OREANDA-NEWS. Wix.com Ltd. (Nasdaq:WIX), a leading global software platform for small businesses to operate online, today reported another strong quarter of financial results for the fourth quarter and full year ended December 31, 2016.  In addition, the Company provided its initial outlook and expectations for its financial performance in the first quarter and full year 2017. 

“Our focused investment in technology and our superior marketing execution continue to have a meaningful positive impact on our growth and financial results,” said Avishai Abrahami, Co-founder and CEO of Wix. “In the last twelve months, this strategy delivered innovative products such as Wix ADI and the mobile Wix App, as well as growth in our brand and successful marketing execution, highlighted by our Super Bowl LI campaign. This strategic approach will enable us to further extend our technology leadership, acquire subscriptions efficiently and grow our brand globally in 2017 and beyond.”

Lior Shemesh, CFO of Wix, commented, “The re-acceleration in top line growth this quarter was exceptional -- a direct result of the improvement in conversion of registered users to premium subscriptions and higher collections per new subscriptions due to record adoption of our vertical solutions. The stronger than expected inflection to Q4 non-GAAP profitability highlights the flexibility and scalability of our low, fixed-cost model. We expect to deliver continued top line growth and higher free cash flow in 2017 and beyond by further leveraging our investments in technology and marketing.”

Q4 2016 and Full Year 2016 Financial Summary

      Three months ended
Dec 31,		        
$ in thousands      2016     2015    Y/Y
growth		   Prior Q4 2016
Outlook
Revenue     $84,176   $56,831   48%   $81,000 - 82,000
Collections     $97,652   $66,870   46%   $93,000 - 94,000
Operating Loss     $(4,742)   $(10,163)   NM    
Non-GAAP Operating Profit (Loss)     $3,879   $(4,417)   NM    
Adjusted EBITDA     $17,877   $7,025   154%   $14,000 – 15,000
Free Cash Flow     $18,683   $8,397   122%    
                     
      Twelve months ended
Dec 31,		        
$ in thousands      2016     2015    Y/Y
growth		   Prior 2016
Outlook
Revenue     $290,103   $203,518   43%   $287,000 - 288,000
Collections     $342,069   $241,687   42%   $337,000 - 338,000
Operating Loss     $(44,032)   $(48,635)   NM    
Non-GAAP Operating Loss     $(12,529)   $(29,266)   NM    
Adjusted EBITDA     $42,588   $14,721   189%   $38,500 – 39,500
Free Cash Flow     $36,158   $14,534   149%    
                           

Q4 2016 Results and Highlights

  • Revenue increased 48% to $84.2 million compared to $56.8 million for the fourth quarter last year 
  • Collections increased 46% to $97.7 million compared to $66.9 million for the fourth quarter last year
  • Gross margin on a GAAP basis was 85% compared to 83% in the fourth quarter of last year. Non-GAAP gross profit was 87% of collections compared to 85% in the fourth quarter of last year
  • GAAP operating loss was $4.7 million compared to loss of $10.2 million in the fourth quarter a year ago. On a non-GAAP basis, operating income was $3.9 million compared to an operating loss of $4.4 million in the fourth quarter last year
  • GAAP net loss was $6.2 million, or $(0.14) per share, compared to a net loss of $11.3 million, or $(0.28) per share for the fourth quarter of 2015
  • Non-GAAP net income was $2.7 million, or $0.06 per share, compared to a non-GAAP net loss of $5.4 million, or $(0.13) per share for the fourth quarter of 2015
  • Adjusted EBITDA was $17.9 million compared to $7.0 million for the fourth quarter of 2015
  • Free cash flow was $18.7 million compared to $8.4 million for the fourth quarter of 2015
  • Added 171,000 net premium subscriptions in the period to reach 2.5 million as of December 31, 2016, a 39% increase over the fourth quarter of 2015
  • Added 5.0 million registered users in the fourth quarter. Registered users as of December 31, 2016 were 97.0 million, representing a 27% increase compared to the fourth quarter of 2015

Recent Business Highlights

  • Acquired flok to Enhance CRM Technology: Wix acquired flok, a customer loyalty and engagement platform. flok's solutions are designed to increase customer value, generate organic referrals and boost small and medium businesses' online presence and reputation. The move supports Wix's strategic plan to increase its portfolio of business technology solutions providing small and medium businesses easy ways to engage and reward their customers.
     
  • Announced Integration with Square: Wix announced a partnership with Square to give Wix merchants and entrepreneurs in North America a new way to transact. The Square integration improves payment processing and allows both online and in-person payments via a mobile device based POS. In addition, a user can create a stunning Wix Store and, with a few clicks, manage its store and its catalog on the Wix App with the ability to accept payments online or in-person with Square.
     
  • Launched #DisruptiveWorld campaign around Super Bowl LI:  Wix launched its #DisruptiveWorld campaign in mid-January on YouTube and Facebook Live, the first company to launch a Super Bowl campaign using these live video platforms. The global campaign, starring Jason Statham and Gal Gadot, included numerous videos, user engagement opportunities, contests and social activations and was highlighted by a 30-second spot during the fourth quarter of Super Bowl LI.  According to Visible Measures, Wix videos garnered more views online than any other brand prior to the airing of the Super Bowl.?
     
  • Wix Mobile Growth:  Wix users have created over 22 million mobile sites to date, making Wix one of the largest mobile site development platforms globally.
     
  • Global E-commerce Platform: E-commerce subscriptions reached 332,000 during the quarter. Growth of e-commerce and transaction-enabled websites continues to exceed overall subscriptions growth, highlighting Wix’s broad reach with small businesses.
     
  • Strong Platform Engagement: Continued engagement with the Wix ecosystem is illustrated by 480 million user contacts saved onto the Wix platform by users.  Leveraging Wix’s MyAccount CRM system, business owners track customer activity data, manage relationships and communicate using Wix ShoutOut, Wix’s email marketing solution.

Financial Outlook

The Company is introducing its outlook for the first quarter of 2017 and for full year 2017 as follows: 

  • For the first quarter of 2017:
      Q1 2017 Outlook   Y/Y growth
Revenue     $89 - $90 million   45% – 46%
Collections     $107 - $109 million   41% – 44%
           
  • For the full year 2017:
      2017 Outlook   Y/Y growth
Revenue     $409 - $411 million   41% – 42%
Collections     $452 - $458 million   32% – 34%
Free Cash Flow     $71 - $72 million   96% – 100%
           

As previously announced, in response to the U.S. Securities and Exchange Commission’s May 2016 Compliance and Disclosure Interpretations on non-GAAP financial measures, beginning with our earnings release for Q1 2017, we do not intend to provide guidance for or report adjusted EBITDA.  We will continue to report free cash flow as a key non-GAAP financial measure of our business.  We believe this change will assist investors in evaluating our ongoing performance and increase the comparability of our results with those of our peer companies. Please refer to the Shareholder Update posted on our investor relations website for a reconciliation of adjusted EBITDA to free cash flow.

Conference Call and Webcast Information

Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, February 15, 2017 to answer questions about the financial and operational performance of the business during the fourth quarter 2016. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. 

To participate on the live call, analysts and investors should dial 866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call.  A telephonic replay of the call will be available through February 22, 2017 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 60437734.

Upcoming Investor Conferences

Joe Pollaro, General Manager, US, will present at Cantor Fitzgerald’s 4th Annual Internet & Technology Services Conference in New York on Thursday, February 23, 2017, at 9:50 a.m. EST and at the JMP Securities Technology Conference in San Francisco on Monday, February 27, 2017, at 3:00 p.m. PST.

About Wix.com Ltd.

Wix.com is a leading global software platform for small businesses to operate online with over 100 million registered users worldwide. Wix 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, professionals and individuals to take their businesses, brands and workflow online. Wix ADI, the Wix Editor and a highly curated App Market enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Be'er Sheva, San Francisco, New York, Miami, Berlin, Vilnius and Dnepropetrovsk.

Non-GAAP Financial Measures

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, collections and revenue on a constant currency basis, adjusted EBITDA, non-GAAP operating loss, free cash flow, non-GAAP net loss and non-GAAP net loss per share (collectively the "Non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period. We adjust collections and revenue to measure them on a constant currency basis by assuming the same exchange rates as the prior period applied to the reported figures in the current period. Non-GAAP operating loss represents operating loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss per share represents non-GAAP net loss divided by the weighted average number of shares used in computing GAAP loss per share. Adjusted EBITDA is defined as cash flow from operations before changes in working capital, prepaid domain registration costs, interest, bank charges and other financial expenses (income), net unrealized losses (gains) on hedging transactions, other income (expenses), taxes on income, and other unusual or non-recurring expenses. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. Beginning with our Q1 2017 earnings release, we do not intend to report or provide guidance for Adjusted EBITDA going forward.  Adjusted EBITDA for 2016 and 2015 in this earnings release have been presented on the same basis.

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 it provides 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 of GAAP to Non-GAAP Financial Measures" table in this press release. This accompanying table has 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 has not reconciled its guidance as to free cash flow to cash flow from operations because it does not provide guidance for cash flow from operations. As items that impact cash flow from operations are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to cash flow from operations is not available without unreasonable effort.

 

Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
         
    Period ended
    December 31,   December 31,
    2015   2016
Assets   (audited)   (unaudited)
Current Assets:        
Cash and cash equivalents   $ 39,226     $ 93,064  
Short term deposits     70,773       78,240  
Restricted cash and deposit     3,851       931  
Trade receivables     6,461       8,279  
Prepaid expenses and other current assets     11,989       17,346  
Total current assets     132,300       197,860  
Property, equipment and software, net        
Long-Term Assets:        
Property and equipment, net     8,734       8,750  
Prepaid expenses and other long-term assets     2,200       2,916  
Intangible assets and goodwill, net     6,199       5,452  
Total long-term assets     17,133       17,118  
         
Total assets   $ 149,433     $ 214,978  
         
Liabilities and Shareholder's Deficiency        
Current Liabilities:        
Trade payables   $ 12,280     $ 20,709  
Employees and payroll accruals     15,210       20,292  
Deferred revenues     100,561       146,987  
Accrued expenses and other current liabilities     20,281       18,963  
Total current liabilities     148,332       206,951  
         
Long term deferred revenues     4,206       9,746  
Long term deferred tax liability     625       518  
Other long-term liabilities     75       -  
Total long-term liabilities     4,906       10,264  
         
Total liabilities     153,238       217,215  
         
Shareholders' Deficiency        
Ordinary shares     64       64  
Additional paid-in capital     192,791       241,657  
Other comprehensive loss     (248 )     (389 )
Accumulated deficit     (196,412 )     (243,569 )
Total shareholders' deficiency     (3,805 )     (2,237 )
         
Total liabilities and shareholders' deficiency   $ 149,433     $ 214,978  
         
Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(In thousands, except loss per share data)
                 
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
                 
Revenue   $ 56,831     $ 84,176     $ 203,518     $ 290,103  
Cost of revenue     9,607       12,738       34,970       45,287  
Gross Profit     47,224       71,438       168,548       244,816  
                 
Operating expenses:                
Research and development     21,901       28,877       77,647       105,368  
Selling and marketing     30,330       40,022       120,010       156,512  
General and administrative     5,156       7,281       19,526       26,968  
Total operating expenses     57,387       76,180       217,183       288,848  
Operating loss     (10,163 )     (4,742 )     (48,635 )     (44,032 )
Financial income (expenses), net     (364 )     (451 )     77       246  
Other income (expenses)     (6 )     (5 )     (11 )     (4 )
Loss before taxes on income     (10,533 )     (5,198 )     (48,569 )     (43,790 )
Taxes on income     772       984       2,765       3,367  
Net loss   $ (11,305 )   $ (6,182 )   $ (51,334 )   $ (47,157 )
                 
Basic and diluted net loss per share   $ (0.28 )   $ (0.14 )   $ (1.30 )   $ (1.12 )
Basic and diluted weighted-average shares used to compute net loss per share     40,116,511       43,907,388       39,408,928       42,032,818  
                 
                 
Wix.com Ltd.
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP STATEMENT OF OPERATIONS
(In thousands)
                 
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
(1) Share based compensation expenses:   (unaudited)   (unaudited)
Cost of revenues   $ 380     $ 429     $ 1,353     $ 1,798  
Research and development     2,852       4,156       9,234       14,543  
Selling and marketing     920       1,213       3,077       4,553  
General and administrative     1,424       2,022       5,069       7,154  
Total share based compensation expenses     5,576       7,820       18,733       28,048  
(2) Amortization     170       187       636       747  
(3) Acquisition related expenses     -       614       -       2,708  
(4) Taxes on income     162       258       611       838  
Total adjustments of GAAP to Non GAAP   $ 5,908     $ 8,879     $ 19,980     $ 32,341  
                 
                 
Wix.com Ltd.
RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)
(In thousands)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Operating loss   $ (10,163 )   $ (4,742 )   $ (48,635 )   $ (44,032 )
Adjustments:                
Share based compensation expenses     5,576       7,820       18,733       28,048  
Amortization     170       187       636       747  
Acquisition related expenses     -       614       -       2,708  
Total adjustments   $ 5,746     $ 8,621     $ 19,369     $ 31,503  
                 
Non GAAP operating income (loss)   $ (4,417 )   $ 3,879     $ (29,266 )   $ (12,529 )
                 
                 
Wix.com Ltd.
ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP COST OF REVENUES
(In thousands)
                 
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Gross Profit   $ 47,224     $ 71,438     $ 168,548     $ 244,816  
Share based compensation expenses     380       429       1,353       1,798  
Gross Profit -Non GAAP     47,604       71,867       169,901       246,614  
                 
Gross margin -Non GAAP     84 %     85 %     83 %     85 %
                 
                 
Wix.com Ltd.
RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER SHARE
(In thousands, except loss per share data)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Net loss   $ (11,305 )   $ (6,182 )   $ (51,334 )   $ (47,157 )
Share based compensation expense and other Non GAAP adjustments     5,908       8,879       19,980       32,341  
Non-GAAP net income (loss)   $ (5,397 )   $ 2,697     $ (31,354 )   $ (14,816 )
                 
Basic  Non GAAP net income (loss) per share   $ (0.13 )   $ 0.06     $ (0.80 )   $ (0.35 )
Weighted average shares used in computing basic Non GAAP net income(loss) per share     40,116,511       43,907,388       39,408,928       42,032,818  
                 
Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Revenues   $ 56,831     $ 84,176     $ 203,518     $ 290,103  
Collections   $ 66,870     $ 97,652     $ 241,687     $ 342,069  
Adjusted EBITDA   $ 7,025     $ 17,877     $ 14,721     $ 42,588  
Number of registered users at period end     76,965       97,359       76,965       97,359  
Number of premium subscriptions at period end     1,767       2,465       1,767       2,465  
                 
                 
Wix.com Ltd.
RECONCILIATION OF REVENUES TO COLLECTIONS
(In thousands)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Revenues   $ 56,831     $ 84,176     $ 203,518     $ 290,103  
Change in deferred revenues     10,039       13,476       38,169       51,966  
Collections   $ 66,870     $ 97,652     $ 241,687     $ 342,069  
                 
                 
Wix.com Ltd.
RECONCILIATION OF COLLECTIONS EXCLUDING FX IMPACT
(In thousands)
                 
    Three Months Ended        
    December 31,        
    2015   2016        
                         
    (unaudited)        
Collections   $ 66,870     $ 97,652          
F/X impact on Q4/16 using Q4/15 rates     -       957          
Collections excluding FX impact   $ 66,870     $ 98,609          
                 
Y/Y%         47 %        
                 
                 
    Three Months Ended        
    September 30,   December 31,        
    2016   2016        
                         
    (unaudited)        
Collections   $ 87,270     $ 97,652          
F/X impact on Q4/16 using Q3/16 rates     -       865          
Collections excluding FX impact   $ 87,270     $ 98,517          
                 
Q/Q%         13 %        
                 
                 
Wix.com Ltd.
RECONCILIATION OF NON-GAAP OPERATING LOSS TO ADJUSTED EBITDA (NON-GAAP)
(In thousands)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Non GAAP operating loss   $ (4,417 )   $ 3,879     $ (29,266 )   $ (12,529 )
Adjustments:                
Realized gains on hedging transactions     516       167       3,492       791  
Depreciation     1,399       890       4,999       4,538  
Change in deferred revenues     10,039       13,476       38,169       51,966  
Change in prepaid domain registration costs     (512 )     (535 )     (2,673 )     (2,178 )
Total adjustments   $ 11,442     $ 13,998     $ 43,987     $ 55,117  
                 
Adjusted EBITDA   $ 7,025     $ 17,877     $ 14,721     $ 42,588  
                 
                 
Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
                 
    Three Months Ended   Year Ended
    December 31,   December 31,
    2015   2016   2015   2016
                                 
    (unaudited)   (unaudited)
Net cash provided by operating activities   $ 9,522     $ 19,714     $ 20,876     $ 40,573  
Capital expenditures, net     (1,125 )     (1,031 )     (6,342 )     (4,415 )
Free Cash Flow   $ 8,397     $ 18,683     $ 14,534     $ 36,158  
                 
                 
Wix.com Ltd.
RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
(In thousands)
                 
    Three Months Ended   Year Ending
    March 31, 2017   December 31, 2017
    Low   High   Low   High
                 
Projected revenues   $ 89,000     $ 90,000     $ 409,000     $ 411,000  
Projected change in deferred revenues     18,000       19,000       43,000       47,000  
Projected collections   $ 107,000     $ 109,000     $ 452,000     $ 458,000  
                 
Wix.com Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
               
               
  Three Months Ended   Year Ended
  December 31,   December 31,
  2015   2016   2015   2016
                               
  (unaudited)   (unaudited)
OPERATING ACTIVITIES:              
Net loss $ (11,305 )   $ (6,182 )   $ (51,334 )   $ (47,157 )
Adjustments to reconcile net loss to net cash used in operating activities:              
Depreciation   1,399       890       4,999       4,538  
Amortization   170       187       636       747  
Share based compensation expenses   5,593       7,820       18,750       28,048  
Tax benefit related to exercise of share options   160       644       609       1,224  
Increase in accrued interest and exchange rate on short term and long term deposits   (59 )     (116 )     (805 )     (669 )
Deferred income taxes, net   (29 )     (537 )     (111 )     (611 )
Decrease (increase) in trade receivables   396       (665 )     (5,411 )     (1,818 )
Decrease (increase) in prepaid expenses and other current and long-term assets   (1,251 )     1,790       (2,597 )     (6,284 )
Increase (decrease) in trade payables   (395 )     3,435       7,483       8,290  
Increase (decrease) in employees and payroll accruals   2,575       (3,189 )     1,565       3,018  
Increase in short term and long term deferred revenues   10,039       13,476       38,169       51,966  
Increase (decrease) in accrued expenses and other current liabilities   2,229       2,161       8,923       (719 )
Net cash provided by operating activities   9,522       19,714       20,876       40,573  
INVESTING ACTIVITIES:              
Proceeds from short-term deposits and restricted deposits   9,346       13,881       60,162       49,392  
Investment in short-term deposits and restricted deposits   (19,965 )     (3,863 )     (82,038 )     (53,270 )
Purchase of property and equipment   (1,125 )     (1,031 )     (6,342 )     (4,415 )
Acquisition of Intangible assets   (450 )     (100 )     (450 )     (100 )
Net cash provided by (used in) investing activities   (12,194 )     8,887       (28,668 )     (8,393 )
FINANCING ACTIVITIES:              
Proceeds from exercise of options and ESPP shares   1,489       6,515       6,818       21,658  
Net cash provided by financing activities   1,489       6,515       6,818       21,658  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (1,183 )     35,116       (974 )     53,838  
CASH AND CASH EQUIVALENTS—Beginning of period   40,409       57,948       40,200       39,226  
CASH AND CASH EQUIVALENTS—End of period $ 39,226     $ 93,064     $ 39,226     $ 93,064  
               
               
Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED EBITDA (NON-GAAP)
(In thousands)
               
  Three Months Ended   Year Ended
  December 31,   December 31,
  2015   2016   2015   2016
                               
  (unaudited)   (unaudited)
Net cash provided by operating activities $ 9,522     $ 19,714     $ 20,876     $ 40,573  
Changes in tax benefit related to exercise of share options   (160 )     (644 )     (609 )     (1,224 )
Changes in accrued interest and exchange rate on short term and long term deposits   59       116       805       669  
Changes in deferred income taxes, net   29       537       111       611  
Changes in trade receivables   (396 )     665       5,411       1,818  
Changes in prepaid expenses and other current and long-term assets   1,251       (1,790 )     2,597       6,284  
Changes in trade payables   395       (3,435 )     (7,483 )     (8,290 )
Changes in employees and payroll accruals   (2,575 )     3,189       (1,565 )     (3,018 )
Changes in accrued expenses and other current liabilities   (2,229 )     (2,161 )     (8,923 )     719  
Change in prepaid domain registration costs   (512 )     (535 )     (2,673 )     (2,178 )
Other expenses   6       5       11       4  
Foreign currency exchange income   (17 )     -       (17 )     -  
Taxes on income   772       984       2,765       3,367  
Acquisition related expenses   -       614       -       2,708  
Interest, bank charges & other financial expenses (income), net   740       1,520       2,172       472  
Unrealized gains on hedging transactions   140       (902 )     1,243       73  
Total adjustments $ (2,497 )   $ (1,837 )   $ (6,155 )   $ 2,015  
               
Adjusted EBITDA $ 7,025     $ 17,877     $ 14,721     $ 42,588