Wix Results Presentation Deck slide image

Wix Results Presentation Deck

● Collections per new annual subscription in the US increased for the fifth consecutive quarter to $156 an increase of 11% year over year. This increase year over year was mainly due to package mix, greater adoption of vertical applications, increasing App Market purchases and higher package prices due to the introduction of new products and additional functionality. Vertical subscriptions growth accelerates: Growth of e-commerce and other subscriptions with a vertical application attached continues to exceed our overall subscriptions growth and accelerated compared to Q4 2016. We believe our broad range of vertical solutions, which are unique to our platform, enable us to provide greater value to small businesses operating online than our peers. We ended Q1 with 357K e-commerce subscriptions. Strong free cash flow generation with continued investment in the business: Free cash flow during the quarter was $14.8 million, or $17.5 million excluding acquisition-related costs, compared to negative $2.1 million in the same quarter last year. We generated more cash this quarter than in any prior Q1 period, and our non-GAAP losses narrowed compared to the same quarter last year. We generated an even higher amount of free cash flow than last year while continuing to invest in our business. Most notably, Q1 included continued investment in product and technology development, marketing and brand activities, including our Super Bowl campaign, and costs associated with two acquisitions. The improvement in our margin profile and cash flow is a result of our ability to efficiently acquire new subscriptions and our utilization of managed hosting, which limits our capex needs relative to peers. - 3- Raising financial outlook for 2017: We are raising our full year financial outlook for 2017 due to the stronger-than-expected Q1 2017 financial performance. We continue to expect positive non-GAAP operating income in 2017. WIX.com
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