Financials Exhibit 1: Revenue Drivers ($ in thousands) 2016E 2017E FY14 FY15 3/16 6/16e 9/16e 12/16e FY16E 3/17e 6/17e 9/17e 12/17e FY17E FY18E Revenue Model MRR Ending $6,573 $11,300 $12,800 $14,280 $15,680 $16,385 $16,385 $17,792 $19,278 $20,698 $22,120 $22,120 $26,433 Growth in MRR in $ (y/y) $2,754 $4,727 $5,400 $5,780 $5,880 $5,085 $5,085 $4,992 $4,998 $5,018 $5,735 $5,735 $4,313 Growth in MRR in $ (q/q) $1,500 $1,480 $1,400 $705 $1,407 $1,486 $1,420 $1,422 y/y 72.1% 71.9% 73.0% 68.0% 60.0% 45.0% 45.0% 39.0% 35.0% 32.0% 35.0% 35.0% 19.5% q/q 13.3% 11.6% 9.8% 4.5% 8.6% 8.4% 7.4% 6.9% MRR q/q growth factor 7% 6% 5% 2% 4% 4% 4% 3% 78% 56% Monthly Billing Retention Rate 101.4% 100% MRR (average in quarter) $12,050 $13,540 $14,980 $16,033 $17,089 $18,535 $19,988 $21,409 y/y 72% 70% 64% 52% 42% 37% 33% 34% q/q 14.2% 12.4% 10.6% 7.0% 6.6% 8.5% 7.8% 7.1% Subscription revenue rate (includes themes/apps/domains) 107.1% 106.0% 104.0% 104.0% 104.0% 104.0% 104.0% 104.0% Subscription Solutions Revenue $66,669 $111,979 $38,706 $43,057 $46,738 $50,021 $178,522 $53,316 $57,829 $62,362 $66,795 $240,302 $296,976 y/y 73.9% 68.0% 73.2% 69.1% 58.1% 44.5% 59.4% 37.7% 34.3% 33.4% 33.5% 34.6% 23.6% q/q 11.8% 11.2% 8.5% 7.0% 6.6% 8.5% 7.8% 7.1% % of total revenues 63% 55% 53% 53% 53% 46% 51% 54% 54% 53% 45% 51% 50% GMV $3,763,838 $7,709,149 $2,674,646 $3,029,761 $3,347,613 $4,833,511 $13,885,530 $3,744,504 $4,090,177 $4,519,277 $6,525,240 $18,879,198 $24,542,957 Growth in GMV in $ (y/y) $2,147,537 $3,945,310 $1,350,564 $1,400,857 $1,434,691 $1,990,269 $6,176,381 $1,069,858 $1,060,416 $1,171,665 $1,691,729 $4,993,668 $5,663,759 y/y 132.9% 104.8% 102.0% 86.0% 75.0% 70.0% 80.1% 40.0% 35.0% 35.0% 35.0% 36.0% 30.0% Growth in GMV in $ (q/q) -$168,596 $355,115 $317,852 $1,485,898 -$1,089,007 $345,673 $429,101 $2,005,962 q/q -5.9% 13.3% 10.5% 44.4% -22.5% 9.2% 10.5% 44.4% % GMV Processed Through Payments 37.0% GMV Take Rate 1.02% 1.21% 1.27% 1.26% 1.22% 1.23% 1.24% 1.22% 1.22% 1.22% 1.24% 1.23% 1.23% Merchant Solutions Revenue $38,350 $93,254 $34,016 $38,175 $40,841 $59,452 $172,484 $45,683 $49,900 $55,135 $80,913 $231,631 $301,121 y/y 221.9% 143.2% 126.8% 96.1% 75.8% 67.2% 85.0% 34.3% 30.7% 35.0% 36.1% 34.3% 30.0% q/q -4.4% 12.2% 7.0% 45.6% -23.2% 9.2% 10.5% 46.8% % of total revenues 37% 45% 47% 47% 47% 54% 49% 46% 46% 47% 55% 49% 50% GMV prior period merchants $10,986 $11,017 $11,271 $14,402 $9,874 $10,200 $10,659 $14,555 y/y 20.0% 9.7% 3.1% 1.3% -10.1% -7.4% -5.4% 1.1% Total Revenue $105,018 $205,233 $72,722 $81,232 $87,578 $109,474 $351,006 $98,999 $107,729 $117,497 $147,708 $471,934 $598,096 y/y 109.0% 95.4% 94.7% 80.8% 65.9% 56.0% 71.0% 36.1% 32.6% 34.2% 34.9% 34.5% 26.7% q/q 3.6% 11.7% 7.8% 25.0% -9.6% 8.8% 9.1% 25.7% $ Growth (y/y) $54,767 $100,214 $145,773 $120,927 $126,163 Customer Data Number of Merchants - EOP 144,670 243,468 275,000 297,000 335,610 379,239 379,239 400,997 424,002 448,328 474,049 474,049 587,264 y/y 72.1% 68.3% 69.5% 69.7% 67.8% 55.8% 55.8% 45.8% 42.8% 33.6% 25.0% 25% 24% q/q 13.0% 8.0% 13.0% 13.0% 5.7% 5.7% 5.7% 5.7% Source: Company data, Morgan Stanley Research Exhibit 2: Income Statement ($ thousands, Except Per-Share Data) 2016E 2017E FY14 FY15 3/16 6/16e 9/16e 12/16e FY16E 3/17e 6/17e 9/17e 12/17e FY17E FY18E Subscription solutions 66,669 111,979 38,706 43,057 46,738 50,021 178,522 53,316 57,829 62,362 66,795 240,302 296,976 Y/Y Change 73.9% 68.0% 73.2% 69.1% 58.1% 44.5% 59.4% 37.7% 34.3% 33.4% 33.5% 34.6% 23.6% Q/Q Change 11.8% 11.2% 8.5% 7.0% 6.6% 8.5% 7.8% 7.1% %age of Total Revenue 63.5% 54.6% 53.2% 53.0% 53.4% 45.7% 50.9% 53.9% 53.7% 53.1% 45.2% 5 0.9% 49.7% Merchant solutions 38,350 93,254 34,016 38,175 40,841 59,452 172,484 45,683 49,900 55,135 80,913 231,631 301,121 Y/Y Change 221.9% 143.2% 126.8% 96.1% 75.8% 67.2% 85.0% 34.3% 30.7% 35.0% 36.1% 34.3% 30.0% Q/Q Change -4.4% 12.2% 7.0% 45.6% -23.2% 9.2% 10.5% 46.8% %age of Total Revenue 36.5% 45.4% 46.8% 47.0% 46.6% 54.3% 49.1% 46.1% 46.3% 46.9% 54.8% 49.1% 50.3% Total Revenue 105,018 205,233 72,722 81,232 87,578 109,474 351,006 98,999 107,729 117,497 147,708 471,934 598,096 Y/Y change 109.0% 95.4% 94.7% 80.8% 65.9% 56.0% 71.0% 36.1% 32.6% 34.2% 34.9% 34.5% 26.7% Q/Q change 3.6% 11.7% 7.8% 25.0% -9.6% 8.8% 9.1% 25.7% Cost of Revenue Total Cost of Sales 42,964 93,817 33,336 38,295 41,462 56,183 169,276 46,258 50,187 54,520 73,357 224,322 284,107 Gross Profit (Non-GAAP) 62,054 111,416 39,386 42,937 46,116 53,290 181,730 52,741 57,542 62,977 74,351 247,612 313,990 GP $ Growth (y/y) 68.4% 79.5% 82.1% 69.6% 60.1% 49.5% 63.1% 33.9% 34.0% 36.6% 39.5% 36.3% 26.8% Total Gross Margin 59.1% 54.3% 54.2% 52.9% 52.7% 48.7% 51.8% 53.3% 53.4% 53.6% 50.3% 52.5% 52.5% Incremental Gross Margin 46.0% 49.3% 50% 48.5% 49.7% 44.9% 48.2% 50.8% 55.1% 56.4% 55.1% 54.5% 52.6% Operating Expenses (Non-GAAP) Sales and Marketing 45,232 69,023 27,403 29,244 31,791 32,842 121,280 36,630 37,705 41,362 44,312 160,009 195,942 Research and Development 23,139 33,349 11,379 12,997 13,137 13,444 50,957 13,511 15,082 14,687 14,446 57,726 61,322 General and Administrative 8,672 15,746 6,524 6,905 6,744 7,554 27,726 8,415 8,511 8,577 8,700 34,203 38,469 Total Operating Expenses 77,044 118,118 45,306 49,145 51,671 53,840 199,962 58,555 61,298 64,626 67,459 251,938 295,732 Y/Y Change 95.8% 53.3% 96.2% 80.6% 67.5% 45.6% 69.3% 29.2% 24.7% 25.1% 25.3% 26.0% 17.4% Non-GAAP Operating Income -14,990 -6,703 -5,920 -6,208 -5,555 -549 -18,232 -5,815 -3,756 -1,649 6,892 -4,327 18,258 Operating Margin -14.3% -3.3% -8.1% -7.6% -6.3% -0.5% -5.2% -5.9% -3.5% -1.4% 4.7% -0.9% 3.1% Y/Y Change 498.7% -55.3% 302.7% 228.4% 173.4% -58.1% 172.0% -1.8% -39.5% -70.3% -1354.9% -76.3% -522.0% GAAP Operating Income -21,615 -17,757 -9,712 -12,784 -12,274 -8,948 -43,717 -12,938 -10,880 -8,772 -231 -32,821 -12,429 Depreciation & Amortization 4,672 7,236 3,058 3,174 3,226 3,279 12,736 3,674 4,004 4,334 4,664 16,676 21,192 Adjusted EBITDA* -10,318 533 -2,862 -3,034 -2,329 2,729 -5,496 -2,141 248 2,686 11,557 12,350 39,450 Y/Y change 805.9% -105.2% 1189.5% 1793.2% 206.0% -1130.1% -25.2% -108.2% -215.3% 323.4% -324.7% 219.4% Adjusted EBITDA Margin -9.8% 0.3% -3.9% -3.7% -2.7% 2.5% -1.6% -2.2% 0.2% 2.3% 7.8% 2.6% 6.6% Net Interest and Other Income (Expense) -696 -1,034 783 -250 -250 -250 33 -250 -250 -250 -250 -1,000 -1,000 Loss Before Income Taxes -15,686 -7,737 -5,137 -6,458 -5,805 -799 -18,199 -6,065 -4,006 -1,899 6,642 -5,327 17,258 % of Revenue -14.9% -3.8% -7.1% -8.0% -6.6% -0.7% -5.2% -6.1% -3.7% -1.6% 4.5% -1.1% 2.9% Net Loss and Comprehensive Loss -15,686 -7,737 -5,137 -6,458 -5,805 -799 -18,199 -6,065 -4,006 -1,899 6,642 -5,327 17,258 Net Margin -14.9% -3.8% -7.1% -8.0% -6.6% -0.7% -5.2% -6.1% -3.7% -1.6% 4.5% -1.1% 2.9% Y/Y change 410.6% -50.7% 103.5% 274.3% 143.0% -27.2% 135.2% 18.1% -38.0% -67.3% -931.1% -70.7% -424.0% GAAP Net Income -22,311 -18,791 -8,929 -13,034 -12,524 -9,198 -43,684 -13,188 -11,130 -9,022 -481 -33,821 -13,429 Diluted Adjusted EPS ($0.40) ($0.13) ($0.06) ($0.08) ($0.07) ($0.01) ($0.22) ($0.07) ($0.05) ($0.02) $0.08 ($0.06) $0.19 Diluted GAAP EPS ($0.57) ($0.31) ($0.11) ($0.16) ($0.15) ($0.11) ($0.53) ($0.16) ($0.13) ($0.10) ($0.01) ($0.39) ($0.15) Basic Shares 38,940 61,277 80,448 81,448 82,448 83,448 81,948 84,448 85,448 86,448 87,448 85,948 89,948 Diluted Shares 81,279 61,277 80,448 81,448 82,448 83,448 81,948 84,448 85,448 86,448 87,448 85,948 89,948 Source: Company data, Morgan Stanley Research 4