Wix Results Presentation Deck
We re-affirm the additional FY 2018 guidance that we provided previously, unless
noted.
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Non-GAAP gross margin: we expect non-GAAP gross margin of
approximately 80% of revenue, which is lower than 2017 due to the
impact of the Google agreement accounting change. This is in line with
previous guidance
Non-GAAP Sales and Marketing Expenses: we expect S&M expense
on a non-GAAP basis to be 35-36% of collections for the full year 2018,
in line with previous guidance
Non-GAAP Operating Expenses: we expect total non-GAAP operating
expenses to be 66-67% of collections for FY 2018, in line with previous
guidance
FX rates: our guidance for revenue, collections, operating expenses and
free cash flow assume current FX rates throughout the period
O We have taken advantage of the strengthening US Dollar against
the New Israeli Shekel and put in place hedges through December
2018. These hedges give us downside protection on our free cash
flow
Financial income and expenses: due to the issuance of the Convertible
Notes, we are updating our guidance for financial income and expense.
For H2 2018, we anticipate that we will generate ~$6M in interest income.
Note that this income will not necessarily be realized in cash flow in the
H2. We are unable to predict financial income and expenses related to
hedging activity and rate differences that might cause significant
fluctuation in the overall financial income and expenses. On a GAAP basis
we will recognize the convertible bond amortization of the debt discount
and issuance costs, and this expense will be ~$9M in 2H 2018. Please
see "Additional Items" for additional detail
WIX.com
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Additional 2018 Guidance
Non-GAAP gross margin
80% of revenue
for FY 2018
Non-GAAP sales & marketing expense
35-36% of collections
for FY 2018
Total Non-GAAP operating expenses
66-67% of collections
for FY 2018View entire presentation