Wix Results Presentation Deck slide image

Wix Results Presentation Deck

For 2017, we expect the following: Revenue in the range of $409 to $411 million, an increase of 41% to 42% year over year ● ● ● ● ● ● ● - 12- Collections in the range of $452 to $458 million, representing annual growth of 32% to 34% Free Cash Flow of $71 to $72 million. As a percent of collections, free cash flow is expected to be 16% in 2017 compared to 11% in 2016. We will no longer report adjusted EBITDA beginning in Q1 2017. We will provide guidance for free cash flow and other cash flow items for the full year and may update our full year guidance each quarter as necessary. We believe evaluating our business based on our ability to generate top line growth and free cash flow is most appropriate Non-GAAP gross margin of approximately 87% of collections Non-GAAP S&M expense to be approximately 40% to 41% of collections, and total non-GAAP operating expenses to be approximately 70% to 71% of collections for the full year Annual stock-based compensation expense of approximately $39 million for the full year, capex of roughly $6 million, acquisition-related costs of roughly $2 million, and depreciation expense of approximately 1% of collections We expect our basic share count will be approximately 48 to 49 million shares outstanding at year end and our fully diluted share count will be roughly 57 to 58 million shares outstanding 2017 Non-GAAP Financial Outlook 2016A $290 43% $342 42% 87% 44% 76% 1% $43 12% $4 $3 $36 11% $28 GAAP Revenue % Y/Y Collections % Y/Y Gross Margin (% collections) S&M (% collections) OpEx (% collections) Depreciation (% collections) Adjusted EBITDA % Collections Less: CapEx Less: Acq. Related Costs Free Cash Flow % Collections SBC Expense Basic Shares O/S Fully Diluted Shares O/S (In $ millions) 44mn 2017E Q1'17E $409-411 $89-90 45-46% 41-42% $452-458 $107-109 41-44% 32-34% ~87% 40-41% 70-71% ~1% $79-80¹ 17% ~$6-7 ~$2 $71-72 16% ~$39-40 48-49mn 57-58mn ~46% ¹ Going forward after this earnings release, we will no longer report Adjusted EBITDA as a key metric. Going forward, we will report and provide annual guidance for Free Cash Flow only. The Adjusted EBITDA figure provided here will be done so for the last time and is by reference only in order to aid investors in the transition between our use of Adjusted EBITDA and Free Cash Flow Wix.com
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