Day: November 20, 2024

Strong performance of key product initiatives drove third consecutive quarter of bookings growth acceleration – now expect to exit 2024 with y/y bookings growth of 18%

• Continued meaningful growth acceleration with total bookings of $449.8 million in the quarter, up 16% y/y, driven by Studio momentum, AI benefits, robust commerce activity and healthy business fundamentals
• Strengthening tailwinds from key AI innovations – notably, tests demonstrate a 13% conversion uplift in recent Self Creator cohort from AI-powered user onboarding tool
• Total revenue grew to $444.7 million, up 13% y/y, driven by accelerating growth across both Self Creators and Partners
• FCF margin expanded ~170 bps sequentially to 29% in the third quarter, driven by bookings strength and continued operating leverage
• Raising full year bookings, revenue and FCF guidance
  • Expect to achieve 2H bookings growth of 17% y/y vs. 16% previously anticipated and exit the year at 18% y/y bookings growth at high end of guide
• Ample room for further growth acceleration and continued margin expansion in 2025

NEW YORK — Wix.com Ltd. WIX, the leading SaaS website builder platform,¹ today reported financial results for the third quarter of 2024. In addition, the Company provided its outlook for the fourth quarter and an updated outlook for full year 2024. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q3’24 Shareholder Update and other materials.

“The continued momentum and accomplishments achieved this year are a testament to our intense focus on best-in-class innovation,” said Avishai Abrahami, Wix Co-founder and CEO. “Our key growth initiatives are firing on all cylinders and increasingly contributing to growth. First, Studio continues to outperform. Bookings growth attributable to Studio subscriptions accelerated meaningfully q/q as a result of new purchase strength and robust renewal activity. 75% of bookings from new Partners came from Studio accounts, an increase from the previous quarter, as more and larger agencies choose Studio for their projects. Additionally, our AI onboarding process, which includes AI Website Builder, has enabled users to build the websites of their dreams more efficiently than ever before – resulting in a 13% uplift in conversion rate according to tests in the most recent Self Creator cohort. We are also beginning to see early benefits from our growing suite of AI business assistants, including better conversion and improved Care efficiency. While these results are impressive, I am most excited for the new products still on the horizon. These upcoming AI-powered innovations are expected to transform the way merchants manage their businesses, reimagine how our users interact with their customers and continue to enhance the content creation experience. Notably, these will be the first AI capabilities to be monetized directly as we believe they will drive immense value for our users.”

“We delivered another quarter of accelerating top-line growth and FCF margin expansion, underpinned by focused execution of our key strategic initiatives,” added Lior Shemesh, CFO at Wix. “Bookings growth accelerated to 16% y/y in Q3, driven by Studio momentum, ramping benefits from our AI product suite, robust commerce activity and strong business fundamentals. Strong bookings coupled with a stable operating base resulted in FCF margin expanding sequentially to 29% of revenue. Propelled by the impressive performance year-to-date, we are increasing full year bookings, revenue and FCF outlook. We now expect 2H bookings growth to accelerate to 17% y/y compared to the 16% previously anticipated with y/y bookings growth of 18% exiting 2024, due primarily to growing contribution from our key product investments and strong cohort behavior. Even as we are well-positioned to achieve and surpass the Rule of 40 this year, we are not slowing down. We remain committed to making continued progress as I am confident there is still much opportunity for further growth acceleration and ample margin expansion in 2025 and beyond.”

Q3 2024 Financial Results

• Total revenue in the third quarter of 2024 was $444.7 million, up 13% y/y
  • Creative Subscriptions revenue in the third quarter of 2024 was $318.8 million, up 10% y/y
  • Creative Subscriptions ARR increased to $1.31 billion as of the end of the quarter, up 11% y/y
• Business Solutions revenue in the third quarter of 2024 was $125.8 million, up 22% y/y
  • Transaction revenue² was $54.3 million, up 23% y/y
• Partners revenue³ in the third quarter of 2024 was $155.2 million, up 30% y/y
• Total bookings in the third quarter of 2024 were $449.8 million, up 16% y/y
  • Creative Subscriptions bookings in the third quarter of 2024 were $326.6 million, up 15% y/y
  • Business Solutions bookings in the third quarter of 2024 were $123.1 million, up 17% y/y
• Total gross margin on a GAAP basis in the third quarter of 2024 was 68%
  • Creative Subscriptions gross margin on a GAAP basis was 83%
  • Business Solutions gross margin on a GAAP basis was 29%
• Total non-GAAP gross margin in the third quarter of 2024 was 69%
  • Creative Subscriptions gross margin on a non-GAAP basis was 84%
  • Business Solutions gross margin on a non-GAAP basis was 31%
• GAAP net income in the third quarter of 2024 was $26.8 million, or $0.49 per basic share and $0.46 per diluted share
• Non-GAAP net income in the third quarter of 2024 was $89.3 million, or $1.62 per basic share and $1.50 per diluted share

• Net cash provided by operating activities for the third quarter of 2024 was $129.8 million, while capital expenditures totaled $2.1 million, leading to free cash flow of $127.8 million
• Total employee count at the end of Q3’24 was 5,308

____________________
^{1 Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of H1 2024.
2 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.
3 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users (“Agencies”) as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint (“Resellers”). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.
In Q1 2024, the definition was slightly revised to exclude revenue generated from agreements with enterprise users that, by their nature, are more suitable to be categorized under revenue generated by Self Creators. Such revision had an immaterial impact on prior period amounts.}

Financial Outlook

We are increasing our full year bookings outlook to $1,822 – $1,832 million, or 14-15% y/y growth, compared to previous guidance of $1,802 – $1,822 million, or 13-14% y/y growth.
This high end of this updated outlook reflects the expectation that 2H bookings will accelerate to 17% y/y, compared to previous guidance of 16%, and y/y bookings growth to exit the year at 18%.

We are also updating our full year revenue outlook to $1,757 – $1,764 million, or 13% y/y, compared to $1,747 – $1,761 million previously.

We expect total revenue in Q4’24 of $457 – $464 million, or 13-15% y/y growth.

For the full year 2024, we now expect non-GAAP total gross margin of approximately 69%, slightly up from the 68-69% previously anticipated with non-GAAP Business Solutions gross margin still to exceed 30%. We also now expect non-GAAP operating expenses to be approximately 49% of revenue for the full year, down from approximately 50% previously.

As a result of our increased bookings expectation for the full year coupled with stable operating costs anticipated, we now expect to generate free cash flow, excluding headquarters costs, of $483 – $488 million, or 27-28% of revenue, in 2024, up from $460 – $470 million, or 26-27% of revenue.

The high end of our increased growth and profitability expectations would allow us to exceed the Rule of 40 this year, a full year ahead of our original plan presented to shareholders. Even with the earlier-than-expected achievement of this target, there is still room for further growth acceleration and ample margin expansion in our financial algorithm for 2025 and beyond.

The bookings acceleration in 2024, coupled with compounding tailwinds from Studio and AI as these new innovations continue to mature, are expected to translate into revenue growth acceleration in 2025. Additionally, we have the right employee base and overall cost structure currently in place to support a variety of growth scenarios and so, expect to maintain a stable operating cost trajectory even as growth accelerates next year. As a result, we continue to see room for meaningful FCF margin expansion going forward. The combination of these factors provide confidence in our ability to make progress over and above Rule of 40 as we continue to balance growth and profitability.

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, November 20, 2024. To participate on the live call, analysts and investors should register and join at https://register.vevent.com/register/BId6c8de6013e944adbefcb241fb2d4027. A replay of the call will be available through November 20, 2025 via the registration link.

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/.

About Wix.com Ltd.

Wix is the leading SaaS website builder platform¹ to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users – self-creators, agencies, enterprises, and more – with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients.

For more about Wix, please visit our Press Room

Media Relations Contact: PR@wix.com  

Non-GAAP Financial Measures and Key Operating Metrics

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: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, 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 financial expense, non-GAAP tax expense (collectively the “Non-GAAP financial measures”). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. 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 one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate 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. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

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 bookings, 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) as a key operating metric. 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) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.

Forward-Looking Statements

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, bookings 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 quarterly and annual 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 expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence (“AI”), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. 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.

Third Quarter Revenue Increased 18.6% to ILS 373.1 million; Comparable Store Sales Increased 9.2%; GAAP Net Income (Attributable to Shareholders) Increased 35.3%

First Nine Month Revenue Increased 18.4% to ILS 1.0 billion; Comparable Store Sales Increased 9.0%; GAAP Net Income (Attributable to Shareholders) Increased 37.0%

CAESAREA, Israel, Nov. 20, 2024 /PRNewswire/ — Max Stock Limited MAXO (the “Company”) today reported financial results for the third quarter and nine months ended September 30, 2024.

Third Quarter 2024 Summary

• Revenue increased 18.6% to ILS 373.1 million.
• Comparable store sales increased 9.2%.
• Gross margin was 41.3%.
• GAAP Net income (attributable to shareholders) increased 35.3% to ILS 31.3 million.
• Adjusted Net income¹ (attributable to shareholders) increased 34.8% to ILS 31.3 million.
• Adjusted EPS¹ (attributable to shareholders) increased 34.7% to ILS 0.22.
• Adjusted EBITDA² increased 25.0% to ILS 56.5 million.

First Nine Months 2024 Summary

• Revenue increased 18.4% to ILS 1.0 billion.
• Comparable store sales increased 9.0%.
• Gross margin was 41.7%.
• GAAP net income (attributable to shareholders) increased 37.0% to ILS 83.0 million.
• Adjusted Net income¹ (attributable to shareholders) increased 38.4% to ILS 83.2 million.
• Adjusted EPS¹ (attributable to shareholders) increased 37.5% to ILS 0.59.
• Adjusted EBITDA² increased 28.7% to ILS 144.3.

Note: Totals may be slightly impacted by minor rounding differences.

¹ As used throughout this release, adjusted Net Income (attributable to shareholders) defined as Net Income + Share-based payment, multiplied by the portion attributable to shareholders. Adjusted EPS (attributable to shareholders) is then divided by the number of basic shares.

² As used throughout this release, adjusted EBITDA Pre IFRS 16 defined as Net Income + Income Tax Expenses + Net Interest Expenses + D&A + Other Expenses – the impact of IFRS 16 + Share-based payment. 

“We were pleased to carry our first half momentum into the third quarter, delivering high-teens revenue growth fueled by a high single-digit increase in comparable store sales and successful new store openings over the past 12-months,” said Ori Max, Chief Executive Officer. “This topline performance generated meaningful expense leverage, driving a 25% increase in adjusted EBITDA and a 35% increase in adjusted Net Income. The work we’ve done to simultaneously accelerate sales growth and enhance profitability is underscored by adjusted earnings per share of ILS 0.59 for the first nine months 2024, which eclipsed the ILS 0.58 we reported for the full year 2023. Looking ahead, we remain well-positioned to capitalize on the ongoing consumer shift toward our value-oriented offerings which is adding to our optimism about the growth opportunities that lie ahead for Max Stock.”

Third Quarter Results (2024 compared with 2023)

Revenue increased 18.6% to ILS 373.1 million in the third quarter 2024 as compared with revenue of ILS 314.5 million in the third quarter 2023. The increase over the same period last year was largely attributable to the opening of new branches which added approximately 6,000 net square meters of selling space compared to the year-ago period, combined with a 9.2% increase in comparable store sales largely driven by an increase in store traffic and higher conversion driven by demand for seasonal items, partially offset by a shift in timing of the Jewish New Year holiday into the fourth quarter of 2024, compared to being included in the third quarter of 2023.

Comparable store sales for July – October 2024, which neutralizes the timing of the holidays, was 10.9%. However, October 2023 was impacted by the onset of the Iron Swords war, with negative comparable store sales of ~16%, due to temporary closure of our stores and reduced time schedule throughout the month of October 2023.

Gross profit increased 16.9% to ILS 154.1 million in the third quarter 2024 from ILS 131.8 million in the third quarter 2023. Gross margin was ~41.3% as compared to ~41.9% in the last year period. The 60-basis point decline in gross margin over Q3 2023 was primarily attributable to temporarily higher costs associated with the Company’s distribution facility consolidation.

Selling, general and administrative expenses increased to ILS 99.3 million in the third quarter 2024 from ILS 87.7 million in the third quarter 2023, primarily driven by branch expansion which added incremental expenses related to marketing, salary and the addition of right of use assets. As a percentage of sales, selling, general and administrative expenses decreased approximately 120 basis points to 26.6% in the third quarter 2024, compared with 27.8% in the third quarter 2023, largely due to operating leverage.

GAAP net income (attributable to shareholders) increased 35.3% to ILS 31.3 million.

Adjusted net income attributable to shareholders increased 34.8% to ILS 31.3 million in the third quarter of 2024, as compared with adjusted net income attributable to shareholders of ILS 23.2 million in the third quarter of 2023.

Adjusted EPS attributable to shareholders increased 34.7% to ILS 0.22 per share, in the third quarter of 2024, as compared with adjusted EPS attributable to shareholders of ILS 0.17 per share, in the third quarter of 2023.

Adjusted EBITDA increased 25.0% to ILS 56.5 million in the third quarter of 2024 from ILS 45.2 million in the third quarter of 2023.

First Nine Months 2024 Results

Revenue for the first nine months of 2024 increased 18.4% to ILS 1.0 billion, compared with revenue of ILS 846.9 million in the first nine months of 2023. The increase in revenue was driven by a 9.0% gain in comparable store sales and the sales contribution from new branches. The increase in same stores sales was fueled by an increase in store traffic and higher conversion driven by demand for seasonal items, partially offset by a shift in timing of the Jewish New Year holiday into the fourth quarter of 2024, compared to being included in the third quarter of 2023.

Gross profit increased 19.1% to ILS 418.7 million in the first nine months of 2024 from ILS 351.7 million a year ago. Gross margin was ~41.7% as compared to ~41.5% in the prior year period.

Selling, general and administrative expenses increased to ILS 277.0 million in the first nine months of 2024 from ILS 239.7 million in the first nine months of 2023. The increase in operating expenses was related to branch expansion which added incremental expenses related to marketing, salary and the addition of right of use assets. As a percentage of sales, selling, general and administrative expenses improved 80 basis-points to 27.6% in the first nine months of 2024 compared with 28.4% in the first nine months of 2023.

GAAP net income (attributable to shareholders) increased 37.0% to ILS 83.0 million.

Adjusted net income (attributable to shareholders) increased 38.4% to ILS 83.2 million.

Adjusted EPS¹(attributable to shareholders) increased 37.5% to ILS 0.59 in the first nine months of 2024 as compared with adjusted EPS¹(attributable to shareholders) of ILS 0.43 per share, in the first nine months of 2023.

Adjusted EBITDA² increased 28.7% to ILS 144.3 million in the first nine months of 2024 from ILS 112.1 million in 2023.

Balance Sheet and Cash Flow Highlights

The Company’s cash and cash equivalents balance at September 30, 2024 was ILS 87.2 million compared with ILS 128.9 million at December 31, 2023 and ILS 119.9 million at September 30, 2023. The Company ended the third quarter of 2024 with total debt of ILS 14.6 million compared with total debt of ILS 33.0 million at December 31, 2023 and ILS 31.1 million at September 30, 2023.

Inventories at September 30, 2024 were ILS 221.4 million compared with ILS 144.6 million at December 31, 2023 and ILS 148.6 million at September 30, 2023. The increase in inventories is primarily attributable to the building up of inventories for the opening of new branches.

Conference Call Information

The Company will host a conference call on November 20, 2024 at 8:00 a.m. Eastern Standard Time to discuss third quarter 2024 results (link). The conference call will also be accessible at https://ir.maxstock.co.il/en/event-en/.There will be a slide presentation that accompanies the call. The slides will be accessible at https://ir.maxstock.co.il/en/presentation-en/. An archived webcast of the conference call will be available at https://ir.maxstock.co.il/en/presentation-en/.

About Max Stock

Max Stock is Israel’s leading extreme value retailer, currently present in 64 locations throughout Israel and 2 locations in Portugal. We offer a broad assortment of quality products for customers’ everyday needs at affordable prices, helping customers “Dream Big, Pay Small”. For more information, please visit https://ir.maxstock.co.il                 

Forward-Looking Statements

It should be emphasized that this report includes forward-looking information as defined under the Securities Law, 5728-1968. Forward-looking information is uncertain information regarding the future, including forecasts, projections, estimates or other information which refer to a future event or matter, the eventuation of which is uncertain and/or not within the Company’s control. The forward-looking information included in this report is based on the current information held by the Company or its current assessments, as of the publication date of this report.

Company Contacts:
Talia Sessler,
Chief Corporate Development and IR Officer
talia@maxstock.co.il

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SOURCE Max Stock Limited