Slide 1: Company Overview Second Quarter 2021
Company Overview Second 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 U.S. GAAP, Wix uses The presentation of this financial information is not intended to be considered in isolation or as a substitu
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 >210M >50% $15.0B Creative Subscriptions Annual Employees 1 Recurring Revenue 1 Languages >5,600 >$967M 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: Commerce Profile
Commerce Profile LoKey Designs www.lokeydesigns.com ● Plants & home decor shop from Missouri, USA ● Offers online shopping on a Wix website, and offline shopping in a physical store ● Started using our POS system -- very satisfied from the experience ● Also using our Bookings service for private con
Slide 12: Agency Profile
Agency Profile Pixhance www.pixhance.com ● A Personal Branding Agency from Israel ● Using Editor X exclusively for the past 14 months ● State that ״Editor X was a game- changer” for their agency ● “Becoming a Wix partner was one of the best decisions we made” 12
Slide 13: Building Solutions for Significant Opportunities
Building Solutions for Significant Opportunities Strong testament to Wix’s best in class technology platform for online presence creation ● Wix to replace Vistaprint’s existing in-house solution for both self creators and designers on 99designs, Vistaprint’s global creative platform for freelance de
Slide 14: 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 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) +27-28% y/y +34% y/y $1,255 to $1,270 Business Solutions Creative Subscriptions $316 $304 $283 $989 $254 $81 $78 $236 $69 $205 $216 $51 $761 $197 $205 $46 $39 $117 $32 $33 $604 $78 $426 $226 $236 $34 $783 $203 $214 $177 $190 $644 $165 $171 $
Slide 18: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +22% y/y Sustained growth of new subscriptions and higher priced subscription packages $967 $926 $878 $841 $791 $739 $680 $707 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Note: Creative Subscriptions Annualized Recurring Revenue (ARR)
Slide 19: Strong Collections Growth
Strong Collections Growth Collections ($ Millions) +27-30% y/y $1,400 to $1,435 +29% y/y Business Solutions Creative Subscriptions $351 $1,102 $343 $306 $211 $83 $80 $281 $266 $832 $249 $70 $53 $121 $227 $48 $206 $40 $658 $36 $78 $32 $484 $35 $891 $268 $263 $228 $236 $712 $209 $218 $174 $191 $580 $4
Slide 20: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Collections from Q1 User Cohorts ($ 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 $171 Q1'11 $163 $1
Slide 21: Efficient Marketing Based on TROI
Efficient Marketing Based on TROI One Time Marketing, Ongoing Collections … After 2 … After 6 … After 10 … After 14 … After 18 Quarters Quarters Quarters Quarters Quarters 0.6x 1.7x 2.4x 3.7x 5.4x $171 $163 $134 $81 $96 $51 $57 $55 $44 $32 Q1'21 Cohort Q1'20 Cohort Q1'19 Cohort Q1'18 Cohort Q1'17 Co
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 – Q2’21 Cohorts $15.0 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 Q2’21 Y/Y Growth Europe +33% Y/Y 25% of total North America +35% Y/Y 58% of total Latin America +15% Y/Y 5% of total Asia and others +23% Y/Y 12% of total 23 Note: Q2’21 Revenue by Geography and Y/Y change based on constant FX r
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: Solid Operating Leverage
Solid 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 43% 40% 36% 37% 34% 33% 25% 24% 23% 23% 22% 21% 7% 6% 6% 6% 6% 7% FY'17 FY'18 FY'19 FY'20 Q2'20 Q2'21 FY'17 F
Slide 26: 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 27: Appendix
rad s Appendix
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY FY FY Revenues $196,791 $204,588 $215,987 $236,059 $254,180 $282,534 $304,112 $316,406 $425,636 $603,704 $761,088 $988,760 Change in deferred revenues $9,069 $22,095 $32,871
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 $30 $41 $50 $101 $136 $136 $148 $156 $145 $112 $72 $25 Cumulative Cohort change in deferred revenues $1 $2 $2 $5 $8 $9 $12 $15 $18 $22 $