Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Financial Performance The following financial results for Q2 2018 are presented under ASC 606 as well as ASC 605 for comparability purposes. Second quarter of 2017 financial results are presented under ASC 605. A reconciliation of the second quarter 2018 results under ASC 606 and ASC 605, as well as a reconciliation of other non- GAAP measures discussed in this document, are presented in the tables of our Q2 2018 earnings press release. The following results are also presented, unless noted, using the change in accounting we announced last quarter related to our revised agreement with Google. Beginning in Q1 2018, we changed our method of accounting for revenue and collections from net (agent) to gross (principal). As previously stated, this impact is an approximately $30 million benefit to FY 2018 revenue and collections and approximately $7-8 million each quarter in 2018. This impact also has resulted in a year-over-year decrease in our GAAP and non-GAAP gross margin. Revenue in Q2 was $146.1M, up 41% y/y, exceeding the high end of our guidance range of $144-145M. Under ASC 605, Q2 revenue would have been $144 million, an increase of 39% y/y. Collections in Q2 were $159.9M, up 37% y/y, and exceeded the high end of our guidance range of $158-159M. ā— Outperformance this quarter was driven by conversion and retention exceeding expectations as well as an increase in the adoption of vertical applications Changes in currency rates positively impacted collections in Q2 by an immaterial amount and were included in the guidance that was provided for the quarter WIX.com - 5- Revenue (in millions) $92.5 $118.5 $111.0 $103.5 Collections (in millions) Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 $114.5 $117.1 $120.1 $137.8 $132.2 $146.1 $159.7 $159.9 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18
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