Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Our Q1 2018 user cohort generated over 213,000 net premium subscriptions in its first quarter, the highest ever for a user cohort. Over the last three years, new registered users in our Q1 user cohorts have increased by 30% while our first period subscriptions have increased by over 107%. Wix ADI, our vertical applications and other improvements to our products contributed meaningfully to this growth, a reflection of our ability to drive subscription growth through investment in product development. Based on the historical behavior of our user cohorts, we approximate that for each 100,000 new premium subscriptions, we will generate over $165 million over eight years, at an 80% gross margin and with minimal marketing investment. This estimation is based on our modeling of the collections a cohort will generate over the next eight years. Our previous estimates used a six-year period, but we have increased our estimate to eight years given the consistent performance of our oldest cohort from Q1 2010. Using this model, our Q1 2018 user cohort is expected to generate over $370 million in collections over its first eight years based on current cohort behavior. These consistent improvements in conversion and retention demonstrate the continued advancement of our product offering, efficiency of our marketing investment and strengthening of our brand. In Q1, 59% of gross subscription additions came from prior user cohorts, while 41% came from the Q1 2018 (current) user cohort. This ratio is consistent with prior Q1 periods. Please note that it is incorrect to apply these percentages to net subscription additions by cohort. In Q1, 67% of gross subscription additions were packages with a term of one year or longer, while 33% were monthly. WIX.com - 9- Increasing users and conversion driving growth +107% +30% 4,568 Q1'15 Q1'18 New Registered Users (000's) 63% 5,926 37% % Gross New Subscriptions by Cohort 59% 30% 41% 63% 65% 37% 35% 67% 40% 33% 103 60% 62% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 -Prior User Cohorts Q1'15 Q1'18 Prem. Subs after 1st Quarter (000's) % Gross New Subscriptions by Package Duration 70% 64% 38% 36% 213 59% Current User Cohort 41% 68% 67% 32% 33% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Monthly 1 Year or Longer
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