Wix.com Stock

Wix.com Ltd. (Wix) operates as a global cloud-based web development platform for millions of registered users and creators worldwide.

As of December 31, 2022, the company empowered approximately 243 million registered users worldwide who began the website building process with the company. The company has developed a software-driven solution to web development and management that provides a complete and powerful cloud-based platform of products and services. The company offers its solutions through a freemium SaaS business model (free and premium services), and as of December 31, 2022, the company had approximately 6.1 million premium subscriptions. The company also promotes its services and solutions through its partners.

The company’s platform consists of two web creation products, with a different purpose or primary audience: Wix Editor, intended for full website creation targeted at users with basic, average or above average technological skills; and Editor X, intended for advanced users, such as design professionals.

The Wix Editor is a drag-and-drop visual development and website editing environment complete with high quality templates, graphics, image galleries and fonts. With the company’s platform, Wix registered users can create and manage a professional quality digital presence tailored to their business and brand’s specific look and feel and that is accessible across all major browsers and the most widely used desktop, tablet and mobile devices. Relaunched in July 2022, the Wix Editor is a combination of the company’s legacy Wix ADI and Wix Editor offerings and better personalizes the web creation process for each user’s intent. Legacy Wix ADI users now have the freedom of customization that the classic editor offers, and also have enhanced AI technology to help guide creation and design elements, along with more flexibility.

Through Editor X, which offers advanced design and layouting capabilities, the company allows users and design professionals, through its wide, fully responsive, flexible canvas, to use modern Cascading Style Sheets (‘CSS’) technologies to control the exact position and styling of elements at every viewpoint.

The company’s platform also includes a full-stack, no-code/low-code development environment called Velo by Wix, through which users can combine the products and solutions the company’s platform offers with advanced developer capabilities to create content-rich websites and web applications. Velo by Wix provides the ability to use databases to manage content, application programming interfaces, or APIs, to connect with external services and the ability to expose the web application as an API, and custom code to create custom interactions. This may significantly reduce the need for developers and designers to juggle updating themes, hosts, content management systems (‘CMSs’), plugins, content delivery networks (‘CDNs’) and other third-party products.

The company also offers a variety of additional products and services to further complement and enhance the company’s users’ business or branding needs, most notably Payments by Wix, a payment platform that helps the company’s users receive payments from their customers through their Wix website. Additional services also include Wix Logo Maker, which allows users to generate and print a customizable, high-resolution logo in minutes using AI, and Paid Ad Campaigns, which allows businesses to run dynamic online ad campaigns on online ad platforms.

The company also offers several vertical-specific applications that business owners can use to operate mission critical aspects of their business online, such as selling goods, taking reservations and scheduling and confirming appointments. These applications provide the company’s users with a custom front-end for users of their website, as well as a robust back-end management dashboard. The company has developed these software applications for businesses in specific verticals, including retail and online stores, services, event planners and management, hotel and property management, fitness, music, photography and restaurants, among other verticals. These vertical applications are integrated into the company’s website templates or can be installed on any existing website and set up with minimal effort by the user and without the need to write code.

In addition, the company provides a range of complementary services to address the needs of its users, including the company’s App Market, which was launched in 2012 and offers the company’s registered users the ability to easily install and uninstall a variety of free and paid web applications that the company developed itself or identified and selected through third-party developers for inclusion in the company’s App Market, based on user needs and demands. These web applications add functionality and are easily integrated into registered users’ websites with one click, without the need for any coding, and include social plug-ins, online marketing and customer relationship management tools, contact forms and transactional and payment processing capabilities. Additional complementary services include, among others, the Wix Marketplace, an online marketplace, which brings users seeking help with creating and managing a website together with talented web experts, the Wix Owner App, a native mobile application enabling users to manage their websites and Wix operating systems on the go and Branded App, which gives users the ability to create a fully branded native mobile application for their business.

The company’s cloud-based platform is accessed through a hosted environment, allowing the company’s registered users to update their site and manage their business or organization at anytime from anywhere with an internet connection. The company provides its users with flexibility and scalability, allowing them to expand their digital presence as their business, organizational, professional or individual needs change and grow.

The company’s scale and reach makes it an attractive partner for companies interested in distributing their own solutions to the company’s audience. As the company expand its platform through partnerships the company is able to increase its value proposition for existing users and more easily attract new users.

The company enables its users to create their online presence in any language and offer the company’s platform in 22 languages — English, French, Spanish, Portuguese, Italian, Russian, German, Japanese, Korean, Polish, Dutch, Turkish, Hindi, Norwegian, Swedish, Danish, Czech, Traditional Chinese, Thai, Ukrainian, Vietnamese, and Indonesian. The company plans to add more languages in the future.

The Wix Platform

Wix is a cloud-based web development platform for millions of registered users and creators worldwide, which was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions (freemium model), Wix empowers millions of businesses, organizations, professionals, and individuals to take their businesses, brands and workflow online. Wix also empowers its partners who utilize its services and products to serve their own customers.

The company’s web development technology is built based on HTML5 and offers HTML5 compatible capabilities, web design and layouting tools, domain hosting, and other marketing and work flow management applications and services. The company’s hosting ensures sites are up and running and requires no installation. The company considers website security as one of its highest priorities and strive to offer multi-layered security processes and practices to keep websites safe and secure.

Free Products and Services

The company’s registered users receive access to hundreds of free design templates for personal and business use, free web hosting through a Wix domain, free access to the company’s App Market, which offers a variety of free and paid applications, and blog and social network page support. The websites developed using the company’s free product contain Wix advertisements in the footer and/or header, and tags, or metadata, which contain the company’s name. The company’s name is also contained in the URL of the user’s website.

The company’s free product and service offerings include the following features and capabilities:

Creation Products

By registering with the company’s service, its users gain free access to two different web creation products: Wix Editor, intended for users with basic, average, or above average technological capabilities, and Editor X, intended for professional level users. These two creation products enable the company’s users to design and manage as many websites as they choose to establish or enhance their digital presence. No installation of software is necessary to use these web editors, as the company’s advanced editing and design platform is accessible through the cloud directly from the company’s website. Both of the company’s web editors allow registered users to optimize their existing Wix sites for viewing on mobile devices. The company’s mobile site technology is also based on HTML5 and allows registered users to customize their sites for different mobile devices, yet share design elements and all site data between the different variants. The company does not charge for gaining access to a mobile presence through the company’s platform.

Velo by Wix

Velo by Wix is a powerful no code / low code development platform that allows users to extend the functionality of their online presence. With Velo, creators, designers and developers can take advantage of a server-less development environment that features an array of advanced functions to create content-rich, custom websites and web applications. This innovative product combines the company’s creation products— Wix Editor and Editor X —with a powerful set of development capabilities. Starting with the company’s creation products, users can design a front end (client-side), then employ Velo developer tools to add advanced functionality and capabilities to the back end. Velo includes features that are built into the platform and do not require code for their implementation. Velo enables easier web application creation, providing the ability to use databases to manage content, APIs to connect with external services and the ability to expose the web application as an API. This significantly reduces the need for website managers to coordinate between updating themes, hosts, CMSs, plugins, CDNs and other third-party products. Velo provides an all-in-one platform, hosted on the Wix cloud, that allows users to spend their time on creation, rather than on complicated setup and maintenance. These capabilities are coupled with the Wix OS backend to manage all operational aspects of a website or application.

In September of 2022, the company announced an integration with Git and Github. The Git integration enables developers to create and manage sites as a team, use any integrated development environment (IDE), integrate with CI/CD workflows and incorporate automated testing and verification tools. The Wix Git integration allows developers to work within a more stable and standard environment and provides more transparency to better mitigate problems.

Additional Complementary Products and Services

In addition to the company’s creation products and development environment, multiple complementary products and services are available for users to create and manage their digital presence using Wix.

The Wix AI Text Creator in the Wix Editor provides the company’s users with technology that streamlines the website-building process and improves the quality of their site content. The AI Text Creator is a customized version of Open AI’s GPT-3 model designed specifically for website creation. Upon a user entering inputs about the desired text, the AI Text Creator creates custom content ranging from a catchy title to detailed text that is precisely formulated for the website.

The Wix App Market is a marketplace that offers the company’s registered users a large variety of free and paid web applications for building, growing, and managing their businesses. The web applications available in the App Market, which are developed by the company, or by third-party developers, meet many of the company’s users’ business needs in marketing, support, bookings, accounting, design, social and media apps, and more.

Wix Marketplace brings together the company’s users, who are seeking help in creating and managing a website, and the company’s users who are talented web designers or agencies and who can help the former to build and operate a website that fits their needs and brings their vision to life. Users can search through hundreds of talented professionals filtered by different criteria such as price, required professional service, and location, and explore their portfolios to find the pro who best meets their needs.

The company’s native mobile applications are available in iOS and Android. The Wix Owner mobile app allows users to fully manage their websites and Wix operating systems on the go and run their businesses, wherever they are, in real time. It is an interface that streamlines the day-to-day mobile management that businesses need to operate e-commerce, marketing, customer service, bookings and communications with customers and site visitors. The company also offers Spaces by Wix, a dedicated mobile app that serves as an interface between the site owner and their customers. Spaces by Wix serves as a mobile native business front for buying products, ordering services, registering to attend events and more. Customers use Spaces by Wix to communicate with the business owner or between themselves as a community. Both apps are available for download for free in the Apple App Store and Google Play.

The company’s users have access to a set of tools to manage their site and business directly from a back-office dashboard that displays helpful information regarding the user’s site and business and data insights through Wix Analytics.

Wix Customer Care

Wix Customer Care provides support and guidance to the company’s users throughout the Wix platform. Users can find answers through the company’s self-service offerings (the company’s help center and chatbot) or engage with its Customer Care experts across multiple channels (calls, chat, or email).

The company has a global department of Customer Care teams that are located across the United States (primarily in Cedar Rapids, Iowa, as well as in San Francisco and Miami) and EMEA (Kyiv, Tel Aviv, and Dublin). As a result of the military invasion of Ukraine by Russian forces that began in February 2022, some of the company’s Ukraine Customer Care team members have relocated to other countries, such as Poland, and some have relocated within Ukraine. In addition, the company partners with two offshore BPO (Business Process Outsourcing) teams in order to provide 24/7 coverage and ongoing support for most of the company’s markets. The company provides customized care in 16 languages.

The company’s experts use the Wix Answers platform to support its users. The company’s advanced Customer Care solution enables its experts to retrieve user details, see all previous interactions with Customer Care, and access useful information that can help resolve the company’s users’ issues and assist them in achieving their online business goals.

The company’s experts are expected to resolve users’ issues and also encouraged to provide next-level service by using their vast knowledge and experience to provide meaningful suggestions that help steer the company’s users to success. This approach is applied to all interactions with the company’s users, both free and premium.

The company also uses data models developed by its team to identify and proactively contact new users so that the company can help them set up and launch their online presence.

Paid Products and Services

Premium Subscriptions

The company’s premium subscriptions are purchased primarily by businesses, organizations and professionals in a variety of fields, such as art, finance, entertainment, music, photography, tourism, beauty, sports, food services, property management or publishing. Premium subscriptions may also be purchased by creators, such as the company’s partners that, in some cases, are engaged by their customers to build web content. The customers of the company’s premium subscriptions are not concentrated in any particular field.

The company offers two tiers of premium subscription plans for the company’s Wix Editor: Website and Business & E-Commerce (which includes the ability to accept online payments). The company also offers Website and Business & E-Commerce plans for Editor X.

The company’s premium subscriptions offer all of the features of the company’s creation products, Velo by Wix, and its other complementary products and services. Beginning in January 2023, the company’s premium subscriptions also include top-requested business tools previously included with the purchase of an Ascend by Wix plan, such as live chat, social posts, promotional videos and invoice management. Premium subscriptions also include the ability to connect a custom domain name, which can be purchased and managed directly through the Wix platform or a third party, the removal of Wix branded ads on the site and some subscription levels provide the option to obtain custom reports generated through Wix Analytics. The company’s VIP premium subscriptions also offer premium technical support services. The company also offers ad vouchers with certain of the company’s premium subscriptions, which allow registered users to expand their digital presence by, for example, advertising their pages on third-party sites, such as Bing and Google.

In addition, users can purchase or use products and services to further manage and grow their online business on Wix:

Payments by Wix

Payments by Wix enables the company’s users to accept payments for goods and services both online and in-person (through point of sale (‘POS’)) from their customers, either from third-party payment processors or from Wix Payments, the company’s proprietary fully integrated payments service. Users can select one or more payment methods available to appear on their checkout page, depending on their geographic location and type of goods and services they offer. Users must purchase a premium subscription to accept both online and in-person payments.

In 2018, the company introduced Wix Payments which allows users to set up and accept payments, in an automated and instant onboarding process made entirely within the Wix platform. Wix Payments also includes a dashboard to view history of online and in-person transactions, from sales to payouts, in a single place, solving a significant challenge with doing business online. Many types of businesses, including e-commerce retailers, service providers, musicians, photographers, hotels, restaurants, and many more are able to take advantage of the efficiency provided by Wix Payments. Wix Payments is active in Brazil, the U.S., Canada, the U.K., and several European countries.

Email Marketing Subscriptions

In January 2023, the company introduced stand-alone packages of email marketing features to help users engage with their audience, convert leads and boost traffic. Email campaigns were previously part of Ascend by Wix subscriptions, which were discontinued in early 2023 as part of the company’s ongoing efforts to provide industry-leading business solutions and services to all users.

Users can purchase email marketing packages on a monthly, yearly, or multi-year subscription basis, and can choose between various price points based on the number of email campaigns per month required. The company also offers a free base package of limited email marketing capabilities.

Paid Ad Campaigns

A marketing tool that allows businesses to run dynamic online ad campaigns that reach customers they want to target on online ad platforms, such as Facebook and Google.

Wix Logo Maker

Wix Logo Maker generates a customizable, high-resolution logo in minutes using artificial intelligence, providing users with a critical piece for building an online brand. Through Wix Logo Maker, users can design a stunning logo, get downloadable professional vector files in a variety of sizes and color formats, custom design and order business cards with their customized business logo, and build a website based on the styles and colors of their customized business logo.

Domains

The company offers its users the ability to choose and connect their own domain name to their website to better enhance their brand, through third parties that offer domain names, or through the company’s offering as an ICANN accredited domain name registrar. Domain names are offered as a stand-alone product, and also are included, on a limited basis, as part of the company’s premium subscription offerings. Registered users without a premium subscription are assigned a domain name which includes the Wix site address.

Mailbox

The company sells Google’s Google Workspace application as an integrated solution, which allows the company’s users to create a personalized Gmail email address using their domain name, to enable them to send professional emails from their business address, create group mailing lists for sales, support, email marketing and more.

Wix POS

As part of the company’s extended commerce offering, in 2021, the company introduced Wix POS, an end-to-end omnichannel solution unifying online and in-person sales directly from the Wix platform. With Wix POS, customers who have an online store and a physical shop are able to manage their business easily while having a single product catalog, one inventory channel and a unified sales history.

Gift Cards

The company began providing its Stores and Bookings users a fully native solution to manage gift cards and customer re-engagement activities. Gift cards can be used by brands and businesses to attract new customers, increase purchase frequency and retain existing customers.

Branded App by Wix

The company offers a native mobile app builder that provides users with the ability to create and customize their own tailor-made application without a single line of code.

Wix Commerce Platform

The company offers a robust and comprehensive commerce platform for all types of business owners. As each business segment faces a unique set of challenges, the company developed a commerce platform on top of which the company offers tailored products and solutions to address specific business needs. This strategy allows the company to build on this solid foundation by adding more layers and enhancements that cater to the specific needs of each industry and provides an easy and affordable way for these businesses to bring mission critical workflow online. Vertical solutions are Wix Stores, Wix Bookings, Wix Restaurants, Wix Events, Wix Fitness, Wix Hotels, Wix Music, Wix Showcase, Wix Video, Wix Blog, and Wix Forum. The company intends to continue introducing additional solutions, once the company is able to identify a need for such solutions, that are tailored to specific businesses.

Wix Stores

Wix Stores is the company’s e-commerce platform that offers merchants professional tools and services to establish, design, manage and grow their e-commerce business. The platform allows merchants to sell their products across various channels, including online stores, native mobile apps, physical point-of sale, external e-commerce marketplaces, and social media platforms. Wix Stores enables merchants to manage their e-commerce operations from end-to-end, covering activities, such as sourcing products, managing inventory, accepting payments, fulfilling and shipping orders, and obtaining detailed analytics and reporting. Additionally, merchants can leverage a wide-spectrum of marketing and e-commerce tools to increase traffic, enhance customer engagement, boost sales, and grow their business. The platform also includes numerous integrated third-party-apps, and is built to be extended by both developers and merchants to further customize the solutions and create unique e-commerce experiences at scale.

Wix Bookings

Wix Bookings is an end-to-end online booking solution, giving businesses an easy and effective way to showcase their services and allow online scheduling of appointments, classes and courses, as well as manage their own schedule by synchronizing with their primary Google Calendar, reducing no-shows by sending auto-reminder emails to customers, selling membership and packages, and customizing products.

Wix Restaurants

Wix Restaurants provides various solutions for restaurateurs, including Wix Restaurants Menus, Wix Restaurants Orders and Wix Restaurants Reservations. Wix Restaurants Menus enables restaurateurs to easily create a menu on their Wix website, using professionally created layouts offered on the company’s site. Wix Restaurants Orders is an online ordering solution for restaurateurs enabling them to receive takeout and delivery orders through their desktop and mobile Wix websites and to consequently grow their business and maintain a direct relationship with their customers. Wix Restaurants Reservations allows restaurant owners to take online table reservations from their restaurant site and confirm and manage reservations via their Wix dashboard. Restaurant owners can also use the Dine by Wix mobile app to allow customers to easily interact with the restaurant and order food directly from a mobile device.

Wix Events

Wix Events is an application which enables users to create and manage their events on both desktop and mobile. Users can create their venue map, send invites, collect RSVPs, sell tickets and manage a guest list. Wix Events provides ready-made reports to track event sales to registrations. It can be used for conferences, meetups, concerts, shows, weddings, parties, and more. Users can use Wix Events to promote their events on social media and use third-party integrations for virtual events. The company charges a commission from its Wix Events users on a portion of online sales of tickets sold through Wix Events.

Wix Fitness

Wix Fitness enables fitness instructors and studio owners to manage each aspect of their businesses from their website and the Fit by Wix App. Fitness professionals can create a website using newly designed templates and customize the Fit by Wix App, manage their calendars and classes, connect with their community, stream and sell videos, take payments and develop reports and analytics to help grow their business. Wix Fitness offers bookings, subscriptions, e-commerce, including coupons, SEO and email marketing, as well as a chat-centric interface that allows for real-time interactions with customers.

Wix Hotels

Wix Hotels, powered by HotelRunner, is a full suite of professional tools for every touchpoint needed to launch, manage, and grow a hospitality business of any size and maximize revenue. Wix Hotels offers a comprehensive booking engine that is fully integrated into a Wix website for hotels, B&Bs and vacation rentals, making it simple to build and maintain the room inventory complete with pricing, booking, reservation and payment management capabilities. Through their dashboards, hotel owners can easily add reservations made elsewhere and manage their entire room inventory in one place and accept and manage bookings that come through many online travel agencies and marketplaces.

Wix Music

Wix Music is a comprehensive solution for musicians and entertainers that includes an advanced music player, an easy-to-use digital asset management system, concert promotion and ticketing, fan management and communication tools and a range of specifically designed music website templates.

Wix Showcase

Wix Showcase is a comprehensive solution for creating and maintaining media online, from both desktop and mobile, consisted of Wix Portfolio, Wix Pro Gallery, and Wix Photo Albums. The company’s Wix Portfolio offering enables users to easily create professional online portfolios. Students and professionals in the arts, entertainment, science and technology, fashion, architecture and building and other industries can display their work online with uniquely designed and customizable layouts for project collections of all sizes.

In addition, users can sync existing portfolio projects created on external platforms. The Wix Pro Gallery provides designer-class tools to manage and showcase media online. From customizable layouts and professional settings to pixel perfect display controls, Wix Photo Albums gives users beautiful stand-alone albums for their client’s photos. Each album can be personalized with branding and shared directly with clients.

Wix Video

Wix Video allows the company’s users to showcase, promote and sell videos on their Wix website. Users can create their own video channels, upload and stream videos in the highest quality, or easily add videos from YouTube, Vimeo and Facebook. Wix Video allows users to live stream and charge access for live events from desktop and mobile. Additional features include selling video downloads, customizable interactive cards placed on top of the videos, automatic sites for vloggers via Wix Editor and direct syndication of videos to YouTube and Facebook.

Wix Blog and Wix Forms

Wix Blog enables users to easily create a blog and grow an online community. Users can choose from several beautiful layouts with built-in social features. Readers can join the blog, create member profiles, follow posts, and comment with images and videos. In addition, users have the option to set up a paywall and charge for access to select content.

Wix Forms enables users to easily create forms to get subscribers, generate leads and collect the information they need. Users can choose from multiple templates, such as contract, subscription and payment forms, or create their own form from scratch, using a variety of form fields. Users can add their forms to their Wix website or create standalone forms to share with a unique link. After receiving submissions, users can view their data in an easy to read table or export it to view offline.

Wix Forum

Wix Forum enables users to create an online community directly on their Wix site. The Wix Forum users can become members, join conversations, follow posts, upload videos, write comments and more. Users can choose from a variety of layouts and customize them to their needs. In addition, users have the option to set up a paywall and charge for access to select content.

Selling and Marketing

The company’s selling and marketing efforts focus primarily on online and offline advertising, and on sales teams and account management teams focused on meeting the needs of its partners that may utilize the company’s products and services to serve their own customers.

The company markets its solutions and applications to businesses, organizations, professionals and individuals, including entrepreneurs and freelancers, as well as through partners. The company is able to attract a high volume of registered users, including those that purchase premium subscriptions, by offering free solutions and services, as well as upgrades and additional features and solutions that are offered under the company’s premium subscriptions.

User Acquisition

The company engages in online and offline advertising, with a focus on acquiring new users to the company’s platform, converting these users into purchasing premium subscriptions, and increasing its revenue from them by selling them the company’s business solutions. A majority of the company’s premium subscriptions are generated from traffic to its website, primarily through search engine optimization or direct traffic, meaning visitor traffic that reached the company’s website, Wix.com, via unpaid search results or by typing the URL of the company’s website in their browser. The company also acquires a small amount of free traffic through its participation on social networking sites and the banner advertisements the company place on its non-paying registered users’ websites. In order to increase the company’s exposure and optimize organic, or free, search engine results, the company constantly tests its search engine optimization strategy to ensure that the company’s website is relevant to those potential customers seeking web development and design products. Furthermore, the company continually evaluates its marketing spending and its effectiveness and invests in those activities that are most likely to maximize the company’s return by generating premium subscriptions, which will drive high revenues.

In addition to the company’s online and offline marketing activities to acquire new users, the company acquires new users by engaging with partners that sell the company’s solutions to, or purchase its solutions on behalf of, their customers. The company accomplishes this outreach with its sales and account management teams, as well as through marketing content, online communities and organized events and conferences.

The company’s branding efforts have accounted for a significant portion of users who come directly to the company’s website, through typing its URL directly into their browsers, or through searching for ‘Wix’ or a term related to the establishment of a digital presence. These users are also attracted due to referrals from other users, and via word-of-mouth regarding the company’s products and services.

In the second half of 2022, the company began tests to adjust its marketing approach to focus on higher-intent users. The company accelerated this testing throughout the fourth quarter of 2022, and in doing so, the company significantly reduced investment in acquisition marketing in that quarter compared to the fourth quarter of 2021, which meaningfully improved return on these investments, while new user cohort bookings remained stable.

The company’s marketing expenditures directed to advertising were $224.3 million in 2022, $284.5 million in 2021 and $282.8 million in 2020. The company’s marketing expenditures are primarily directed toward search engine advertising, advertising on social networks, video advertising and traditional media advertising.

The company also maintains the Wix Affiliate Program, a program where its affiliates receive a commission for directing visitors to the company’s website, by placing Wix ads on their personal websites. From time to time, the company also holds webinars, promotional contests, user meet-ups and public relations events.

The company also maintains an active online presence using social networking sites and web design influencers for the company’s Editor X brand.

Business to Business Sales and Marketing

The company has enhanced its sales efforts to attract partners, including those who sell premium subscriptions and additional business solutions to their customers at scale. The company has established dedicated sales, marketing, and customer success teams to facilitate the use of its services by these customer segments. In addition, the company works to develop back-office functionality required by its partners.

The company further expects to retain premium subscriptions and maximize the company’s revenue from partners by providing improved support to them, as well as account management and additional business solutions.

User Retention

Once the company attract visitors to the company’s website, the company’s preliminary goal is to register them as registered users. Once they are registered, the company distributes marketing and promotional emails and supports tools to help its registered users build their site. These materials are created by the company’s Wix content team, which complements the company’s marketing efforts by focusing on the consistency of the company’s branding message online, in its in-person merchandise and at the company’s community events.

The company constantly seeks to generate premium subscriptions from its registered users and to maximize its revenue from such subscriptions by offering them enhanced functionalities through business solutions. Registered users who purchase premium subscriptions gain access to additional features based on the subscription they choose, which may include Wix ad removal, access to additional features in Wix Analytics, domain connectivity, e-commerce and payment solutions. The company offers a 14-day refund to introduce registered users to these additional products and solutions. The company also sends emails to its yearly and multi-year premium subscribers, reminding them that their subscriptions are about to renew or that they need to renew them before expiration, as well as coupons and other discounts on products and services to maximize the company’s revenue from such premium subscriptions. The company seeks to retain premium subscriptions by offering upgrades for its premium products and free and premium applications in the company’s App Market.

The company further retains premium subscriptions by developing relationships with subscribing users through its Customer Care team, with which the company addresses its registered users’ technological needs and concerns. Through the company’s Customer Care operations, the company also helps free registered users purchase premium subscriptions by providing guidance on integration of premium subscription features into existing websites created with the company’s web editors, and the company further helps its users with premium subscriptions to discover additional business solutions to enhance their subscription and, as a result, their engagement in the company’s platform.

Research and Development

The company’s research and development spending was $482.9 million in 2022.

Intellectual Property

The company has pending patent applications in the United States, as well as in several additional jurisdictions worldwide. The company also has pending Patent Cooperation Treaty, or PCT, applications that may lead to additional patent applications. Certain of the company’s applications have been accepted and patents were granted.

The Wix brand is central to the company’s business strategy, and maintaining, protecting and enhancing the Wix brand is important to expanding the company’s business. The company has obtained trademark registrations in certain jurisdictions for trademarks that the company considers material to the marketing of the company’s products, including the WIX mark and the Wix logo, as well as the EDITOR X mark. The company also has trademark applications pending for additional marks that the company uses to identify certain product collections used for certain of the company’s products.

The company also began registering rights to its typeface font, MADEFOR, available in 10 weights and all the Latin languages in the U.S., EU, the U.K., and Brazil.

Government Legislation and Regulation

Based on internal assessment, Wix is defined as an ‘online platform’ and has published the report as required by the Digital Services Act (DSA).

The company is subject to the GDPR and to the U.K. GDPR, which impose a comprehensive and strict data protection compliance regime in relation to the company’s collection, control, processing, sharing, disclosure and other use of data relating to an identifiable living individual (personal data of the U.K. and EEA residents), including obligations in relation to data breaches, extensive data subject/individual rights, and restrictions on international transfers of personal data, as well as introducing significant fines and other penalties for breach.

The company is also subject to European Union and the U.K. privacy laws on cookies, web beacons and similar tracking technologies, and e-marketing, including obligations to, among other things, obtain consent to store information or access information already stored on an individual’s terminal equipment (e.g., computer or mobile device).

History

Wix.com Ltd. was founded in 2006. The company was incorporated in 2006 under the laws of the state of Israel.