Wix Com 4Q13 and FY13 Earnings Slide Deck

8/11/2019 Wix Com 4Q13 and FY13 Earnings Slide Deck

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Fourth Quarter &

Full Year 2013 Financial Results

February 12, 2014


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Safe HarborForward-Looking Statements

This presentation contains forward-look ing statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that involverisks and uncertainties. Such forward-looking statements may include projections regarding our future performance and may be ide ntified 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 incircumstances 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 thoseindicated in the forward-looking statements include, among others, our ability to grow our user base and premium subscriptions; our ability to maintain and enhance ourbrand 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 localeconomic, business, competitive, market, regulatory and other factors discussed under the heading Risk Factors in the prosp ectus filed with the Securities and ExchangeCommission on November 7, 2013 in connection with our initial public offering. Any forward-looking statement made by us in this presentation speaks only as of the datehereof. 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 noobligation to publicly update any forward-looking 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 financialmeasures: 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 particularperiod to revenues for the same period. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effectof share-based compensation expense. Free cash flow represents cash flow from operating activities minus capital expenditures. Non-GAAP net loss represents net losscalculated in accordance with GAAP as adjusted for the impact of share-based compensation expense and other non-GAAP adjustments. Non-GAAP net loss per sharerepresents 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 andpresented in accordance with GAAP. The company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluateperiod-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of past financialperformance 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 reconciliationsbetween these financial measures. The company has not reconciled adjusted EBITDA guidance to net income because it does not provide guidance for net income. Asitems 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, areconciliation 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, thecompany 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 uncertaintiesand 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 ofthe products or services of the company.


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Key Metrics: Q4 2013

$30.6 Million

Revenue RegisteredUsers

PremiumSubscribers

Collections

42.1 Million 790,000$24.9 Million


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The Wix WayDrag and Drop

Seamless Integration

Professional Design

Low Cost

Fast

Multiplatform

No Developers Needed!

Cost:

Estimated$100 - $140 (Annually)


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Pioneering HTML5 MobileOctober 2013 Release: New Wix Mobile Solution

Unique Mobile Solution for Smartphones

1,600,000+ Mobile Sites Built

Fully Based on HTML5

Automatically Converts Desktop Site to anOptimized Mobile Experience

Note: Data current as of December 31, 2013


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Wix App Market

8,000,000 App Installationssince Launch

90,000App Purchasessince Launch

174Apps Available Today

52New Apps in the Pipeline Today

Note: Data as of December 31, 2013 unless otherwise noted; App Market launched in October 2012


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Global Presence

Proprietary Billing Solutions

Local Marketing

Wix Editor LanguagePublishing & Support

Local Ecommerce Capabilities

Fully Supported Languages

Editor

Customer Support

Countries

Languages In Testing Format

190

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5


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Consistent BehaviorActive Premium Subscriptions from Q1 User Cohorts

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Number of Quarters Passed

20,063

18,512

31,64929,613

41,55333,753

92,872

62,086

Q110

919,221

Q1111,833,897

Q1122,651,656

Q113

3,714,472

Registered Users


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Users and Subscriptions

42

39

36

32

28

25

22

20

17

14

118

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

Registered Users(Millions, at End of Period)

790

707

627

549

470

414378

338298

266223

192

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

2011

2012

2013

2011 2012 2013

Premium Subscriptions(Thousands, at End of Period)

49

Y/Y68

Y/Y


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Collections and Revenues

Collections($ Millions)

Revenues($ Millions)

$14

$30

$53

$99

$17

$31

2010 2011 2012 2013 Q4 '12 Q4 '13

$10

$25

$44

$80

$13

$25

2010 2011 2012 2013 Q4 '12 Q4 '13

116%

77%

150%

78%

88%

84%

82% 88%


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Increasing

Geographic Penetration

60% 54%

21%24%

10% 11%

9% 11%

2012 2013

North America Europe Latin America Asia and others

Revenue by Geography(% of total revenue)

66% Y/Y

114% Y/Y

109% Y/Y

108% Y/Y

Growth Rate


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Non-GAAP Financial

Summary(in thousands) 2011 2012 2013 Q4 12 Q4 13

Revenues $24,600 $43,676 $80,473 $13,297 $24,943

Gross Profit $19,350 $34,548 $65,706 $10,521 $20,501

Gross Margin 79% 79% 82% 79% 82%

Net Loss ($17,923) ($13,718) ($20,953) ($2,950) ($6,958)

Adjusted EBITDA ($17,035) ($13,070) ($18,244) ($3,182) ($5,765)

Free Cash Flow ($12,353) ($4,555) $1,173 $477 $1,009


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APPENDIX


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Reconciliation

of GAAP to Non-GAAP(in thousands) 2011 2012 2013 Q4 12 Q4 13

Revenues $24,600 $43,676 $80,473 $13,297 $24,943

Change inDeferred Revenues 5,048 8,803 18,200 3,514 5,649

Collections $29,648 $52,479 $98,673 $16,811 $30,592

(in thousands) 2011 2012 2013 Q4 12 Q4 13

Net Cash (used)/from

Operating Activities $(10,599) $(3,608) $4,243 $732 $2,434

Capital Expenditures (1,754) (947) (3,070) (255) (1,425)

Free Cash Flow $(12,353) $(4,555) $1,173 $477 $1,009


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Reconciliation


GAAP Net Loss ($22,740) ($14,972) ($28,720) ($3,445) ($10,918)

Adjustments:Financial expenses(income), net

41 (487) 603 (511) 502

Other expenses(income)

127 2 18 - (2)

Taxes on income 212 496 1,572 243 580

Depreciation 592 871 1,229 270 374Stock-basedcompensation

4,733 1,020 7,054 261 3,699

Total adjustments $5,705 $1,902 $10,476 $263 $5,153

Adjusted EBITDA ($17,035) ($13,070) ($18,244) ($3,182) ($5,765)


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Reconciliation


GAAP Gross Profit $19,310 $34,443 $65,216 $10,493 $20,297

Stock-based Compensation 40 105 490 28 204

Non-GAAP Gross Profit $19,350 $34,548 $65,706 $10,521 $20,501

GAAP Net Loss ($22,740) ($14,972) ($28,720) ($3,445) ($10,918)

Stock-based Compensation andother Non GAAP Adjustments

4,817 1,254 7,767 495 3,960

Non-GAAP Net Loss ($17,923) ($13,718) ($20,953) ($2,950) ($6,958)

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Wix Com 4Q13 and FY13 Earnings Slide Deck