Slide 1: Earnings Slides: Fourth Quarter and Full Year 2018
EARNINGS SLIDES Fourth Quarter and Full Year 2018
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), non-GAAP net income (l
Slide 3: Q4 and FY 2018 Results
Q4 and FY 2018 Results
Slide 4: Strong revenue growth
Strong revenue growth 25- 26% Revenue ($ millions) Y/Y 39% 42% $755- Y/Y 761 Y/Y $164 $604 $156 $146 $138 $426 $119 $111 $104 $93 $290 $84 $204 $142 2014 2015 2016 2017 2018 2019E Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Note: 2019 guidance as provided on February 20, 2019; 2018 revenue
Slide 5: Strong collections growth
Strong collections growth… 24- 26% Collections ($ millions) Y/Y $817- 36% 827 33% Y/Y Y/Y $658 $176 $163 $160 $160 $484 $132 $120 $342 $115 $117 $242 $98 $171 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 2014 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on February 20, 2019 5
Slide 6: ...combined with robust free cash flow generation
…combined with robust free cash flow generation 33- Free Cash Flow* ($ millions) 38% Y/Y $135- 44% 140 67% Y/Y Y/Y $33 $102 $24 $24 $71 $21 $19 $20 $19 $17 $15 $36 $15 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18* 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on February 20, 201
Slide 7: User and subscription bases continue to grow
User and subscription bases continue to grow 24% 19% Y/Y Y/Y 4.0 Registered Users 142 Premium Subscriptions 3.8 (millions, at End of Period) 137 (millions, at End of Period) 3.7 131 3.5 125 119 3.2 114 3.1 109 2.9 103 2.7 97 92 2.5 87 2.3 82 2.1 77 72 1.9 68 1.8 63 1.6 50 1.5 54 1.4 50 46 1.2 42 1.1
Slide 8: Continued growth of ARPS
Continued growth of ARPS Average Annual Revenue per Subscription $168 $162 $157 $154 $150 $146 $143 $139 $137 $133 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Note: ARPS is defined as total revenue over last four quarters / average number of subscriptions over last four quarters. Sub
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 280,236 Q1’18 - 5,925,513 219,950 Q1’17 - 5,875,165 213,370 Q1’16 - 5,305,726 178,663 168,968 Q1’15 - 4,568,323 132,118 Q1’14 - 4,089,253 126,962 111,497 102,980 Q1’13 - 3,714,472 92,
Slide 10: Increasing monetization of user cohorts
Increasing monetization of user cohorts Cumulative Collections from Q1 User Cohorts (in millions) $100 $93 $90 $86 $85 $80 $75 $72 $70 $60 $50 $47 Q1’18 Q1’17 $40 $37 Q1’16 $32 Q1’15 $30 Q1’14 $23 Q1’13 $20 Q1’12 $10 Q1’11 Q1’10 $- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Slide 11: Growing base of cohort collections
Growing base of cohort collections Annual collections by user cohort ($ millions) User Cohort Collections In 2017: $468 million ($ millions) In 2018: $506 million $650 $550 $450 $350 $250 $150 $50 2010 2011 2012 2013 2014 2015 2016 2017 2018 -$50 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018
Slide 12: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 20 Quarters … After 16 Quarters 5.3x … After 12 Quarters 4.5x $93 $33 … After 8 Quarters 3.4x To Date $86 2.4x To$33 Date $40 To Date Date … After 4 Quarters To $33 $85 To To Date Date 1.1x $33 To$75 Date $19
Slide 13: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 70% 67% 68% 69% 65% 67% 67% 66% 64% 17% 35% 36% 34% 33% 32% 33% 33% 31% 30% 83% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Subscrip
Slide 14: 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% 63% 59% 60% 59% 41% 40% 41% 39% 39% 37% 37% 38% 37% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Prior user cohorts Current user cohort Note: Subscriptions do not include Flo
Slide 15: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 14% 39% Y/Y 3% 17% 8% 30% Y/Y 26% 40% Y/Y Growth Rate vs. FY’17 (Constant currency basis) 71% 52% 44% Y/Y 2010 FY'18 North America Europe Latin America Asia and others Note: FY’18 Revenue by Geography and Y/Y change ba
Slide 16: Wix: Creation without limits
Wix: Creation without limits Wix ADI Templates Wix Editor Business-ready Wix Code Novice components Expert Get Online Fast Stand on the Total Design Freedom Creation without shoulders of giants Out of the box limits Enter client details and Start with a blank slate solutions design preferences and C
Slide 17: Appendix
APPENDIX
Slide 18: Non-GAAP Financial Results
Non-GAAP Financial Results 2017 2018 Full Year in 000s Q4 Q4 2016 2017 2018 Revenues $118,545 $164,197 $290,103 $425,636 $603,704 Collections $132,203 $176,058 $342,069 $483,989 $658,385 Non-GAAP Gross Profit $100,523 $131,000 $246,614 $359,708 $481,743 Gross Margin % 85% 80% 85% 85% 80% Non-GAAP R&
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Full Year in 000s 2014 2015 2016 2017 2018 Revenue $141,841 $203,518 $290,103 $425,636 $603,704 Change in deferred revenue $29,414 $38,169 $51,966 $58,353 $54,681 Collections $171,255 $241,687 $342,069 $483,989 $658,385 Full Year in 000s 2014 2015 2016 201
Slide 20: 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 Q4 Revenue $61,586 $68,730 $75,611 $84,176 $92,538 $103,522 $111,031 $118,545 $137,775 $146,132 $155,600 $164,197 Change in deferred revenue $14,108 $12,723 $11,659 $13,476 $22,008 $13,599 $9,088 $13,
Slide 21: 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 Q4 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 $54,558 Share Based Compensation $3,111 $3,558 $3,718 $4,156 $4,726 $6,586 $7
Slide 22: 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 Q4 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) ($2,173) Share Based Compensation $6,137 $6,927 $7,164 $7,820 $8,982 $11