Today, Wix reported excellent results, with second quarter revenues totaling $184 million, up 27% from Q2 of last year. Collections totaled $199 million, up 25% from last year. Both numbers were higher than the company’s previous guidance. Cumulative collections from H1 ’19 user cohorts were up 9% Y/Y, compared to the H1 ’18 user cohorts through first half of the year.
Gross margin on a GAAP basis in the second quarter of 2019 was 75%, compared to 79% in the second quarter of 2018.
Non-GAAP gross margin in the second quarter of 2019, calculated as non-GAAP gross profit as a percent of revenue, was 76%, compared to 80% in the second quarter of 2018.
GAAP net loss in the second quarter of 2019 was $(16.7) million, or $(0.33) per share, compared to a net loss of $(5.6) million, or $(0.12) per share, for the second quarter of 2018.
Non-GAAP net income in the second quarter of 2019 was $17.0 million, or $0.34 per share, compared to non-GAAP net income of $13.8 million, or $0.29 per share for the second quarter of 2018.
Net cash provided by operating activities in the second quarter of 2019 was $37.2 million, while capital expenditures totaled $6.4 million, leading to free cash flow of $30.8 million, compared to $23.9 million of free cash flow in the second quarter of 2018, a 29% year-over-year increase.
Added 132,000 net premium subscriptions during the second quarter of 2019 reaching 4.3 million as of June 30, 2019, a 17% increase over the total number of premium subscriptions at the end of the second quarter of 2018.
While on a GAAP basis, due to the subscription model of the business, Wix continues to lose money, in reality Wix is now very profitable, as can be seen from its large, free cash flow.
“Our ongoing strong top line performance reflects success across multiple growth drivers, including vast improvements to our overall product offering and increasing adoption of complementary products. These results validate the increasing value we provide to our evolving user base. We have made tremendous progress with multiple new initiatives, and I
believe these will drive growth in the second half of this year and beyond,” said Avishai Abrahami, Co-founder and CEO of Wix.
Lior Shemesh, CFO of Wix, said, “We continue to grow the value of our user base through new product offerings and increasing monetization. We now expect future collections of existing user cohorts to be $5.9 billion over the next eight years, which is an increase of 28% Y/Y. Our results continue to show the strength of our financial model and our ability to drive profitable growth, which we believe will continue through this year and for many years to come.”