Slide 1: Earnings Slides
VIA SALARIA EARNINGS SLIDES
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), free cash flow, non-GA
Slide 3: Q1 2018 Results
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Slide 4: Strong revenue growth
Strong revenue growth Revenue ($ millions) 49% 40% Y/Y Y/Y $138 $594- 597 $119 $111 $104 $426 $93 $84 $290 $76 $69 $62 $204 $142 $80 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 2013 2014 2015 2016 2017 2018E Note: 2018 guidance as provided on May 9, 2018; Q1’18 and 2018E revenue based on A
Slide 5: Strong collections growth
Strong collections growth Collections ($ millions) 35%- 39% 36% Y/Y Y/Y $651- $160 657 $132 $484 $120 $115 $117 $342 $98 $87 $242 $81 $76 $171 $99 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 2013 2014 2015 2016 2017 2018 Note: 2018 guidance as provided on May 9, 2018 5
Slide 6: Accelerating free cash flow generation
Accelerating free cash flow generation Free Cash Flow* ($ millions) 45% 41%- Y/Y 44% Y/Y $21 $100- $20 102 $19 $19 $17 $15 $71 $10 $9 $36 $15 -$2 2015 2016 2017 2018E Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Note: 2018 guidance as provided on May 9, 2018 *Net cash provided by operating
Slide 7: User and subscription bases are growing
User and subscription bases are growing 21% 29% Y/Y Y/Y Registered Users Premium Subscriptions 125 3.5 (millions, at End of Period) 119 (millions, at End of Period) 114 3.2 109 3.1 103 2.9 97 92 2.7 87 2.5 82 2.3 77 2.1 72 68 1.9 63 1.8 50 1.6 54 1.5 50 1.4 46 42 1.2 39 1.1 36 1.0 32 0.9 0.8 0.7 0.6
Slide 8: ARPS is increasing
ARPS is increasing Average Annual Revenue per Subscription $154 $150 $146 $143 $139 $137 $133 $133 $133 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Note: ARPS is defined as total revenue over last four quarters / average subscriptions over last four quarters. Subscriptions does not include
Slide 9: Consistent cohort behavior over the long term
Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts Increasing users and conversion New Registered Users driving growth Q1’18 +30% +107% 5,925,513 5,926 213 Q1’17 4,568 227,642 5,875,165 213,370 103 Q1’16 5,305,726 178,663 174,616 Q1’15 4,568,323 Q1'15 Q1'
Slide 10: 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 13 Quarters 4.6x 3.8x … After 9 Quarters $81 $33 To Date … After 5 Quarters 2.7x $73 To$33 Date $40 … After 1 Quarter 1.7x $33 To Date To Date $68 To To Date Date 0.6x $33 To$55 Date $19 $
Slide 11: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 77% 75% 70% 67% 68% 65% 65% 67% 64% 18% 35% 35% 36% 33% 33% 30% 32% 82% 23% 25% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Data as
Slide 12: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 62% 63% 63% 62% 60% 60% 59% 60% 59% 40% 40% 41% 40% 41% 38% 37% 37% 38% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Prior user cohorts Current user cohort Note: Data as of March 31, 2018 12
Slide 13: Increasing geographic penetration
Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 14% 44% Y/Y 3% 17% 9% 42% Y/Y 25% 40% Y/Y Growth Rate vs. Q1’17 (Constant currency basis) 71% 52% 50% Y/Y 2010 Q1'18 1 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y change based on co
Slide 14: Wix Code Site Examples
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Slide 15: Book of Eats
Book of Eats Databases to display high volume of content bookofeats.com Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 16: Ur Cups
Ur Cups JavaScript to build custom order flow + email confirmation Dynamic pages to show design options urcups.com.au Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 17: Oz Job Now
Oz Job Now File upload, databases and repeaters ozjobnow.com.au Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 18: Appendix
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Slide 19: Non-GAAP Financial Results
Non-GAAP Financial Results 2017 2018 Full Year in 000s Q1 Q1 2016 2017 Revenues $92,538 $137,775 $290,103 $425,636 Collections $114,546 $159,655 $342,069 $483,989 Non-GAAP Gross Profit $78,209 $109,952 $246,614 $359,708 Gross Margin % 85% 80% 85% 85% Non-GAAP R&D expenses $26,094 $36,785 $87,570 $12
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 Revenue $61,586 $68,730 $75,611 $84,176 $92,538 $103,522 $111,031 $118,545 $137,775 Change in deferred revenue $14,108 $12,723 $11,659 $13,476 $22,008 $13,599 $9,088 $13,658 $21,880 Collections $75,694 $81,
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 Research and development (GAAP) $24,472 $25,483 $26,536 $28,877 $32,669 $36,749 $40,252 $43,965 $46,502 Options compensation $3,111 $3,558 $3,718 $4,156 $4,726 $6,586 $7,190 $7,725 $8,485 Amortization $137
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 GAAP Operating Loss ($19,768) ($10,490) ($9,032) ($4,742) ($20,471) ($10,563) ($11,454) ($7,523) ($18,452) Share Based Compensation $6,137 $6,927 $7,164 $7,820 $8,982 $11,979 $13,035 $13,704 $15,674 Amortiz