue
 
$
39,441
   
$
77,676
 
Change in deferred revenues
   
620
     
5,374
 
Business Solutions Collections
 
$
40,061
   
$
83,050
 

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

   
Three Months Ended
 
   
March 31
 
   
2020
   
2021
 
             
Q1 Cohort revenues
   
8
     
4
 
Q1 Change in deferred revenues
   
20
     
32
 
Q1 Cohort collections
 
$
28
   
$
36
 



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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
(1) Share based compensation expenses:
 
(unaudited)
 
Cost of revenues
 
$
1,631
   
$
3,501
 
Research and development
   
16,185
     
23,288
 
Selling and marketing
   
4,568
     
7,442
 
General and administrative
   
8,334
     
12,400
 
Total share based compensation expenses
   
30,718
     
46,631
 
(2) Amortization
   
566
     
599
 
(3) Acquisition related expenses
   
939
     
1,705
 
(4) Amortization of debt discount and debt issuance costs
   
5,433
     
62,345
 
(5) Sales tax accrual and other G&A expenses (income)
   
1,974
     
452
 
(6) Unrealized gain on equity and other investments
   
-
     
(29,513
)
(7) Non-operating foreign exchange expenses (income)
   
(873
)
   
2,590
 
(8) Provision for income tax effects related to non-GAAP adjustments
   
-
     
6,788
 
Total adjustments of GAAP to Non GAAP
 
$
38,757
   
$
91,597
 

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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Gross Profit
 
$
153,917
   
$
188,280
 
Share based compensation expenses
   
1,631
     
3,501
 
Acquisition related expenses
   
-
     
167
 
Amortization
   
-
     
97
 
Non GAAP Gross Profit
   
155,548
     
192,045
 
                 
Non GAAP Gross margin
   
72
%
   
63
%

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Gross Profit - Creative Subscriptions
 
$
141,156
   
$
170,690
 
Share based compensation expenses
   
1,322
     
2,586
 
Non GAAP Gross Profit - Creative Subscriptions
   
142,478
     
173,276
 
                 
Non GAAP Gross margin - Creative Subscriptions
   
81
%
   
77
%

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Gross Profit - Business Solutions
 
$
12,761
   
$
17,590
 
Share based compensation expenses
   
309
     
915
 
Acquisition related expenses
   
-
     
167
 
Amortization
   
-
     
97
 
Non GAAP Gross Profit - Business Solutions
   
13,070
     
18,769
 
                 
Non GAAP Gross margin - Business Solutions
   
33
%
   
24
%


Wix.com Ltd.
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
(In thousands)

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Operating loss
 
$
(38,391
)
 
$
(85,655
)
Adjustments:
               
Share based compensation expenses
   
30,718
     
46,631
 
Amortization
   
566
     
599
 
Sales tax accrual and other G&A expenses (income)
   
1,974
     
452
 
Acquisition related expenses
   
939
     
1,705
 
Total adjustments
 
$
34,197
   
$
49,387
 
                 
Non GAAP operating income (loss)
 
$
(4,194
)
 
$
(36,268
)

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
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Net loss
 
$
(39,153
)
 
$
(121,752
)
Share based compensation expense and other Non GAAP adjustments
   
38,757
     
91,597
 
Non-GAAP net income (loss)
 
$
(396
)
 
$
(30,155
)
                 
Basic  Non GAAP net income (loss) per share
 
$
(0.01
)
 
$
(0.54
)
Weighted average shares used in computing basic Non GAAP net income (loss) per share
   
51,838,314
     
56,280,561
 

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

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
Net cash provided by operating activities
 
$
45,027
   
$
18,488
 
Capital expenditures, net
   
(5,075
)
   
(3,849
)
Free Cash Flow
 
$
39,952
   
$
14,639
 
                 
Capex related to future Wix HQ office build-out
   
483
     
835
 
Free Cash Flow, excluding capex related to future Wix HQ office build-out
 
$
40,435
   
$
15,474
 


Wix.com Ltd.
RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING

   
Three Months Ended
 
   
March 31,
 
   
2020
   
2021
 
   
(unaudited)
 
             
Basic and diluted weighted average number of shares outstanding
   
51,838,314
     
56,280,561
 
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:
 
Stock options
   
5,481,573
     
4,845,705
 
Restricted share units
   
2,228,786
     
2,067,705
 
 Convertible Notes (if-converted)
   
3,104,251
     
3,969,514
 
     
62,652,924
     
67,163,485
 

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

   
Three Months Ended
   
Year Ended
 
   
June 30, 2021
   
December 31, 2021
 
   
Low
   
High
   
Low
   
High
 
                         
Projected revenues
   
308,000
     
312,000
     
1,280,000
     
1,290,000
 
Projected change in deferred revenues
   
34,000
     
40,000
     
160,000
     
170,000
 
Projected Collections
 
$
342,000
   
$
352,000
   
$
1,440,000
   
$
1,460,000