Slide 1: Company Overview: Fourth Quarter and Full Year
Company Overview Fourth Quarter and Full Year | February 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 S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impac
Slide 4: Company Overview
Company Overview Total registered users1 Creative Subscriptions Employees1 % of revenue from outside North Annualized Recurring Revenue1 America 2 1 As of December 31, 2023. number of employees Includes contractors 2 FY23 Revenue by Geography based on constant FX rates from FY22 >263M ~$1.2B ~5,300
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | Fourth Quarter 2023 05
Slide 6: Wix becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | Fourth Quarter 2023 06
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | Fourth Quarter 2023 07
Slide 8: Total Revenue
Total Revenue ($ Millions) +11-13% y/y ~$1.73 – $1.76 BN Business Solutions Creative Subscriptions +14% y/y $1,562 $450 $404 $1,388 $390 $394 $410 $400 $374 $1,270 $345 $346 $355 $333 $342 $348 $350 $103 $108 $103 $319 $96 $87 $85 $90 $300 $87 $87 $250 $200 $1,152 $296 $1,039 $150 $278 $287 $291 $95
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +10% y/y $1,182 $1,193 $1,135 $1,160 $1,071 $1,081 $1,038 $1,053 $1,010 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly R
Slide 10: Total Bookings
Total Bookings ($ Millions) Reintroducing bookings guidance as we enter 2024 with improved visibility and tremendous confidence driven by a stable and positively-trending macro, strong cohort behavior and ramping benefits from Studio and AI initiatives of 2023 +12-14% y/y Business Solutions Creative
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 growth is a +38% y/y result of years of successful development of our platform for professionals and a testament to the success of multiple years o
Slide 12: Transaction Revenue Growth
Transaction Revenue Growth ($ Millions) Up ~36% over past 2 years Continued transaction revenue growth driven by strong GPV growth, particularly from Partners, and higher take rate as +20% y/y merchants increasingly adopt Wix Payments $178 $148 $130 $47 $36 $39 Q4'21 Q4'22 Q4'23 2021 2022 2023 Note:
Slide 13: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ 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 4 Quarters … After 8 Quarters … After 12 Quarters … After 16 Quarters … After 20 Quarters 1.8x 1.6x 2.3x 3.8x 4.4x $241 $214 $185 $104 $60 $81 $64 $57 $55 $33 Q1'23 Cohort Q1'22 Cohort Q1'21 Cohort Q1'20 Cohort Q1'19 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 ~$16.2 Billion Expected future bookings over next 10 years from existing cohorts Q1'10 Q1'11 Q1'12 Q1'13 Q1'1
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q4’23 Y/Y Growth North America +13% Y/Y 60% of total Europe +14% Y/Y 25% of total Asia and others +9% Y/Y 11% of total Latin America +21% Y/Y 4% of total Note: Q4’23 Revenue by Geography and Y/Y change based on constant FX rates
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +105% Net Revenue Retention in 2023 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cohort revenue retention driven by stickiness of our product platform and increasing monetization 2016 2017 2018 2019 2020
Slide 18: Gross profit growth and sales and marketing leverage
Global strength of the Wix brand and focus on operational efficiency driving increasing gross profit and leverage of sales and marketing investments ($ Millions) Non-GAAP Gross Profit Non-GAAP S&M Expense Non-GAAP S&M as % Gross Profit Strong execution on strategy, focus on $1,200 200% operational e
Slide 19: Efficiencies across operating cost structure drove profitability improvements
Continued efficiencies across operating cost structure from completed cost reduction efforts drove profitability improvements in 2023 and are expected to continue in 2024 Non-GAAP Gross Margin Non-GAAP Opex % of revenue Reduced marketing spend by 77% ~50% in Q1’23 as we 83% 83% 83% 82% ~83% implemen
Slide 20: Free cash flow
Free cash flow ($ Millions) Outperformance of 2023 targets and FCF as % of revenue anticipated top-line acceleration through 2024 gives us confidence to significantly surpass three-year plan goals announced at August $400 $370 - 400 90% 2023 Analyst Day and Rule of 40 in 2025 $350 80% 70% $300 $246
Slide 21: Free cash flow per share (diluted)
Free cash flow per share (diluted) Robust FCF generation in conjunction with continued prudence regarding headcount growth and focused dilution management drove Updated FCF per FCF per share target per share target August 2023 Analyst Day plan overachievement of 2023 FCF per share target $6.00+ Now
Slide 22: Appendix
Appendix Company Overview | Fourth Quarter 2023 22
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2021 2021 2022 2023 FY FY FY in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Revenues $300,779 $315,575 $319,890 $333,413 $341,597 $345,224 $345,805 $355,040 $374,076 $389,977 $393,841 $403,771 $1,269,657 $1,387,666 $1,561,665 Change i
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2021 2022 2023 FY FY FY in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Gross Profit $186,980 $194,663 $197,914 $201,521 $206,848 $210,367 $217,948 $226,276 $244,598 $262,083 $264,798 $277,658 $781,078 $861,439 $1,049,137 Share based c
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 2021 2022 2023 FY FY FY in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Research and development (GAAP) $95,086 $104,199 $109,323 $116,329 $119,865 $121,618 $120,384 $120,994 $114,943 $115,490 $125,117 $125,743 $424,937 $482,861 $481,2
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 Cumulative Cohort Revenue $39 $54 $65 $136 $185 $192 $220 $243 $248 $225 $197 $164 $88 $45 Cumulative Cohort change in $1 $2 $3 $5 $8 $9 $11 $13 $14 $
Slide 28: Partners and Transaction Revenue
Partners and Transaction Revenue 2021 2022 2023 FY FY FY in 000s Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Partners Revenue $77,007 $81,996 $84,893 $86,696 $94,584 $103,862 $115,163 $119,382 $130,114 $269,955 $348,169 $468,521 y/y growth 53% 41% 31% 24% 23% 27% 36% 38% 38% 75% 29% 35% 2-year CAGR 68