Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Registered Users and Premium Subscriptions We continue to create new user cohorts that we expect to generate a significant amount of collections over a long period. Every 100,000 new subscriptions is expected to create over $165 million in collections over the next eight years, at an 80% gross margin and without the need for significant marketing investment, based on current cohort behavior. Our existing user cohorts also continue to exhibit net negative churn. New subscriptions are added to existing user cohorts at greater numbers than cancellations. The net addition of these subscriptions occurs even before we invest in marketing to create a new user cohort. This behavior is a key benefit of our freemium business model and a testament to our strong product offering and user satisfaction. This strength of our model means that our existing user cohorts are expected to generate over $4.2 billion in collections over the next eight years, based on current cohort behavior. In Q1, we added 5.9 million registered users, bringing our total to 125 million. Our mix of new registered user additions has improved over the last year as a result of our decision to focus marketing dollars on markets with higher conversion. In Q1 2018, new registered user additions grew nearly 10% y/y in select English-speaking markets. We made our decision to focus on these markets based on our growing brand strength and presence of Wix ADI, and we are confident in our ability to increase users globally. This result is an illustration of our ability to allocate our marketing to the most efficient markets in order to achieve our TROIl goal. This quarter we also added a record 231,000 net premium subscriptions, compared to 170,000 in Q4 2017 and 208,000 in Q1 2017. We continue to generate improvements in conversion of users to premium subscriptions. Wix.com - 8- Total Registered Users (in millions) 97.4 113.9 108.7 103.2 Q4'16 Q1¹17 Q2'17 Q3'17 Q4'17 Q1'18 2.5 119.3 +10% Q1 2018 Y/Y increase in new registered user additions from select English-speaking markets Total Premium Subscriptions (in millions) 2.7 2.9 3.1 125.2 3.2 3.5 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18
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