Wix
non operating loss was compared to operating income of in and operating loss of in free cash flow rose to compared to in and in an increase of we mentioned last quarter that we anticipated to be sequentially flat or down compared to due to increased marketing expenses however in we benefitted from increasing leverage in the model primarily over our investments free cash flow has continued to grow at a higher rate than collections due to the leverage we continue to realize over the investments in our business we view free cash flow as the best metric by which to measure the profitability of our business as opposed to operating income or net income due to the large amount of deferred revenue we recognize in a given period because income statement based profitability measures are derived from revenue they fail to account for all of the cash we collect in a period much of which is due to the sale of annual and longer term subscriptions that are amortized in revenue over their term furthermore in quarters where we exceed our expectations for collections we increase marketing expense in the latter weeks of the quarter in order to remain within our further decreasing income statement profitability free cash flow fully captures all of the cash that we collect in a period through the sale of annual and longer term subscriptions which account for roughly of our quarterly gross subscription additions this properly aligns the timing of cash we collect with our marketing expenses we ended with in cash on the balance sheet and in long term debt our total employee stood at as of the end of the first quarter at the end of our basic share count was approximately million and our fully diluted share count was approximately million i i | Wix
Company
Wix
Deck Type
Deck date
May 2018
Slide
8 of 25
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