Wix Results Presentation Deck slide image

Wix Results Presentation Deck

2016 compared to 48% in 2015 and we continue to progress towards our long-term target of 30%. We are constantly optimizing our channel and geographic mix to drive faster return on our marketing dollars. In Q3, we maintained our marketing efficiency while still growing our investment 36% year over year, a significant achievement. Our ability to increase our global marketing efforts while remaining within our TROI target range is a testament to the increasing efficiency of our direct response advertising, increased brand awareness and the continued improvement in our product. GAAP operating loss was $9.0 million compared to $10.4 million in the third quarter a year ago. On a non-GAAP basis, operating losses were $1.2 million compared to $4.9 million in the third quarter last year. As we discussed last quarter, beginning in 2017 we plan to report actual results and guide future performance for non-GAAP operating income. Please refer to the supplemental data sheet on our investor relations website for a breakout of our historical performance on a non-GAAP operating income basis. We believe non-GAAP operating income provides greater transparency of our business and increases the comparability of our results with peers. Adjusted EBITDA was $11.4 million, up from $4.7 million in the same quarter a year ago and above our prior record of $10.7 million set in Q2 2016. Q3 marks the sixth consecutive quarter of positive Adjusted EBITDA. As a percent of collections, our Adjusted EBITDA margin was 15% in Q3 compared to 9% last quarter. Our performance this quarter once again exceeded the high end of our guidance range of $9-10 million, as it has in each quarter since we became a public company. As a reminder, we will no longer report Adjusted EBITDA as a non-GAAP metric beginning with our Q1 2017 earnings release. ($6.8) $3.5 Non-GAAP Operting Loss (in $ Mn) Q2'15 ($4.9) $3.4 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 ($4.4) ($12.3) Adjusted EBITDA (in $ Mn) $7.0 ..ll $4.7 $2.7 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 $5.4 ($3.0) $8.4 Free Cash Flow (in $ Mn) ($2.1) $10.7 $10.2 ($1.2) Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 $11.4 $11.0 Q3'16 Wix.com
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