Wix Results Presentation Deck
Strong growth and profitability outlook for 2017: We grew our top line in
2016 faster than in 2015 and we remain very optimistic about our ability to
continue delivering strong growth, higher profitability and increased cash flow
in 2017.
Financial Performance
Collections were $97.6 million in Q4, above the high end of our guidance range
of $93-94 million. Growth in quarterly collections accelerated to 46% year over
year from 42% year over year last quarter. The $10 million sequential
increase in collections during Q4 was our highest such increase ever, and
we increased at nearly twice the rate as last quarter ($5.8 million) and Q4 last
year ($5.3 million). Collections for the full year 2016 were $342.1 million, an
increase of 42% over the prior year. This growth was well above our original
expectations for the year.
GAAP revenue was up 48% year over year to $84.3 million and also exceeded
the high end of our prior guidance of $81-82 million. Revenue growth
accelerated from 41% year over year last quarter. For the full year 2016, GAAP
revenue was $290.1 million, an increase of 43% over the prior year.
Our top line growth accelerated in both the quarter and full year 2016. This
outstanding top line performance was a result of continued improvements in
conversion of registered users to premium subscriptions, strong renewal
activity, and higher collections per new annual subscription in the US.
We continue to see a greater preference by new users for subscriptions with
a vertical application attached, in particular Wix Bookings and Wix Stores. In
fact, we saw more new subscriptions for vertical solutions in Q4 than any prior
period. As a result, collections per new annual subscription in the US
increased for the fourth consecutive quarter - growing 16% year over year to
$153 from $132 at the end of 2015.
-4-
$61.6
$53.6
Q3'15
$66.9
$132
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
$56.8
Collections (in $ Mn)
Q4'15
$75.7
GAAP Revenue (in $ Mn)
$132
$81.5
$61.6
$68.7
$141
$87.3
Collections per New Subscription
$145
$75.6
Q3'15 Q4'15 Q1'16 Q2'16
Source: Data based on New Annual Subscriptions; US Only
Q1'16 Q2'16 Q3'16 Q4'16
$150
46%
Y/Y
Q3'16
$97.6
Q4'16
48%
Y/Y
$84.3
$153
Q4'16
WIX.comView entire presentation