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Wix Analyst and

Investor Day
March 18, 2015

Safe Harbor Provision


Forward-Looking Statements
This presentation 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 our future performance and may be identified by words
like anticipate, assume, believe, continue, could, estimate, expect, intend, may, plan, potential, predict, project, future, will, seek and
similar terms or phrases. The forward-looking statements contained in this presentation are based on managements current expectations, which are subject to
uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our
actual results to differ materially from those indicated in the forward-looking statements include, among others, our ability to grow our user base and premium
subscriptions; our ability to maintain and enhance our brand and reputation; our ability to manage the growth of our infrastructure effectively; changes to
technologies used in our solutions or in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under
the heading Risk Factors" in our annual report on Form 20-F for the year ended December 31, 2013 filed with the Securities and Exchange Commission on
March 20, 2014. Any forward-looking statement made by us in this presentation speaks only as of the date hereof. Factors or events that could cause our actual
results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forwardlooking statements, whether as a result of new information, future developments or otherwise.
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, adjusted EBITDA, free cash flow, non-GAAP net loss and non-GAAP net loss per share (collectively the "non-GAAP financial
measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred
revenues for a particular period to revenues for the same period. Adjusted EBITDA represents earnings before interest, bank charges and other financial income
and expenses, net; unrealized gains or losses on certain hedging transactions; income tax; depreciation and amortization and further eliminates the effect of
share-based compensation expense, changes in deferred revenue and prepaid domain registration costs and other unusual or non-recurring expenses. Free
cash flow represents cash flow from operating activities minus capital expenditures. Non-GAAP net loss represents net loss calculated in accordance with GAAP
as adjusted for the impact of share-based compensation expense and other non-GAAP adjustments. Non-GAAP net loss per share represents non-GAAP net
loss divided by the weighted average number of shares used in computing GAAP loss per share.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. The company uses these non-GAAP financial measures for financial and operational decision making and as a means
to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding
of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and
operational decision making.
For more information on the non-GAAP financial measures, please see the Reconciliation of GAAP to Non-GAAP table in the Annex to this presentation. This
accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related
reconciliations between these financial measures. The company has not reconciled adjusted EBITDA guidance to net income because it does not provide
guidance for net income. As items that impact net income are out of the company's control and/or cannot be reasonably predicted, the company is unable to
provide such guidance. Accordingly, a reconciliation to net income is not available without unreasonable effort.
Certain data in this presentation was obtained from various external sources, and the company has not verified such data with independent sources. Accordingly,
the company makes no representation as to the accuracy or completeness of that data or to update such data after the date hereof. Such data involves risks and
uncertainties and is subject to change based on various factors.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an
endorsement of the products or services of the company.

Todays Agenda
Welcome and Introduction

Wix Vision and Strategy

Nir Zohar, President and COO

Avishai Abrahami, Co-Founder and CEO

Product and Technology Leadership

Technology Leadership: Creating an Online Presence Avishai Abrahami

Technology Leadership: Creating a Mobile Presence Reuven Sherwin, VP Product

Product Leadership: Manage and Grow Your Business Nir Zohar

Q&A and Break


The Wix Freemium Business Model

Data Driven Marketing

Nir Zohar

Omer Shai, CMO

Q&A

Behind the Scenes

Managing Growth of 400 to 1,000 Employees Nir Zohar

Infrastructure and Development at Scale Yaniv Even-Haim, VP R&D

Supporting and Scaling to 60 million Users and Beyond Elad Eran, VP Customer Solutions

Our Path to Profitability

Lior Shemesh, CFO

Q&A and Closing

Cocktail Reception

Vision & Strategy


Avishai Abrahami, Co-Founder & CEO

Our vision is to power how


businesses create, manage
and grow online

Content Creation
Progress
8

Content Creation
Progress
9

Content Creation
Progress
10

Power to Create

Online Presence

11

Power to Create

Online Presence
Documents

Presentation
Blogs

12

Facts About Wix


>1.4 million New Users Each Month
~50% Subscriptions from free traffic sources
>7 million Mobile sites published
190 Countries with Wix users
50% of Employees in R&D
0 Sales People
1 Average

monthly increase in Registered Users 2015

13

Todays Takeaways
Wix is the leading technology for powering a complete online presence
Large and growing need for Wixs solutions
Wixs business model drives strong cohort economics
Highly efficient, data-driven marketing execution

Clear path to sustainable profitability

14

Huge Opportunity

15

125 Million+
SMBs Globally**

27 Million+
SMBs in the US (500,000+ are started EVERY MONTH)*

21 Million+ are non-employers*


(May not include dog walkers, DJs, personal shoppers, etc. all need a website)

*US Census Bureau; firms w < 100 employees, Small Business Administration
**World Bank / IFC
16

70%
of SMBs
do not have
a website*

45%
of those without a
website say creating
one is either too
expensive, too
complex or too time
consuming**

70%
of SMB websites
that do exist are
NOT optimized
for mobile***

*source: US Census Bureau


**IDC
***Thrive Analytics via eMarketer
17

Use Cases
are Growing

18

E-commerce

19

Juice Bar

20

Independent Hotel

21

Photography Portfolio

22

Rock Band

23

Non-profit organization

24

Music Festival

25

Babysitter

26

Girl Scouts Troop

27

Resume

28

Wedding

29

Graphic Designer

30

But Businesses Need


More Than a Website

31

Mobile Google
Map

CRM

Social

Financial
Management

E-commerce
32

The Wix Platform


Powers SMB
Online Needs

33

Presence
Online
Mobile
Social

34

Beyond
a Website

Presence
Online
Mobile
Social

35

Transaction

Management

Awareness

Advertising
Marketing
Social Connections
Social Integration

Payments
Scheduling
Processing
Billing

CRM
ERP
Finance
Analytics

Beyond
a Website

Fulfillment

Presence
Online
Mobile
Social

Shipping
Inventory
Invoicing
Database
Logistics

Consideration
E-mail Marketing
Newsletters
Coupons
FAQ
Merchandising

36

91 million
Contacts saved

66 million

Contacts ShoutOuts sent to

8
million
Items sold through Wix E-commerce products
20 million
Apps installed

37

Introducing Wix Music

Enables musicians to upload, stream, sell and share their music


38

Growth Strategy
Growth of Collections and Profitability:
Increasing
Conversion

Increasing
Retention

Increasing
ARPU

Marketing
Efficiency

Product
Editor Enhancements

Geography
Languages

Technology
UI / UX

App Market Growth

Marketing

Data Management /

Vertical Solutions

Localization

WixHive

Mobile Solutions

Payments

Sonic Mobile

WixJet
39

Wix Platform

HTML5
Desktop Editor

Security

Vertical
Solutions

Wix App
Market

Hosting

CRM

Wix
Mobile

Database

40

Our Vision: Wix OS

EDITOR
DATABASES

APP
MARKET

VERTICALS

MOBILE

41

Live Demonstration
Technology Leadership: Creating an Online Presence

42

Mobile @ Wix
Reuven Sherwin, VP Product

43

2009:
The Web Will Go Mobile

44

2009:
The Web Will Go Mobile

2012:
The Web Is Going Mobile

45

2009:
The Web Will Go Mobile

2012:
The Web Is Going Mobile

2015:
The Web Has Gone Mobile
46

Number of Global Users (Millions)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2007 2008 2009 2010 2011 2012 2013 2014 2015

Desktop

Mobile

Source: Morgan Stanly Research

47

>800 Million

mobile phone subscriptions


were added in 2014

>7 Billion mobile subscriptions worldwide

>12.1 Billion mobile devices by 2018


39%

is the YOY growth of the mobiles


share of global web traffic
with

33% of all web pages now served to mobile phones

*Source: SEJ
**Source: CBS news
***Source: GoMoNews.com
****Source: FierceWireless.com

48

~2 Billion

75%

smartphones in use - that's more


than 1-in-4 people worldwide

of Americans admit to bringing


their phone to the bathroom

44% of cell owners have slept with their phone

25%

10X

of Americans use only mobile


devices to access the internet

is the projected increase in mobile data


usage from 2014 to 2019 (Cisco)

*Source: SEJ, CBS news, GoMoNews.com, FierceWireless.com

49

57%

of users said they wont recommend


companies with a poor mobile site

*Source: SEJ

50

95%

of smartphone users have used their


phone to look up local information

After doing so, 61% called


and 59% visited

*Source: SEJ

51

What does Going


Mobile mean?

52

1.

Smaller Screens

2.

Outdoor Consumption

3.

Thumb-size

4.

Phone

Quick Access to Business Info


Location

Opening
Hours
53

54

55

56

1.

Smaller Screens

2.

Outdoor Consumption

3.

Thumb-size

4.

Phone

Quick Access to Business Info


Location

Opening
Hours
57

Whats Next?

58

59

Live Demonstration
Technology Leadership: Creating a Mobile Presence

60

Manage and Grow


Your Business
Nir Zohar, President and COO

61

Wix empowers businesses


to CREATE a beautiful
online presence
we also enable owners
to MANAGE and GROW
their business online
62

Create &
Enhance

Track
Activity

Market &
Promote

SMB
Needs

Customer
Management

Workflow
Management

63

Transaction

Management

Awareness

Advertising
Marketing
Social Connections
Social Integration

Payments
Scheduling
Processing
Billing

CRM
ERP
Finance
Analytics

Beyond
a Website

Fulfillment

Presence
Online
Mobile
Social

Shipping
Inventory
Invoicing
Database
Logistics

Consideration
E-mail Marketing
Newsletters
Coupons
FAQ
Merchandising

64

Wix App Market

65

Key
Differentiator

Add functionality
without coding

Easy integration

USERS

WIX

DEVELOPERS

Accelerate development
through partnerships

New business
opportunities

Create an ecosystem

Provide distribution
and exposure

66

Wix App Market by the Numbers

Nov
2013

March
2015

140

Apps in the
app market

20K+

Apps are
installed
every day

6M+

App installations
since launch

45K+

App upgrades
since launch

250+

41K+

20M+

380K+

Apps in the
app market

Apps are
installed
every day

App installations
since launch

App upgrades
since launch

67

Increasing Engagement
App Installations by Month

1,400,000
1,200,000
1,000,000
800,000
600,000
400,000

200,000
0
2013

2014

2015

68

Mobile Google
Map

CRM

Social

Financial
Management

E-commerce
69

Case Study - Tint


Launched: January 2013
Installs per day: ~1,200
Premiums upgrades per day: ~8
Total installations: 525,000+

Wixs App Market provided Tint a huge distribution


channel, exponentially increasing our exposure to millions
of small businesses. It was this access that allowed us to
prove, improve and grow our product offering in ways we
could never have foreseen without it.
- Tim Sae Koo, CEO
70

Case Study Site Booster


Launched: August 2013
Installs per day: ~450
Premiums per day: ~50
Total installations: 75,000+

The SDK and guidance got us up and running quickly


the ability to get such high exposure to users has launched
our business from a mere idea to a successful,
profitable business within months
- Gur Boosh, COO
71

Vertical Solutions
Cloud-based software
solution for SMBs

72

Wix Hotels
Launched Q3 2014
Four pillars:
Online presence
Booking and inventory management
Channel management integration with TripAdvisor Trip Connect; others coming
Marketing
Monthly subscription-based pricing

73

Wix Stores
Launched Q4 2014
Upgraded buyer interface and improved buyer experience
Integration with Wix App Builder
Upgraded store management capabilities for merchant

74

Wix Restaurants
Launching Q2 2015
First global large scale DIY online ordering system for restaurants

Connection to payment processors


Native mobile solution

75

Vertical Apps
Increase
conversion
within verticals
Monetize existing
user base

Tailored front-end
interface + back-end
management software
Integration with other
Wix products
Affordable pricing

76

Wix ShoutOut

Mission critical marketing and


communication tool for SMBs

77

Launched Q2 2014 premium beginning Q4


Communicate with customers and prospects
Convert customers with customized calls to action

Fully integrated with Contacts and Smart Actions


Analytics to track performance

Promotions

Sales

Invitations

78

Rapid Adoption
# of contacts who received a shoutout, since launch (millions)
18
16
14

12
10
8
6
4
2
0
2014

2015

Rapid activity increase 16M+ last month


79

Wix ShoutOut for Mobile


Launched Q1 2015
Create and send newsletters,
alerts and notes on the go
View and reuse history of ShoutOuts
View analytics of latest ShoutOuts

80

CRM
Cloud-based contact management for the SMB

81

Contacts
Actively manage data and
communication with existing
and prospective customers
Gather insights
Customized for verticals

Fully integrated across


the Wix platform

82

90
80

Cumulative Contact Records

Millions

Mission Critical Data


70
60
50
40
30
20

10
0

2013

2014

2015

Wix users managing over 90 million contacts

83

84

1. Filter customers based on activity data

85

2. Gather insights on past interactions


86

3. Send targeted communication

87

Smart Actions
Automates critical business function
Customized messages based
on trigger events
Communicate with customers
at high point of intent
Performance analytics
Integrated with ShoutOut
and vertical applications

88

Create &
Enhance

Track
Activity

Market &
Promote

SMB
Needs

Customer
Management

Workflow
Management

89

Video
Product Leadership: Manage and Grow Your Business

90

Q&A

91

Break

92

Wix Freemium Model


Nir Zohar, President and COO

93

Our Business Model

Marketing

Free
Website

Apps

Premium
Subscription

User
Recommendations

94

Cohorts
The number of new registered users added
in a period generated by a fixed amount of
marketing expense in the same period

95

TROI
Time to Return On (marketing) Investment
the amount of time for dollars collected from new premium
subscriptions acquired in a period to equal dollars spent
on direct marketing costs in the same period

96

Our Goal
Maximize Premium Subscription Growth
at a targeted TROI

97

Focus on Cohorts Because


Volume: statistically significant
Behaviors: normalize differences across millions of users
Freemium model: no cost for user to experiment

98

Improving Conversion and Retention


New
Registered
Users

Q1 14: Higher % of initial user cohort


are active premium subscriptions after
same number of quarters

136,364

Q114
4,089,253
Q113
3,714,472
Q112
2,651,656
Q111
1,833,897
Q110
919,221

92,019

87,484

62,071
37,440

33,747
29,612
18,513

28,835
19,329

10 11 12 13 14 15 16 17 18 19 20

Number of Quarters Passed

99

Cohorts are Predictable and Stable


Monthly User Cohorts, 2010 - 2014

100

Drivers of Conversion and Retention


Driver

How we address

Ability to finish

Great UX - easy to
build and publish

Site meets
needs

Freedom to create - products,


applications and localization

Ability to pay

Billing solutions

Affordable

Subscription plans
< $150 / year

101

Drivers of Conversion and Retention

Product introductions and improvements

Wix ShoutOut

Cumulative Premium Subscriptions

HTML5 Mobile
HTML 5
Google Apps

App Market

Ecommerce
New Languages

Flash Editor

2008

Wix in Spanish
& Portuguese

2009

2010

2011

2012

2013

2014
102

Drivers of Conversion
Localization in Brazil

HTML editor
translation to
Portuguese

Wix.com
launch in
Portuguese

Brazil TV
campaign
launched

Billing mail and Templates


email translation translation to
to Portuguese Portuguese

4.5%
4.0%
3.5%
3.0%

Local billing
method
established

2.5%
2.0%

1.5%
1.0%
0.5%
0.0%

2011

2012
BR - - BR - subscriptions
# of upgrades
# premium

2013

2014

- - % of BRsubs
upgrades
out ofusers
total
%BRpremium
of total

103

Drivers of Conversion

Japanese custommade templates

Localization in Japan

2.0%

Payment with
local currency
made available

1.8%
1.6%
1.4%
1.2%

Wix.com was
translated to Japanese

1.0%

0.8%
0.6%
0.4%
0.2%
0.0%
2011

2012
# JP
premium
subscriptions
- - # of upgrades

2014

2013
JP - -%
% of
upgrades subs
out of total
premium
of total

users

104

Focus on Retention
~50%
Users who cancelled a subscription are active on Wix within 12 months

~70%

Cancelled domains websites are not rebuilt

~30%

Subscriptions purchased in a month are repeat buyers


105

Focus on Retention to Date


Loyalty Wix users show repeat buying patterns

Financial impact No need to reinvest marketing to


re-acquire users due to cohort behaviors

New
Registered
Users
Active Premium Subscriptions at Quarter End
Q110
919,221

19,329

18,513

10

11

12

13

14

15

16

17

18

19

20

Number of Quarters Passed

106

Cohort Lifetime Value to date


The lifetime value of each cohort continues to increase
while marketing investment is no longer needed
New
Registered
Users

Collection per average


premium subscription:
~$750+ and growing

136,364

Q114
4,089,253
Q113
3,714,472
Q112
2,651,656
Q111
1,833,897
Q110
919,221

92,019

87,484

62,071

37,440

33,747
29,612
18,513

28,835
19,329

10 11 12 13 14 15 16 17 18 19 20

Number of Quarters Passed


Collection per avg sub based on 63 month lifetime at $12 per month
107

Marketing at Wix
Omer Shai, CMO

108

Key Takeaways
Cross-platform, global marketing organization
Marketing in 30 countries, 13 languages on 15 different platforms
TROI drives budget and manages risk

Constant optimization drives efficiency and flexibility


Powerful in-house content creation studio
Successful Super Bowl campaign results

109

Mission

Brand

Performance

Highlight product
differentiation
and create brand
awareness

Optimize budget to
maximize premium
customers to Wix

110

Generate traffic &


optimize sources

Branding

Site
Optimization

Pricing
Optimization

Data / Analytics

111

Traffic Sources
Paid
Online

Paid
Offline

Search
Facebook
Display

TV
Radio

Free

Viral
SEO
Direct
112

Content Examples

113

Content Examples

114

Facebook Post Examples

115

Diverse Team Thinking Globally

100
11

18

Employees

Languages

Different countries of origin

> 500

of content pieces generated each month:


banners, Facebook posts, landing pages, videos, TV and radio spots and more
116

Content Examples

117

TROI

118

TROI
Time to Return On (marketing) Investment
the amount of time for dollars collected from new premium
subscriptions acquired in a period to equal dollars spent
on direct marketing costs in the same period
We aim to take 7 9 months to reach 100% TROI

With no fixed costs, the marketing department


retains freedom and flexibility to adapt to the market
119

GB TROI 2013-2014
2

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

0 Jan-13 0.36

0.60

0.77

0.89

1.01

1.12

1.22

1.31

1.40

1.50

1.59

1.67

1.94

2.16

2.35

2.49

2.65

2.77

2.90

3.01

3.13

3.25

3.35

3.45

1 Feb-13 0.36

0.60

0.76

0.89

1.01

1.11

1.20

1.28

1.39

1.48

1.56

1.66

1.93

2.16

2.32

2.48

2.61

2.74

2.84

2.95

3.07

3.18

3.27

#N/A

2 Mar-13 0.33

0.55

0.70

0.82

0.92

1.01

1.10

1.20

1.29

1.36

1.45

1.53

1.80

2.03

2.20

2.32

2.44

2.54

2.65

2.75

2.86

2.95

#N/A

#N/A

3 Apr-13 0.35

0.58

0.74

0.88

0.98

1.09

1.20

1.30

1.39

1.48

1.58

1.67

1.95

2.19

2.36

2.51

2.63

2.76

2.88

2.99

3.09

#N/A

#N/A

#N/A

4May-13 0.35

0.57

0.71

0.82

0.92

1.02

1.12

1.19

1.27

1.37

1.45

1.53

1.81

2.03

2.18

2.31

2.43

2.55

2.65

2.74

#N/A

#N/A

#N/A

#N/A

5 Jun-13 0.31

0.50

0.62

0.72

0.81

0.90

0.98

1.05

1.13

1.21

1.28

1.37

1.60

1.80

1.92

2.05

2.15

2.25

2.34

#N/A

#N/A

#N/A

#N/A

#N/A

6 Jul-13 0.22

0.37

0.47

0.55

0.62

0.68

0.74

0.80

0.86

0.92

0.98

1.04

1.22

1.37

1.48

1.57

1.64

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

7 Aug-13 0.22

0.37

0.47

0.54

0.60

0.67

0.73

0.79

0.84

0.91

0.96

1.02

1.20

1.34

1.45

1.53

1.59

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

8 Sep-13 0.22

0.39

0.48

0.55

0.63

0.70

0.77

0.83

0.89

0.94

0.99

1.04

1.23

1.40

1.50

1.57

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

9 Oct-13 0.34

0.53

0.64

0.76

0.85

0.94

1.02

1.11

1.19

1.26

1.32

1.39

1.67

1.86

1.98

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

10 Nov-13 0.30

0.47

0.60

0.71

0.80

0.89

0.97

1.04

1.11

1.17

1.24

1.31

1.54

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

11 Dec-13 0.26

0.46

0.58

0.68

0.77

0.86

0.93

0.99

1.05

1.12

1.18

1.23

1.43

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

12 Jan-14 0.28

0.46

0.57

0.66

0.76

0.83

0.90

0.96

1.03

1.10

1.15

1.21

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

13 Feb-14 0.26

0.44

0.55

0.64

0.72

0.79

0.85

0.91

0.97

1.03

1.08

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

14 Mar-14 0.41

0.65

0.83

0.94

1.04

1.13

1.23

1.32

1.40

1.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

15 Apr-14 0.39

0.66

0.80

0.91

1.01

1.13

1.22

1.30

1.38

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

16May-14 0.31

0.47

0.58

0.65

0.74

0.81

0.87

0.92

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

17 Jun-14 0.31

0.50

0.63

0.74

0.83

0.90

0.96

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

18 Jul-14 0.32

0.51

0.65

0.75

0.83

0.90

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

19 Aug-14 0.33

0.56

0.70

0.78

0.86

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

20 Sep-14 0.40

0.64

0.77

0.85

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

21 Oct-14 0.41

0.62

0.72

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

22 Nov-14 0.42

0.61

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

23 Dec-14 0.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

120

GB TROI 2013-2014
2

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

0 Jan-13 0.36

0.60

0.77

0.89

1.01

1.12

1.22

1.31

1.40

1.50

1.59

1.67

1.94

2.16

2.35

2.49

2.65

2.77

2.90

3.01

3.13

3.25

3.35

3.45

1 Feb-13 0.36

0.60

0.76

0.89

1.01

1.11

1.20

1.28

1.39

1.48

1.56

1.66

1.93

2.16

2.32

2.48

2.61

2.74

2.84

2.95

3.07

3.18

3.27

#N/A

2 Mar-13 0.33

0.55

0.70

0.82

0.92

1.01

1.10

1.20

1.29

1.36

1.45

1.53

1.80

2.03

2.20

2.32

2.44

2.54

2.65

2.75

2.86

2.95

#N/A

#N/A

3 Apr-13 0.35

0.58

0.74

0.88

0.98

1.09

1.20

1.30

1.39

1.48

1.58

1.67

1.95

2.19

2.36

2.51

2.63

2.76

2.88

2.99

3.09

#N/A

#N/A

#N/A

4May-13 0.35

0.57

0.71

0.82

0.92

1.02

1.12

1.19

1.27

1.37

1.45

1.53

1.81

2.03

2.18

2.31

2.43

2.55

2.65

2.74

#N/A

#N/A

#N/A

#N/A

5 Jun-13 0.31

0.50

0.62

0.72

0.81

0.90

0.98

1.05

1.13

1.21

1.28

1.37

1.60

1.80

1.92

2.05

2.15

2.25

2.34

#N/A

#N/A

#N/A

#N/A

#N/A

6 Jul-13 0.22

0.37

0.47

0.55

0.62

0.68

0.74

0.80

0.86

0.92

0.98

1.04

1.22

1.37

1.48

1.57

1.64

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

7 Aug-13 0.22

0.37

0.47

0.54

0.60

0.67

0.73

0.79

0.84

0.91

0.96

1.02

1.20

1.34

1.45

1.53

1.59

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

8 Sep-13 0.22

0.39

0.48

0.55

0.63

0.70

0.77

0.83

0.89

0.94

0.99

1.04

1.23

1.40

1.50

1.57

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

9 Oct-13 0.34

0.53

0.64

0.76

0.85

0.94

1.02

1.11

1.19

1.26

1.32

1.39

1.67

1.86

1.98

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

10 Nov-13 0.30

0.47

0.60

0.71

0.80

0.89

0.97

1.04

1.11

1.17

1.24

1.31

1.54

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

11 Dec-13 0.26

0.46

0.58

0.68

0.77

0.86

0.93

0.99

1.05

1.12

1.18

1.23

1.43

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

12 Jan-14 0.28

0.46

0.57

0.66

0.76

0.83

0.90

0.96

1.03

1.10

1.15

1.21

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

13 Feb-14 0.26

0.44

0.55

0.64

0.72

0.79

0.85

0.91

0.97

1.03

1.08

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

14 Mar-14 0.41

0.65

0.83

0.94

1.04

1.13

1.23

1.32

1.40

1.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

15 Apr-14 0.39

0.66

0.80

0.91

1.01

1.13

1.22

1.30

1.38

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

16May-14 0.31

0.47

0.58

0.65

0.74

0.81

0.87

0.92

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

17 Jun-14 0.31

0.50

0.63

0.74

0.83

0.90

0.96

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

18 Jul-14 0.32

0.51

0.65

0.75

0.83

0.90

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

19 Aug-14 0.33

0.56

0.70

0.78

0.86

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

20 Sep-14 0.40

0.64

0.77

0.85

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

21 Oct-14 0.41

0.62

0.72

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

22 Nov-14 0.42

0.61

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

23 Dec-14 0.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

121

GB TROI 2013-2014
2

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

0 Jan-13 0.36

0.60

0.77

0.89

1.01

1.12

1.22

1.31

1.40

1.50

1.59

1.67

1.94

2.16

2.35

2.49

2.65

2.77

2.90

3.01

3.13

3.25

3.35

3.45

1 Feb-13 0.36

0.60

0.76

0.89

1.01

1.11

1.20

1.28

1.39

1.48

1.56

1.66

1.93

2.16

2.32

2.48

2.61

2.74

2.84

2.95

3.07

3.18

3.27

#N/A

2 Mar-13 0.33

0.55

0.70

0.82

0.92

1.01

1.10

1.20

1.29

1.36

1.45

1.53

1.80

2.03

2.20

2.32

2.44

2.54

2.65

2.75

2.86

2.95

#N/A

#N/A

3 Apr-13 0.35

0.58

0.74

0.88

0.98

1.09

1.20

1.30

1.39

1.48

1.58

1.67

1.95

2.19

2.36

2.51

2.63

2.76

2.88

2.99

3.09

#N/A

#N/A

#N/A

4May-13 0.35

0.57

0.71

0.82

0.92

1.02

1.12

1.19

1.27

1.37

1.45

1.53

1.81

2.03

2.18

2.31

2.43

2.55

2.65

2.74

#N/A

#N/A

#N/A

#N/A

5 Jun-13 0.31

0.50

0.62

0.72

0.81

0.90

0.98

1.05

1.13

1.21

1.28

1.37

1.60

1.80

1.92

2.05

2.15

2.25

2.34

#N/A

#N/A

#N/A

#N/A

#N/A

6 Jul-13 0.22

0.37

0.47

0.55

0.62

0.68

0.74

0.80

0.86

0.92

0.98

1.04

1.22

1.37

1.48

1.57

1.64

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

7 Aug-13 0.22

0.37

0.47

0.54

0.60

0.67

0.73

0.79

0.84

0.91

0.96

1.02

1.20

1.34

1.45

1.53

1.59

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

8 Sep-13 0.22

0.39

0.48

0.55

0.63

0.70

0.77

0.83

0.89

0.94

0.99

1.04

1.23

1.40

1.50

1.57

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

9 Oct-13 0.34

0.53

0.64

0.76

0.85

0.94

1.02

1.11

1.19

1.26

1.32

1.39

1.67

1.86

1.98

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

10 Nov-13 0.30

0.47

0.60

0.71

0.80

0.89

0.97

1.04

1.11

1.17

1.24

1.31

1.54

1.71

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

11 Dec-13 0.26

0.46

0.58

0.68

0.77

0.86

0.93

0.99

1.05

1.12

1.18

1.23

1.43

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

12 Jan-14 0.28

0.46

0.57

0.66

0.76

0.83

0.90

0.96

1.03

1.10

1.15

1.21

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

13 Feb-14 0.26

0.44

0.55

0.64

0.72

0.79

0.85

0.91

0.97

1.03

1.08

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

14 Mar-14 0.41

0.65

0.83

0.94

1.04

1.13

1.23

1.32

1.40

1.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

15 Apr-14 0.39

0.66

0.80

0.91

1.01

1.13

1.22

1.30

1.38

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

16May-14 0.31

0.47

0.58

0.65

0.74

0.81

0.87

0.92

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

17 Jun-14 0.31

0.50

0.63

0.74

0.83

0.90

0.96

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

18 Jul-14 0.32

0.51

0.65

0.75

0.83

0.90

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

19 Aug-14 0.33

0.56

0.70

0.78

0.86

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

20 Sep-14 0.40

0.64

0.77

0.85

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

21 Oct-14 0.41

0.62

0.72

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

22 Nov-14 0.42

0.61

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

23 Dec-14 0.47

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

122

Accelerating Annual Packages


Shift to annual packages accelerates TROI
Annual subscriptions as % of total new subscriptions, monthly
90%
80%
70%
60%
50%
40%
Q114

Q214

Q314

Q414

123

What is So Great About this Model?


Cohorts are cost effective: invest once and harvest forever

100% after 3Qs


100% after 2Qs
100% after 3Qs
100% after 2Qs

100% after 1Q
$5
$18

$21
To Date
$12
To Date

$1

Q110 Cohort
Marketing Cost ($mm)

$16
To Date
$3

$17
To Date

$3

$26
To Date

$8

$21
To Date
$18

Q114 Cohort

$5

Q112 Cohort

Q113 Cohort

Q111 Cohort

Cohort Net Collections ($mm)

124

Channel
Optimization

125

Optimizing Campaigns
Monitoring
Daily
Geography

Channel

Device

Creative

Time frame

And more

126

Case Study: Optimizing Campaigns


FB post originally promoted
to English speaking countries
Its performance stood out,
and as returns increased we
launched it in more GEOs
Increased spend by
2.5x in 45 days
Premium growth followed
127

Case Study: Optimizing Campaigns


Russian

Spanish

French

Portuguese

128

Case Study: Optimizing Campaigns


Premium subscription growth of 9.3x followed increased spending
250000

160
140

200000

Started GEO Expansion

150000

120
100
80

100000

50000

60
40
20

Apr 14

May 14

June 14

July 14

129

Optimizing
Wix.com

130

Constantly optimizing throughout our funnel


695 tests in 2014 across the website
Home Page: A/B tests on layouts, fonts,
colors, buttons to optimize registrations

131

Pricing Page
A/B test price
Naming
Design

Packages to
increase collections

132

Our Super Bowl


Campaign

133

134

Not a Super Bowl Commercial


a Super Bowl Campaign
Unique campaign

month long, daily content

Comprehensive

multiple digital channels supported TV spot;


released 26 videos and 35 images via 16 social accounts

Extended cut

highlight of our campaign told how the story ends

Communicate values

convey throughout we are positive, friendly and easy-to-use

135

Press and Broadcast by Numbers


43 million Earned broadcast viewership in total
$6 million Total publicity value

2,077Press mentions (166 with Wix in headline)


350 million Press impressions
$3.2 million Press value
Note: all data per Nielsen
136

Numbers Before Game Day


Impressions for the campaign online

104 Million
TV impressions before Super Bowl (NFC championship + teaser campaign)

54.2 Million

137

Total Numbers
TV impressions Super Bowl

120 Million
Total impressions January + Game Day

305 Million
The most-watched ad of the game was from Wix,
which ran before the games final drive.
according to Rentrak
138

120 million views Record High

139

Comprehensive Campaign

140

Higher Brand Awareness


Which of the following have you heard of?
9.9%
13.9%
Answer Wix (before SB)

+40%

Answer Wix (after SB)

When prompted, just under half of Wixs target audience recall seeing any
ad in the ItsThatEasy SB campaign with the majority of recallers having
seen one to two different elements within the campaign

Source: Google Consumer Surveys, 1500 respondents per survey, All US & Ipsos per and post wave brand awareness research
141

Q&A

142

Managing Growth
of 400 to 1,000
Nir Zohar, President and COO

143

Scaling to a Team of 1,000

Current

Employee Growth
1000

At IPO

900

898

952

E/O 2014

ToMarch
date March
2015
2015

800
700

585

600
500

366

400
300
200

452

261

170

100
0

E/O 2010
Israel

Israel

US

E/O 2011
Ukraine

US

Brazil

Lithuania

Ukraine

E/O 2012

E/O 2013

Russia

Brazil

Lithuania

Russia

144

Growth Challenges
Big plans, limited resources
Shorter cycles of product deployment
Reduce interdependencies
Recruit and maintain talent
Preserve company culture

145

New Organization Structure

Companies

Guilds

Has one product with


users that everyone
knows and cares about

Horizontal groups that


maintains quality across
Companies (R&D, BI, etc.)

146

Wix Companies
Single product focus on business and user needs
Best in class strives for product leadership
Resources allocated to deliver finished product
Autonomy minimum dependencies on others
Proximity physically locate together

147

Wix Guilds
Glue enabling alignment and knowledge sharing
Provide guidelines to ensure production quality
Fosters professional development

Dedicated to all companies

148

Attentive to Users Needs

Development

Product

Wix
Users

Customer
Solutions

149

Building a Leadership Layer


Nominated heads of Companies and Guilds and
management members to chair each Company
Positions leadership members as a change agents
Includes mid-management in decision making

150

Key Achievements
Preserving the Wix Way and agility
Supporting Company scale
Releasing multiple products and accelerating
Minimizing technological interdependencies
Promoting continuous learning and innovation

151

Infrastructure &
Development at Scale
Yaniv Even-Haim, VP R&D

152

R&D Strength
Highly scalable,
efficient technology
infrastructure

World class
engineering
organization

153

Lean Engineering
IDEAS
Learn

Build

Minimize total
time through
the loop
CODE
DATA

Measure

Deploy
Often

DevOp
Culture

Constant User
Feedback

A/B testing driven


development

154

Continuous Deployment
# of Monthly Deployments to production
1,567

1,800

1,600
1,400
1,200
1,000
800
600

400
200
0
2013

2014

2015

155

Customer Oriented Engineering


Identify issues
before they
impact users
Operational
and business
real time
monitoring

156

Customer Oriented Engineering

Minimize time
to repair and
improve customer
satisfaction

157

Leveraging R&D Investments


Unified Dev Infrastructure
Across Products

1.
2.

Allow rapid development


of verticals and products
Allow developers to focus
only on product concerns

158

Leveraging R&D Investments


Security

Verticals
Horizontal
Services

OS

Authentication

Mobile Apps

CRM

ShoutOut

Blog

A/B Testing
Messaging
Deployment

Hive

App Market

Monitoring

Editor

My Account

Big Data

159

Leveraging R&D Investments


Highly professional Engineering Guilds

1.
2.

Leveraging tech expertise


& know how
Short term and long term balance create
a sustainable development velocity

160

Innovation Driven
The leading web
company in Israel
employing top talents

Mini-startup org
structure
provide engineers
power to innovate

Startup mentality
Large ex-startups
employees

Product that came


from the Hackathon

161

Infrastructure
Overview

162

DDoS Protection

CDN

Amazon Cloud

Cloud Storage

DataCenter:

Tampa

Amsterdam

Austin
163

Reliable

Hybrid cloud with auto-failovers


Data protection by immutable copies
Best in class vendors

Efficient

Multi-tenancy by design
Hybrid cloud allows for optimization
Dual vendor architecture

Scalable

High density application servers


Storage scalability
164

$0.01 Per User Per Month


Main infrastructure Investment in 2014
New Services
Extending Disaster Recovery infrastructure
Security and DDoS protection

Additional cost per user (Free & Premium) is marginal


Media decreasing price per unit
Data small cost
Application server high density

165

Thank You

166

Customer Services & Solutions


Elad Eran, VP Customer Solutions

167

Question:

Customer Service
Why is it critical to Wix?

168

Answer:

In order for us to succeed,


our users have to succeed.

169

Maintain
& Satisfy
Manage customer
satisfaction to
maintain user base

Convert

Feedback

Convert free users by


supporting and guiding
them through the site
building process

Gather feedback to
create and develop
additional features
and tools

The Customer Service team plays


a key role in Wixs user lifecycle
170

Customer Services by
the Numbers
60,000

Unique users to learning center daily

20,000

Queries to automated search daily

90%

Queries answered automatically

2,350+

Queries answered daily by agents


171

Call Center by the Numbers


95%

Customer satisfaction rate

1,600+

Calls per day

3
min
Median waiting time

172

Our Key Activities


How Do We Do it So Well?

1.

Proactive
Approach

2.

Smart Tech
Solution

3.

Hyper
Efficiency

4.

Diverse
Team

173

We build dedicated
products that
enable DIY
Build solutions and BI driven tools to drive efficiency, reduce call volumes,
automate processes and create self serve system for users

174

1. Proactive Approach

175

Wix Forum

176

Wix Help Center

177

2. Smart Technological Solution

178

Editor Help Widget

Specific help instructions


that are directly related to
the element you are using
inside the editor

Users dont need to


spend time and search
outside the editor

179

Interactive Tutorial: Domain


Troubleshooter

180

Interactive Tutorial: SEO Wizard

181

3. Hyper Efficiency

182

Internal Ticketing System

183

Internal Ticketing System


Automatic Suggestions

184

Internal Knowledge Base

185

4. Diverse Team

186

Mixture of:
Content oriented team members
Technical background personnel
Designers
Web builders
Linguistic experts

187

Results

188

Improved conversion: Online


% Upgrades within 14 days after ticket creation

15%
12%

10%
8%

9%

8%

2013

8%

9%

10%

10%

13%

13%

10%

2014

2015

189

Improved Conversion: Calls


% Upgrades within 14 days after call
20%
16%

11%

11%

11%

2013

12%

13%

18%
15%

17%

18%

15%

12%

2014

2015

190

70

70

60

60

50

50

40

40

30

30

20

20

10

10

0
2013

2014

Thousands

Millions

Scaling Customer Solutions

2015

Users
Contacted Support

Doubled user base with only 65% increase in support contacts


191

Our Path to Profitability


Lior Shemesh, CFO

192

2014:
Year of Growth and
Investment

193

Continued Growth
Premium
Subscriptions

Revenue

Collections

74%
$171

$142
790
$80

$99
$52

470

$44

2013

1,233

68%

84%

88%

2012

56%

76%

2014

2012

2013

2014

2012

2013

2014

Note: Collections and Revenue USD in millions, Premium Subscriptions in thousands


194

Continued Execution

Collections Have Exceeded Guidance Each Quarter Since IPO


Guidance

Actual
$55-$56

$60
$45

$30
$15
$0
Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Note: USD in millions


195

Research & Development

$27

+93% y/y

2013

$51

Increased HC by ~2x
Product and technology releases

2014

Note: USD in millions, non-GAAP figures


196

Research & Development

$27

+93% y/y

2013

$51

Increased HC by ~2x
Product and technology releases

2014

Selling & Marketing

$53

+81% y/y

2013

$95

Investment in user acquisition


Geographic expansion

2014

Note: USD in millions, non-GAAP figures


197

Research & Development

$27

+93% y/y

2013

$51

Increased HC by ~2x
Product and technology releases

2014

Selling & Marketing

$53

+81% y/y

2013

$95

Investment in user acquisition


Geographic expansion

2014

General & Administrative

$6

+90% y/y

2013

$12

Support public company costs


Growing infrastructure

2014

Note: USD in millions, non-GAAP figures


198

Growth Funded by Operations


2014 Cash Uses

Operations

Operational growth self-funded

$0.8

M&A

$5.4

Product and talent adds to drive


future growth

CapEx

$5.6

Driven by headcount increases

Note: USD in millions


199

Leveraging Operating Expenses


Non-GAAP operating expenses as % of collections

Selling &
Marketing

Research &
Development

29%

58%

31%

30%

58%
54%

29%

~56%

53%
48-50%

Q1

Q2

Q3
2014

Q4

FY '15

Q1

Q2

Q3

2014

Q4

Q1

FY

2015

200

2015 Outlook

201

Updated 2015 Outlook


Prior Q1

Updated Q1

Collections

$52 - 53

$55 - 56

Revenue

$43 - 44

$44 - 45

Adj. EBITDA

$(3) (4)

$(1) (2)

S&M (% of collections)

~57%

~56%

Note: USD in millions, S&M is non-GAAP


202

Updated 2015 Outlook


Prior FY15

Updated FY15

Collections

$235 242

$239 246

Revenue

$198 202

$200 204

Adj. EBITDA

$2 5

$5 8

S&M (% of collections)

48 50%

48 50%

Note: USD in millions, S&M is non-GAAP


203

2015 Growth Drivers


New product introductions and improvements
Increased visibility of Wix brand
Global expansion
Non-package subscription revenue: App Market

204

Path to Profitability

205

Consistent Cohort Behavior


Active Premium Subscriptions from Q1 User Cohorts
New
Registered
Users

136,364

Q114
4,089,253
Q113
3,714,472

Q112
2,651,656
Q111
1,833,897
Q110
919,221

92,019

87,484

62,071

37,440

33,747
29,612
18,513

28,835
19,329

10 11 12 13 14 15 16 17 18 19 20

Number of Quarters Passed

Note: Data as of December 31, 2014


206

Subscription Base Drives Profitability


Annual collections by user cohort

2010-2013 User Cohorts Collections

User Cohort Year


2014

$180

In 2013: $96 million


In 2014: $108 million

2013
2012

$150

2011
2010

$90

Millions

$120

$60
$30
$0
2010

2011

2012

2013

2014

Vintage cohorts driving consistent collections with no incremental marketing expense


207

Target Model
% of collections

Target
Model

FY2013

FY2014

Gross Margin

83%

84%

Scale efficiencies

~86%

R&D

27%

30%

Modest HC growth

~18%

S&M

53%

56%

Leverage subscription base

~30%

G&A

6%

7%

Growth with company

~7%

Adj. EBITDA Margin

(2%)

(7%)

~30%+

Note: Non-GAAP figures, Gross Margin includes prepaid domain registration costs
208

Q&A

209

Our vision is to power how


businesses create, manage
and grow online

210

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