Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Non-GAAP S&M expense was $56.2M in Q2 compared to $64.4M in Q1 2018 and $46.2M in Q2 2017. As a percent of collections, S&M expense was 35% in Q2 compared to 40% in Q1 2018 and 39% in Q2 2017. We continue to increase marketing investment while maintaining our TROI at 7-9 months due to product improvements that drove better conversion, more efficient advertising and the strengthening of our brand. As we highlighted at our Analyst & Investor Day in June, the increase in our marketing investment while maintaining a TROI of 7-9 months indicates that our cost of acquiring new premium subscriptions is steady. Non-GAAP G&A expense was $10.0M in Q2 compared to $9.5M in Q1 2018 and $8.4M in Q2 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 Q2 2018, the same as in Q1 2018 and down slightly from 7% in Q2 2017. Wix.com -7- Non-GAAP S&M as a % of Collections 48% 2015 44% 2016 6% 2015 40% 39% 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 2017 Q2'17 Q2'18 35% 7% 6% milli 2017 Q2'17 Q2'18 7% 6%
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