Wix
our user cohort generated over net premium subscriptions in its first quarter the highest ever for a user cohort over the last three years new registered users in our user cohorts have increased by while our first period subscriptions have increased by over our vertical applications and other improvements to our products contributed meaningfully to this growth a reflection of our ability to drive subscription growth through investment in product development based on the historical behavior of our user cohorts we approximate that for each new premium subscriptions we will generate over million over eight years at an gross margin and with minimal marketing investment this estimation is based on our modeling of the collections a cohort will generate over the next eight years our previous estimates used a six year period but we have increased our estimate to eight years given the consistent performance of our cohort from using this model our user cohort is expected to generate over million in collections over its first eight years based on current cohort behavior these consistent retention demonstrate the continued advancement of our product offering efficiency of our marketing investment and strengthening of our brand in conversion and improvements in of gross subscription additions came from prior user cohorts while came from the current user cohort this ratio is consistent with prior periods please note that it is incorrect to apply these percentages to net subscription additions by cohort in of gross subscription additions were packages with a term of one year or longer while were monthly | Wix
Company
Wix
Deck Type
Sector
Industry
Deck date
May 2018
Slide
10 of 25
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Results
July 2018
based on the historical behavior of our user cohorts we approximate that for each new premium subscriptions we will generate over million over eight years at an gross margin and with minimal marketing investment we believe these consistent improvements in conversion and retention demonstrate the continued advancement of our product offering efficiency of our marketing investment and strengthening of our brand during the quarter of gross subscriptions were annual or longer in term while were monthly as of the end of the second quarter of all subscriptions were annual or longer in term the new cohort generated of gross subscriptions in the quarter while existing cohorts comprised of gross subscriptions these ratios were all consistent with prior quarters behaviors gay | Wix
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