Slide 1: Management Update 2020
Management Management Update 2020 Update 2020 1
Slide 2: Safe Harbor
Safe Harbor Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: collections, cumulative cohort collections, collections on a constant currency basis, revenu
Slide 3: Welcome
Welcome Nir Zohar President and COO 3
Slide 4: Agenda
Agenda Welcome Nir Zohar, President and COO Spotlight Discussions hosted by Nir Zohar Expanding our Platform Avishai Abrahami, Co-founder and CEO E-commerce Platform David Schwartz, VP Product Finance update Lior Shemesh, CFO Q&A 4
Slide 5: Avishai Abrahami
Avishai Abrahami Co-founder and CEO 5
Slide 6: Web Components
Web Components | aa \ (Ae aS YH Sao =o ae | (| Maps Calendar Menu )-{ Repeater HC Gallery) X aS. J aN = cn Editors a \ Video Player pe Contact Form YH Signup JA 2300 more ) Verticals Stores Uf Events L Bookings Lf Forum : f | Restaurants |—) Video & Music H Hotels WiX ADI For beginners WiX Editor Fo
Slide 7: Why Editor X?
Wwix Why Editor X?
Slide 8: Huge Untapped Opportunity
Huge Untapped Opportunity 30M Creative Professionals Globally Driving our Share: Invest in professional level products ● Creation products ~270K ● Business applications Users Building for Others on Wix Today ● Infrastructure Partner Program Wix Marketplace Brand and marketing investment Source: Bure
Slide 9: Users Building for Others are Rapidly Increasing on Wix
Users Building for Others are Rapidly Increasing on Wix ~270K Users Building for Others on Wix Today Users Building for Others on Wix 300,000 Multiplier to our growth: ● Purchase multiple subscription packages 200,000 ● Higher vertical attach rate ● Build sites with higher transaction volume 100,000
Slide 10: Professional Design Products - Competitive Landscape
Professional Design Products - Competitive Landscape Designers Design Tools (Layers, Breakpoints, etc) Responsive Design Website Publishing Developer - Developer - Developer - Click Click Click Efforts easy hard hard Business Applications (Ecomm, Bookings, Plugins Very limited Restaurants, Events, e
Slide 11: Corvid
Wwix Corvid
Slide 12: Corvid Usage Continues to Grow
Corvid Usage Continues to Grow Users of Corvid (in millions) 2.3M 2.5 2.0 Users of Corvid Today 1.5 1.0 0.5 0 Oct’17 Nov’20 12
Slide 13: Wix Marketplace
Wix Marketplace Aggregating Supply and Demand across the Wix Ecosystem DIY users hire help for web design, development, SEO, etc. Users Wix DIY building sites Users for others on Wix Growth opportunities Our Freemium Model bolsters our Marketplace and creates a unique advantage 13
Slide 14: Web Components Verticals
‘Web Components Verticals a 7 WA WW SUF ) [ | (Maps > Calendar Menu Repeater )-( Gallery Stores || Events | Bookings |_| Forum \ \ ON IX J I = ) Cart py Video Player )-{ Contact Form uC = KH 300 more ) Restaurants H Video & Music | : WiX ADI WixX Editor ; Editors Editors For beginne: For DIY and pro
Slide 15: eCommerce as a Platform
eCommerce as a Platform David Schwartz VP Product 15
Slide 16: Wix eCommerce as a Platform
Wix eCommerce as a Platform 16
Slide 17: Fitness Solution
Fitness Solution Core Attack Fitness Fitness Club ● Fitness club in the UK ● Shifted to virtual sessions with Zoom ● Keeps a hybrid training model - online & physical ● Sells branded merchandise, fitness clothing & equipment 17
Slide 18: Introducing Wix POS
Introducing Wix POS ● One platform ● One payment system ● True omni-channel solution ● Mobile POS 18
Slide 19: Finance Update
Finance Update Lior Shemesh CFO 19
Slide 20: Solid Growth in 2020 Driven by our Strengthening Subscription Model and an Emerging Transaction Model
→ Solid Growth in 2020 Driven by our Strengthening Subscription Model and an Emerging Transaction Model → Recent Investments in Marketing, Product and Support Demonstrate Strong Returns → We are Prioritizing Top Line Growth, and We Plan to Continue Organic Investment to Increase Growth 20
Slide 21: Complementary Financial Models Driving Durable Growth
Complementary Financial Models Driving Durable Growth Strengthening Emerging Subscription Transaction Model Model 21
Slide 22: Strong Overall Top Line Growth in 2020
Strong Overall Top Line Growth in 2020 Collections Revenue ● 3 consecutive quarters 30%+ y/y collections growth ● Accelerating revenue growth y/y in 2020 ● Strong incremental collections growth ● Exiting Q4 at >30%+ y/y growth Collections Revenue ($ millions) ($ millions) Note: Q4’20 guidance as pro
Slide 23: Digging Deeper: recent cohorts demonstrate the returns of our investments
Digging Deeper: recent cohorts demonstrate the returns of our investments Newest User Cohorts Larger and Growing Faster Cumulative Collections from Q2 User Cohorts ($ millions) Note: Data as of September 30, 2020. Excludes collections from users coming from the Wix Logo Maker funnel. It also exclude
Slide 24: The opportunity of Business Verticals
The opportunity of Business Verticals
Slide 25: Quarterly collections from business verticals growing 2x compared to overall growth
Quarterly collections from business verticals growing 2x fas compared to overall growth Quarterly Collections since Q1’18 (indexed to 100) Growth driven by: ● Higher priced subscription packages ● Higher adoption of business solutions ● Monetization via transaction volume 25
Slide 26: The opportunity of Users Building for Others
The opportunity of Users Building for Others
Slide 27: Huge Untapped Opportunity
Huge Untapped Opportunity 30M Creative Professionals Globally Driving our Share: Invest in professional level products ● Creation products ~270K ● Business applications Users Building for Others on Wix Today ● Infrastructure Partner Program Wix Marketplace Brand and marketing investment Source: Bure
Slide 28: Collections from users building for others generating compounding returns
Collections from users building for others generating compounding returns Cumulative Collections from Q1’19 User Cohort (indexed to 100) Growth driven by: ● Purchasing multiple subscription packages ● Higher vertical attach rate ● Building sites with higher transaction volume ● Higher retention Grow
Slide 29: The Opportunity of Existing Cohorts
The Opportunity of Existing Cohorts
Slide 30: Looking back 1 year...
Looking back 1 year... Q3’19: $6.1 Billion Expected future collections over next 8 years from existing cohorts 30
Slide 31: Successful Investments are Driving Increased Expected Cohort Collections
Successful Investments are Driving Increased Expected Cohort Collections Actual and Potential Future Collections From Q1’10 – Q3’20 Cohortss Q3’20: $11.8 Billion Expected future collections over next 10 years from existing cohorts Note: Data represents actual Collections from Q1’10 – Q3’20 cohorts s
Slide 32: Investing Into Growth
Wwix Investing Into Growth
Slide 33: Investing into Growth
Investing into Growth Customer Invest to meet future New product development R&D Care demand Existing product More Languages Accelerating y/y growth of enhancements Accelerating investment investment in 2021 as we in 2021 as we continue to Product Training continue to hire talent Product localizatio
Slide 34: Healthy Gross Margin Model
Healthy Gross Margin Model Continued Investment in Care and Infrastructure: past investments have already proven to generate growth Mix Evolution: as our Collections and Revenue mix evolve toward - Full year impact of significant Business Solutions Care hiring in 2H 2020 impacting GM% near term Curr
Slide 35: We expect our Collections growth for 2021 to be 28-30%
We expect our Collections growth for 2021 to be 28-30%
Slide 36: Appendix
Appendix 36
Slide 37: Reconciliations
Reconciliations in millions Q4’20 Outlook FY’20 Outlook Revenues $266-271 million $972 - 977 million Deferred Revenue $29-34 million $118-123 million Collections $295 - 305 million $1,090 - 1,100 million in millions Q2’17 Q2’18 Q2’19 Q2’20 Cumulative Cohort Revenues $105 $89 $53 $26 Cumulative Cohor