Slide 1: Company Overview Third Quarter 2024
Company Overview Third Quarter 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 September 30, 2024 2 As of September 30, 2024; number of employees includes contractors 3 Q3’24 Revenue by Geography based on ~278M ~$1.3B ~5,300
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | Third Quarter 2024 5
Slide 6: Wix becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | Third Quarter 2024 6
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | Third Quarter 2024 7
Slide 8: Total Revenue
Total Revenue ($ Millions) +13% y/y $1,757 – $1,764 Business Solutions Creative Subscriptions +13% y/y $1,562 $436 $445 $450 $420 $1,388 $404 $390 $394 $400 $374 $1,270 $410 $355 $124 $126 $342 $345 $346 $115 $348 $350 $103 $108 $103 $319 $96 $87 $85 $90 $300 $87 $250 $200 $1,152 $304 $312 $319 $1,0
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +11% y/y $1,193 $1,244 $1,276 $1,308 $1,160 $1,182 $1,135 $1,071 $1,081 $1,038 $1,053 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creati
Slide 10: Total Bookings
Total Bookings ($ Millions) +14-15% y/y Business Solutions Creative Subscriptions $1,822 - +16% y/y $1,832 $457 $458 $450 $1,598 $415 $398 $395 $1,472 $389 $1,419 $372 $123 $129 $123 $352 $423 $101 $351 $105 $105 $112 $331 $90 $83 $335 $329 $327 $1,175 $313 $294 $1,088 $1,121 $270 $282 $284 $284 Q3'
Slide 11: Tremendous Partners Momentum
Tremendous Partners Momentum ($ Millions) Partners revenue Up ~74% over past 2 years We continue to see tremendous momentum and growth in Partners. This is a result of years of +30% y/y 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 ~36% over past 2 years Continued transaction revenue growth driven by accelerating GPV growth, particularly from Partners, as well as stable, healthy take rate as +23% y/y we execute on our monetization initiatives and expand our suite of commerce-enablemen
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 3 Quarters … After 7 Quarters … After 11 Quarters … After 15 Quarters … After 19 Quarters 1.4x 3.1x 2.3x 2.8x 4.5x $254 $227 $102 $144 $64 $81 $51 $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 – Q4’23 Cohorts 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ~$16.2 Billion Expected future bookings over next 10 years from existing cohorts Q1'10 Q1'11 Q1'12 Q1'13 Q1'1
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q3’24 Y/Y Growth North America +12% Y/Y Europe +17% Y/Y 60% of total 25% of total Asia and others +11% Y/Y 11% of total Latin America +5% Y/Y 4% of total Note: Q3’24 Revenue by Geography and Y/Y change based on constant FX rates
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +105% Net Revenue Retention in 2023 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cohort revenue retention driven by stickiness of our product platform and increasing monetization 2016 2017 2018 2019 2020
Slide 18: Gross profit growth and sales and marketing leverage
Global strength of the Wix brand and focus on operational efficiency driving increasing gross profit and leverage of sales and marketing investments ($ Millions) Non-GAAP Gross Profit Non-GAAP S&M Expense Non-GAAP S&M as % Gross Profit $1,200 200% Strong execution on strategy, focus on operational $
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 continues into 2024 Non-GAAP Gross Margin Non-GAAP Opex % of revenue 83% 84% 84% 84% Reduced marketing spend by ~50% 83% 83% 83% 82% 79% 80% in Q1’23 as we implemented new
Slide 20: Free cash flow
Free cash flow ($ Millions) FCF as % of revenue Outperformance of 2023 targets and strong YTD growth acceleration expected to continue through $483 - 488 $500 80% remainder of 2024 allowing us to exceed Rule of 40 in 2024, one year ahead of plan with continued progress $450 and FCF margin step-ups e
Slide 21: Progressing Towards Rule of 40 Ahead of Plan
Progressing Towards Rule of 40 Ahead of Plan Revenue Growth + Free Cash Flow Margin 43% 43% Strong product performance and uptake, strengthening AI suite, monetization, and 40-41% consistent expansion of our commerce 33% platform + 29% ~32% Strong growth coupled with stable optimized cost structure
Slide 22: Appendix
Appendix Company Overview | Third 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Revenues $345,805 $355,040 $374,076 $389,977 $393,841 $403,771 $419,776 $435,746 $444,673 $1,269,657 $1,387,666 $1,561,665 Change in deferred revenues $6,023 $4,081 $60,975
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Gross Profit $217,948 $226,276 $244,598 $262,083 $264,798 $277,658 $282,479 $294,072 $302,645 $781,078 $861,439 $1,049,137 Share based compensation expenses $4,418 $4,607 $
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Research and development (GAAP) $120,384 $120,994 $114,943 $115,490 $125,117 $125,743 $124,245 $119,257 $124,593 $424,937 $482,861 $481,293 Share Based Compensation $29,606
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 2019 2020 2021 2022 2023 Net cash provided (used) by operating activities $149,564 $148,049 $65,685 $37,152 $248,246 Capital expenditures, net ($22,066) ($18,853) ($37,700) ($70,664) ($66,049) Free Cash Flow $127,498 $129,1
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 $42 $58 $71 $147 $201 $210 $243 $270 $280 $258 $233 $203 $124 $83 $33 Cumulative Cohort change in $1 $2 $3 $6 $9 $10 $
Slide 28: Partners and Transaction Revenue
Partners and Transaction Revenue 2022 2023 2024 FY FY FY in 000s Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Partners Revenue $86,696 $94,584 $103,862 $115,163 $119,382 $130,114 $138,428 $148,394 $155,160 $269,955 $348,169 $468,521 y/y growth 24% 23% 27% 36% 38% 38% 33% 29% 30% 75% 29% 35% 2-year CAGR