Wix Results Presentation Deck slide image

Wix Results Presentation Deck

Financial Performance The following financial results for Q1 2018 are presented under ASC 606 as well as ASC 605 for comparability purposes. First quarter of 2017 financial results are presented under ASC 605. A reconciliation of the first 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 Q1 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). Throughout this document, we refer to this change as the "Google agreement accounting change". Revenue in Q1 was $137.8M, up 49% y/y, exceeding the high end of our guidance range of $135-136M. Under ASC 605, Q1 revenue would have been $134.6 million, an increase of 45% y/y Revenue as reported in the first quarter includes a $7.3 million benefit due to the Google agreement accounting change Collections in Q1 were $159.7M, up 39% y/y, and exceeded the high end of our guidance range of $157-158M. ā— Higher than expected conversion and renewal rates as well as marketing execution and brand strength were the primary drivers of the outperformance of collections and revenue this quarter Collections also include a $7.3 million benefit related to Google agreement accounting change Changes in currency rates positively impacted collections in Q1 by approximately $4 million as the Euro and British Pound strengthened on a y/y basis relative to the US Dollar WIX.com -4- Revenue (in millions) $84.2 Q4'16 $92.5 $97.7 $103.5 Collections (in millions) $111.0 $118.5 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 $114.5 $117.1 $120.1 $137.8 $132.2 $159.7 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18
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