Slide 1: Earnings Slides Second Quarter 2019
EARNINGS SLIDES Second Quarter 2019 July 24th 2019
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: Q2 2019 Results
Q2 2019 Results
Slide 4: Strong revenue growth
Strong revenue growth 26- 27% Revenue ($ millions) Y/Y 27% $761 Y/Y -765 $185 $604 $174 $164 $156 $146 $138 $426 $119 $111 $104 $290 $204 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on July 24, 2019 4
Slide 5: Strong collections growth
Strong collections growth… 25- 26% Collections ($ millions) Y/Y $825- 25% 831 Y/Y $658 $200 $200 $176 $484 $160 $160 $163 $132 $342 $117 $120 $242 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on July 24, 2019 5
Slide 6: Combined with robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow* ($ millions) 21- 24% Y/Y 29% $123- Y/Y 126 $33 $102 $30 $31 $24 $24 $71 $21 $19 $20 $17 $36 $15 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 2015 2016 2017 2018 2019E Note: 2019 guidance as provided on July 24, 2019 *Net cash p
Slide 7: User and subscription bases continue to grow
User and subscription bases continue to grow 17% 18% Y/Y Y/Y Registered Users 154 Premium Subscriptions 4.2 4.3 (millions, at End of Period) 148 142 (millions, at End of Period) 4.0 137 3.8 131 3.7 125 3.5 119 3.2 114 3.1 109 103 2.9 97 2.7 92 2.5 87 82 2.3 77 2.1 72 1.9 68 63 1.8 50 1.6 54 1.5 50 1
Slide 8: Consistent cohort behavior over the long term
Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts New Registered Users The Q1'19 User cohort is the first cohort that Q1’19 – 6.6M reflects the impact of our increasing focus on monetization at the expense of conversion 255K Q1’18 – 5.9M 234K Q1’17 – 5.9
Slide 9: Continued growth of ARPS
Continued growth of ARPS ACPS1 is an early indication of success in driving even higher $ per sub Average Annual Revenue per Subscription +29 y/y $228 $217 $200 $174 $176 $178 $164 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 $171 $168 $168 $162 $157 $154 $146 $150 $143 $139 Q1'17 Q2'17 Q3'17 Q4'17 Q1'
Slide 10: Increasing monetization of user cohorts
Increasing monetization of user cohorts Cumulative Collections from Q1 User Cohorts ($ millions) $120 $102 $104 $99 $99 $100 $80 $76 $79 Q1’19 $60 Q1’18 Q1’17 Q1’16 $39 $40 $40 Q1’15 $34 Q1’14 Q1’13 $24 $20 Q1’12 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 27
Slide 11: 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 10 Quarters … After 14 Quarters 5.2x 4.2x … After 6 Quarters 3.1x … After 2 Quarter 1.7x 0.7x $99 $102 $99 $76 $55 $38 $44 $32 $25 $19 Q1'19 Cohort Q1'18 Cohort Q1'17 Cohort Q1'16 Cohort Q
Slide 12: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 67% 68% 67% 67% 69% 67% 67% 64% 66% 17% 36% 34% 33% 32% 33% 33% 31% 33% 33% 83% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Subscrip
Slide 13: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 63% 62% 61% 61% 63% 63% 60% 59% 60% 40% 41% 39% 39% 40% 37% 38% 37% 37% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Prior user cohorts Current user cohort Note: Subscriptions do not include Flo
Slide 14: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 13% 26% Y/Y 3% 7% 16% Y/Y 17% 27% 29% Y/Y Growth Rate vs. Q2’18 (Constant currency basis) 71% 53% 31% Y/Y 2010 Q2'19 North America Europe Latin America Asia and others Note: Q2’19 Revenue by Geography and Y/Y change ba
Slide 15: Appendix
APPENDIX
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue $92,538 $103,522 $111,031 $118,545 $137,775 $146,132 $155,600 $164,197 $174,290 $185,419 Change in deferred revenue $22,008 $13,599 $9,088 $13,658 $21,880 $13,763 $7,177 $11,861 $26,089
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Research and development (GAAP) $32,669 $36,749 $40,252 $43,965 $46,502 $48,492 $49,360 $54,558 $58,183 $61,486 Share Based Compensation $4,726 $6,586 $7,190 $7,725 $8,485 $9,470 $10,372 $11,09
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2017 2018 2019 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Operating Loss ($20,471) ($10,563) ($11,454) ($7,523) ($18,452) ($6,507) ($3,498) ($2,173) ($27,792) ($14,161) Share Based Compensation $8,982 $11,979 $13,035 $13,704 $15,674 $17,769 $18,7
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2014 2015 2016 2017 2018 in 000s FY FY FY FY FY 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 2014 2015 2016 2017 2