Wix Results Presentation Deck
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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.
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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.
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