Slide 1: Third Quarter 2016 Earnings Results
Click here to edit the name of your presentation Third Quarter 2016 Earnings Results 1
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements This presentation 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 regard
Slide 3: Key Metrics: Q3'16
Key Metrics: Q3’16 Registered Users Premium Subscriptions Collections (mn) (000s) ($mn) 2,294 92.4 $87.3 42% 28% 40% Y/Y Y/Y Y/Y 72.3 1,643 $61.6 Q3'15 Q3'16 Q3'15 Q3'16 Q3'15 Q3'16 Improvement Improvement in Conversion in ACPS 3
Slide 4: Q3 2016 Highlights
Q3 2016 Highlights • GAAP revenue of $75.6mn, 41% Y/Y growth, exceeding prior guidance of $72-73mn • Collections of $87.3mn exceeded prior guidance of $83-84mm; 42% Y/Y growth was unchanged from last quarter • Net premium subscription were 174,000; Total subscriptions are up 40% Y/Y to 2.3mn • Adjus
Slide 5: Users and Subscriptions
Users and Subscriptions 28% 40% Y/Y Y/Y Registered Users Premium Subscriptions (mn, at End of Period) (000s, at End of Period) 92 2,294 87 82 2,121 77 1,938 72 68 1,767 1,643 63 58 1,503 50 1,371 50 46 1,233 42 1,125 39 1,019 36 908 32 790 28 707 25 627 22 549 20 470 17 14 338378414 11 298 223266 Q2
Slide 6: Collections and Revenue
Collections and Revenue Collections 42% Revenue 41% ($mn) Y/Y ($mn) Y/Y $87 $76 $81 $69 $76 $62 $67 $57 $62 $54 $57 $56 $49 $45 $45 $38 Q3'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q3'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 6
Slide 7: Constant Currency Collections
Constant Currency Collections CC-Collections 43% ($mn) Y/Y $88 $82 $77 $71 $66 $62 $60 $51 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 7
Slide 8: Deferred Revenue Growth
Deferred Revenue Growth Deferred Revenue 51% Revenues 41% ($mn) Y/Y ($mn) Y/Y $143 $76 $132 Deferred Revenue nearly all $119 realized over next 12 months $69 $105 $62 $95 $87 $57 $78 $54 $49 $59 $45 $38 Q3'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q3'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 8
Slide 9: Consistent Behavior
Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts New Registered Users 190,705 1Q16 5,305,726 147,843 1Q15 4,568,323 126,962 120,670 1Q14 4,089,253 102,980 1Q13 92,019 3,714,472 80,009 1Q12 62,071 2,651,656 1Q11 33,747 34,751 1,833,897 29,612 26,953 1Q10 18,513 18,413 919,221 1 2
Slide 10: Shift to Long Term Subscriptions
Shift to Long Term Subscriptions • Lower Promotional Activity of Annual Duration Packages % of New Subscriptions • User Funnel Optimization Generated Incremental Monthly % of Total Subscriptions 77% 79% 77% Subscriptions 74% 73% 75% 75% 64% 65% 17% 36% 35% 27% 83% 26% 25% 23% 23% 25% 21% Q3'14 Q4'14
Slide 11: Ongoing Cohort Conversions
Ongoing Cohort Conversions % of New Subscriptions by Prior and Current User Cohorts 64% 62% 63% 62% 61% 60% 60% 60% 58% 40% 42% 40% 40% 39% 38% 37% 38% 36% Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Prior user cohorts Current user cohort Note: Data as of September 30, 2016 11
Slide 12: Growing Base of Cohort Collections
Growing Base of Cohort Collections Annual collections by user cohort ($mn) 2010-2014 User Cohort Collections $300 In 2014: $167mn $250 In 2015: $182mn1 $200 $150 $100 $50 $0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 12015 collections are constant currency assuming FX rates remained
Slide 13: Marketing Efficiency
Marketing Efficiency … After 15 Quarters … After 19 Quarters One Time Marketing, Ongoing Monthly Collections … After 11 Quarters 5.7x 5.5x 3.1x $25 To Date … After 7 Quarters $46 $5 2.1x $54 $33 To Date Q1’12 Cohort … After 3 Quarters To Date 1.0 x $33 $40 $8 To Date To Date $33 $18 To Date Q1’13 Co
Slide 14: Increasing Collections per Subscription
Increasing Collections per Subscription $150 $145 $141 $132 $133 $133 $132 $131 $132 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Avg. Collection per New Annual Subscription Note: Based on New Annual Subscriptions in the US 14
Slide 15: Increasing Geographic Penetration
Increasing Geographic Penetration Revenue by Geography (% of Total) 9% 14% 47% Y/Y 3% 17% 9% 31% Y/Y 27% 44% Y/Y Growth Rate vs. Q3’15 (Constant currency basis) 71% 42% Y/Y 50% 2010 Q3'161 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y change based on constant FX ra
Slide 16: Amazing Sites Built with Wix ADI
Amazing Sites Built with Wix ADI 16
Slide 17: Non GAAP Financial Results
Non GAAP Financial Results (in 000s) 2011 2012 2013 2014 2015 Q3’15 Q3’16 Y/Y% Collections $29,648 $52,479 $98,673 $171,255 $241,687 $61,580 $87,270 42% Revenues $24,600 $43,676 $80,473 $141,841 $203,518 $53,582 $75,611 41% Gross Margin % 79% 79% 82% 82% 83% 84% 86% R&D expenses $12,807 $16,229 $26,
Slide 18: Appendix
APPENDIX 18
Slide 19: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP (in 000s) 2011 2012 2013 2014 2015 Q3’15 Q3’16 Revenues $24,600 $43,676 $80,473 $141,841 $203,518 $61,580 $75,611 Change in 5,048 $8,803 $18,200 $29,414 $38,169 $7,998 $11,659 Deferred Revenues Collections 29,648 $52,479 $98,673 $171,255 $241,687 $53,582 $87,270 19
Slide 20: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP (in 000s) 2011 2012 2013 2014 2015 Q3’15 Q3’16 GAAP Operating Loss ($22,360) ($14,961) ($26,523) ($55,643) ($48,635) ($10,370) ($9,032) Adjustments: Realized losses (gains) on - - ($156) $281 $3,492 $818 $64 hedging transactions Depreciation $592 $871 $1,229 $2,662
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP (in 000s) 2011 2012 2013 2014 2015 Q3’15 Q3’16 GAAP Gross Profit $19,310 $34,443 $65,216 $115,733 $168,548 $44,420 $64,587 Stock-based Compensation $40 $105 $490 $1,005 $1,353 $428 $466 Non-GAAP Gross Profit $19,350 $34,548 $65,706 $116,738 $169,901 $44,848 $65,053