Wix.com Ltd. · NASDAQ:WIX
Wix.com — Q1 2019 Earnings Presentation
21 slides from Wix.com's earnings presentation, May 2019
Slide 1: Earnings Slides First Quarter 2019
EARNINGS SLIDES First Quarter 2019
Slide 2: Safe Harbor
Safe Harbor 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, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (l
Slide 3: Q1 2019 Results
Q1 2019 Results
Slide 4: Strong revenue growth
Strong revenue growth 26% Y/Y Revenue ($ millions) 27% $758 Y/Y -763 $604 $174 $164 $156 $146 $138 $426 $119 $111 $104 $290 $93 $204 $142 $80 2013 2014 2015 2016 2017 2018 2019E Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Note: 2019 guidance as provided on May 16, 2019 4
Slide 5: Strong collections growth
Strong collections growth… 25- 26% Collections ($ millions) Y/Y $822- 26% 830 Y/Y $658 $200 $176 $484 $160 $160 $163 $342 $132 $117 $120 $115 $242 $171 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 2014 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on May 16, 2019 5
Slide 6: Robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow* ($ millions) 20- 24% Y/Y 40% $122- Y/Y 126 $102 $33 $30 $24 $24 $71 $21 $19 $20 $17 $15 $36 $15 2015 2016 2017 2018 2019E Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Note: 2019 guidance as provided on May 16, 2019 Net cash pro
Slide 7: User and subscription bases continue to grow
User and subscription bases continue to grow 19% 21% Y/Y Y/Y Registered Users Premium Subscriptions 4.2 (millions, at End of Period) 148 142 (millions, at End of Period) 4.0 137 3.8 131 3.7 125 3.5 119 3.2 114 3.1 109 103 2.9 97 2.7 92 2.5 87 82 2.3 77 2.1 72 1.9 68 63 1.8 50 1.6 54 1.5 50 1.4 46 1.
Slide 8: Growth driven by user growth, conversion and monetization per subscription
Our growth is driven by user growth, conversion and monetization per subscription User Growth & Conversion Cumulative Cohort Collections Monetization Note: This slide illustrates conceptually how Cumulative Cohort Collections is generated, which is through a combination of user growth, conversion of
Slide 9: Consistent cohort behavior over the long term
Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts New Registered Users The Q1'19 User cohort is the first cohort that Q1’19 – 6.6M reflects the impact of our increasing focus on monetization at the expense of conversion Q1’18 – 5.9M 252K Note: This numbe
Slide 10: Continued growth of ARPS
Continued growth of ARPS ACPS1 is an early indication of success in Average Annual Revenue per Subscription driving even higher $ per sub +25 y/y $217 $200 $174 $176 $178 $164 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 $168 $168 $162 $157 $154 $146 $150 $143 $137 $139 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2
Slide 11: Increasing monetization of user cohorts
Increasing monetization of user cohorts Cumulative Collections from Q1 User Cohorts (in millions) Q1’19 user cohort collections were +9% higher $120 than Q1’18 after 1 quarter $100 $96 $99 $90 $94 $80 $76 $68 Q1’19 $60 Q1’18 Q1’17 Q1’16 $40 $39 Q1’15 $33 Q1’14 $27 Q1’13 $23 $20 Q1’12 Q1’11 Q1’10 $-
Slide 12: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 17 Quarters … After 9 Quarters … After 13 Quarters 5.0x 3.9x … After 5 Quarters 2.9x … After 1 Quarter 1.5x 0.5x $90 $96 $94 $68 $55 $44 $27 $32 $25 $19 Q1'19 Cohort Q1'18 Cohort Q1'17 Cohort Q1'16 Cohort Q1'
Slide 13: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 67% 68% 67% 67% 69% 67% 65% 64% 66% 17% 35% 36% 34% 33% 32% 33% 33% 31% 33% 83% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Subscrip
Slide 14: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 63% 62% 61% 61% 63% 59% 60% 59% 60% 41% 40% 41% 39% 39% 40% 37% 38% 37% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Prior user cohorts Current user cohort Note: Subscriptions do not include Flo
Slide 15: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 13% 26% Y/Y 3% 7% 14% Y/Y 17% 27% 32% Y/Y Growth Rate vs. Q1’18 (Constant currency basis) 71% 53% 31% Y/Y 2010 Q1'19 North America Europe Latin America Asia and others Note: Q1’19 Revenue by Geography and Y/Y change ba
Slide 16: Appendix
APPENDIX
Slide 17: Non-GAAP Financial Results
Non-GAAP Financial Results 2017 2018 2019 2017 2018 in 000s Q1 Q1 Q1 FY FY Revenues $92,538 $137,775 $174,290 $425,636 $603,704 Collections $114,546 $159,655 $200,379 $483,989 $658,385 Non-GAAP Gross Profit $78,209 $109,952 $136,028 $359,708 $481,743 Gross Margin % 85% 80% 78% 85% 80% Non-GAAP R&D e
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Full Year in 000s 2014 2015 2016 2017 2018 Revenue $141,841 $203,518 $290,103 $425,636 $603,704 Change in deferred revenue $29,414 $38,169 $51,966 $58,353 $54,681 Collections $171,255 $241,687 $342,069 $483,989 $658,385 Full Year in 000s 2014 201
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue $92,538 $103,522 $111,031 $118,545 $137,775 $146,132 $155,600 $164,197 $174,290 Change in deferred revenue $22,008 $13,599 $9,088 $13,658 $21,880 $13,763 $7,177 $11,861 $26,089 Collections
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Research and development (GAAP) $32,669 $36,749 $40,252 $43,965 $46,502 $48,492 $49,360 $54,558 $58,183 Share Based Compensation $4,726 $6,586 $7,190 $7,725 $8,485 $9,470 $10,372 $11,090 $12,256 A
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 GAAP Operating Loss ($20,471) ($10,563) ($11,454) ($7,523) ($18,452) ($6,507) ($3,498) ($2,173) ($27,792) Share Based Compensation $8,982 $11,979 $13,035 $13,704 $15,674 $17,769 $18,760 $20,127 $2