Slide 1: Company Overview First Quarter 2023
Company Overview First Quarter 2023 1
Slide 2: Safe Harbor: Non-GAAP Financial Measures and Key Operating Metrics
Safe Harbor Non-GAAP Financial Measures and Key Operating Metrics To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as
Slide 3: Safe Harbor: Forward-Looking Statements
Safe Harbor Forward-Looking Statements This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation channels available in additional languages and to expand our payment infrastructure to transact in additional local currenci
Slide 4: Company Overview
Company Overview Total registered users1 Creative Subscriptions Employees1,2 Q1’23 GPV Annualized Recurring Revenue1 1 As of March 31, 2023 2 Employee headcount includes 131 part-time >248M ~$1.1B ~5,000 $2.7B employees and excludes impacted employees who were part of the headcount reduction announc
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | First Quarter 2023 05
Slide 6: Wix is becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | First Quarter 2023 06
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | First Quarter 2023 07
Slide 8: Total Revenue
Total Revenue ($ Millions) +9% y/y (+11% FXN) $1,522 – +10% y/y 1,543 $1,388 $374 $355 $1,270 $342 $345 $346 $333 $320 $348 $316 $96 $301 $90 $319 $87 $87 $85 $87 $984 $80 $79 $74 $201 $278 $1,039 $255 $258 $261 $265 $950 $236 $241 $247 $226 $783 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +9% y/y $1,135 $1,071 $1,081 $1,038 $1,053 $992 $1,010 $967 $926 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly Recurrin
Slide 10: Total Bookings
Total Bookings ($ Millions) +4% y/y (+7% FXN) +6% y/y (+7% FXN) $1,472 $415 $1,419 $393 $373 $372 $351 $351 $352 $355 $352 $101 $331 $343 $93 $1,102 $81 $90 $83 $88 $85 $83 $80 $211 $313 $1,088 $1,121 $293 $300 $268 $270 $270 $282 $263 $264 $891 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 11: Growth Across Partners and Transaction Revenue
Growth Across Partners and Transaction Revenue ($ Millions) Partners Revenue Transaction Revenue Up ~165% over past 2 years Up ~125% over past 2 years +16% y/y +20% 2-year CAGR +27% y/y +34% 2-year CAGR $148 $348 $130 $42 $270 $37 $104 $82 $29 $154 $56 $58 Q1'21 Q1'22 Q1'23 2020 2021 2022 Q1'21 Q1'2
Slide 12: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ Millions) Innovation and product offering enhancements driving higher monetization and sustained user cohort bookings growth $237 $233 $240 $214 $211 $210 $186 $185 The new Q1’23 user cohort generated more $180 $179
Slide 13: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Bookings … After 1 Quarter … After 5 Quarters … After 9 Quarters … After 13 Quarters … After 17 Quarters 0.9x 1.2x 1.9x 3.3x 3.9x $214 $186 $155 $79 $81 $64 $57 $55 $33 $30 Q1'23 Cohort Q1'22 Cohort Q1'21 Cohort Q1'20 Cohort Q1'19 Cohort
Slide 14: Existing Cohorts are a Growing Source of Future Bookings
Existing Cohorts are a Growing Source of Future Bookings Actual and Potential Future Bookings From Q1’10 – Q4’22 Cohorts $15.6 Billion Expected future bookings over next 10 years from 2022 existing cohorts 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'1
Slide 15: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q1’23 Y/Y Growth North America +13% Y/Y 60% of total Europe +5% Y/Y 25% of total Asia and others +7% Y/Y 11% of total Latin America +9% Y/Y 4% of total Note: Q1’23 Revenue by Geography and Y/Y change based on constant FX rates f
Slide 16: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +104% FX-neutral Net Revenue Retention in 2022 Cohort revenue retention driven by increasing ARPS as we attract more users with higher lifetime value 2016 2017 2018 2019 2020 2021 2022 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018
Slide 17: Increasing gross profit while sales and marketing spend has declined
Global strength of Wix brand and focus on operational efficiency driving increasing gross profit while sales & marketing spend has declined over time $250 ($ Millions) $232 $223 $212 $216 $203 $206 $199 $191 $146 $137 Strong execution on strategy, $114 $115 $109 $110 $107 focus on operational effici
Slide 18: Profitability improvements driven by operational efficiencies and cost reduction
Profitability improvements in 2022 driven by operational efficiencies and cost reduction efforts expected to continue in 2023 Non-GAAP Gross Margin Non-GAAP Opex % of revenue 77% Reduced marketing spend by ~50% in Q1’23 as we 81% 81% implemented new marketing 80% strategy with increased new 79% 77%
Slide 19: Free cash flow
Free cash flow ($ Millions) Free cash flow expected to accelerate compared to three-year plan provided at May 2022 Analyst Day $172 - 180 $132 $128 We are making headway towards sustained 17% profitability and expect to generate FCF margin 13% excluding HQ investments and one-time ~11-12% $51 restru
Slide 20: Appendix
Appendix Company Overview | First Quarter 2023 020
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2021 2022 2023 FY FY FY in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 Revenues $300,779 $315,575 $319,890 $333,413 $341,597 $345,224 $345,805 $355,040 $374,076 $988,760 $1,269,657 $1,387,666 Change in deferred revenues $50,330 $19,266 $6,243
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures in millions Q1’10 Q1’11 Q1’12 Q1’13 Q1’14 Q1’15 Q1’16 Q1’17 Q1’18 Q1’19 Q1’20 Q1’21 Q1’22 Q1'23 Cumulative Cohort Revenue $36 $50 $60 $125 $170 $175 $198 $217 $218 $192 $162 $127 $54 $8 Cumulative Cohort change in $1 $2 $3 $6 $9 $10 $13 $16 $19 $
Slide 23: Partners and Transaction Revenue
Partners and Transaction Revenue 2021 2022 2023 FY FY FY in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 Partners Revenue $58,003 $64,883 $70,061 $77,007 $81,996 $84,893 $86,696 $94,584 $103,862 $154,292 $269,955 $348,169 y/y growth 99% 87% 74% 53% 41% 31% 24% 23% 27% 65% 75% 29% 2-year CAGR 76% 7