Slide 1: Company Overview Third Quarter 2021
Company Overview Third Quarter 2021 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 The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior
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 Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding o
Slide 4: Company overview
Company overview New premium subscriptions from Expected future collections over next Total registered users1 free traffic sources 2 10 years from existing cohorts >215M >50% $15.4B Creative Subscriptions Annual Employees 1 Recurring Revenue 1 Languages >5,700 >$992M 20 % of revenue from outside Nor
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. 5
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. 6
Slide 7: Any Type of User
Any Type of User I am Building for Freelancer Agency Individual Myself My client My company Enterprise Designer Business owner Event organizer Influencer 7
Slide 8: Any Type of Business
Any Type of Business What kind of website Online Store Photography Blog do you want to create? Music Designer Restaurants & Food Fitness Events Portfolio & CV Beauty & Wellness Hotel 8
Slide 9: The Wix Platform Evolved into Full Operating System
The Wix Platform Evolved into Full Operating System Our architecture enables rapid development of new components and verticals on top of our Editors and cloud infrastructure 9
Slide 10: Horizontal Approach to Online Commerce
Horizontal Approach to Online Commerce The Wix eCommerce Platform is a comprehensive approach, providing solutions for any type of business 10
Slide 11: Investments in Technology & Infrastructure are Driving Meaningful Performance Improvement
Investments in Technology & Infrastructure are Driving Meaningful Performance Improvement Google’s recent Core Web Vitals measurement scored Wix as the fastest platform among competitors ** Mobile devices *** U.S. Wix websites 11 Source: HTTP Archive’s Core Web Vitals Technology Report
Slide 12: User Profile: Hanoi House
User Profile Hanoi House Commerce Profile www.hanoihouseptbo.com LoKey Designs • Vietnamese restaurant in Ontario, www.lokeydesigns.com Canada Plants & home decor shop from Missouri, USA • Joined Wix and created DIY site in Offers online shopping on a Wix 2020, during website, and the offlinepandemi
Slide 13: User Profile: MyMedChoices
User Profile MyMedChoices Commerce Profile www.mymedchoices.com LoKey Designs • Health &www.lokeydesigns.com wellness care business in Atlanta, GA Plants & home decor shop from Missouri, USA • Joined Wix in 2021 through PIMM, a Offers online shopping on a Wix Newwebsite, York design, SEO and and off
Slide 14: User Profile: Shiono
User Profile Shiono Commerce Profile www.shiono.net LoKey Designs • A confectionery store from www.lokeydesigns.com Tokyo,Plants Japan& home decor shop from Missouri, USA • Joined Wix in 2019 through our Offers online shopping on a Wix partnership with website, and NTT offline Town shopping in aPage
Slide 15: History of Continuous Innovation & Growth Initiatives
History of Continuous Innovation & Growth Initiatives 2015 2016 2017 2018 2019 2020 2021 Spaces by New Editor App Market 2.0 Photography Answers Accessibility Wizard Stores on Bookings App Marketplace Payments Bookings APIs Editor X collaboration tools Music ADI Events Logo Maker Fitness POS Rise.ai
Slide 16: Building Solutions for Significant Opportunities
Building Solutions for Significant Opportunities Payments $87B $185B Online Presence and Business Operations Software $98B Current total addressable market 16 Note: Online Presence and Business OS TAM calculated using total active global sites and Wix pricing data; Payments TAM calculated using glob
Slide 17: Financial Overview and Update
Financial Overview and Update 17
Slide 18: Consistent Incremental Revenue Growth
Consistent Incremental Revenue Growth Revenue ($ Millions) +28-29% y/y +26% y/y $1,265 to $1,274 Business Solutions $316 $321 Creative Subscriptions $304 $283 $989 $81 $79 $254 $78 $236 $69 $205 $216 $51 $761 $205 $46 $39 $117 $33 $604 $78 $426 $226 $236 $241 $214 $34 $783 $190 $203 $171 $177 $644 $
Slide 19: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +18% y/y Sustained growth of new subscriptions and higher priced subscription packages $967 $992 $926 $878 $841 $791 $739 $680 $707 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Note: Creative Subscriptions Annualized Recurring Rev
Slide 20: Strong Collections Growth
Strong Collections Growth Collections ($ Millions) +28-31% y/y $1,415 +33% y/y to $1,439 Business Solutions Creative Subscriptions $373 $1,102 $351 $343 $211 $306 $81 $83 $80 $832 $281 $266 $249 $70 $121 $227 $53 $658 $48 $40 $36 $78 $484 $35 $891 $293 $268 $263 $236 $712 $218 $228 $191 $209 $580 $4
Slide 21: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Collections from Q1 User Cohorts ($ Millions) Innovation and product offering enhancements driving higher monetization and sustained user cohort collections growth with older cohorts maintaining y/y growth momentum $200 Q1'10 $180 Q1'11 $178 $171 Q1
Slide 22: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Collections … After 3 … After 7 … After 11 … After 15 … After 19 Quarters Quarters Quarters Quarters Quarters 0.7x 1.8x 2.6x 3.9x 5.6x $178 $171 $105 $142 $81 $60 $57 $55 $44 $32 Q1'21 Cohort Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 C
Slide 23: Existing Cohorts are a Growing Source of Future Collections
Existing Cohorts are a Growing Source of Future Collections Actual and Potential Future Collections From Q1’10 – Q3’21 Cohorts $15.4 Billion Expected future collections over next 10 years from existing cohorts 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Note: Data represents actual C
Slide 24: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q3’21 Y/Y Growth Europe +28% Y/Y 25% of total North America +27% Y/Y 58% of total Latin America +9% Y/Y 4% of total Asia and others +19% Y/Y 13% of total 24 Note: Q3’21 Revenue by Geography and Y/Y change based on constant FX ra
Slide 25: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +113% Net Revenue Retention Cohort revenue retention bolstered by compounding growth from online commerce users 2016 2017 2018 2019 2020 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: We calculate our Annual Net Rev
Slide 26: Solid Operating Leverage
Solid Operating Leverage Non-GAAP Expenses as a % of Collections R&D S&M G&A Investments in product Invested in growth as Efficient operations development generating demand increased positive returns 40% 38% 36% 37% 34% 25% 24% 29% 23% 22% 22% 22% 7% 6% 6% 6% 6% 7% FY'17 FY'18 FY'19 FY'20 Q3'20 Q3'2
Slide 27: Investing in Growth Through Building the Best Option For Any Type of User and Business
Investing in Growth Through Building the Best Option For Any Type of User and Business Best Option for Any Type of User Best Option for Any Type of Business Improving and enhancing the Editors on Adding vertical solutions for the online an ongoing basis commerce platform Building awareness of Editor
Slide 28: Appendix
WiX Appendix 28
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2019 2020 2021 2017 2018 2019 2020 in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY FY Revenues $204,588 $215,987 $236,059 $254,180 $282,534 $304,112 $316,406 $320,797 $425,636 $603,704 $761,088 $988,760 Change in deferred revenues $22,095 $32,871 $29,79
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2019 2020 2021 2017 2018 2019 2020 in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY FY Research and development (GAAP) $66,634 $70,716 $75,464 $84,473 $89,625 $95,086 $104,199 $109,323 $153,635 $198,912 $250,791 $320,278 Share Based Compensation $14,900
Slide 31: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2019 2020 2021 2017 2018 2019 2020 in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY FY FY General and administrative (GAAP) $23,602 $25,436 $24,531 $26,515 $35,433 $34,394 $39,411 $38,917 $48,186 $59,297 $85,922 $111,915 Share Based Compensation $7,377 $8,3
Slide 32: 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 Cumulative Cohort Revenue $30 $43 $52 $104 $141 $142 $155 $164 $156 $123 $86 $39 Cumulative Cohort change in deferred revenues $1 $2 $2 $5 $7 $8 $11 $14 $15 $19 $