Wix Results Presentation Deck
Free cash flow during the quarter grew to $18.7 million from $8.4 million in Q4
2015, an increase of 122%. We generated $36.2 million in free cash flow in
2016 compared to $14.5 million in 2015, and our cash balance at the end of
the year was $172 million. We ended the fourth quarter with 1,361 employees.
Registered Users and Premium Subscriptions
Our freemium business model and outstanding product experience remain
critical selling points for users coming to Wix, and we continue to grow our
audience with the addition of user cohorts that will generate significant value
over time. We expect our existing user cohorts to produce over $1.8 billion
in value over the next six years without any further investment in
marketing.
In Q4, we added another five million new registered users, bringing our total
registered user base to 97 million as of the end of the quarter. We are excited
to share we have since eclipsed 100 million users in 2017.
Our performance in Q4 marks the fourth consecutive quarter we have
grown our user base by five million and highlights the tremendous growth
opportunity we see ahead in 2017 and beyond. Our ability to consistently
grow our user base at such a healthy pace is the direct result of the large and
global addressable market, execution of our direct marketing strategy and the
rapidly growing awareness of our brand.
Our cohorts continue to demonstrate negative churn. We added 171,000
net premium subscriptions in Q4, compared to 125,000 in Q4 last year, and
total subscriptions at the end of the quarter were up 39% year over year to 2.5
million. Conversion of new and existing registered users into premium
subscriptions reached an all-time high in Q4 due to positive experiences with
Wix ADI, our vertical solutions, and enhancements made to our core editor.
-7-
72.3
Q3'15
1.6
58%
42%
76.9
Q3'15
Registered Users (in Mn)
1.8
82.2
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Premium Subscriptions (in Mn)
37%
1.9
Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
87.4
60%
40%
% New Subscriptions By Cohort
63%
Q4'15 Q1'16
2.1
Existing Cohort
92.4
62%
38%
2.3
Q2'16
60%
40%
Q3'16
97.4
New Cohort
2.5
Q4'16
63%
37%
Q4'16
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