Slide 1: Wix.com Q4 and Full Year 2017
HADES OF PINK WiXcom and Full Year 2017
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, non-GAAP gross margin, non-GAAP operating income (loss), free cash flow, non-GA
Slide 3: Q4 and Full Year 2017 Results
v e Q4 and Full Year 2017 Results @ ® , Qe 4 ea * @
Slide 4: Accelerating revenue growth
Accelerating revenue growth Revenue ($ millions) 41% 39%- Y/Y 40% Y/Y $119 $591- $111 47% 595 Y/Y $104 $93 $426 $84 $76 $69 $290 $62 $57 $204 $142 $80 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 2013 2014 2015 2016 2017 2018E* Note: 2018 guidance as provided on February 14, 2018. Guidance
Slide 5: Strong collections growth
Strong collections growth Collections ($ millions) 33%- 35% 35% Y/Y Y/Y $645- $132 41% 653 Y/Y $120 $117 $115 $484 $98 $87 $342 $81 $76 $242 $67 $171 $99 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 2013 2014 2015 2016 2017 2018* Note: 2018 as provided on February 14, 2018. Guidance for 201
Slide 6: Accelerating free cash flow generation
Accelerating free cash flow generation Free Cash Flow* ($ millions) 39%- 5% 41% Y/Y Y/Y $98- $19 $20 95% 100 $19 $17 Y/Y $15 $71 $10 $9 $8 $36 $15 -$2 2015 2016 2017 2018E Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Note: 2018 guidance as provided on February 14, 2018. Guidance for 2018 is
Slide 7: ACPS is growing
ACPS is growing Average Collections Per New Annual Subscriptions in the US $158 $159 $156 $156 $153 $150 $145 $141 $132 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Note: Based on full-priced (excluding sales), new annual subscriptions purchased in the US for each quarter 7
Slide 8: User and subscription bases are growing
User and subscription bases are growing 31% Y/Y 22% Registered Users Y/Y Premium Subscriptions 3.2 (millions, at End of Period) (millions, at End of Period) 119 3.1 114 2.9 109 103 2.7 97 2.5 92 2.3 87 82 2.1 77 1.9 72 68 1.8 63 1.6 50 1.5 54 1.4 50 1.2 46 1.1 42 1.0 39 36 0.9 32 0.8 28 0.7 0.6 0.5
Slide 9: Consistent cohort behavior over the long term
Consistent cohort behavior over the long term Active Premium Subscriptions from Q1 User Cohorts New Registered Users Increasing users and conversion driving growth 247,090 Q1’17 +44% 5,875,165 +81% 5,875 247 Q1’16 5,305,726 4,089 137 Q1’15 178,663 183,863 4,568,323 Q1’14 139,699 4,089,253 Q1'14 Q1'1
Slide 10: Efficient marketing based on 7-9 month TROI
Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections … After 20 Quarters … After 16 Quarters 7.4 x 4.3 x … After 12 Quarters $60 … After 8 Quarters 3.4 x To Date $75 $33 … After 4 Quarters 2.3 x To Date $64 1.2 x To$33 Date $40 $8 $33 To Date To Date $56 To Q1’13 Cohor
Slide 11: Healthy mix of annual and monthly subscriptions
Healthy mix of annual and monthly subscriptions % of Gross New Subscriptions % of Total Subscriptions 79% 77% 75% 70% 67% 68% 65% 65% 64% 18% 35% 35% 36% 33% 30% 32% 82% 23% 25% 21% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 1 Year or Longer Monthly 1 Year or Longer Monthly Note: Data as
Slide 12: Prior cohorts continue to convert
Prior cohorts continue to convert % of Gross New Subscriptions by Prior and Current User Cohorts 63% 62% 63% 63% 62% 60% 60% 59% 60% 40% 40% 41% 40% 37% 38% 37% 37% 38% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Prior user cohorts Current user cohort Note: Data as of December 31, 2017 12
Slide 13: Growing base of cohort collections
Growing base of cohort collections Annual collections by user cohort ($ millions) User Cohort Collections In 2016: $340 million ($ millions) In 2017: $356 million $500 $400 $300 $200 $100 $0 2010 2011 2012 2013 2014 2015 2016 2017 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 Excludes collections
Slide 14: Increasing geographic penetration
Increasing geographic penetration FX-Neutral revenue by geography (% of total) 9% 14% 39% Y/Y 3% 17% 8% 31% Y/Y 25% 35% Y/Y Growth Rate vs. Q4’16 (Constant currency basis) 71% 52% 43% Y/Y 2010 Q4'171 North America Europe Latin America Asia and others 1Revenue by Geography and Y/Y change based on con
Slide 15: Continuing to drive leverage in the model
Continuing to drive leverage in the model Non-GAAP Gross Margin (% revenue) Non-GAAP R&D (% collections) 30% 85% 85% 28% 26% 25% 83% 82% 2014 2015 2016 2017 2014 2015 2016 2017 Non-GAAP S&M (% collections) Non GAAP G&A (% collections) 56% 48% 44% 7% 7% 40% 6% 6% 2014 2015 2016 2017 2014 2015 2016 20
Slide 16: Significant Returns on R&D Investment
Significant Returns on R&D Investment Annual R&D investment1 Multiple New Products Significant Value Creation 2014-2017 ~$800 Million Total incremental R&D investment The New over 2014: $120 million Editor cohort value created2 $121 Growth of Q1 user cohorts: 81% 3 $88 44% $68 3 $51 Increase in user
Slide 17: 2018 Outlook
oH 2018 Outlook ® 7 q 4 @
Slide 18: Many potential growth drivers - next two years
Many potential growth drivers - next two years Base Growth Drivers Potential Additional Drivers • Ongoing conversion and renewal activity for • Unannounced new products existing cohorts • Larger than expected increase in conversion, • Ongoing improvements to Wix Editor, Vertical retention and/or ACP
Slide 19: Wix Code Site Examples
v @& 4 Wix Code Site examples ® Q 4 4 ea * @ <
Slide 20: Vancouver Realty
Vancouver Realty Dynamic pages + Google Maps API vancouverfirstrealty.com Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 21: MathsGenius – educational quiz application
MathsGenius – educational quiz application Custom interactions to present info in engaging way + user input forms eatonjthomas.wixsite.com/mathsgenius Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 22: CPR/FA Health Training
CPR/FA Health Training Dynamic pages to list courses, user input forms for registration, custom interactions for map and adding items to bag cprfatraining.com Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 23: Brahmani Yoga
Brahmani Yoga Database, Repeaters and Dynamic Pages for Events and Classes www.brahmaniyoga.com Note: The websites referenced herein shall not be deemed a part of this presentation
Slide 24: Appendix
i APPENDIX ® " < 4 @
Slide 25: Non-GAAP Financial Results
Non-GAAP Financial Results 2016 2017 Full Year in 000s Q4 Q4 2015 2016 2017 Revenues $84,176 $118,545 $203,518 $290,103 $425,636 Collections $97,652 $132,203 $241,687 $342,069 $483,989 Non-GAAP Gross Profit $71,867 $100,523 $169,901 $246,614 $359,708 Gross Margin % 85% 85% 83% 85% 85% Non-GAAP R&D e
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 Full Year in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 Revenue $61,586 $68,730 $75,611 $84,176 $92,538 $103,522 $111,031 $118,545 $203,518 $290,103 $425,636 Change in deferred revenue $14,108 $12,723 $11,659 $13,476 $22,008 $13,599 $9,088 $13,6
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 Full Year in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 GAAP Net Loss ($19,912) ($11,420) ($9,643) ($5,921) ($20,885) ($14,264) ($14,519) ($6,605) ($51,334) ($46,896) ($56,273) Share Based Compensation & Other Non- $7,682 $7,707 $8,073 $8,879 $1
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 2016 2017 Full Year in 000s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 Research and development (GAAP) $24,472 $25,483 $26,536 $28,877 $32,669 $36,749 $40,252 $43,965 $77,647 $105,368 $153,635 Options compensation $3,111 $3,558 $3,718 $4,156 $4,726 $6,586 $7,1