Wix Results Presentation Deck

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Wix

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Technology

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May 2018

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#1... May VIA SALARIA Natural Sea Salt May BRAND IDENTITY 2018 446 May Aa EARNINGS SLIDES First Quarter 2018 Wix.com#2Safe 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-GAAP net income (loss) and non-GAAP net income (loss) per share (collectively the "Non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, tax benefit related to exercise of options and acquisition-related costs. Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. For more information on the non-GAAP financial measures, please see the "Reconciliation of GAAP to Non-GAAP Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company has not reconciled its guidance as to free cash flow to cash flow from operations because it does not provide guidance for cash flow from operations. As items that impact cash flow from operations are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to cash flow from operations is not available without unreasonable effort. 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 regarding our future performance, including, but not limited to revenue, collections and free cash flow, the availability, merchantability or functionality of certain new products or features and their anticipated product demand and customer satisfaction, and may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "outlook," "future," "will," "seek" and similar terms or phrases. The forward-looking statements contained in this press release, including the full year guidance, are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions; our ability to maintain and enhance our brand and reputation; our ability to manage the growth of our infrastructure effectively; our prediction of the future collections generated by our user cohorts; our ability to effectively execute our initiatives to scale and improve our user support function; customer acceptance of new products and other challenges inherent in new product development, changes to technologies used in our solutions or in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading "Risk Factors" in the Company's 2017 annual report on Form 20-F filed with the Securities and Exchange Commission on March 29, 2018. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise. 2#3Q1 2018 Results#4Strong revenue growth Revenue ($ millions) $62 $69 $76 $84 $93 $104 $111 $119 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Note: 2018 guidance as provided on May 9, 2018; Q1'18 and 2018E revenue based on ASC 606 49% Y/Y $138 Q1'18 $80 $142 $204 2013 2014 2015 $290 $426 40% Y/Y $594- 597 2016 2017 2018E 4#5Strong collections growth Collections ($ millions) $76 $81 $87 $98 Q1'16 Q2'16 Q3'16 Q4'16 Note: 2018 guidance as provided on May 9, 2018 $115 $117 $120 $132 Q1'17 Q2'17 Q3'17 Q4'17 39% Y/Y $160 Q1'18 $99 $171 $242 2013 2014 2015 $342 $484 35%- 36% Y/Y $651- 657 2016 2017 2018 LO 5#6Accelerating free cash flow generation Free Cash Flow* ($ millions) -$2 Q1'16 $10 Q2'16 $9 Q3'16 $19 Q4'16 $15 Q1'17 $17 Q2'17 $19 Q3'17 $20 Q4'17 45% Y/Y $21 Q1'18 $15 2015 Note: 2018 guidance as provided on May 9, 2018 *Net cash provided by operating activities for Q1 2018 was $24.8 million, while capital expenditures totaled $3.4 million, leading to free cash flow of $21.4 million $36 2016 $71 41%- 44% Y/Y $100- 102 2017 2018E 6#7User and subscription bases are growing Registered Users (millions, at End of Period) 32 36 39 42 2013 46 50 54 50 2014 63 Note: Data as of March 31, 2018 68 72 2015 77 82 87 92 2016 97 109 103 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 114 2017 21% Y/Y 125 119 2018 Premium Subscriptions (millions, at End of Period) 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.4 1.5 1.6 1.8 1.9 2.1 2.3 2.5 2.7 2.9 3.1 29% Y/Y 3.2 7 3.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018#8ARPS is increasing Average Annual Revenue per Subscription $133 Q1'16 $133 Q2'16 $133 Q3'16 $137 Q4'16 $139 Q1'17 $143 Q2'17 $146 Q3'17 Note: ARPS is defined as total revenue over last four quarters / average subscriptions over last four quarters. Subscriptions does not include Flok or DeviantArt $150 Q4'17 $154 Q1'18 8#9Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts New Registered Users Q1'18 5,925,513 Q1'17 5,875,165 Q1'16 5,305,726 Q1'15 4,568,323 Q1'14 4,089,253 Q1'12 2,651,656 Q1'11 1,833,897 213,370 Q1'13 102,980 3,714,472 92,019 Q1'10 919,221 178,663 126,962 62,071 33,747 29,612 18,513 227,642 Note: Data as of March 31, 2018 174,616 135,749 114,278 4,568 Increasing users and conversion driving growth +30% 78,143 5,926 Q1'18 Q1'15 New Registered Users (000's) 34,494 +107% 103 26,740 Q1'15 Q1'18 Prem. Subs after 1st Quarter (000's) 213 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 28 29 30 31 32 33 Number of Quarters Passed 17,792 1 I I I I 9#10Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections ... After 1 Quarter 0.6x $44 $25 To Date Q1'18 Cohort¹ After 5 Quarters 1.7x $32 $55 To Date Q1'17 Cohort1¹ After 9 Quarters 2.7x $25 $68 To Date Q1'16 Cohort¹ After 13 Quarters 3.8x $19 $73 To Date Q1'15 Cohort¹ After 17 Quarters 4.6x $81 To Date $18 Q1'14 Cohort Marketing Cost ($ million) Cohort Net Collections ($ million) Note: Data as of March 31, 2018; TROI is Time to Return On (Marketing) Investment. We define this metric as the time it takes to collect dollars from new premium subscriptions acquired in a cohort to equal dollars spent on direct marketing costs in the same cohort. We aim for 100% TROI in 7-9 months ¹Excludes $6 million in Q1'15, ~$7 million in Q1'16, ~$9 million in Q1'17 and ~$4 million in Q1'18 of brand marketing expenses 10#11Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions 77% 75% 23% 25% 65% 35% 70% Note: Data as of March 31, 2018 30% 65% 35% 67% 33% 64% 36% 68% 67% 32% 33% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 -1 Year or Longer -Monthly % of Total Subscriptions 18% 82% ■1 Year or Longer Monthly 11#12Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 60% 40% Q1'16 62% 38% Q2'16 Note: Data as of March 31, 2018 60% 40% Q3'16 63% 37% Q4'16 Prior user cohorts 59% 41% Q1'17 63% 37% Q2'17 Current user cohort 60% 40% Q3'17 62% 38% Q4'17 59% 41% Q1'18 12#13Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) 9% 17% 71% 2010 3% North America ■ Europe Latin America 14% 9% 25% 52% Q1'18¹ Asia and others 44% Y/Y 42% Y/Y 40% Y/Y 50% Y/Y ¹Revenue by Geography and Y/Y change based on constant FX rates from Q1'17; 2018 revenue based on ASC 606 Growth Rate vs. Q1'17 (Constant currency basis) 13#14Wix Code Site Examples#15Book of Eats Databases to display high volume of content Home Food & Drinks Dianne & Elisabeth April 16, 2018 212 Steakhouse March 1, 2018 Felice 15 February 2, 2018 Travel About Russell & Bettes March 27, 2018 PURO ceviche bar February 24, 2018 Jade Sixty January 22, 2018 Contact Precinct Kitchen + Bar March 19, 2018 Fin Point February 16, 2018 Marseille. January 9, 2018 Pinky's March 18 Note: The websites referenced herein shall not be deemed a part of this presentation Brasse February Dons Decemb Dianne & Elisabeth A farm to table wine bar in Hells Kitchen named after the mothers of the owners. The menu offers a vast selection of charcuterie and small and large plates. Recommended Dishes: Langostino Poppers - beer battered langostinos, lemon garlic thyme aioli Croquettes - pork lardon, swiss cheese, bacon, cheddar and caramelized onion mayo Red Ravioli in Sage Butter - beet pasta filled with goat cheese, ricotta, white wine butter sauce, crispy sage leaves Bay Scallop Pasta - seared bay scallops, buffalo milk spaccatelli pasta, lobster cream sauce, parmesan Smashed Roots-beets, greek yogurt, dill carrots, mustard, local honey rutabagas, butter, horesradish • Red Quinoa - hazelnuts, mint, cured sumac, pickled red onions, extra virgin olive oil, chili Good For: After Work, Brunch, Cocktails, Groups, Wine ● ● . • Dianne & Elisabeth 644 10th Avenue New York, NY 10036 212-247-3039 Website bookofeats.com#16Ur Cups JavaScript to build custom order flow + email confirmation Dynamic pages to show design options Home Cups How it works More Size Quantity Type 0 8oz V O Single Wall O Double Wall --'URCUPS' on all the designs can be replaced with your own logo Tell us about your requirement As you can understand, due to personalization the minimum order quantity is 10,000 cups / size. Thank You! 0 12oz O Single Wall O Double Wall AU $47/500 cups URCUPS 0 SUBMIT Note: The websites referenced herein shall not be deemed a part of this presentation 16oz V O Single Wall O Double Wall Size Single Wal Contact Name / Business Name Email Phone Shipping Address State Post Code AU $47/500 cups urcups.com.au Double Wall (x AU $47/500 cups#17Oz Job Now File upload, databases and repeaters JOBNOW Waiter/Waitress Home > Hospitality > Waiter > Sydney Hospitality Jobs in Sydney Barista/Bartender Kitchen Hand More 88 Waiter Jobs in Sydney Wait Staff for Cafe in Alexandria Published: Thursday, 18/01/2018 Work as Wait Staff in this Cafe in Alexandria. This role starts immediately. Cook/Chef Experienced Waiter for Restaurant in Sydney City Published: Thursday, 18/01/2018 Work as Experienced Waiter in this Restaurant in Sydney City. This role starts immediately. More Waiter-Waitress for New Bistro in Elanora Heights Published: Wednesday, 17/01/2018 Work as Waiter/Waitress in this New Bistro in Elanora Heights. This role is part Jl. ozjobnow.com.au Note: The websites referenced herein shall not be deemed a part of this presentation Find Workers#18APPENDIX#19Non-GAAP Financial Results 2017 Q1 $92,538 $114,546 $159,655 $342,069 $483,989 $109,952 $246,614 $359,708 $78,209 85% 85% 80% $36,785 85% $87,570 $26,094 $121,293 28% 27% 30% 28% 23% 23% 26% 25% $52,249 $64,423 $151,759 $195,041 56% 47% 52% 46% 46% 40% 44% 40% $34,275 $7,404 $9,506 $19,814 8% 7% 7% 8% 6% 6% 6% 7% ($7,538) ($762) ($12,529) $9,099 (8%) (1%) (4%) 2% (7%) (0%) (4%) 2% ($7,952) ($2,121) ($14,555) ($549) in 000s Revenues Collections Non-GAAP Gross Profit Gross Margin % Non-GAAP R&D expenses % of revenues % of collections Non-GAAP S&M expenses % of revenues % of collections Non-GAAP G&A Expenses % of revenues % of collections Non-GAAP Operating Income (Loss) % of revenues % of collections Non-GAAP Net Income (Loss) 2) 2018 Full Year Q1 2016 2017 $137,775 $290,103 $425,636 Note: non-GAAP items exclude the impact of share-based compensation expense, amortization of intangibles, withdrawn secondary expenses and acquisition-related expenses; Q1 2018 based on ASC 606 19#20Reconciliation of GAAP to Non-GAAP Measures in 000s Revenue Change in deferred revenue Collections in 000s GAAP Gross Profit Share Based Compensation Amortization Acquisition Related Expenses Non-GAAP Gross Profit Note: Q1 2018 based on ASC 606 2016 Q1 Q2 Q3 $61,586 $68,730 $75,611 $14,108 $12,723 $11,659 $81,453 $87,270 $75,694 2016 Q1 Q2 Q3 $57,712 $64,587 $51,079 $428 $475 $466 $0 $0 $0 $0 $0 $0 $51,507 $58,187 $65,053 Q4 $84,176 $13,476 $97,652 Q4 $71,438 $429 Q1 Q2 Q3 Q4 $92,538 $103,522 $111,031 $118,545 $13,599 $9,088 $13,658 $22,008 $114,546 $117,121 $120,119 $132,203 Q1 $77,675 $506 2017 $0 $0 $28 $0 $71,867 $78,209 2017 Q2 Q3 $85,497 $92,204 $695 $1,040 $0 $87,232 Q4 $100,869 $783 $946 $757 ($1,292) $0 $0 $93,744 $100,523 2018 Q1 $137,775 $21,880 $159,655 2018 Q1 $108,731 $1,079 $142 $0 $109,952 20#21Reconciliation of GAAP to Non-GAAP Measures in 000s Research and development (GAAP) Options compensation Amortization Aquisition related expenses Non-GAAP research and development Selling and marketing (GAAP) Options compensation Amortization Aquisition related expenses Non-GAAP selling and marketing General and administrative (GAAP) Options compensation Acquisition related expenses Non-GAAP general and administrative Note: Q1 2018 based on ASC 606 2016 $40,454 $981 $50 $0 $39,423 Q1 Q2 $24,472 $25,483 $3,111 $3,558 $3,718 $4,156 $137 $136 $138 $136 $514 $1,183 $397 $20,041 $21,392 $22,166 $614 $23,970 Q3 Q4 Q1 Q2 Q3 Q4 $26,536 $28,877 $32,669 $36,749 $40,252 $43,965 $4,726 $6,586 $7,190 $7,725 $136 $136 $136 $138 $1,713 $860 $26,094 $29,165 $889 $2,107 $32,037 $33,997 $36,026 $40,010 $40,022 $1,122 $1,237 $1,213 $50 $50 $50 $0 $0 $0 $34,854 $38,723 $38,759 $1,743 $5,921 $6,693 $7,073 $1,617 $0 $4,304 $4,921 $1,772 $0 $0 $5,330 $7,281 $2,022 $0 $5,259 2017 $54,329 $48,016 $1,419 $1,778 $50 $62 $611 $0 $46,176 9 $5 $52,249 $51,184 $50,906 $1,826 $1,562 $55 $1,535 $496 $0 $49,303 $47,313 $11,148 $11,295 $12,222 $13,521 $2,331 $2,920 $3,236 $3,471 $1,413 $0 $0 $540 $8,375 $8,986 $7,404 $9,510 2018 Q1 $46,502 $8,485 $137 $1,095 $36,785 $67,011 $2,042 $309 $237 $6 $64,423 $13,670 $4,068 $96 $9,506 21#22Reconciliation of GAAP to Non-GAAP Measures in 000s GAAP Operating Loss Share Based Compensation Amortization Acquisition Related Expenses Non-GAAP Operating Income (Loss) in 000s GAAP Net Loss Share Based Compensation & Other Non- GAAP Adjustments Non-GAAP Net Income (Loss) in 000s Net cash provided by operating activities Capital expenditures, net Free Cash Flow 2016 Q1 Q2 Q3 ($19,768) ($10,490) ($9,032) $6,137 $6,927 $7,164 $186 $188 $397 $514 ($2,980) ($1,166) $187 $1,183 ($12,261) 2016 Q1 Q2 Q3 ($19,912) ($11,420) ($9,643) $7,682 $7,707 $8,074 ($12,230) ($3,713) ($1,569) 2016 Q4 ($4,742) $7,820 $186 $614 $3,878 Q4 ($5,921) $8,878 $2,957 Q1 Q2 Q3 Q4 ($925) $11,314 $10,470 $19,714 ($1,209) ($1,129) ($1,046) ($1,031) ($2,134) $10,185 $9,424 $18,683 2017 Q1 Q2 Q3 ($20,471) ($10,563) ($11,454) $8,982 Q4 ($7,523) $11,979 $13,035 $13,704 $186 $1,240 $948 $3,765 $860 $889 ($7,538) $3,516 $3,418 2017 $379 $3,143 $9,703 Q1 Q2 Q3 Q4 ($20,885) ($14,264) ($14,519) ($6,605) $12,933 ($7,952) $14,079 $14,872 $13,840 ($185) $353 $7,235 2017 Q1 Q2 Q3 Q4 $16,397 $19,651 $22,063 $24,941 ($1,616) ($2,239) ($3,128) ($5,386) $14,781 $17,412 $18,935 $19,555 2018 Q1 ($18,452) $15,674 $588 $1,428 ($762) 2018 Q1 ($19,811) $17,690 ($2,121) 2018 Q1 $24,779 ($3,358) $21,421 22

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