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Wix.com
Wix is a leading provider of tools and technology that individuals and SMBs can utilize to build a web presence on the Internet. The company operates a freemium model, allowing registered users access to free tools to build their websites. A free site, however, doesn’t get its own custom domain name, has Wix ads across its pages and lacks access to additional features such as payments or analytics. As of the third quarter of FY20, Wix has more than 189M registered users, most of which are driven to the site via paid online marketing and/or directly due to awareness of Wix’s brand.
Registered users convert to premium subscribers at a predictable rate, allowing Wix to accurately forecast the future revenue and billings (called collections) growth of each cohort by year. As of the third quarter of FY20, the company had 5.3M premium subscribers or 2.8% of its registered users. The subscription segment is categorized …