Slide 1: Earnings Slides Second Quarter 2020
Earnings Slides Second Quarter 2020
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 us es the following non-GAAP financial meas ures : collections , cumulative cohort collections , collections on a cons tant currency bas is
Slide 3: Q2 2020 Highlights
Q2 2020 Highlights • Momentum across the platform continued throughout Q2 – added over 9.3 million registered users in Q2, an increase of 64% y/y • 346,000 net subscription additions – now over 5 million total subscriptions • Opportunity to be aggressive with marketing investment in response to surg
Slide 4: Q2 2020 Results
Q2 2020 Results
Slide 5: Consistent incremental revenue growth
Consistent incremental revenue growth Revenue ($ millions) +27% y/y +28% cc y/y1 $236 Business Solutions $216 Creative Subscriptions $205 $761 $197 $46 $185 $39 $174 $33 $117 $164 $32 $156 $28 $604 $23 $21 $78 $21 $426 $34 $190 $171 $177 $644 $157 $165 $144 $151 $525 $135 $391 Q3'18 Q4'18 Q1'19 Q2'1
Slide 6: Strong collections growth
Strong collections growth… Collections ($ millions) +33% y/y +35% cc y/y1 Business Solutions $266 $832 Creative Subscriptions $249 $227 $48 $121 $40 $200 $200 $206 $658 $36 $176 $23 $32 $78 $29 $163 $20 $484 $21 $35 $218 $712 $209 $191 $580 $177 $170 $174 $156 $142 $449 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19
Slide 7: Robust free cash flow generation
…combined with robust free cash flow generation Free Cash Flow ($ millions) +52% y/y +53% y/y (excl. HQ capex)1 $47 $127 $40 $102 $37 $33 $31 $30 $29 $71 $24 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 2017 2018 2019 1Excluding approximately $0.4 million in capital expenditures related to the fu
Slide 8: Consistent ARR expansion
Consistent ARR expansion ($ millions) $791 $707 $739 $648 $680 $587 $622 $561 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 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 Creative Subscrip
Slide 9: Investing in future growth through larger user cohorts
Investing in future growth through larger user cohorts Q2 2020 User Cohort $570 • Incremental marketing inves tment in Q2 Est $570 creating s ignificantly larger us er cohorts million in • Already during Q2, we have returned ½ future our increas ed marketing inves tment collections • Proven his tory
Slide 10: Increasing monetization of user cohorts
Increasing monetization of user cohorts Q2 Cohort Collections Cumulative Collections from Q1 User Cohorts ($ millions) ($ millions ) +66% y/y $160 $38.0 $23.0 $140 $134 $130 $120 $121 $123 $120 Q2'19 Q2'20 $100 Q1'10 $92 Q1'11 $84 $80 Q1'12 Q1'13 $60 Q1'14 $41 $46 Q1'15 $40 $38 Q1'16 Q1'17 $27 $20 Q
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 14 Quarters … After 10 Quarters 5.3x 4.2x … After 6 Quarters 2.7x … After 2 Quarters 1.5x 0.7x $134 $130 $120 $84 $57 $55 $41 $44 $32 $25 Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 Cohor
Slide 12: 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 – Q2’20 Cohorts $7.9 Billion Expected future collections over next 8 years from existing cohorts (up 35% y/y) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Note: Data represen
Slide 13: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) and Q2’20 Y/Y Growth 13% North America +35% Y/Y 5% Europe +26% Y/Y 57% Latin America +3% Y/Y 25% Asia and others +21% Y/Y North America Europe Latin America Asia and others Note: Q2’20 Revenue by Geography and Y/Y change
Slide 14: Appendix
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY Revenues $155,600 $164,197 $174,290 $185,419 $196,791 $204,588 $215,987 $236,059 $425,636 $603,704 $761,088 Change in deferred revenues $7,177 $11,861 $26,089 $14,144 $9,069 $
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY Net cash provided by operating activities $27,607 $36,055 $35,074 $37,180 $36,073 $41,237 $45,027 $49,958 $83,052 $115,709 $149,564 Capital expenditures, net $ (3,916) $ (3,39
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures in 000s Q2’19 Q2’20 Revenues $185,419 $236,059 FX impact on Q2’20 revenues using Q2’19 rates $0 $1,824 Revenues FX Neutral $185,419 $237,883 Collections $199,563 $265,851 FX impact on Q2’20 collections using Q2’19 rates $0 $3,922 Collections FX N