Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Non-GAAP S&M expense was $64.4M in Q1 compared to $47.3M in Q4 2017 and $52.2M in Q1 2017. As a percent of collections, S&M expense was 40% in Q1 compared to 36% in Q4 2017 and 46% in Q1 2017. We beat our previous guidance of S&M as 41% of collections in Q1 2018 due to higher than expected collections. S&M spend is generally a higher percent of collections in Q1 compared to other quarters due to the seasonal increase in advertising and brand investment. Q1 typically also includes expenses related to our Super Bowl campaigns. We continue to increase marketing spend while maintaining our time to return on investment, or TROI, at 7-9 months due to product improvements that drove better conversion, more efficient advertising and the strengthening of our brand. Non-GAAP G&A expense was $9.5M in Q1 compared to $9.5M in Q4 2017 and $7.4M in Q1 2017. G&A expense increased on a year-over-year basis due to increasing headcount and overhead expenses related to the growth of our overall business. G&A expense was 6% of collections in Q1 2018, down from 7% in Q4 2017 and steady with the 6% in Q1 2017. Wix.com - 6- Non-GAAP S&M as a % of Collections 48% 44% 40% Tili 2015 2016 6% 2017 2015 46% TROI: Time to Return On (Marketing) Investment 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 Non-GAAP G&A as a % of Collections 2016 7% 6% ili Q1'17 Q1'18 2017 40% 6% 6% Q1'17 Q1'18
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