Slide 1: First Quarter 2017 Earnings Results
Click here to edit the name of your presentation First Quarter 2017 Earnings Results 1
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements This press release contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regard
Slide 3: Key Metrics: Q1'17
Key Metrics: Q1’17 Registered Users Premium Subscriptions Collections (000s) (000s) ($ million) 103,234 2,673 $114.5 25% 51% Y/Y 38% Y/Y 82,271 Y/Y 1,938 $75.7 Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Improvement Improvement in Conversion in ACPS 3
Slide 4: Q1'17 Highlights
Q1’17 Highlights • GAAP revenue of $92.5 million, 50% Y/Y growth, exceeding prior guidance of $89-90 million • Collections of $114.5 million exceeded prior guidance of $107-109 million; 51% Y/Y growth is an acceleration from last quarter • Net premium subscription additions were 208,000; Total subsc
Slide 5: Users and Subscriptions
Users and Subscriptions 25% 38% Y/Y Y/Y Registered Users Premium Subscriptions (millions, at End of Period) (000s, at End of Period) 103 2,673 97 92 2,465 87 2,294 82 77 2,121 72 1,938 68 1,767 63 1,643 58 1,503 50 50 1,371 46 1,233 42 1,125 39 1,019 36 908 32 28 790 25 707 22 627 20 549 414470 3383
Slide 6: Collections and Revenue
Collections and Revenue 51% 50% Collections Y/Y Revenues Y/Y ($ million) ($ million) $115 $93 $84 $98 $76 $87 $69 $81 $76 $62 $57 $67 $54 $62 $57 $49 $56 $45 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 6
Slide 7: Deferred Revenue Growth
Deferred Revenue Growth 53% Deferred Revenue Revenues 50% Y/Y Y/Y ($ million) ($ million) $182 $93 Deferred Revenue nearly all $84 $157 realized over next 12 months $143 $76 $132 $119 $69 $105 $62 $95 $87 $57 $78 $54 $49 $45 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q1'15 Q2'15 Q3'15 Q4'
Slide 8: Accelerating Free Cash Flow Generation
Accelerating Free Cash Flow Generation Free Cash Flow ($ million) $67-68 $36 $19 $15 $15 $10 $9 $8 $3 $5 ($3) ($2) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 2015 2016 2017E 8
Slide 9: Consistent Behavior
Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts New Registered Users 1Q17 5,875,165 188,273 178,663 1Q16 5,305,726 1Q15 143,577 4,568,323 126,962 1Q14 118,703 4,089,253 102,980 1Q13 92,019 3,714,472 79,458 1Q12 62,071 2,651,656 1Q11 33,747 34,639 1,833,897 29,612 26,882 18,513
Slide 10: Long Term Subscriptions
Long Term Subscriptions % of Gross New Subscriptions % of Total Subscriptions 77% 79% 77% 73% 75% 75% 70% 65% 65% 18% 35% 35% 30% 82% 27% 25% 25% 23% 21% 23% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Data as of March 31, 2017 10
Slide 11: Ongoing Cohort Conversions
Ongoing Cohort Conversions % of Gross New Subscriptions by Prior and Current User Cohorts 62% 63% 62% 63% 60% 58% 60% 60% 59% 40% 42% 40% 40% 41% 38% 37% 38% 37% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Prior user cohorts Current user cohort Note: Data as of March 31, 2017 11
Slide 12: Growing Base of Cohort Collections
Growing Base of Cohort Collections Annual collections by user cohort ($ million) User Cohort Collections $500 In 2015: $236 million In 2016: $251 million1 $400 $300 $200 $100 $0 2010 2011 2012 2013 2014 2015 2016 2010 & Prior 2011 2012 2013 2014 2015 2016 12016 collections are constant currency assu
Slide 13: Marketing Efficiency
Marketing Efficiency … After 17 Quarters One Time Marketing, Ongoing Monthly Collections … After 13 Quarters 6.4x 3.6x … After 9 Quarters $52 2.8x $64 $33 To Date … After 5 Quarters To Date … After 1 Quarter 1.7 x $33 $40 $8 0.6 x To$52 To Date $33 To Date Date To Date $18 Q1’13 Cohort $33 $19 To Da
Slide 14: Increasing Collections per New Subscription
Increasing Collections per New Subscription $156 $153 $150 $145 $141 $133 $133 $132 $132 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Avg. Collection per New Annual Subscription Note: Based on New Annual Subscriptions in the US 14
Slide 15: Increasing Geographic Penetration
Increasing Geographic Penetration FX-Neutral Revenue by Geography (% of Total) 9% 14% 53% Y/Y 3% 17% 8% 37% Y/Y 27% 48% Y/Y Growth Rate vs. Q1’16 (Constant currency basis) 71% 51% 53% Y/Y 2010 Q1'171 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y Change based on con
Slide 16: Non GAAP Financial Results
Non GAAP Financial Results Non-GAAP items exclude the impact of amortization of intangibles, withdrawn secondary expenses, and acquisition-related expenses 16
Slide 17: Appendix
APPENDIX 17
Slide 18: Reconciliation of GAAP to Non-GAAP
Reconciliationof GAAP to Non-GAAP 18
Slide 19: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP 1Other includes acquisition-related expenses 2Other includes amortization of intangibles, withdrawn secondary expenses, and acquisition-related expenses 19