Slide 1: Earnings Slides First Quarter 2020 Results
To be designed Earnings Slides First Quarter 2020 Results May 14 , 2020 th
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,, revenue on a constant currency basis, and free
Slide 3: Highlights
Highlights • Strong user growth as demand for online presence accelerates • Newly acquired user cohorts generating significantly more revenue and collections than user cohorts created in prior periods • Existing users converting to subscriptions at higher rates driving “negative” churn • Increasing
Slide 4: Outstanding April 2020 Results
Outstanding April 2020 Results +63% new registered 207% Net premium subscription additions y/y users y/y 136% Ascend purchases y/y in millions 580% Net new Wix Stores subscriptions y/y +76% April cohort 167% Net new Wix Restaurants subscriptions y/y collections y/y 123% New Wix Payments merchants m/
Slide 5: Q1 2020 Results
Q12020 Q1 2020 Results Results
Slide 6: Strong revenue growth
Strong revenue growth Revenue ($ millions) +24% y/y +25% cc y/y1 Business Solutions $216 Creative Subscriptions $205 $761 $197 $185 $174 $39 $117 $33 $164 $32 $156 $28 $604 $146 $23 $21 $78 $21 $19 $426 $34 $171 $177 $644 $157 $165 $144 $151 $525 $127 $135 $391 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4
Slide 7: Strong collections growth
Strong collections growth… Collections ($ millions) +24% y/y +25% cc y/y1 Business Solutions $249 $832 Creative Subscriptions $227 $40 $206 $121 $200 $200 $36 $658 $176 $23 $29 $32 $160 $163 $78 $20 $19 $21 $484 $35 $209 $712 $191 $177 $170 $174 $156 $580 $141 $142 $449 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Slide 8: ...combined with robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow ($ millions) +33 y/y +35% y/y (excl. HQ capex)1 $40 $37 $127 $33 $30 $31 $102 $29 $24 $24 $71 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 2017 2018 2019 1Exluding approximately $0.4M capital expenditures related to the buildout of ou
Slide 9: ARR demonstrates consistent growth
ARR demonstrates consistent growth ($ millions) $707 $739 $648 $680 $587 $622 $531 $561 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Note: Annualized Recurring Revenue (ARR) is calculated as Monthly Recurring Revenue (MRR) multiplied by 12. MRR is calculated as the total of (i) all active Creativ
Slide 10: Increasing monetization of user cohorts
Increasing monetization of user cohorts April Cohort Collections Cumulative Collections from Q1 User Cohorts ($ millions) +76% y/y $10.1 $140 $5.7 $126 $124 $116 $118 $120 $110 Apr'19 Apr'20 $100 $89 Q1'10 $80 $75 Q1'11 Q1'12 $60 Q1'13 Q1'14 $44 $37 Q1'15 $40 $28 Q1'16 $26 Q1'17 $20 Q1'18 Q1'19 $0 Q
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 – Q1’20 Cohorts $7.2 Billion Expected future collections from existing cohorts over the next 8 years (up 31% y/y) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: Data represent
Slide 12: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 17 Quarters … After 9 Quarters … After 13 Quarters 5.0x 4.0x … After 5 Quarters 2.5x … After 1 Quarter 1.4x 0.5x $126 $124 $110 $75 $57 $55 $44 $28 $32 $25 Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 Cohort
Slide 13: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) and Q1’20 Y/Y Growth 13% North America +30% Y/Y 6% Europe +22% Y/Y 56% 25% Latin America +6% Y/Y Asia and others +19% Y/Y North America Europe Latin America Asia and others Note: Q1’20 Revenue by Geography and Y/Y change
Slide 14: Appendix
Q1 2020 Results Appendix
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2018 2019 2020 2017 2018 2019 in 000s Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY FY Revenue $146,132 $155,600 $164,197 $174,290 $185,419 $196,791 $204,588 $215,987 $425,636 $603,704 $761,088 Change in deferred revenue $13,763 $7,177 $11,861 $26,089 $14,144 $9
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2018 2019 2020 2017 2018 2019 in 000s Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY FY Creative Subscriptions Revenue $126,716 $134,579 $143,621 $151,364 $157,012 $164,761 $171,355 $176,546 $391,347 $525,350 $644,491 Change in deferred revenues $13,934 $7,266 $1