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 LongerView entire presentation