Slide 1: Company Overview First Quarter 2021
Company Overview First Quarter 2021 1
Slide 2: Safe Harbor
Safe Harbor The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the Non-GAAP Financial Measures and Key Operating Metrics financial information prepared and presented in accordance with GAAP. The Company uses these non-
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 Total registered users 2 New premium subscriptions from New registered users per month1 free traffic sources3 >2.5M >200M >50% Creative Subscriptions Annual Expected future collections over next Employees2 Recurring Revenue2 10 years from existing cohorts >5,100 >$926M $14.2B % of r
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. 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. 6
Slide 7: Any Type of User
Any Type of User I am a 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 Online Store Photography Blog What kind of website do Music Designer Restaurants & Food you want to create? 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: Online Commerce Profile
Online Commerce Profile Taylor Made Scrub Hats https://www.taylormadescrubhats.com/ • Launched by a nurse in February 2020 to sell scrub hats • Sales grew during the pandemic -- sold ~20K hand-stitched hats in less than a year • Uses Ascend -- email marketing key in driving sales • Uses Smile.io, a
Slide 12: Users Building For Others is a Massive Untapped Opportunity
Users Building For Others is a Massive Untapped Opportunity Users Building for Others on Wix Today ~340K Growing our market share through: 30M • Investing in professional level Creative Professionals products, applications and Globally infrastructure • Wix Partner Program • Wix Marketplace • Investi
Slide 13: Agency Profile
Agency Profile Hey! What? https://www.heywhat.co.uk/ • Advertising agency based in Bristol, UK • Began using Editor X as business grew during COVID -- launched a new site for the agency built using Editor X • Plans to transition all client Wix sites to Editor X -- likely to use Wix2X migration tool
Slide 14: History of Continuous Innovation & Growth Initiatives
History of Continuous Innovation & Growth Initiatives 2015 2016 2017 2018 2019 2020 2021 New Editor App Market 2.0 Photography Answers Spaces by Stores on Bookings App Marketplace Payments Bookings APIs Acessibility Wizard Music ADI Events Logo Maker Fitness POS Google my Business integration Automa
Slide 15: Building Solutions for Significant Opportunities
Building Solutions for Significant Opportunities Payments $87B $185B Online Presence and Business Operations Software $98B Current total addressable market 15 Note: Online Presence and Business OS TAM calculated using total active global sites and Wix pricing data; Payments TAM calculated using glob
Slide 16: Financial Overview and Update
Financial Overview and Update 16
Slide 17: Consistent Incremental Revenue Growth
Consistent Incremental Revenue Growth Revenue ($ Millions) +29-30% y/y +41% y/y $1,280 to $1,290 Business Solutions $304 Creative Subscriptions $283 $989 $254 $236 $78 $216 $69 $205 $205 $51 $761 $197 $185 $46 $39 $117 $32 $33 $604 $28 $78 $426 $226 $34 $783 $203 $214 $177 $190 $644 $157 $165 $171 $
Slide 18: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +25% y/y Sustained growth of new subscriptions and higher priced subscription packages $926 $878 $841 $791 $739 $707 $680 $648 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Note: Creative Subscriptions Annualized Recurring Revenue (ARR)
Slide 19: Strong Collections Growth
Strong Collections Growth Collections ($ Millions) +31-32% y/y $1,440 to $1,460 +41% y/y Business Solutions $351 Creative Subscriptions $1,102 $306 $83 $211 $281 $266 $249 $70 $832 $53 $227 $48 $40 $121 $200 $206 $658 $36 $29 $32 $78 $484 $268 $35 $891 $228 $236 $209 $218 $712 $174 $191 $580 $170 $4
Slide 20: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Collections from Q1 User Cohorts ($ Millions) Q1’21 cohort 32% larger than Q1’20 cohort, driven by higher conversion and ACPS $180 Q1'10 $162 Q1'11 $160 $154 $153 Q1'12 $140 $139 $139 Q1'13 $123 $120 Q1'14 Q1'15 $102 $100 Q1'16 $84 $80 Q1'17 Q1'18 $
Slide 21: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Collections … After 1 … After 5 … After 9 … After 13 … After 17 Quarter Quarters Quarters Quarters Quarters 0.5x 1.5x 2.2x 3.5x 5.1x $162 $154 $81 $84 $123 $57 $55 $44 $36 $32 Q1'21 Cohort Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 Coho
Slide 22: 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 – Q1’21 Cohorts $14.2 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 23: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q1’21 Y/Y Growth Europe +43% Y/Y 27% of total North America +43% Y/Y 57% of total Latin America +14% Y/Y 4% of total Asia and others +30% Y/Y 12% of total Note: Q1’21 Revenue by Geography and Y/Y change based on constant FX rate
Slide 24: 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 25: Improving Operating Leverage
Improving Operating Leverage 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% 39% 36% 37% 37% 25% 34% 24% 23% 22% 22% 20% 7% 6% 6% 6% 6% 6% FY'17 FY'18 FY'19 FY'20 Q1'20 Q1'21 FY'
Slide 26: Investing in Growth Through Building the Best Option
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 27: Appendix
WiX Appendix 27
Slide 28: 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY FY FY Revenues $185,419 $196,791 $204,588 $215,987 $236,059 $254,180 $282,534 $304,112 $425,636 $603,704 $761,088 $988,760 Change in deferred revenues $14,144 $9,069 $22,095
Slide 29: 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 $29 $40 $48 $96 $130 $128 $138 $143 $131 $97 $55 $4 Cumulative Cohort change in deferred revenues $1 $2 $3 $6 $9 $11 $15 $19 $23 $26 $29