Form 6-K Wix.com Ltd. For: Feb 17

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

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

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

EXHIBIT INDEX

 

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

 

Wix Reports Fourth Quarter and Full Year 2020 Results

Acceleration from 2020 expected to carry through 2021 -- raising prior collections growth outlook

o

Future collections expected from existing cohorts increased to over $12.9 billion over the next 10 years

NEW YORK, February 17, 2021 -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the fourth quarter and full year ended December 31, 2020, exceeding the high end of its guidance ranges for revenue, collections and free cash flow. In addition, the Company provided its initial outlook for the first quarter and full year of 2021.

“We have concluded the most successful year in our company’s history. In 2020, over 31 million new registered users joined Wix, we added nearly 1 million net new subscriptions, and we crossed $1 billion of annual collections for the first time. It was truly humbling to help lift millions of businesses through an extremely challenging year, and I am particularly proud of our team for maintaining focus and dedication throughout the year,” said Avishai Abrahami, Co-founder and CEO of Wix. “It is clear that we can now become a dominant player on the internet, and I expect us to strengthen this position significantly over the coming decade.  Wix will now strive to become the main engine of the internet, democratizing access and providing a place where the majority of people will build their web presence. My goal and belief is that at this rate of growth, in the next 5-7 years, 50% of anything new built on the internet will be done on Wix.”

Lior Shemesh, CFO of Wix, added, “Our fourth quarter results closed out a record-breaking year at Wix with results exceeding the high end of our guidance ranges.  The demand for a web presence is higher than ever before. As such, we are investing heavily in our business and into new products, most notably Wix Payments as online commerce businesses continue to come to Wix. Our first quarter 2021 guidance of 37-41% y/y collections growth and full year guidance of 30-32% collections growth reflect the continuation of the momentum from 2020, the returns on these investments and the new baseline of growth for Wix for years to come.”

FY 2020 Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2020 Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our outlook is underscored by an increase in our collections growth guidance for 2021, since our initial guidance provided in December, as our confidence in the upcoming year has increased. Our success in online commerce, expected growth in Partners activity on Wix and the launch of new products bolster our outlook for the year.

We plan to make incremental investments of approximately $60 million in 2021 to capitalize on the opportunities ahead. Our incremental investments will be focused in the following areas:

●          Continued expansion of Customer Care to address the current and future demand and to expand our support dedicated to Wix Payments. We plan to hire at least 600 more Experts in 2021

●          Advancing the evolution of the Wix Payments platform by improving the user experience, expanding to additional geographies and offering new capabilities for our users

●          Building our team and infrastructure necessary to scale and globalize the Wix Point of Sale (POS) solution

●          Growing our Account Management team to provide the high level of service expected by Partners and high-volume online commerce users

We are introducing full year 2021 guidance as follows:

 

We are also introducing first quarter 2021 guidance as follows:

 

Wix will host a conference call at 8:30 a.m. ET on Wednesday, February 17, 2021 to answer questions about the financial and operational performance of the business for the fourth quarter and full year ended December 31, 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 +1-877-667-0467 (US/ Canada), +1-346- 354-0953 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call and reference Conference ID 3847028. A telephonic replay of the call will be available through February 24, 2021 at 11:30 a.m. ET by dialing +1-855-859-2056 and providing Conference ID 3847028.

 

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/.

 

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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 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, San Francisco, São Paulo, Tokyo and Vilnius. 

Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn and Pinterest 

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

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 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, cash we collect for payments and additional products and services, as well as payments due to us under the terms of contractual agreements for obligations we have fulfilled. 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.

 

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), Business Solutions ARR and Gross Payment Volume (GPV) as key operating metrics. 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. Business Solutions ARR is calculated as Business Solutions MRR multiplied by 12. Business Solutions MRR is calculated as the total of all active subscriptions to Ascend, G-Suite, TPAs, FB Ads or Wix apps products in effect on the last day of the period, multiplied by the monthly revenue of such subscriptions.  GPV  includes the total value, in US dollars, of transactions facilitated by our platform.

 

 

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 grow our user base and premium subscriptions, including through the growth of our Partners activity; uncertainty surrounding the effects of COVID-19 on our business, including uncertainty relating to the expected consumer dynamics post COVID-19 and the anticipated GPV 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 and grow our Partners activities as anticipated; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts, and our ability to increase and maintain the value we create from 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 and see a return on our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Care; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development, including products such as EditorX geared to new user demographics; 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

914-267-7390

Media Relations:

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(audited)				(unaudited)
Revenue
Creative Subscriptions		$	171,355			$	213,745			$	644,491			$	783,456
Business Solutions			33,233				68,789				116,597				205,304
			204,588				282,534				761,088				988,760
Cost of Revenue
Creative Subscriptions			33,420				50,278				120,905				167,539
Business Solutions			23,815				53,029				76,002				148,160
			57,235				103,307				196,907				315,699
Gross Profit			147,353				179,227				564,181				673,061
Operating expenses:
Research and development,net			66,634				89,625				250,791				320,278
Selling and marketing			74,809				109,629				307,718				438,210
General and administrative			23,602				35,433				85,922				111,915
Total operating expenses			165,045				234,687				644,431				870,403
Operating loss			(17,692	)			(55,460	)			(80,250	)			(197,342	)
Financial expenses, net			(2,553	)			(10,158	)			(3,621	)			(19,650	)
Other income (expenses)			(94	)			34				55				118
Loss before taxes on income			(20,339	)			(65,584	)			(83,816	)			(216,874	)
Taxes on income (benefit)			1,234				(2,795	)			2,598				(354	)
Net loss		$	(21,573	)		$	(62,789	)		$	(86,414	)		$	(216,520	)
Basic and diluted net loss per share		$	(0.42	)		$	(1.13	)		$	(1.71	)		$	(3.98	)
Basic and diluted weighted-average shares used to compute net loss per share			51,321,155				55,809,471				50,504,698				54,425,056

		Period ended
		December 31,				December 31,
		2019				2020
Assets		(audited)				(unaudited)
Current Assets:
Cash and cash equivalents		$	268,103			$	168,858
Short term deposits			294,096				577,138
Restricted cash and deposit			1,149				925
Marketable securities			164,301				289,927
Trade receivables			16,987				23,670
Prepaid expenses and other current assets			19,211				40,666
Total current assets			763,847				1,101,184
Long Term Assets:
Property and equipment, net			31,706				35,863
Marketable securities			177,298				536,877
Prepaid expenses and other long-term assets			9,926				20,971
Intangible assets and goodwill, net			37,641				43,516
Operating lease assets			79,249				88,406
Total long-term assets			335,820				725,633
Total assets		$	1,099,667			$	1,826,817
Liabilities and Shareholder's Equity
Current Liabilities:
Trade payables		$	37,687			$	79,881
Employees and payroll accruals			41,938				70,814
Deferred revenues			289,148				373,521
Accrued expenses and other current liabilities			56,464				70,429
Operating lease liabilities			18,949				22,336
Total current liabilities			444,186				616,981
Long term deferred revenues			21,969				50,867
Other long term liabilities			2,804				-
Convertible senior notes			358,715				834,440
Long term operating lease liabilities			64,244				74,187
Total long term liabilities			447,732				959,494
Total liabilities			891,918				1,576,475
Shareholders'  Equity
Ordinary shares			94				107
Additional paid-in capital			611,083				862,134
Other comprehensive loss			1,357				9,406
Accumulated deficit			(404,785	)			(621,305	)
Total shareholders' equity			207,749				250,342
Total liabilities and shareholders' equity		$	1,099,667			$	1,826,817

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(audited)				(unaudited)
OPERATING ACTIVITIES:
Net loss		$	(21,573	)		$	(62,789	)		$	(86,414	)		$	(216,520	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			3,347				3,789				12,126				14,610
Amortization			2,385				619				4,588				2,577
Share based compensation expenses			28,473				42,706				109,337				147,313
Amortization of debt discount and debt issuance costs			5,353				11,411				20,938				29,954
Decrease (increase) in accrued interest and exchange rate on short term and long term deposits			17				(69	)			748				(43	)
Amortization of premium and discount and accrued interest on marketable securities, net			(247	)			2,532				(346	)			4,471
Deferred income taxes, net			748				163				935				(3,254	)
Changes in operating lease right-of-use assets			18,225				4,514				18,225				17,867
Changes in operating lease liabilities			(15,376	)			(2,613	)			(15,376	)			(15,807	)
Increase in trade receivables			(956	)			(511	)			(3,459	)			(6,457	)
Decrease (increase) in prepaid expenses and other current and long-term assets			7,656				6,111				(5,168	)			(22,677	)
Increase (decrease) in trade payables			(11,166	)			10,324				(7,560	)			41,967
Increase (decrease) in employees and payroll accruals			(4,563	)			(12,382	)			7,781				25,326
Increase in short term and long term deferred revenues			22,095				23,847				71,397				113,271
Increase in accrued expenses and other current liabilities			6,819				898				21,812				15,451
Net cash provided by operating activities			41,237				28,550				149,564				148,049
INVESTING ACTIVITIES:
Proceeds from short-term deposits and restricted deposits			103,000				93,000				348,775				294,225
Investment in short-term deposits and restricted deposits			(93,000	)			(129,790	)			(296,100	)			(577,000	)
Investment in marketable securities			(138,191	)			(64,940	)			(402,774	)			(763,581	)
Proceeds from marketable securities			71,603				77,320				132,905				277,335
Purchase of property and equipment			(3,650	)			(5,268	)			(21,427	)			(18,403	)
Capitalization of software development costs			(116	)			(112	)			(639	)			(450	)
Investment in other short and long-term assets			(191	)			-				(891	)			(5,643	)
Payment for Businesses acquired			-				-				-				(6,626	)
Proceeds from investments in privately-held companies			-				1,098				-				1,098
Purchases of investments in privately-held companies			(3,600	)			(400	)			(3,862	)			(1,185	)
Net cash used in investing activities			(64,145	)			(29,092	)			(244,013	)			(800,230	)
FINANCING ACTIVITIES:
Proceeds from exercise of options and ESPP shares			7,853				10,944				31,495				39,649
Proceeds from issuance of convertible senior notes			-				-				-				575,000
Payments of debt issuance costs			-				-				-				(15,713	)
Purchase of capped call			-				-				-				(46,000	)
Net cash provided by financing activities			7,853				10,944				31,495				552,936
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(15,055	)			10,402				(62,954	)			(99,245	)
CASH AND CASH EQUIVALENTS—Beginning of period			283,158				158,456				331,057				268,103
CASH AND CASH EQUIVALENTS—End of period		$	268,103			$	168,858			$	268,103			$	168,858

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Creative Subscriptions			171,355				213,745				644,491				783,456
Business Solutions			33,233				68,789				116,597				205,304
Total Revenue		$	204,588			$	282,534			$	761,088			$	988,760
Creative Subscriptions			190,805				236,420				711,763				891,240
Business Solutions			35,878				69,961				120,722				210,791
Total Collections		$	226,683			$	306,381			$	832,485			$	1,102,031
Free Cash Flow		$	37,471			$	23,170			$	127,498			$	129,196
Creative Subscriptions ARR		$	707,202			$	878,036			$	707,202			$	878,036
Number of registered users at period end (*)			165,341				196,747				165,341				196,747
Number of premium subscriptions at period end (*)			4,499				5,494				4,499				5,494
(*) Excludes users and subscriptions of DeviantArt

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Revenues		$	204,588			$	282,534			$	761,088			$	988,760
Change in deferred revenues			22,095				23,847				71,397				113,271
Collections		$	226,683			$	306,381			$	832,485			$	1,102,031

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Creative Subscriptions Revenue		$	171,355			$	213,745			$	644,491			$	783,456
Change in deferred revenues			19,450				22,675				67,272				107,784
Creative Subscriptions Collections		$	190,805			$	236,420			$	711,763			$	891,240

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Business Solutions Revenue		$	33,233			$	68,789			$	116,597			$	205,304
Change in deferred revenues			2,645				1,172				4,125				5,487
Business Solutions Collections		$	35,878			$	69,961			$	120,722			$	210,791

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
(1) Share based compensation expenses:		(unaudited)								(unaudited)
Cost of revenues		$	1,582			$	3,172			$	5,854			$	9,127
Research and development			14,900				22,170				56,161				76,883
Selling and marketing			4,614				6,774				18,458				22,845
General and administrative			7,377				10,590				28,864				38,458
Total share based compensation expenses			28,473				42,706				109,337				147,313
(2) Amortization			2,385				619				4,588				2,577
(3) Acquisition related expenses			1,868				1,686				2,485				5,811
(4) Amortization of debt discount and debt issuance costs			5,353				11,411				20,938				29,954
(5) Sales tax accrual and other G&A expenses (income)			2,135				2,810				5,309				4,299
(6) Non-operating foreign exchange expenses (income)			1,257				1,925				2,905				2,352
Total adjustments of GAAP to Non GAAP		$	41,471			$	61,157			$	145,562			$	192,306

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit		$	147,353			$	179,227			$	564,181			$	673,061
Share based compensation expenses			1,582				3,172				5,854				9,127
Acquisition related expenses			-				260				-				765
Amortization			1,526				90				1,951				316
Non GAAP Gross Profit			150,461				182,749				571,986				683,269
Non GAAP Gross margin			74	%			65	%			75	%			69	%

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit - Creative Subscriptions		$	137,935			$	163,467			$	523,586			$	615,917
Share based compensation expenses			1,334				2,386				4,994				7,140
Non GAAP Gross Profit - Creative Subscriptions			139,269				165,853				528,580				623,057
Non GAAP Gross margin - Creative Subscriptions			81	%			78	%			82	%			80	%

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Gross Profit - Business Solutions		$	9,418			$	15,760			$	40,595			$	57,144
Share based compensation expenses			248				786				860				1,987
Acquisition related expenses			-				260				-				765
Amortization			1,526				90				1,951				316
Non GAAP Gross Profit - Business Solutions			11,192				16,896				43,406				60,212
Non GAAP Gross margin - Business Solutions			34	%			25	%			37	%			29	%

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Operating loss		$	(17,692	)		$	(55,460	)		$	(80,250	)		$	(197,342	)
Adjustments:
Share based compensation expenses			28,473				42,706				109,337				147,313
Amortization			2,385				619				4,588				2,577
Sales tax accrual and other G&A expenses (income)			2,135				2,810				5,309				4,299
Acquisition related expenses			1,868				1,686				2,485				5,811
Total adjustments		$	34,861			$	47,821			$	121,719			$	160,000
Non GAAP operating income (loss)		$	17,169			$	(7,639	)		$	41,469			$	(37,342	)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Net loss		$	(21,573	)		$	(62,789	)		$	(86,414	)		$	(216,520	)
Share based compensation expense and other Non GAAP adjustments			41,471				61,157				145,562				192,306
Non-GAAP net income (loss)		$	19,898			$	(1,632	)		$	59,148			$	(24,214	)
Basic  Non GAAP net income (loss) per share		$	0.39			$	(0.03	)		$	1.17			$	(0.44	)
Weighted average shares used in computing basic Non GAAP net income (loss) per share			51,321,155				55,809,471				50,504,698				54,425,056

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Net cash provided by operating activities		$	41,237			$	28,550			$	149,564			$	148,049
Capital expenditures, net			(3,766	)			(5,380	)			(22,066	)			(18,853	)
Free Cash Flow		$	37,471			$	23,170			$	127,498			$	129,196
Capex related to future Wix HQ office build-out			-				792				-				2,462
Free Cash Flow, excluding capex related to future Wix HQ office build-out		$	37,471			$	23,962			$	127,498			$	131,658

		Three Months Ended								Year Ended
		December 31,								December 31,
		2019				2020				2019				2020
		(unaudited)								(unaudited)
Basic and diluted weighted average number of shares outstanding			51,321,155				55,809,471				50,504,698				54,425,056
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive:
Stock options			7,447,519				4,621,780				7,447,519				4,621,780
Restricted share units			2,125,440				2,078,427				2,125,440				2,078,427
Convertible Notes (if-converted)			3,104,251				4,428,999				3,104,251				4,428,999
			63,998,365				66,938,677				63,181,908				65,554,262

		Three Months Ended								Year Ended
		March 31, 2021								December 31, 2021
		Low				High				Low				High
Projected revenues			291,000				296,000				1,272,000				1,286,000
Projected change in deferred revenues			49,000				54,000				163,000				169,000
Projected Collections		$	340,000			$	350,000			$	1,435,000			$	1,455,000

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