Slide 1: Earnings Slides
EARNINGS SLIDES
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), free cash flow, non-GA
Slide 3: Q2 2018 Results
v e @& Q2 2018 Results ® a
Slide 4: Strong revenue growth
Strong revenue growth Revenue ($ millions) 40- 41% 41% Y/Y Y/Y $146 $597- $138 599 $119 $111 $426 $104 $93 $84 $290 $76 $69 $204 $142 $80 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2013 2014 2015 2016 2017 2018E Note: 2018 guidance as provided on July 25, 2018; Q1’18 and 2018E revenue bas
Slide 5: Strong collections growth
Strong collections growth Collections ($ millions) 37% 36% Y/Y Y/Y $656- $160 $160 660 $132 $484 $120 $115 $117 $342 $98 $87 $242 $81 $171 $99 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2013 2014 2015 2016 2017 2018 Note: 2018 guidance as provided on July 25, 2018 5
Slide 6: Accelerating free cash flow generation
Accelerating free cash flow generation Free Cash Flow* ($ millions) 43- 37% 46% Y/Y Y/Y $24 $101- 103 $21 $20 $19 $19 $17 $71 $15 $10 $9 $36 $15 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 2015 2016 2017 2018E Note: 2018 guidance as provided on July 25, 2018 *Net cash provided by operating
Slide 7: User and subscription bases are growing
User and subscription bases are growing 20% 28% Y/Y Y/Y Registered Users 131 Premium Subscriptions 3.7 125 (millions, at End of Period) 119 (millions, at End of Period) 3.5 114 3.2 109 3.1 103 97 2.9 92 2.7 87 2.5 82 2.3 77 72 2.1 68 1.9 63 1.8 50 1.6 54 1.5 50 46 1.4 42 1.2 39 1.1 36 1.0 0.9 0.8 0.
Slide 8: ARPS is increasing
ARPS is increasing Average Annual Revenue per Subscription $157 $154 $150 $146 $143 $139 $137 $133 $133 $133 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Note: ARPS is defined as total revenue over last four quarters / average subscriptions over last four quarters. Subscriptions does
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 259,993 Q1’18 - 5,925,513 213,370 217,582 Q1’17 - 5,875,165 178,663 Q1’16 - 5,305,726 168,831 Q1’15 - 4,568,323 132,358 126,962 Q1’14 - 4,089,253 112,528 102,980 Q1’13 - 3,714,472 92,
Slide 10: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 18 Quarters … After 14 Quarters 4.9x … After 10 Quarters 4.1x $86 $33 To Date … After 6 Quarters 3.1x $78 To$33 Date $40 … After 2 Quarters 2.0x $33 To Date To Date $75 To To Date Date 0.8x $33 To$64 Date $19
Slide 11: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 75% 70% 67% 68% 65% 65% 67% 67% 64% 18% 35% 35% 36% 33% 32% 33% 33% 30% 25% 82% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Data as
Slide 12: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 62% 63% 63% 62% 61% 60% 59% 60% 59% 40% 41% 40% 41% 39% 38% 37% 37% 38% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Prior user cohorts Current user cohort Note: Data as of June 30, 2018 12
Slide 13: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 14% 38% Y/Y 3% 17% 9% 29% Y/Y 25% 37% Y/Y Growth Rate vs. Q2’17 (Constant currency basis) 71% 52% 42% Y/Y 2010 Q2'18 1 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y change based on co
Slide 14: Appendix
i APPENDIX ® _ < 4 @
Slide 15: Non-GAAP Financial Results
Non-GAAP Financial Results 2017 2018 Full Year in 000s Q2 Q2 2016 2017 Revenues $103,522 $146,132 $290,103 $425,636 Collections $117,121 $159,895 $342,069 $483,989 Non-GAAP Gross Profit $87,232 $116,924 $246,614 $359,708 Gross Margin % 84% 80% 85% 85% Non-GAAP R&D expenses $29,165 $37,802 $87,570 $1
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 2018 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue $61,586 $68,730 $75,611 $84,176 $92,538 $103,522 $111,031 $118,545 $137,775 $146,132 Change in deferred revenue $14,108 $12,723 $11,659 $13,476 $22,008 $13,599 $9,088 $13,658 $21,880 $13,763 Coll
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 2018 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Research and development (GAAP) $24,472 $25,483 $26,536 $28,877 $32,669 $36,749 $40,252 $43,965 $46,502 $48,492 Share Based Compensation $3,111 $3,558 $3,718 $4,156 $4,726 $6,586 $7,190 $7,725 $8,485 $9,
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 2018 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Operating Loss ($19,768) ($10,490) ($9,032) ($4,742) ($20,471) ($10,563) ($11,454) ($7,523) ($18,452) ($6,507) Share Based Compensation $6,137 $6,927 $7,164 $7,820 $8,982 $11,979 $13,035 $13,704 $15