Slide 1: Company Overview Third Quarter November 2023
Company Overview Third Quarter | November 2023 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 expectation that we will effectively manage our infrastructure; our expectations regarding the outcome of any regulatory
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 September 30, 2023 2 Q3’23 Revenue by Geography based on constant FX rates from Q3’22 3 Free cash flow excluding expenses >258M ~$1.2B ~5,200 ~40
Slide 5: Our Vision
Our Vision Where any business, community or person can create their dreams online. Company Overview | Third Quarter 2023 05
Slide 6: Wix becoming the primary platform for every type of online presence
We believe that Wix is becoming the primary platform for every type of online presence around the world. Our goal is to offer products and services that are simply the best option for any type of user and for any type of business. Company Overview | Third Quarter 2023 06
Slide 7: Financial Overview and Update
Financial Overview and Update Company Overview | Third Quarter 2023 07
Slide 8: Total Revenue
Total Revenue ($ Millions) $1,558 – Business Solutions Creative Subscriptions 1,563 +14% y/y +12% y/y $1,388 $394 $1,158 $390 $1,270 $374 $355 $348 $1,033 $342 $345 $346 $333 $302 $320 $103 $103 $319 $96 $90 $984 $258 $87 $87 $85 $87 $79 $201 $1,039 $278 $287 $291 $950 $856 $255 $258 $261 $265 $774
Slide 9: Consistent Creative Subscriptions ARR Expansion
Consistent Creative Subscriptions ARR Expansion ($ Millions) +10% y/y $1,160 $1,182 $1,135 $1,071 $1,081 $1,038 $1,053 $992 $1,010 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Note: Creative Subscriptions Annualized Recurring Revenue (ARR) is calculated as Creative Subscriptions Monthly Rec
Slide 10: Total Bookings
Total Bookings ($ Millions) +9% y/y Business Solutions Creative Subscriptions $1,472 +10% y/y $1,419 $1,202 $415 $393 $398 $351 $1,100 $389 $331 $373 $372 $352 $355 $352 $1,102 $311 $101 $93 $105 $261 $81 $105 $90 $211 $88 $85 $83 $1,088 $1,121 $313 $891 $293 $300 $294 $284 $891 $840 $264 $270 $270
Slide 11: Tremendous Partners Momentum
Tremendous Partners Momentum ($ Millions) Partners revenue Up ~125% over past 2 years +33% y/y We continue to see tremendous momentum and growth in Partners. This growth is a result of years of successful development of our platform for professionals and a testament to the success of multiple years
Slide 12: Transaction Revenue Growth
Transaction Revenue Growth ($ Millions) Up ~165% over past 2 years +20% y/y Continued transaction revenue growth driven by strong GPV growth, particularly from Partners, and higher take rate as merchants increasingly adopt Wix Payments +22% y/y $148 $130 $131 $109 $44 $36 $56 $32 Q3'21 Q3'22 Q3'23 2
Slide 13: Increasing Monetization of User Cohorts
Increasing Monetization of User Cohorts Cumulative Bookings from Q1 User Cohorts ($ 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 3 Quarters … After 7 Quarters … After 11 Quarters … After 15 Quarters … After 19 Quarters 1.5x 1.5x 2.2x 3.6x 4.2x $232 $205 $175 $96 $81 $51 $64 $57 $55 $33 Q1'23 Cohort Q1'22 Cohort Q1'21 Cohort Q1'20 Cohort Q1'19 Cohor
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 – Q4’22 Cohorts 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $15.6 Billion Expected future bookings over next 10 years from existing cohorts Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'1
Slide 16: Broad Geographic Reach
Broad Geographic Reach FX-Neutral Revenue by Geography (% of total) and Q3’23 Y/Y Growth North America +16% Y/Y 61% of total Europe +11% Y/Y 24% of total Asia and others +11% Y/Y 12% of total Latin America +9% Y/Y 4% of total Note: Q3’23 Revenue by Geography and Y/Y change based on constant FX rates
Slide 17: Increasing Revenue Retention
Increasing Revenue Retention Annual Net Revenue Retention Rate +104% FX-neutral 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Revenue Retention in 2022 Cohort revenue retention driven by increasing ARPS as we attract more users with higher lifetime value 2016 2017 2018
Slide 18: Increasing gross profit while sales and marketing spend has declined
Global strength of Wix brand and focus on operational efficiency driving increasing gross profit while sales and marketing spend has declined over time ($ Millions) $300 200% Non-GAAP Gross Profit Non-GAAP S&M Expense Non-GAAP S&M as % Gross Profit $266 $269 180% $250 $250 $232 160% $223 $212 $216 $
Slide 19: Accelerated profitability improvements progressing through 2023
Accelerated profitability improvements progressing through 2023 driven by continued efficiencies across operating cost structure from completed cost reduction efforts Non-GAAP Gross Margin Non-GAAP Opex % of revenue 77% Reduced marketing spend by ~50% in Q1’23 as we 83% 83% ~82% implemented new mark
Slide 20: Free cash flow
Free cash flow ($ Millions) Free cash flow expected to accelerate FCF as % of revenue above three-year plan provided at August 2023 Analyst Day $250 $235 - 240 $200 $150 We expect to generate FCF margin $128 $132 excluding HQ investments of approximately 20-21% exiting 2023 as a result of better- 17
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 FCF per share target per FCF per share target per FCF per share target per current guidance August Analyst Day plan February guidance positions u
Slide 22: Appendix
Appendix Company Overview | Third Quarter 2023 22
Slide 23: 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 2020 2021 2022 Revenues $300,779 $315,575 $319,890 $333,413 $341,597 $345,224 $345,805 $355,040 $374,076 $389,977 $393,841 $984,367 $1,269,657 $1,387,666 Change in deferred revenues
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 2020 2021 2022 Gross Profit $186,980 $194,663 $197,914 $201,521 $206,848 $210,367 $217,948 $226,276 $244,598 $262,083 $264,798 $671,348 $781,078 $861,439 Share based compensation ex
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 2020 2021 2022 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 $320,278 $424,937 $482,861 Share Bas
Slide 26: 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 $38 $53 $64 $131 $180 $187 $203 $222 $222 $197 $166 $134 $69 $30 Cumulative Cohort change in $1 $2 $3 $6 $8 $9 $22 $27 $32 $
Slide 27: Partners and Transaction Revenue
Partners and Transaction Revenue 2021 2022 2023 FY FY FY in 000s Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 Partners Revenue $70,061 $77,007 $81,996 $84,893 $86,696 $94,584 $103,862 $115,163 $119,382 $154,292 $269,955 $348,169 y/y growth 74% 53% 41% 31% 24% 23% 27% 36% 38% 65% 75% 29% 2-year CAGR 67%
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures FY FY FY FY in 000s 2019 2020 2021 2022 Net cash provided (used) by operating activities $149,564 $148,049 $65,685 $37,152 Capital expenditures, net ($22,066) ($18,853) ($37,700) ($70,664) Free Cash Flow $127,498 $129,196 $27,985 ($33,512) Capita