Below is an edited transcript for an interview with a former executive at Wix. The interview touches upon Wix's valuation proposition, customer segmentation, risks & challenges, and more.
ARPU: How would you describe the company's products?
Former Executive: Yeah, so, I would split it into two. First, Wix is a do-it-yourself website builder. Actually, reinventing this vertical, if you like. And I would like to emphasize it's a multi-vertical do-it-yourself website builder, which is the differentiation from a single vertical platform, such as Shopify, which is dedicated for eCommerce, or others, which are dedicated for specific verticals for graphics or for other verticals. So it's a multi-vertical website builder.
The other way to look at it, is that Wix is a base for all your online presence. That means, beyond the website builder, which everybody is focusing on, Wix is the base for the development of all your online presence, including all your frontend and backend needs. It is not only the website, but it's actually where you manage all your online presence from issuing invoices and logistics, and all the back office things. Some of them might be online, some of them might even be offline, like the logistics and drop shipping and things like that. Wix can take care of your backend, as well as many solutions in the frontend, like orders, making reservations and marketing tools. So it's way beyond just a website.
Actually there is a third way to look at it. Some are looking at it as a sophisticated hosting company,
Sophisticated hosting company?
Eventually it's a hosting company as well, but I think the right way to look at it is a base for all your online presence, I would say.
Does that mean hosting is actually a very good source of revenue for Wix?
No it is not.
As in people do not use the storage as you guys are kind of estimating?
Actually yes. The answer is yes, but it's not a business focus. It's not one of the targets or business focus of the company, but it's just the way it is. I mean, it's something that's dragged into there, because eventually, you are hosting a website, you're hosting all the content, you're hosting video, you're hosting whatever. It's not a company target or goal or upfront focus, but it's part of it.
Got it. Does Wix use any third party hosting, like AWS or Azure, or do you guys have your own?