51 wix noah sf 2012
DESCRIPTION
Presentation given at NOAH Conference San Francisco on June 26 2012 www.noah-conference.comTRANSCRIPT
COMPANY PRESENTATION
June 2012
About
Wix vision
Need Primary solution
Create a document
Create a presentation
Create a blog
Create a web presence
3
New HTML editor
4
Wix.com – The Numbers
21 million registered users
16 million websites and widgets on Wix
~ 1,000,000 new free users per month
400,000 Facebook fan-pages
750,000 mobile sites create (biggest mobile site creation platform in the world)
45,000 new mobile sites per month
5
Interesting facts about Wix
We have no sales team
55% of our premium customers come from free traffic sources
User acquisition cost is profitable on the 4th month
Life time user value = 7 to 10 x marketing cost
50% of our new business comes from HTML 5
89% of premium customers will recommend Wix to their friends
6
The Wix timeline
2006
Flash NY, SF
subsidiary subsidiary
2007 2008 2009 2010 2011 2012
1
MILLION
USERS
10
MILLION
USERS
20
MILLION
USERS
7
WHY EXISTS?
The Internet has become
a platform for online expression
User friendly
Contributing content Hosting content
Fast Easy / frictionless Requires skill Slow Laborious
Social Blogs Reviews
250mm photos
uploaded to
Facebook daily
58mm tumblr
blogs and 24bn
posts, doubling
since last fall
41mm+ monthly visitors
and 15mm
reviews on Yelp
Source: Company documents
9
There are identifiable groups that are
underserved by traditional solutions
10
Contributors Bloggers Large
companies
Blue chip
companies
Need:
Free
Exposure
Need:
Exposure
Networking
Need:
Exposure
Cost effective
High quality
Flexibility
Easy-to-use
Need:
Exposure
Cost effective
High quality
Functionality
E-commerce
Need:
High quality
Functionality
Need:
High quality
Functionality
In-house
solutions
Too basic Too costly Need for a solution
X
Resolve
Micro-businesses,
individuals, groups
and organizations
Small and medium
sized businesses
(“SMBs”)
FRAMING SUCCESS
Business Model – Pricing
12
Cumulative Free Users
13
Jan
-09
Feb
-09
Mar
-09
Ap
r-0
9
May
-09
Jun
-09
Jul-
09
Au
g-0
9
Sep
-09
Oct
-09
No
v-0
9
De
c-0
9
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
1/09 5/09 9/09 1/10 5/10 9/10 1/11 5/11 9/11 1/12 5/12
Wix is scaling rapidly
Active premium (Cumulative)
Cash collections (Monthly)
1/09 5/09 9/09 1/10 5/10 9/10 1/11 5/11 9/11 1/12 5/12
14
CAGR: 500% CAGR: 300%
Wix.com global spread
15
Cohorts - Trajectory
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
To
tal C
olle
cti
on
Pro
jec
ted
# Months After Cohort
2010
2011
2012
Cohort – accumulated user lifetime value1
1 Average user lifetime value over each year
16
THE SOLUTION
Why do our users love us?
Wix empowers them to be successful entrepreneurs online They testify that their Wix site contributes to their business success
Stunning graphic results It looks like a top designer made it
They fully control their site design They get the site THEY wanted the way THEY wanted it
It is a product for “smart” people, easy to start but hard to master Wix balances full customization (as opposed to a limited solution that
only allows them to “fill a template”) with a simple wizard mode for those who want to design quickly
18
Mobile
19
4 5 6 7 8 9 10 11 12 1 2 3 4 5
2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012
Accumulate 15,172 31,008 42,289 89,728 172,92 230,95 289,99 346,95 393,75 447,93 500,21 564,86 622,14 677,16
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Sample mobile sites
Photographer http://m.wix.com/rtambalque/greenbean?showInIphone=true Photography http://m.wix.com/iapteam/independentautophotog?showInIphone=true Kids clothing and accesorries: http://m.theprincessesthree.com/ Art http://m.wix.com/tomtoncet/nadgedme?showInIphone=true Services - media http://m.wix.com/amanda_rivera/amandarivera?showInIphone=true Religion http://m.wix.com/crossviewchurch/crossviewchurch?showInIphone=true
20
COMPETITIVE LANDSCAPE
The landscape appears complex
Site builders
Registration /
web hosting
Diversified
Internet
incumbents
Design firms
22
Wix combines scale with monetization
23
Note: Estimated revenue from DIY website building only
# of sites built
Left the space
iWeb
GoLive
Page Creator
CY11
revenue
Wix what next ???
24
# of sites built
CY11
revenue
HTML6
Explorer11
More Functuality
F-commerce
M-commerce
More Revenue
More Users Global expansion
Unique Industry Know-How Core Investment Banking Competence
Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs!
100% focused on Internet companies, covering over 25 sub-verticals in this highly complex industry - 15+ years active coverage of leading European
Internet companies and investors Deep understanding of industry dynamics and
thinking of industry leaders Ability to add value beyond banking advice
- Facilitates overall process and minimizes management distraction
The NOAH team has 25+ years of media investment banking experience - Routine execution of M&A and financing
transactions with sizes of several billion euros The team has been working together closely for 7
years (including 6 years at Lehman Brothers) 8 successfully completed NOAH Advisors
transactions underline successful transfer of competencies to the Internet sector
NOAH Advisors is globally very well connected and has direct access to virtually all key players in the industry - Knowledge of and strong relationships with
potential buyers’ key decision makers - Coverage of over 500 companies and 4,000
individuals - Proactively finds and unlocks attractive
investment opportunities for leading investors (e.g. Bigpoint)
Annual NOAH Conference
The NOAH team are entrepreneurs and focused on growing the business and establishing a reputation for excellence
Full commitment to deliver top quality results in short time frames
Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results
NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique
Marco Rodzynek
Managing Director and Founder
Yoram Wijngaarde
Director
Jan Brandes
Director
Contact Details [email protected] UK Mobile: +44 77 85 330 330 Swiss Mobile: + 41 79958 1512
Contact Details [email protected] UK Mobile: +44 79 17 084 784
Contact Details [email protected] German Mobile: +49 174 2010 984
The NOAH Advisors Core Team
Selected Completed NOAH Transactions
July 2011
April 2011 April 2011
December 2009 April 2009
Advisor to EnGrande
Sale of a majority stake in
to
have acquired a majority stake in
for $350m from
Exclusive Advisor to Summit Partners and TA Associates
Advisor to Yatego
Sale of a majority stake in
to
Advisor to Softonic
Partial sale of
to
Valuing Softonic at €175m
Advisor to Fotolia
$80m partial sale of
to
May 2012
150 million growth equity investment from
for a 50% stake alongside Fotolia’s Founders and
Additional $150 million senior debt financing Total $300 million investment
Financial Advisor to Fotolia and its Shareholders
November 2011
Sale of a majority stake in
to Quants Financial Services AG
Exclusive Financial Advisor to grupfoni and its Shareholders
April 2012
Sale of a 100%-stake in
to
Financial Advisor to Toprural and its Shareholders
The conference will again take place at Old Billingsgate in London Registration will open in early 2012 For updates, please check: www.noah-conference.com
Introduction to the NOAH Conference Overview of the NOAH Conference 2011
NOAH ‘12 on 6-7 November – Save the Date
The NOAH Conference is an annual Internet event taking place once a year in London, focused on top management from Internet start-ups to global media companies as well as senior investment professionals
NOAH’s goal is to create a marketplace for the European Internet eco-system to discuss key trends, generate business and facilitate investment transactions
Over the past 3 years numerous high-profile speakers presented at NOAH, including over 100 CEOs
The NOAH Conference was founded in 2009 by Marco Rodzynek and is organised by the NOAH Advisors team with sponsorship from some of the world’s leading financial investors
NOAH ‘11 took place on 9-10 November 2011 at Old Billingsgate in London
Fantastic line-up of 90 speakers from 20 countries in keynotes, presentations and panels over 2 full days
1,150 attendees from 35 countries – 57% from Internet companies, 26% from investors, 15% from corporates (media companies, advisors, PR and recruiting) and 2% press representatives from leading on- and offline publications
NOAH party with additional guests from London and a great live band on the evening of the first day
Extremely positive feedback from numerous attendees, on twitter and in the press
Event Sponsors
Conference Program
Selected Conference Impressions
Summary Overview
Strategic Sponsors