Wix Results Presentation Deck
Free cash flow during the quarter grew to $9.4 million from $5.4 million in Q3
2015, an increase of 74% over last year. Our cash balance at the end of Q3
was $145 million, and we ended the quarter with 1,312 employees
Registered Users and Premium Subscriptions
Our user cohorts contain an incredible amount of financial value without any
further investment in marketing. We expect our existing user cohorts to
generate over $1.6 billion in value over the next six years.
Our user cohorts also exhibit negative churn. Our freemium business model
combined with an outstanding product experience and high value we provide
our subscribers creates cohorts that exhibit negative churn.
In Q3, we added five million new registered users, bringing our total registered
user base to 92 million. This is the third consecutive quarter we have grown
our user base by 5 million, and over the last four quarters, we have added over
20 million registered users. Our ability to consistently grow our user base at
such a healthy pace is the direct result of the execution of our direct marketing
strategy and the rapidly growing awareness of our brand.
We added 174,000 net premium subscriptions in Q3, compared to 140,000 in
Q3 last year, and we ended the quarter with 2.3 million subscriptions. Q3 was
our second strongest net additions quarter to date as we converted new and
existing registered users into premium subscriptions at a higher rate than ever
before.
In Q3, 60% of our new subscriptions came from users who joined in prior
quarters. These new subscriptions consist of users that had already registered
with Wix, were using our product, and required no significant additional
marketing dollars to convert.
In Q3, 65% of new subscriptions purchased were for periods of one year or
more, with the remaining 35% being monthly subscriptions. As of the end of
67.57
Q2'15
1.50
62%
38%
Registered Users (in Mn)
Q2'15
72.32
Q3'15
1.64
76.93
Premium Subscriptions (in Mn)
Q4'15
58%
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
42%
1.77
92.37
87.40
82.18
III
Q1'16 Q2'16 Q3'16
% New Subscriptions By Cohort
62%
63%
37%
Q3'15 Q4'15
1.94
Existing Cohort
60%
2.12
40%
Q1'16
38%
Q2'16
New Cohort
2.29
Q3'16
60%
40%
Q3'16
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