Slide 1: Earnings Slides
WiXcom Package-Free Grocery Store 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: Q3 2018 Results
v eo di Q3 2018 Results ® Qe
Slide 4: Strong revenue growth
Strong revenue growth Revenue ($ millions) 40% 41% Y/Y Y/Y $156 $601- $146 602 $138 $119 $426 $111 $104 $93 $290 $84 $76 $204 $142 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 2014 2015 2016 2017 2018E Note: 2018 guidance as provided on November 13, 2018; 2018E revenue based on ASC 606 4
Slide 5: Strong collections growth
Strong collections growth Collections ($ millions) 36% 36% Y/Y Y/Y $163 $160 $160 $658- 660 $132 $484 $120 $117 $115 $342 $98 $242 $87 $171 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 2014 2015 2016 2017 2018E Note: 2018 guidance as provided on November 13, 2018 5
Slide 6: Accelerating free cash flow generation
Accelerating free cash flow generation Free Cash Flow* ($ millions) 43- 25% 46% Y/Y Y/Y $24 $24 $101- 103 $21 $20 $19 $19 $17 $71 $15 $9 $36 $15 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18* 2015 2016 2017 2018E Note: 2018 guidance as provided on November 13, 2018 *Net cash provided by oper
Slide 7: User and subscription bases are growing
User and subscription bases are growing 20% 26% Y/Y Y/Y Registered Users 137 Premium Subscriptions 3.8 131 3.7 (millions, at End of Period) 125 (millions, at End of Period) 119 3.5 114 3.2 109 3.1 103 2.9 97 92 2.7 87 2.5 82 2.3 77 2.1 72 68 1.9 63 1.8 50 1.6 54 1.5 50 1.4 46 42 1.2 39 1.1 1.0 0.9 0
Slide 8: ARPS is increasing
ARPS is increasing Average Annual Revenue per Subscription $162 $157 $154 $150 $146 $143 $139 $137 $133 $133 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 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 271,430 Q1’18 - 5,925,513 218,112 213,370 Q1’17 - 5,875,165 Q1’16 - 5,305,726 178,663 168,821 Q1’15 - 4,568,323 132,192 126,962 Q1’14 - 4,089,253 112,089 102,980 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 19 Quarters … After 15 Quarters 5.1x … After 11 Quarters 4.3x $89 $33 … After 7 Quarters 3.2x To Date $82 2.2x To$33 Date $40 To Date Date … After 3 Quarters To $33 $80 To To Date Date 0.9x $33 To$69 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 70% 67% 68% 65% 65% 67% 67% 66% 64% 18% 35% 35% 36% 34% 33% 32% 33% 33% 30% 82% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 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 63% 63% 62% 61% 61% 60% 59% 60% 59% 40% 41% 40% 41% 39% 39% 37% 37% 38% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Prior user cohorts Current user cohort Note: Data as of September 30, 2018 12
Slide 13: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 13% 38% Y/Y 3% 17% 8% 28% Y/Y 26% 41% Y/Y Growth Rate vs. Q3’17 (Constant currency basis) 71% 53% 43% Y/Y 2010 Q3'18 1 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y change based on co
Slide 14: Appendix
di APPENDIX ® < 4 @
Slide 15: Non-GAAP Financial Results
Non-GAAP Financial Results 2017 2018 Full Year in 000s Q3 Q3 2016 2017 Revenues $111,031 $155,600 $290,103 $425,636 Collections $120,119 $162,777 $342,069 $483,989 Non-GAAP Gross Profit $93,744 $123,867 $246,614 $359,708 Gross Margin % 84% 80% 85% 85% Non-GAAP R&D expenses $32,037 $38,590 $87,570 $1
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Full Year in 000s 2014 2015 2016 2017 Revenue $141,841 $203,518 $290,103 $425,636 Change in deferred revenue $29,414 $38,169 $51,966 $58,353 Collections $171,255 $241,687 $342,069 $483,989 Full Year in 000s 2014 2015 2016 2017 Net cash provided by operatin
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 Q3 Revenue $61,586 $68,730 $75,611 $84,176 $92,538 $103,522 $111,031 $118,545 $137,775 $146,132 $155,600 Change in deferred revenue $14,108 $12,723 $11,659 $13,476 $22,008 $13,599 $9,088 $13,658 $21,880
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 Q3 Research and development (GAAP) $24,472 $25,483 $26,536 $28,877 $32,669 $36,749 $40,252 $43,965 $46,502 $48,492 $49,360 Share Based Compensation $3,111 $3,558 $3,718 $4,156 $4,726 $6,586 $7,190 $7,725
Slide 19: 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 Q3 GAAP Operating Loss ($19,768) ($10,490) ($9,032) ($4,742) ($20,471) ($10,563) ($11,454) ($7,523) ($18,452) ($6,507) ($3,498) Share Based Compensation $6,137 $6,927 $7,164 $7,820 $8,982 $11,979 $13,035
Slide 20: Eye Symmetry
Eye Symmetry Custom surfboard store using Wix Stores, databases, and custom code https://www.eyesymmetry.com/ Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 21: Broadway Tribune
Broadway Tribune News, listings, reviews, and discounts using database collections, repeaters, dynamic pages, custom code https://www.broadwaytribune.com/ Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 22: Unseen Screens
Unseen Screens Screen store using dynamic pages, datasets, and custom code to view customized products https://www.floridaphantom.com/ Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 23: Pledgenomics
Pledgenomics Kickstarter for community projects using databases, custom code, Stripe & Mailchimp APIs https://www.pledgenomics.com/ Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 24: Kenneth Winston
Kenneth Winston Wedding dress store using databases, dynamic pages, related styles, custom code https://www.kennethwinston.com/ Note: The websites referenced herein shall not be deemed a part of this presentation