Slide 1: Company Overview Second Quarter August 2023
Company Overview Second Quarter | August 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 Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted f
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 additional languages and to expand our payment infrastructure to transact in additional local currencies and accept addition
Slide 4: Company Overview
Company Overview Total registered users1 Creative Subscriptions Employees1 Q2’23 GPV Annualized Recurring Revenue1 1 As of June 30, 2023 2 Q2’23 Revenue by Geography based on constant FX rates from Q2’22 >254M ~$1.2B ~5,000 $2.8B Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is cal
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | Second Quarter 2023 05
Slide 6: Wix is becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | Second Quarter 2023 06
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | Second Quarter 2023 07
Slide 8: Total Revenue
Total Revenue ($ Millions) $1,543 – Business Solutions Creative Subscriptions 1,558 +13% y/y $1,388 $390 $1,270 +11% y/y $374 $355 $348 $333 $342 $345 $346 $316 $320 $103 $319 $764 $96 $90 $984 $87 $87 $85 $687 $87 $80 $79 $199 $201 $174 $1,039 $278 $287 $950 $247 $255 $258 $261 $265 $236 $241 $783
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +10% y/y $1,135 $1,160 $1,071 $1,081 $1,038 $1,053 $992 $1,010 $967 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly Recur
Slide 10: Total Bookings
Total Bookings ($ Millions) Business Solutions Creative Subscriptions +12% y/y $1,472 $1,419 $415 $398 $351 +9% y/y $393 $331 $373 $372 $352 $355 $352 $1,102 $343 $101 $813 $93 $105 $81 $90 $748 $85 $211 $80 $88 $83 $206 $178 $1,088 $1,121 $300 $313 $293 $282 $294 $891 $263 $264 $270 $270 $607 $570
Slide 11: Tremendous Partners Momentum
Tremendous Partners Momentum ($ Millions) Partners revenue Up ~125% over past 2 years +31% y/y We continue to see tremendous momentum and growth in Partners. This growth is a result of years of successful development of our platform for professionals and a testament to the success of multiple years
Slide 12: Transaction Revenue Growth
Transaction Revenue Growth ($ Millions) Up ~165% over past 2 years Continued transaction revenue growth +18% y/y driven by strong GPV growth, particularly from Partners, and higher take rate as merchants increasingly adopt Wix Payments +21% y/y $148 $130 $87 $73 $45 $37 $56 $32 Q2'21 Q2'22 Q2'23 202
Slide 13: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ Millions) Innovation and product offering enhancements 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 driving higher monetization and sustained user cohort bookings growth $270 $2
Slide 14: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Bookings … After 2 Quarters … After 6 Quarters … After 10 Quarters … After 14 Quarters … After 18 Quarters 1.3x 1.4x 2.1x 3.5x 4.1x $224 $197 $166 $88 $81 $64 $57 $55 $33 $43 Q1'23 Cohort Q1'22 Cohort Q1'21 Cohort Q1'20 Cohort Q1'19 Cohor
Slide 15: 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 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $15.6 Billion Expected future bookings over next 10 years from existing cohorts Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'1
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q2’23 Y/Y Growth North America +21% Y/Y 63% of total Europe +2% Y/Y 23% of total Asia and others +3% Y/Y 11% of total Latin America +9% Y/Y 4% of total Note: Q2’23 Revenue by Geography and Y/Y change based on constant FX rates f
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +104% FX-neutral 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Revenue Retention in 2022 Cohort revenue retention driven by increasing ARPS as we attract more users with higher lifetime value 2016 2017 2018
Slide 18: Gross profit growth with declining sales and marketing spend
Global strength of Wix brand and focus on operational efficiency driving increasing gross profit while sales and marketing spend has declined over time ($ Millions) $300 200% Non-GAAP Gross Profit Non-GAAP S&M Expense S&M as % Gross Profit $266 180% $250 $250 $232 160% $223 $212 $216 $203 $206 $199
Slide 19: Profitability improvements driven by operational efficiencies
Profitability improvements in 2022 driven by operational efficiencies and cost reduction efforts executed throughout the past year expected to continue in 2023 Non-GAAP Gross Margin Non-GAAP Opex % of revenue 77% Reduced marketing spend by ~50% in Q1’23 as we 83% ~82% implemented new marketing 80% s
Slide 20: Free cash flow
Free cash flow ($ Millions) Free cash flow expected to accelerate FCF as % of revenue compared to three-year plan provided at May 2022 Analyst Day $200 - 210 $200 $150 $132 $128 We are making headway towards sustained profitability and expect to generate FCF $100 17% margin excluding HQ investments
Slide 21: Appendix
Appendix Company Overview | Second Quarter 2023 21
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2021 2022 2023 FY FY FY in 000s Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 Revenues $315,575 $319,890 $333,413 $341,597 $345,224 $345,805 $355,040 $374,076 $389,977 $984,367 $1,269,657 $1,387,666 Change in deferred revenues $19,266 $6,243 $6,522 $
Slide 23: 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 $37 $53 $63 $130 $179 $184 $206 $226 $228 $203 $174 $140 $66 $20 Cumulative Cohort change in $1 $1 $2 $4 $5 $7 $12 $16 $18 $
Slide 24: Partners and Transaction Revenue
Partners and Transaction Revenue 2021 2022 2023 FY FY FY in 000s Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 Partners Revenue $64,883 $70,061 $77,007 $81,996 $84,893 $86,696 $94,584 $103,862 $115,163 $154,292 $269,955 $348,169 y/y growth 87% 74% 53% 41% 31% 24% 23% 27% 36% 65% 75% 29% 2-year CAGR 71%