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Wix Reports Strong Second Quarter 2017 Results Above Expectations; Expands Market Potential with Introduction of Wix Code

NEW YORK--(BUSINESS WIRE)--

Wix.com Ltd. (WIX), a leading cloud-based web development platform, today reported another strong quarter of financial results for the second quarter ended June 30, 2017, again exceeding the high end of guidance on all key metrics.

“Our focus on product development and innovation once again resulted in a strong quarter,” said Avishai Abrahami, Co-founder and CEO of Wix. “With the addition of Wix Code, we now have a product targeted specifically to creators, designers and developers. This is a remarkable product that significantly expands our addressable market to those who want to build complex web applications that can be tailored for any business need. With Wix ADI, the Wix Editor, our vertical applications and now Wix Code, Wix provides a product set that can be used by any user, regardless of skill set, to create anything online.”

Lior Shemesh, CFO of Wix, commented, “We generated record collections and revenue this quarter driven by year-over-year growth in new registered users and conversion to premium subscriptions. Free cash flow grew significantly as we continue to realize operating leverage over our operating expenses. We believe we will continue to drive growth and gains in operating leverage through the second half of 2017.”

Q2 2017 Financial Summary

Three months ended
June 30,

$ in thousands 2017 2016 Y/Y growth

Prior Q2 2017
Outlook

Revenue $ 103,522 $ 68,730 51% $ 101,000 - 102,000
Collections $ 117,121 $ 81,453 44% $ 116,000 - 117,000
Operating Income (Loss) $ (10,563) $ (10,490) NM

Non-GAAP Operating Income (Loss)

$ 3,516 $ (2,980) NM

Net Cash Provided by Operating Activities

$ 19,651 $ 11,314 74%
Free Cash Flow $ 17,412 $ 10,185 71%

Additional Q2 2017 Results and Highlights

  • Gross margin on a GAAP basis was 83%, compared to 84% in the second quarter of last year. The decline in the second quarter was due to additional amortization of intangibles related to recent acquisitions. Non-GAAP gross margin, calculated as non-GAAP gross profit as a percent of revenue, was 84%, compared to 85% in the second quarter of last year. Non-GAAP gross margin represents GAAP gross profit adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization divided by revenue.
  • GAAP net loss was $(14.3) million, or $(0.31) per share, compared to a net loss of $(11.4) million, or $(0.28) per share for the second quarter of 2016
  • Non-GAAP net loss was $(0.2) million, or $(0.00) per share, compared to a non-GAAP net loss of $(3.7) million, or $(0.09) per share for the second quarter of 2016
  • Net cash provided by operating activities for the second quarter of 2017 was $19.7 million, while capital expenditures totaled $2.2 million, leading to free cash flow of $17.4 million, compared to $10.2 million in the second quarter of last year
  • Added 192,000 net premium subscriptions in the period – our second highest net additions ever – to reach...

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