Slide 1: Earnings Slides Third Quarter 2019
EARNINGS SLIDES Third Quarter 2019 November 14th 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, cumulative cohort collections, collections on a constant currency basis, revenue
Slide 3: Q3 2019 Results
Q3 2019 Results
Slide 4: Strong revenue growth
Strong revenue growth Revenue ($ millions) 26% 26% Y/Y Y/Y $761 -763 Note: 2019 guidance as provided on November 14, 2019 4
Slide 5: Strong collections growth
Strong collections growth… 26% Y/Y Collections ($ millions) 26% $828 Y/Y -831 Note: 2019 guidance as provided on November 14, 2019 5
Slide 6: Robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow* ($ millions) 22- 24% Y/Y 23% $124 Y/Y -126 Note: 2019 guidance as provided on November 14, 2019 *Net cash provided by operating activities for Q3 2019 was $36.1 million, while capital expenditures totaled $6.8 million, leading to free ca
Slide 7: User and subscription bases continue to grow
User and subscription bases continue to grow Registered Users 17% Premium Subscriptions 15% (millions, at End of Period) Y/Y (millions, at End of Period) Y/Y Note: Users and Subscriptions do not include Flok, DeviantArt, Wix Answers or Wix Logo Maker. Beginning in Q1 2019, in reporting Registered Us
Slide 8: Increasing monetization of user cohorts
The growth in cumulative collections continues to accelerate. Collections for Increasing monetization of user cohorts the first 3 quarters of Q1’19 cohort were $45M -- 10% higher than the first Cumulative Collections from Q1 User Cohorts ($ millions) 3 quarters of Q1’18 $107M $108M $45M $105M $104M $4
Slide 9: Continued growth of ARPS
ACPS1 is an early indication of success in Continued growth of ARPS driving even higher $ per sub Average Annual Revenue per Subscription Note: ARPS is defined as total revenue over last four quarters / average number of premium subscriptions over last four quarters. Subscriptions do not include Flok
Slide 10: Consistent cohort behavior over the long term
Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts New Registered Users Q1’19 – 6.6M Q1’18 – 5.9M Retention among cohorts remains strong, 266K even in light of recent pricing changes 214K 233K Q1’17 – 5.9M 213K Q1’16 – 5.3M 194K 179K Q1’15 – 4.6M 156K Q1’
Slide 11: 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 – Q3’19 Cohorts $6.1 Billion Future collections from existing cohorts (up 24% y/y) Note: Data represents actual Collections from Q1’10 – Q3’19; cohorts since creation and forecasted future
Slide 12: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 19 … After 15 … After 11 Quarters Quarters Quarters 4.4x 5.5x … After 7 3.3x Quarters … After 3 1.9x Quarters 0.8x Marketing Cost ($ million) Cohort Net Collections ($ million) Note: Data as of September 30, 20
Slide 13: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions Note: Subscriptions do not include Flok, DeviantArt, Wix Answers or Wix Logo Maker Note: Data as of September 30, 2019 13
Slide 14: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts Note: Subscriptions do not include Flok, DeviantArt, Wix Answers or Wix Logo Maker 14
Slide 15: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 23% Y/Y 13% Y/Y 25% Y/Y Growth Rate vs. Q3’18 (Constant currency basis) 31% Y/Y Note: Q3’19 Revenue by Geography and Y/Y change based on constant FX rates from Q3’18 15
Slide 16: Appendix
APPENDIX
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Note: non-GAAP items exclude the impact of share-based compensation expense, amortization, amortization of debt discount and debt issuance costs and acquisition-related expense. Numbers may not add due to rounding. 17