Slide 1: Company Overview Fourth Quarter & Full Year 2022
Company Overview Fourth Quarter & Full Year 2022 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 our expectation regarding the impact of fluctuations in foreign currency exchange rates on our business; our expectations re
Slide 4: Company Overview
Company Overview Total registered users1 Creative Subscriptions Employees1,2 FY22 GPV Annualized Recurring Revenue1 ~243M ~$1.1B ~5,500 $10.3B FY22 Transaction Revenue FY22 Partners Revenue % of revenue from outside North Languages America 3 $148M $348M 41% 22 1 As of December 31, 2022 Note: Creativ
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. 05 Company Overview | Fourth Quarter and Full Year 2022
Slide 6: Wix becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. 06 Company Overview | Fourth Quarter and Full Year 2022
Slide 7: Financial Overview and Update
Financial Overview and Update 07 Company Overview | Fourth Quarter and Full Year 2022
Slide 8: Total Revenue
Total Revenue ($ Millions) +6% y/y (+8% FXN) +9% y/y (+11% FXN) $1,510 – 1,535 $355 $342 $345 $346 $1,388 $333 $316 $320 $1,270 $301 $283 $90 $348 $87 $87 $85 $87 $319 $80 $79 $74 $984 $69 $201 $758 $113 $255 $258 $261 $265 $1,039 $236 $241 $247 $950 $214 $226 $783 $644 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +7% y/y $1,071 $1,081 $1,038 $1,053 $992 $1,010 $967 $926 $878 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly Recurring
Slide 10: Total Bookings
Total Bookings ($ Millions) +6% y/y (+10% FXN) +4% y/y (+7% FXN) $1,472 $393 $1,419 $373 $372 $351 $352 $355 $352 $351 $343 $331 $93 $81 $90 $1,102 $306 $83 $88 $85 $83 $80 $211 $70 $832 $121 $300 $1,088 $1,121 $293 $282 $268 $263 $264 $270 $270 $236 $891 $712 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'
Slide 11: Growth Across Partners and Transaction Revenue
Growth Across Partners and Transaction Revenue ($ Millions) Partners Revenue Transaction Revenue Up ~165% over past 2 years Up ~125% over past 2 years +8% y/y +23% y/y +21% 2-year CAGR +37% 2-year CAGR $148 $348 $130 $95 $270 $39 $36 $77 $27 $50 $154 $56 Q4'20 Q4'21 Q4'22 2020 2021 2022 Q4'20 Q4'21
Slide 12: ARPS growth has driven significant increases in cohort value
ARPS growth has driven significant increases in cohort value, despite headwinds to user and subscription growth ARPS Q1 User Cohorts Q1 19 Q1 22 Millions $250 $60 $231 2019-2022: $221 +6% $50 $197 $200 $40 $179 $30 $150 $20 1 2 3 4 Number of quarters passed User Cohort Q1’19 Q1’22 $100 Users 6.6M 6.
Slide 13: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ Millions) Innovation and product offering enhancements driving higher monetization and sustained user cohort bookings growth $240 $222 $220 $210 $196 $201 $177 $180 $166 $173 Q1’22 user cohort cumulative bookings in
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 0.9x 1.6x 2.9x 3.6x 5.0x $222 $196 $166 $127 $81 $64 $56 $57 $55 $44 Q1'22 Cohort Q1'21 Cohort Q1'20 Cohort Q1'19 Cohort Q1'18 Coho
Slide 15: $15.6B in expected future bookings from existing cohorts
$15.6B in expected future bookings over next 10 years from existing cohorts Actual and Potential Future Bookings From Q1’10 – Q4’22 Cohorts Softer demand environment for new subscriptions and lower payments revenue growth are primary drivers of lower expected future bookings vs. year-ago 2022 2021 2
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q4’22 Y/Y Growth North America +10% Y/Y 59% of total Europe +8% Y/Y 26% of total Asia and others +2% Y/Y 11% of total Latin America +2% Y/Y 4% of total Note: Q4’22 Revenue by Geography and Y/Y change based on constant FX rates f
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +104% FX-neutral Net Revenue Retention Cohort revenue retention driven by increasing ARPS as we attract more users with higher lifetime value 2016 2017 2018 2019 2020 2021 2022 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 18: Profitability improvements in 2022 expected to continue in 2023
Profitability improvements in 2022 driven by operational efficiencies and cost reduction efforts expected to continue in 2023 Non-GAAP Gross Margin Non-GAAP Opex % of revenue 77% Reduced marketing spend by 50% in Q4’22 as we tested new marketing strategy, with 80% 80% almost no decline in new 79% co
Slide 19: Free cash flow
Free cash flow ($ Millions) Free cash flow expected to accelerate compared to three-year plan provided at May 2022 Analyst Day $152 - 162 $128 $132 We are making headway towards sustained 17% profitability and expect to generate FCF margin excluding HQ investments of ~12-13% exiting 2023 13% as a re
Slide 20: Appendix
Appendix 20 Company Overview | Fourth Quarter and Full Year 2022
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2020 2021 2022 2019 2020 2021 2022 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY Revenues $215,987 $236,059 $254,180 $282,534 $300,779 $315,575 $319,890 $333,413 $341,597 $345,224 $345,805 $355,040 $757,667 $988,760 $1,269,657 $1,387,66
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 Cumulative Cohort Revenue $35 $49 $60 $121 $165 $168 $190 $207 $207 $181 $149 $111 $41 Cumulative Cohort change in deferred revenues $1 $2 $2 $5 $8 $9 $11 $
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2020 2021 2022 2019 2020 2021 2022 in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY FY FY Partners Revenue $29,099 $34,734 $40,150 $50,309 $58,003 $64,883 $70,061 $77,007 $81,996 $84,893 $86,696 $94,584 $93,292 $154,292 $269,955 $348,169 y/y gro