Slide 1: Earnings Slides Third Quarter 2020
WixX Earnings Slides Third Quarter 2020 | November 12, 2020
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, cumulative cohort collections, collections on a constant currency basis, revenu
Slide 3: Q3 2020 Results
Q3 2020 Results
Slide 4: Consistent incremental revenue growth
Consistent incremental revenue growth Revenue ($ millions) +28% y/y +29% y/y $972 - 977 Business Solutions $254 $236 Creative Subscriptions $761 $216 $205 $51 $197 $46 $117 $185 $174 $39 $604 $164 $33 $32 $28 $78 $23 $21 $426 $34 $203 $644 $190 $165 $171 $177 $151 $157 $525 $144 $391 Q4'18 Q1'19 Q2'
Slide 5: Strong collections growth
Strong collections growth… Collections ($ millions) +31-32% y/y +36% y/y $1,090 – 1,100 Business Solutions $281 $266 Creative Subscriptions $249 $832 $53 $227 $48 $40 $121 $200 $200 $206 $36 $658 $176 $23 $29 $32 $78 $20 $484 $35 $218 $228 $209 $712 $191 $177 $170 $174 $580 $156 $449 Q4'18 Q1'19 Q2'
Slide 6: Combined with robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow ($ millions) Significant increase in marketing investment beginning in Q2 in response to elevated demand; expected to drive $122 - 127 future revenue and collections growth $47 $127 $40 $102 $37 $33 $31 $30 $29 $71 $19 Q4'18 Q1'19 Q2'19
Slide 7: Consistent ARR expansion
Consistent ARR expansion ($ millions) +24% y/y $841 $791 $707 $739 $648 $680 $587 $622 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Note: Annualized Recurring Revenue (ARR) is calculated as Monthly Recurring Revenue (MRR) multiplied by 12. MRR is calculated as the total of (i) all active Creative
Slide 8: Increasing monetization of user cohorts
Increasing monetization of user cohorts Cumulative Collections from Q1 User Cohorts ($ millions) Building on momentum of strong base of larger user cohorts: $160 Collections y/y growth of Q1 and Q2 2020 $140 $140 $136 user cohorts accelerated in Q3 $127 $126 $127 $120 Older cohorts sustain strong y/
Slide 9: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 19 Quarters … After 15 Quarters … After 11 Quarters 5.4x 4.4x … After 7 Quarters 2.9x … After 3 Quarters 1.7x 0.9x $140 $136 $127 $91 $57 $55 $50 $44 $32 $25 Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 Cohor
Slide 10: Existing cohorts are a growing source of future collections
Existing cohorts are a growing source of future collections Actual and Potential Future Collections From Q1’10 – Q3’20 Cohorts $9.2 Billion Expected future collections over next 8 years from existing cohorts (up 43% y/y) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: Data represents ac
Slide 11: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) and Q3’20 Y/Y Growth 12% North America +35% Y/Y 6% Europe +25% Y/Y 57% Latin America +7% Y/Y 25% Asia and others +23% Y/Y North America Europe Latin America Asia and others Note: Q3’20 Revenue by Geography and Y/Y change
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2018 2019 2020 2017 2018 2019 in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY Revenues $164,197 $174,290 $185,419 $196,791 $204,588 $215,987 $236,059 $254,180 $425,636 $603,704 $761,088 Change in deferred revenues $11,861 $26,089 $14,144 $9,069 $22,095
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2018 2019 2020 2017 2018 2019 in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY Net cash provided by operating activities $36,055 $35,074 $37,180 $36,073 $41,237 $45,027 $49,958 $24,514 $83,052 $115,709 $149,564 Capital expenditures, net $ (3,391) $ (5,02