Slide 1: Company Overview: Fourth Quarter and Full Year 2024
Company Overview Fourth Quarter and Full Year 2024 1
Slide 2: 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 our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase progr
Slide 3: 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 R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impac
Slide 4: Company Overview
Company Overview Total registered users1 Creative Subscriptions Employees2 % of revenue from outside North Annualized Recurring Revenue1 America 3 1 As of December 31, 2024 2 As of December 31, 2024; number of employees includes contractors 3 FY24 Revenue by Geography based on ~282M ~$1.3B ~5,300 ~4
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | Fourth Quarter 2024 5
Slide 6: Wix becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | Fourth Quarter 2024 6
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | Fourth Quarter 2024 7
Slide 8: Total Revenue
Total Revenue ($ Millions) +12-14% y/y (+14-16% y/y FXN) Business Solutions Creative Subscriptions +14% y/y 123 $1,970 – 2,000 $460 $1,761 $445 $450 $436 $420 $1,562 $394 $404 $400 $390 $131 $496 $374 $126 $1,388 $355 $124 $115 $350 $103 $108 $410 $103 $96 $90 $348 $300 $250 $200 $312 $319 $330 $1,2
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +13% y/y $1,308 $1,343 $1,244 $1,276 $1,160 $1,182 $1,193 $1,135 $1,081 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly R
Slide 10: Total Bookings
Total Bookings ($ Millions) +11-13% y/y (13-15% y/y FXN) Business Solutions Creative Subscriptions +18% y/y $2,025 – 2,060 $1,830 $457 $458 $465 $450 $450 $415 $1,598 $398 $389 $395 $515 $400 $123 $129 $139 $1,472 $372 $123 $101 $423 $350 $105 $105 $112 $351 $90 $300 $250 $200 $335 $329 $327 $325 $1
Slide 11: Tremendous Partners Momentum
Tremendous Partners Momentum ($ Millions) Partners revenue Up ~75% over past 2 years We continue to see tremendous momentum and growth in Partners. This is a result of +29% y/y years of successful development of our platform for professionals, culminating in the August 2023 launch of our cornerstone
Slide 12: Transaction Revenue Growth
Transaction Revenue Growth ($ Millions) Up ~45% over past 2 years Continued transaction revenue growth driven by accelerating GPV growth, particularly from Partners, as well as stable, +23% y/y healthy take rate as we execute on our monetization initiatives and expand our $215 suite of commerce-enab
Slide 13: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ 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 Q1’24 driving higher monetization and sustained user cohort bookings growth $
Slide 14: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Bookings … After 4 Quarters … After 8 Quarters … After 12 Quarters … After 16 Quarters … After 20 Quarters 1.7x 3.4x 2.4x 2.9x 4.6x $263 $237 $111 $153 $61 $64 $81 $57 $36 $33 Q1'24 Cohort Q1'23 Cohort Q1'22 Cohort Q1'21 Cohort Q1'20 Coho
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 – Q4’24 Cohorts 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ~$18.4 Billion Expected future bookings over next 10 years from existing cohorts Q1'10 Q1'11 Q1'12 Q1'13
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q4’24 Y/Y Growth North America +15% Y/Y Europe +17% Y/Y 60% of total 25% of total Asia and others +10% Y/Y 11% of total Latin America -2%1 Y/Y 4% of total Note: Q4’24 Revenue by Geography and Y/Y change based on constant FX rate
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +106% Net Revenue Retention in 2024 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cohort revenue retention driven by stickiness of our product platform and increasing monetization 2016 2017 2018 2019
Slide 18: Gross profit growth and sales and marketing leverage
Global strength of the Wix brand and focus on operational efficiency driving increasing gross profit and leverage of sales and marketing investments ($ Millions) Strong execution on strategy, focus on operational efficiency and optimized marketing strategy have Non-GAAP Gross Profit Non-GAAP S&M Exp
Slide 19: Efficiencies across operating cost structure drove profitability improvements
Efficiencies across operating cost structure from completed cost reduction efforts drove profitability improvements in 2023 and continued into 2024 Non-GAAP Gross Margin Non-GAAP Opex % of revenue Reduced marketing spend as we implemented new Increases in Partner 84% 84% 85% 84% 83% 83% 83% 83% 82%
Slide 20: Free cash flow
Free cash flow ($ Millions) FCF as % of revenue Outperformance of 2023 targets and strong YTD $590 - 610 growth acceleration continued through 2024 allowing us to exceed Rule of 40 in 2024, one year ahead of plan with continued progress and FCF margin step- ups expected in 2025 and beyond. $488 We e
Slide 21: Surpassed Rule of 40 and Setting Up for Rule of 45 in 2025
Surpassed Rule of 40 and Setting Up for Rule of 45 in 2025 Revenue Growth + Free Cash Flow Margin Strong product performance and uptake, strengthening AI suite, monetization, and 43% 43% 42-45% consistent expansion of our commerce 41% platform 40% + 33% Strong growth coupled with stable optimized 29
Slide 22: Appendix
Appendix Company Overview | Fourth Quarter 2024 22
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2022 2023 2024 FY FY FY in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Revenues $355,040 $374,076 $389,977 $393,841 $403,771 $419,776 $435,746 $444,673 $460,455 $1,387,666 $1,561,665 $1,760,650 Change in deferred revenues $4,081 $60,975 $12,04
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2022 2023 2024 FY FY FY in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Gross Profit $226,276 $244,598 $262,083 $264,798 $277,658 $282,479 $294,072 $302,645 $316,819 $861,439 $1,049,137 $1,196,015 Share based compensation expenses $4,607 $4,238
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2022 2023 2024 FY FY FY in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Research and development (GAAP) $120,994 $114,943 $115,490 $125,117 $125,743 $124,245 $119,257 $124,593 $127,186 $482,861 $481,293 $495,281 Share Based Compensation $32,335
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures FY FY FY FY FY in 000s 2020 2021 2022 2023 2024 Net cash provided (used) by operating activities $148,049 $65,685 $37,152 $248,246 $497,415 Capital expenditures, net ($18,853) ($37,700) ($70,664) ($66,049) ($19,336) Free Cash Flow $129,196 $27,98
Slide 27: 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 Q1'24 Cumulative Cohort Revenue $43 $60 $72 $150 $207 $216 $251 $280 $290 $269 $245 $215 $135 $96 $45 Cumulative Cohort change in $1 $2 $3 $6 $8 $10 $
Slide 28: Partners and Transaction Revenue
Partners and Transaction Revenue 2022 2023 2024 FY FY FY in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Partners Revenue $94,584 $103,862 $115,163 $119,382 $130,114 $138,428 $148,394 $155,160 $168,087 $348,169 $468,521 $610,069 y/y growth 23% 27% 36% 38% 38% 33% 29% 30% 29% 29% 35% 30% 2-year CAG