#1ANALYST& INVESTOR DAY 2018 Wix.com#2Safe Harbor 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, non-GAAP gross margin, non-GAAP operating income (loss), free cash flow, non-GAAP net income (loss) and non-GAAP net income (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. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, tax benefit related to exercise of options and acquisition-related costs. Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. 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 these measures 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 Financial Measures" table in this press release. 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 its guidance as to free cash flow to cash flow from operations because it does not provide guidance for cash flow from operations. As items that impact cash flow from operations 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 cash flow from operations is not available without unreasonable effort. ANALYST& INVESTOR DAY 2018 Forward-Looking Statements This press release 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, including, but not limited to revenue, collections and free cash flow, the availability, merchantability or functionality of certain new products or features and their anticipated product demand and customer satisfaction, and may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "outlook," "future," "will," "seek" and similar terms or phrases. The forward-looking statements contained in this press release, including the full year guidance, are based on management's 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; our prediction of the future collections generated by our user cohorts; our ability to effectively execute our initiatives to scale and improve our user support function; customer acceptance of new products and other challenges inherent in new product development, 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 the Company's 2017 annual report on Form 20-F filed with the Securities and Exchange Commission on March 29, 2018. Any forward-looking statement made by us in this press release 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 forward-looking statements, whether as a result of new information, future developments or otherwise. Wix.com 2#3Mark Tluszcz Chairman Avishai Abrahami Co-Founder and CEO ANALYST& INVESTOR DAY 2018 WIX.com 3#4Our Vision Where any business, community or person can create their dreams online 4#5Many Others Have Not Had Success Apple - iWeb Microsoft FrontPage Microsoft SharePoint Intuit - Homestead Adobe Muse Microsoft - Expression Adobe Project Rome Adobe Catalyst LO 5#6WIX Features Explore Subscriptions W54 OF 73 WMAIN Templates Support Create the Website You Want Get Started > GAO CUSCU LAV 6 CO Sign In#7T Summer Wear Explore our summer outerwear Change Image ||| Explore our summer outerwear collection S-18 Rain Slicker Water resistant 7#8BOOK A ROOM SUN MON 6 7 13 14 May 2018 27 TUE 1 8 15 WED 28 29 9 20 21 22 23 2 3 4 16 THU 30 FRI 10 11 17 31 24 25 SAT 5 12 18. 19 Buy Album $9.99 Running. T KAHN South of the Bronx T KAHN / South of the Bronx ||**- 1 South of the Bronx/T KAHN 2 Roots/T KAHN 3 Court Yard / T KAHN 4 The Ladies/T KAHN VINYASA YOGA 1 hr $10 Book It Share Album 00:04/02:51) F 02:51 Thank you and enjoy 03:16 03:19 02:43 ASHTANGA YOGA HATHA YOGA 1 hr $10 Book It 018 Buy Now Ceramic Planters EXPLORE Potted Cactus $13.00 The loty element in an indubial char the blend of wood and metal insped by day spent at the beach house you bring that extra something special to your home Color 0.0 Quantity ADD TO CART 8#9WIXOS Wix Customer Experience CRM WIXAnswers Website building WIXADI WIX WIX Editor Mobile & Desktop WIXShoutOut E-mail Marketing Marketing & Branding Tools WIXCode WIXSocial Posts WIXSEO Wizard WiXGet Subscribers WIXCode Verticals / ERP WIX Stores WIX Hotels WIXMusic WIX Blog WIX Bookings WIXRestaurants WIXPhotography WIXEvents WixCashier Wix Mobile App 9#10130M Registered Users 2M New registered users every month 10#11"If you build it, they will come" This is the dream behind every startup: you build something, and the magic happens People are coming, and they use and love your product 11#12+ 2 million new users per month WIXADI Novice WIX Editor WIXCode Expert 12#13Huge Market: 24 million software developers globally Sources: Evans Data, US Bureaus of Labor Statistics Fast Growth: +24% growth in software developer jobs 2016-2026 13#14Wix Code Expands Addressable Market by 10X ~330M Existing active domains Sources: Verisign, Whols database, internal data $300B+ 3.5 million Wix premium sites →DIY website builders Every time we improve capabilities at Wix, the DIY website builder opportunity expands Wix Code expands the entire opportunity 14#15Wix Answers - The Power of the Wix Platform Your Customer Support. Powered by Answers. Wix Answers is the help desk software built and used by Wix to support over 120 million users. Now you can use it too. It's easy to set up and free to use! 15#16Wix Answers - The Power of the Wix Platform ■ ■ ■ Multi-billion dollar industry Built internally Minimal incremental investment Minimal incremental marketing Low barriers for user to implement Widget Style & Branding Animation Help Center Ask a question Help Center Topics Creating a new account Billing and payments Changing your booking Frequently asked questions > > > > 16#17Vertical ERPS E-commerce Hospitality Restaurants Music Photography Marketing E-mail SEO Logos Manage & Grow Your Business Multi-$100 Billion+ Mobile Website Building $300 Billion+ Customer Management CRM Support Communication E-mail Productivity 17#18The Wix R&D Framework The Wix Platform: Short term Conversion The Wix Platform: Mid term relevance The Wix Platform New Frontiers Market Expansion 18#19Google Search Console & Wix SEO Wiz Integration WIX <My Sites Main Menu PROMOTE Get Found on Google Emal Marketing Automated Emails Marketing Integrations Edit Ste Welcome to Your SEO Plan O O O STEP 1 Get Your Site Listed on Google Complete this checklist to connect your site to Google. Homepage's SEO ste is ready Homepage's SEO description is good to go Homepage content is optimized Homepage is set to be visible in search results Site is mobile friendly G Connect to Google Getting Started with Your Plan Find out more about how to use Wix SEO We and get found online Tracking Your Achievements Each time you reach an SEO goal you'll see It updated here ■ Connect to Google One click to submit your website to Google through Wix ▪ Instant Indexing It takes less than 30 seconds to index your site 19#20A Revolutionary Way to Showcase Your Videos Riders Surf School Add Wix Video Surf Watch Video Riders School Home About Lessons Contact 20#21✓ ART DEVIANT 21#221 BILLION USERS 22#23THE NEXT BIG THING 23#24WixCode Creation Without Limits David "Dedi" Schwartz, VP Product ANALYST& INVESTOR DAY 2018 Wix.com#25Our Vision Where any business, community or person can create their dreams online 25#26New Editor WIXShoutOut Launch WIX Stores of n 2015 i Smart Actions WIXEd Product Development Get Subscribers WIXBookings WIXMusic App Market WIXRestaurants 2.0 2016 1 $ Invoices WIX Photography WIXADI WIX Home WixApp WIX Blog 2017 WIX Engage WIXForum WIXEvents WIX + Square WIX Code WIX Video SEO Wiz WIXAnswers 2018 WIX Aren a WIX ArtStore WIX LogoMaker 26#27Types of Wix Code Users WIX Wix Users WIX EXPERT Wix Experts and Agencies OO </> Pro Developers 27#28Wix Users WIX Don't need to know how to code Can easily setup a database Can add info entered by their visitors Create dynamic pages based on the data 28#29BAKING WITH J.ALISSA MY RECIPES O 29#30BAKING WITH J.ALISSA Ingredients 15 dried dates (pitted) 3/4 cups sliced or slivered almonds 1/2 cup pecans 1/4 cup cocoa powder 1 teaspoon vanilla extract 1 tablespoon agave nectar (or honey) 1/4 teaspoon sea salt 1 cup hot water Optional Truffle Coating: Coconut flakes, sprinkles, cocoa powder or crushed nuts CHOCOLATE TRUFFLES Recipe originally published by Foodista.com Preparation Soak dates in hot water while you prepare the rest of the ingredients (about 5 minutes). The water should be hot to the touch, but not scalding. Process the almonds in a food processor until a coarse almond meal is formed. Add pecans and process until they are ground up into a coarse meal as well. Drain the dates. My Personal Take on This Recipe O Chocolate lover? Who isn't. You may think truffles are difficult, but you'll be pleasantly surprised at how easy it is to do yourself. Try this recipe and you'll be winning at the dessert game. I PROMISE! 30#31Be Creative Michal Bignitz 2018 BE CREATIVE BE CREATIVE by Michal Bignitz 0 Status Book Details In use Owner [email protected] Sorry, this book is currently in use Want to Borrow? Date Shared Condition Lent To 1/1/2017 [email protected] Good Date Borrowed 28/02/2017 Category Business ue Back 29/06/2018 31#32#3006 BURNABY 2 Bedroom 2 Bathroom Interior SqFt 731 2 Bedroom facing North with 1 parking and 1 locker in prime Brentwood area. VIEW ASSIGNMENT → 1 Bedroom 1 Bathroom #2210 NEW WESTMINSTER in G+ area. VANCOUVER FIRST REALTY 616 Interior SqFt 1 Bedroom facing Northwest with 1 parking and 1 storage in prime New Westminster VIEW ASSIGNMENT → NEWS + INSIGHTS MARKET STATS MLS® SEARCH NEW DEVELOPMENTS PRESALES 2 Bedroom NEW ASSIGNMENTS #707 COQUITLAM ASSIGNMENTS PROUDLY SERVING VANCOUVER FOR OVER 20 YEARS INTERIOR DESIGN 2 1035 Bathroom Interior SqFt 2 Bedroom facing Northwest with 1 parking and 1 storage locker in Coquitlam West area. VIEW ASSIGNMENT → BUYERS CONTACT SELLERS LOGIN/REGISTER 2 Bedroom OUR AGENTS #607 COQUITLAM Bathroom 1035 Interior SqFt 2 Bedroom facing Northwest with 1 parking and 1 storage locker in Coquitlam West area. VIEW ASSIGNMENT → #129 RICHMOND 1 Bedroom 1 652 Bathroom Interior SqFt 1 Bedroom facing East with 1 parking in Richmond's West Cambie area. VIEW ASSIGNMENT → 32#33Wix Users WIX Are becoming more advanced and sophisticated Before Wix Code When they needed a database, there was no solution at Wix With Wix Code They come, they have a solution and they convert 33#34Wix Experts and Agencies Wix EXPERT Build professional websites for others. Need to build exactly to customers' requirements. Before Wix Code: they built on Wix, but if there was no solution for these specific requirements, they went to other platforms. 34#35With Wix Code you can use APIs to add any feature or app, allowing experts to build professional, high GMV stores on Wix. 35#36You Design it, We Make it. This season, create the only shoe your suitcase needs. Choose colors and materials you can dress up or down for a go-to look fit for every summer getaway. ⠀⠀⠀ 0 Delivered in 3-5 weeks BASE CAGE MIDSOLE TOECAP LINING LACES SIZE 1 ADD TO CART-200.00$ 36#37Wix Experts and Agencies Wix EXPERT Use APIs to modify any Wix element Develop on top of existing Wix Verticals like hotels, music, photography, restaurants, bookings Integrate into existing Wix features like chat, invoices and email marketing 37#38Pro Developers O دا> Before Wix Code Came to Wix to build only web sites With Wix Code Come to Wix to build any web application they want 38#39Pro Developers O دا> Wix Code removes the hassles of: Security Maintenance SEO Server & dev environment GDPR Building simple components 39#40Wix offers many vertical applications but there is a demand for many more vertical solutions With Wix Code developers can build an entire vertical solution and even offer it to others. 40#41Driving Growth, Building the Brand. Omer Shai, CMO ANALYST& INVESTOR DAY 2018 Wix.com#42How we increase our marketing investment while maintaining efficiency. 42#43What is TROI? Time to Return On (Marketing) Investment 43#44Our goal is to keep TROI of 7-9 months, while constantly increasing marketing investment. 44#45To calculate effective acquisition cost, we constantly measure ourselves with this formula: Collections $ per subscription Acquisition Cost per subscription 45#46Effective Acquisition Cost for Q1'18 Collections $ per subscription Acquisition Cost per subscription = 0.57x 46#47TROI Remained Stable Over the Last 3 Years 0.56x 0.54x 0.51x 0.54x 0.55x 0.60x 0.55x 0.67x 0.58x 0.52x 0.52x 0.54x 0.57x Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 1st Quarter ROI 47#48Marketing Investment Has More Than Doubled $19 Q1'15 $25 Q1'16 $32 Q1'17 $44 Q1'18 Note: Excludes $6 million in Q1'15, ~$7 million in Q1'16, ~$9 million in Q1'17 and ~$4 million in Q1'18 of brand marketing expenses Marketing Investment ($ millions) 2.3x $19 Q1'15 $44 Q1'18 48#49The Result: Collections Have More Than Doubled $11 Q1'15 $14 Q1'16 $20 Q1'17 $25 Q1'18 Cohort Net Collections ($ millions) 2.3x $11 Q1'15 $25 Q1'18 49#50Is acquisition cost per premium subscription going up? No. 50#51How We're Doing It ■ Expanding our product offering and improving our ARPU Constant funnel optimization Improving customer support Ongoing optimization of marketing efforts Building the brand 51#52New Editor WIXShoutOut Launch WIX Stores of n 2015 i Smart Actions WIXEd Product Development Get Subscribers WIXBookings WIXMusic App Market WIXRestaurants 2.0 2016 1 $ Invoices WIX Photography WIXADI WIX Home WixApp WIX Blog 2017 WIX Engage WIXForum WIXEvents WIX + Square WIX Code WIX Video SEO Wiz WIXAnswers 2018 WIX Aren a WIX ArtStore WIX LogoMaker 52#53New Editor WIXShoutOut Launch WIXStores n 2015 Smart Actions WIXEd Product Development Get Subscribers WIXBookings WIXMusic App Market WIXRestaurants 2.0 2016 Invoices WIX Photography WIXADI WIX Home WixApp WIXBlog 2017 WIX Engage WIXForum WIXEvents WIX + Square WIXCode WIX Video SEO Wiz WIX Answers 2018 WIX Aren a WIX ArtStore WIX LogoMaker 53#54Types of Wix Code Users WIX Wix Users I Proficient with Wix features Can easily use the non- coding elements of Wix Code WIX EXPERT Wix Experts and Agencies Use Wix for some projects but do projects on other platforms as well Due to Wix Code, we expect more projects on Wix ■ OO </> Pro Developers ■ Have never used or considered Wix Looking to save time and resources to increase throughput 54#55Types of Wix Code Users [ 1 WIX Wix Users Proficient with Wix features Can easily use the non- coding elements of Wix Code WIX EXPERT Wix Experts and Agencies Use Wix for some projects but do projects on other platforms as well Due to Wix Code, we expect more projects on Wix ■ Pro Developers ■ <\> ■ Have never used or considered Wix Looking to save time and resources to increase throughput 55#56First Ever Wix Expert Convention - Miami, May 2018 161 7 ven PON 114 wx4 56#57Case study Nayeli Gomez Wix user since 2010 57#58YouTube totally codable HOME Uploads TOTA{}Y CODABLE CODE QUEEN NAYELI www.totallycodable.com Code Queen 1,346 subscribers VIDEOS PLAY ALL totally codable 9:59 Wix Design Expert - From Wix to Wix Code Database - Wh... 548 views 9 months ago Search 14:57 PLAYLISTS CHANNELS 11:50 How to animate slideshows on Wix Code 167 views • 3 weeks ago ABOUT Bode Thank you Nayel Send Emails with Wix Code and Wix Shoutouts 597 views 1 month ago totally codable 8:10 15:50 Code Class Nayeli How to combine values in Wix Code - Checkboxes... 308 views 1 month ago totally codable 12:04 0:13 Code Queen 16:44 How to create a double collapsing effect with Wix... 882 views. 2 months ago 21:44 + Totally Codable SUBSCRIBE 1.3K totally codable ake a Wish List How to use Repeaters on Wix Code 1.2K views 3 months ago ode SORT BY Code Queen Tutorial YouTube Channel 8:48 38:00 9+ WIX XXX 58#59In 2018, we're building an ecosystem for web designers and developers with the tools and resources to successfully grow and manage their business. 59#60Funnel Optimization 60#61We test everything. We did 11,000 tests across the company in 2017. 61#62WIX What kind of website do you want to create? Business > Online Store > Photography > Before Music > Designer > Restaurants & Food > Accommodation > Events > Blog > Beauty & Wellness > Portfolio & CV > Other > mayawe v 62#63Wix LET'S GET STARTED We want your Wix experience to be perfect for your needs. Answer a few questions to help us get to know you better. Let's Do It Skip 63#64WIX LET'S GET STARTED We want your Wix experience to be perfect for your needs. Answer a few questions to help us get to know you better. Let's Do It Skip 64#65Improving Customer Support 65#66Wix Answers Increased headcount 3x since 2016 Call back service within 2 minutes Opening Europe customer support in Q4'18 All with minimal effect on gross margin 66#67Optimization of Marketing Efforts 67#68Our Team ▪ 220 employees ■ 17 languages ■18 different countries of origin ALL marketing activities are done in house 68#69In 2017, We Moved Away from TV to ONLINE 72% Online 28% TV & Radio 2016 Total Investment: $84M 6% 94% Online 2017 Total Investment : $118M TV & Radio 69#70Intent-Driven Global Branding Number of Campaigns Over 30 2016 Over 60 2017 70#71'17-'18 Campaigns Karlie Kloss Campaign - US Man City Winner Experience 2017 05 06 Wix Experts Campaign Wix Code Soft Launch WixCode 48h Hackathon Shoot SEO Tips Campaign WixCode Launch Event - NY Wix Photography Shoot Your Dream Yankees Campaign - US Į 07 08 Home Again Movie Release - US Rhett & Link Campaign - US Wix Bookings Campaign Launch James Veitch Campaign - US Influencer Mktg Designers 09 10 Dribbble Campaign Didi Gregorious Website Design Funny or Die Campaign - US Influencer Mktg Designers Į Man City Campaign - UK Flamengo Campaign - BR 11 Wix Bookings Campaign - Winner Experience 12 1 iJustine Campaign - US ES, PT, FR Production - IL Design Hub Stills Production - IL Wix Code Production - IL 2018 Diego Ribas Website Launch TR, DE, JP Production - IL Wix Users - IL Pep Guardiola Shoot - UK WixCode Shoot w James Veitch - IL Į 1 Wix Music x LiveNation Campaign Jay Pharoah Shoot - LA Rhett & Link Shoot - LA JP Users Summit Mobile ADI Launch Campaign Į 3 2 i Pep Guardiola Website Launch DR Shoot with Designers - NYC Brand Campaign Designers - LA SB campaign Diego Ribas Commercial Launch 4 Dribbble Campaign PT, FR, TR Shoot - IL Wix User Shoot - IL Direct Response Shoot - IL Man City Shoot - UK Wix Experts Summit - US Mobile Logo Acquisition Į 5 Wix Answers Launch Event - IL River Plate Partnership Shoot - AR Man City Takeover - Launch Wix Logo Maker Launch Campaign#72Wix.com DODGOO Page Home DIDI GREGORIUS Creative WIX M HOME ABOUT Save Preview GALLERY CONTACT DIDI GREGORIUS FAN SITE Publish WIX.com 000000 E Wix.com WIX MY TITLE 000000 TI SHETT & LINK'S NACHO WIX De ROJ NACHO TYPICAL SPA 72#73Wix.com OLO Wix.com OOD COF WIX 16. Makin Movies WIX Create Your Stunning Website Today LINK Wix.com WIX Create Your Sturning the Today www Creative ALGO 73#74Global Approach 17 Languages 191 Countries 74#75The Results Online Impressions Worldwide Over 1B 2016 Over 3B 2017 75#76Building the Brand 76#77We're building Wix to be one of the top 100 brands in the world 77#78Wix.com is the strongest brand in the industry 78#79Highest Searched Brand in Category Avg. Monthly Search Queries per Search Term Worldwide Keyword (by relevance) Wix.com GoDaddy WWORDPRESS SQUARESPACE weebly Avg. monthly searches (Jan-Mar 2018) 4,090,000 3,350,000 3,350,000 1,000,000 823,000 79#80Brand Building Bringing users through other channels ■ ■ ■ Partnerships Super Bowl Influencer Marketing Podcasts and more AHHO merica nch OFERDGEERZA 751119NHADA 2820 1500 Create Your STUNNING Website Today. Go to Wix.com. It's Easy & Free. Create the Website You Want Wix.com KIND Wix.com Create Your STUNNING Website Today. Go to Wix.com. WIXcan It's Easy & Free. TOWER HAMLETS DESIGN YOUR OWN BEAUTIFUL WEBSITE WIX.com 80#81Global Partnerships Partnerships are a great way to reach new audiences in an engaging way. NY Yankees and Manchester City FC partnerships keep going strong. In 2017, we partnered up with FC Flamengo from Rio de Janeiro, Brazil. 天 | ANC MA 18 BT CITY ER 94 SPORT INDUSTRY AWARDS 2018 Ⓡ 81#82We have maintained our marketing efficiency while our marketing investment more than doubled over the last three years. 82#83How our Business Model Drives Growth Nir Zohar, President & COO ANALYST& INVESTOR DAY 2018 Wix.com#84Overview ■ ■ ■ Subscription + freemium drives consistency and predictability Marketing driven by Time to Return On Investment Strong cohort behavior with no churn Significant cohort value 84#85Registered User Created an account, for free User Cohort Aggregation of users added in given time period Premium Subscription A package purchased by a user; a single user can purchase more than one subscription 85#86Subscription + Freemium 86#87Visits Wix.com via free or paid channel Registers with e-mail address Free Creates a site with Wix Editor or Wix ADI Journey of a User Finishes site and publishes to the web Purchases a Premium Subscription package Subscription 87#88Consistent Behavior Over the Long Term Active Premium Subscriptions from Q1 User Cohorts New Registered Users ↓ Q1'18-5,925,513 213,370 Q1'17 - 5,875,165 Q1'16 - 5,305,726 Q1'15-4,568,323 Q1'14 4,089,253 Q1'13 3,714,472 178,663 126,962 102,980 92,019 Q1'12 2,651,656 62,071 Q1'111,833,897 33,747 29,612 Q1'10919,221 18,513 227,642 1 2 3 4 5 6 7 Note: Data as of March 31, 2018 174,616 135,749 114,278 78,143 34,494 26,740 17,792 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 88#89Consistent Cohort Behavior Over the Long Term Active Premium Subscriptions from Q1 User Cohorts New Registered Users Į Q1'18 5,925,513 Q1'17- 5,875,165 Q1'165,305,726 Q1'15 - 4,568,323 Q1'14 4,089,253 Q1'13 3,714,472 Q1'12 2,651,656 Q1'111,833,897 Q1'10919,221 213,370 178,663 126,962 102,980 92,019 62,071 33,747 29,612 18,513 227,642 1 2 3 4 5 6 7 Note: Data as of March 31, 2018 Registered User: created a free account on Wix User Cohort: total number of Registered Users in a given time period 174,616 135,749 114,278 78,143 34,494 26,740 17,792 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 89#90Consistent Cohort Behavior Over the Long Term Active Premium Subscriptions from Q1 User Cohorts New Registered Users Q1'18 - 5,925,513 Q1'17-5,875,165 Q1'16-5,305,726 Q1'15-4,568,323 Q1'14-4,089,253 Q1'13-3,714,472 I Q1'10-919,221 213,370 178,663 102,980 92,019 Q1'12-2,651,656 62,071 Q1'11- 1,833,897 33,747 29,612 18,513 126,962 227,642 1 2 3 4 5 6 7 Note: Data as of March 31, 2018 Premium Subscription: a package purchased by a user generating collections; a single user can purchase more than one subscription Active Premium Subscriptions: total number of Premium Subscriptions at the end of a period that generates collections 174,616 135,749 114,278 78,143 34,494 26,740 17,792 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 90#91Behavior is Consistent for All Cohorts Active Premium Subscriptions from ALL monthly User Cohorts since 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 91#92Consistent = Predictable Q1'18-5,925,513 213,370 Q1'17- 5,875,165 Q1'165,305,726 Q1'15-4,568,323 Q1'14 4,089,253 Q1'13 3,714,472 178,663 126,962 Q1'10919,221 102,980 92,019 Q1'12 2,651,656 62,071 Q1'111,833,897 33,747 29,612 18,513 227,642 1 2 3 4 5 6 7 Note: Data as of March 31, 2018 174,616 135,749 114,278 78,143 34,494 26,740 17,792 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 92#93Marketing Driven by TROI 93#94What is TROI? 94#95What is TROI? Time to Return On (Marketing) Investment 95#96Marketing Investment Made Up Front Cumulative Collections Marketing Investment $(10M) Quarter 1 96#97Within the First Quarter, We Start to See Returns Return Cumulative Collections Marketing Investment 60% $6M $(10M) Quarter 1 97#98We Continue to See Returns Through the Second Quarter Return Cumulative Collections Marketing Investment 60% $6M $(10M) Quarter 1 80% $8M Quarter 2 98#99Return 100% of Marketing Dollars by the Third Quarter Return Cumulative Collections Marketing Investment 60% $6M $(10M) Quarter 1 80% $8M Quarter 2 100% $10M Quarter 3 99#100and the Returns Continue Return Cumulative Collections Marketing Investment 60% $6M $(10M) Quarter 1 80% $8M Quarter 2 100% $10M Quarter 3 120%+ $12M+ Quarter 4 & beyond 100#101TROI Drives Efficient Marketing ... After 1 Quarter 0.6x $25 To Date Q1'18 Cohort¹ $44 ... After 5 Quarters 1.7x $32 $55 To Date Q1'17 Cohort¹ After 9 Quarters 2.7x $25 $68 To Date Q1'16 Cohort¹ After 13 Quarters 3.8x Return $19 $73 To Date Q1'15 Cohort¹ After 17 Quarters 4.6x $81 To Date $18 Q1'14 Cohort Marketing Cost ($ million) Cohort Net Collections ($ million) Note: Data as of March 31, 2018; TROI is Time to Return On (Marketing) Investment. We define this metric as the time it takes to collect dollars from new premium subscriptions acquired in a cohort to equal dollars spent on direct marketing costs in the same cohort. We aim for 100% TROI in 7-9 months ¹Excludes ~$6 million in Q1'15, ~$7 million in Q1'16, -~$9 million in Q1'17 and ~$4 million in Q1'18 of brand marketing expenses 101#102No Churn 102#103Subscription Retention: Q1'12 Cohort New Registered Users 1Q16 5,305,726 1Q15 4,568,323 1Q14 4,089,253 1Q13 3,714,472 1Q12 2,651,656 1Q11 1,833,897 1Q10 919,221 126,962 102,980 92,019 62,071 33,747 29,612 18,513 1 Note: Data as of March 31, 2016 3 4 5 Our statement, June 2016 153,423 6 7 8 9 123,985 80,818 10 11 12 13 14 15 16 Number of Quarters Passed 17 35,326 104% Retention after 4+ years 27,397 18 19 20 21 18,940 22 23 24 25 103#104Today: Subscription Retention Remains High Active Premium Subscriptions from Q1 User Cohorts New Registered Users Q1'18-5,925,513 213,370 Q1'17-5,875,165 Q1'16 - 5,305,726 Q1'15-4,568,323 Q1'14 - 4,089,253 Q1'13-3,714,472 Q1'12 2,651,656 Q1'11 - 1,833,897 Q1'10-919,221 178,663 126,962 102,980 92,019 62,071 33,747 29,612 18,513 1 Note: Data as of March 31, 2018 2 3 227,642 4 5 6 7 OO 174,616 135,749 114,278 78,143 34,494 102% Retention after 6+ years 26,740 17,792 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 104#105Our statement, June 2016 Historically Strong Cohort Retention Subscriptions: Current Quarter (Q1 '16) Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016) Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Quarter 127K 103K 92K 62K 34K 30K 19K 127K 153K 124K 81K 35K 27K 19K 1 LO 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 105#106Today: Historically Strong Cohort Retention Continues Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016 Subscriptions: Current Quarter (at Q1 '18) Q1'18 Q1'17 Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Quarter 213K 179K 127K 103K 92K 62K 34K 30K 19K Subscriptions: Current Quarter (Q1 '16) 127K 153K 124K 81K 35K 27K 19K n/a n/a 1 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 213K 228K 175K 136K 114K 78K 34K 27K 18K Quarters Since Creation (at June 2018) 1 5 9 13 17 21 25 29 33 Subscription Retention: (at June 2018) 127% 138% 132% 124% 126% 102% 90% 96% 106#107Today: Historically Strong Cohort Retention Continues Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016) Subscriptions: Current Quarter (at Q1 '18) Q1'18 Q1'17 Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Quarter 213K 179K 127K 103K 92K 62K 34K 30K 19K Subscriptions: Current Quarter (Q1 '16) 127K 153K 124K 81K 35K 27K 19K n/a n/a 1 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 213K 228K 175K 136K 114K 78K 34K 27K 18K Quarters Since Creation (at June 2018) 1 5 9 13 17 21 25 29 33 Subscription Retention: (at June 2018) 127% 138% 132% 124% 126% 102% 90% 96% 107#108Today: Historically Strong Cohort Retention Continues Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016) Subscriptions: Current Quarter (at Q1 '18) Q1'18 Q1'17 Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Qua ter 213K 179K 127K 103K 92K 62K 34K 30K 19K Subscriptions: Current Quarter (Q1 '16) 127K 153K 124K 81K 35K 27K 19K n/a n/a 1 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 213K 228K 175K 136K 114K 78K 34K 27K 18K Quarters Since Creation (at June 2018) 1 5 9 13 17 21 25 29 33 Subscription Retention: (at June 2018) 127% 138% 132% 124% 126% 102% 90% 96% 108#109Today: Historically Strong Cohort Retention Continues Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016) Subscriptions: Current Quarter (at Q1 '18) Q1'18 Q1'17 Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Qua ter 213K 179K 127K 103K 92K 62K 34K 30K 19K Subscriptions: Current Quarter (Q1 '16) 127K 153K 124K 81K 35K 27K 19K n/a n/a 1 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 213K 228K 175K 136K 114K 78K 34K 27K 18K Quarters Since Creation (at June 2018) 1 5 9 13 17 21 25 29 33 Subscription Retention: (at June 2018) 127% 138% 132% 124% 126% 102% 90% 96% 109#110Today: Historically Strong Cohort Retention Continues Quarters Since Creation (at June 2016) Subscription Retention: (at June 2016) Subscriptions: Current Quarter (at Q1 '18) Q1'18 Q1'17 Q1'16 Q1'15 Q1'14 Q1'13 Q1'12 Q1'11 Q1'10 Subscriptions: Creation Quarter 213K 179K 127K 103K 92K 62K 34K 30K 19K Subscriptions: Current Quarter (Q1 '16) 127K 153K 124K 81K 35K 27K 19K n/a n/a 1 5 9 13 17 21 25 149% 134% 129% 104% 92% 102% 213K 228K 175K 136K 114K 78K 34K 27K 18K Quarters Since Creation (at June 2018) 1 5 9 13 17 21 25 29 33 Subscription Retention: (at June 2018) 127% 138% 132% 124% 126% 102% 90% 96% 110#111Cohort Behavior Creates No Churn in Collections Collections 2016 $342M Total 2016 and Prior User Cohorts 111#112Cohort Behavior Creates No Churn in Collections Collections 2016 $342M $342M Total 2016 and Prior 2016 and Prior User User Cohorts Cohorts 2017 112#113Cohort Behavior Creates No Churn in Collections Collections 2016 $342M $342M Total 2016 and Prior 2016 and Prior User User Cohorts Cohorts 2017 $359M +5% without additional marketing investment Additional Growth from Prior Cohorts 113#114Cohort Behavior Creates No Churn in Collections Collections 2016 $342M $342M Total 2016 and Prior 2016 and Prior User User Cohorts Cohorts 2017 $359M +5% without additional marketing investment Additional Growth from Prior Cohorts $125M Growth from New Cohort 2017 User Cohort 114#115Cohort Behavior Creates No Churn in Collections Collections 2016 $342M $342M Total 2016 and Prior 2016 and Prior User User Cohorts Cohorts 2017 $359M +5% without additional marketing investment Additional Growth from Prior Cohorts $125M Growth from New Cohort 2017 User Cohort $484M Total 115#116Value Creation 116#117Significant Value Creation: Q1'12 Cohort 213,370 178,663 126,962 102,980 92,019 62,071 33,747 29,612 18,513 227,642 174,616 135,749 114,278 78,143 34,494 26,740 17,792 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3233 Number of Quarters Passed Cumulative Collections as of Q1'18: $33M (7x ROI) Marketing investment: $4.6 million Q1 '12 117#118213,370 178,663 126,962 102,980 92,019 Creating Significant Value with Most Recent User Cohort 62,071 33,747 29,612 18,513 227,642 174,616 135,749 114,278 78,143 34,494 26,740 17,792 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Number of Quarters Passed Marketing investment: $44 million Collections as of Q1'18: $25 million (0.6x ROI) Q1 '18 118#119213,370 178,663 126,962 102,980 92,019 Creating Significant Value: Q1'18 Cohort 62,071 33,747 29,612 18,513 227,642 174,616 135,749 114,278 Note: Projected collections based on current cohort data 78,143 34,494 26,740 17,792 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Number of Quarters Passed Total Projected Collections (8 years): $370M (8.4x) Marketing investment: $44 million Q1 '18 119#120Every new 100K Net Subscriptions = $165 Million in Collections over 8 years at an 80% Gross Margin Note: Projected collections based on current cohort data 120#121121 2010 Note: Data represents actual Collections from Q1'10-Q1'18 ■2011 ■2012 2013 2014 2015 2016 2017 2018 Q1'10 Q2'10 I Q3'10 Q4'10 Q1'11 Q2¹11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2¹13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Actual Collections From Q1'10-Q1'18 Cohorts Collections Existing Cohorts are a Growing Source of Future#1222010 Note: Data represents actual Collections from Q1'10-Q1'18; cohorts since creation and forecasted future cumulative collections through Q1'25, based on current cohort behavior ■2014 2017 ■2018 122 ■2011 ■2012 2013 2015 2016 Q1'10 Q2'10 I Q3'10 Q4'10 Q1'11 Q2¹11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2¹13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18! Q1'19: Q2'19! Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20! Q1¹21! Q2'21 Q3'21 Q4'21 Q1'22 Q2¹22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 existing cohorts Actual and Potential Future Collections From Q1'10- Q1'18 Cohorts Future collections from $4.3 Billion Collections Existing Cohorts are a Growing Source of Future#123■ Consistent and predictable cohort behavior with NO churn . Existing cohorts expected to generate future collections. of $4.3 Billion Key Takeaways ■ Every new 100K Net Subscriptions = $165 Million in Collections over 8 years at an 80% Gross Margin 123#124Our Plans for Continuing Profitable Growth Lior Shemesh, CFO ANALYST& INVESTOR DAY 2018 Wix.com#125Overview ■ ■ ■ Strong business model Tremendous scale ■ Rare combination of revenue growth and free cash flow generation Attractive cohort economics Multiple drivers of continued top line growth On track to reach our financial targets 125#12640%+ Growth Over Last Three Years... Collections ($ millions) $99 2013 $171 2014 41% Y/Y $242 2015 42% Y/Y $342 2016 41% Y/Y $484 2017 35%-36% Y/Y $651- 657 2018E Revenue ($ millions) $80 2013 $142 2014 43% Y/Y $204 2015 43% Y/Y $290 2016 47% Y/Y $426 2017 Note: 2018E based on guidance provided May 9, 2018. 2018E collections and revenue include a $30 million benefit due to the Google accounting change. Excluding this benefit, 2018E y/y collections growth would be 28%-30% and 2018E y/y revenue growth would be 33% 40% Y/Y $594- 597 2018E 126#127...And Increasing Free Cash Flow Generation 41%-44% Y/Y Free Cash Flow ($ millions) $15 2015 149% Y/Y $36 2016 95% Y/Y $71 2017 $100- 102 2018E Note: 2018E based on guidance provided May 9, 2018; Free Cash Flow defined as net cash provided by operating activities less capital expenditures 127#128Strong Financial Efficiency Score Compared To SaaS Peers 71% 57% 54% 53% 2017-2018E Revenue growth % A ATLASSIAN WIX LogMeIn stamps 52% 47% || S shopify Dropbox 47% paycom 2018E FCF % of Revenue 39% paylocity 38% X zendesk 37% 31% 31% 28% ili HubSpot Ring Central MINDBODY. yelp 128#129Multiple Drivers for Continued Top Line Growth Sources of Collections Key Drivers of Collections Investment Focus Existing Cohorts Maintain and Improve Product Experience User Growth Marketing Geographic Expansion New Cohorts Conversion ARPS Product Development TAM Expansion 129#130Driving Growth: Existing Cohorts Sources of Collections Key Drivers of Collections Investment Focus Existing Cohorts Maintain and Improve Product Experience User Growth Marketing Geographic Expansion New Cohorts Conversion ARPS Product Development TAM Expansion 130#131Stable Cohorts Provide Base Growth Annual collections by user cohort ($ millions) 2010 2011 2012 2013 User Cohort Collections In 2016: $342 million In 2017: $359 million. 2014 2015 2016 2010 & Prior 2011 2012 2013 2014 2015 2016 2017 2017 ($ millions) $500 $400 $300 $200 $100 $0 131#1322010 Note: Data represents actual Collections from Q1'10-Q1'18; cohorts since creation and forecasted future cumulative collections through Q1'25, based on current cohort behavior ■2014 2017 2018 132 ■2011 ■2012 2013 2015 2016 Q1'10 Q2'10 I Q3'10 Q4'10 Q1'11 Q2¹11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2¹13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18! Q1'19: Q2'19! Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20! Q1¹21! Q2'21 Q3'21 Q4'21 Q1'22 Q2¹22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 existing cohorts Future collections from $4.3 Billion Actual and Potential Future Collections From Q1'10 - Q1'18 Cohorts Existing Cohorts will Fuel Future Collections#133Driving Growth: New Cohorts Sources of Collections Key Drivers of Collections Investment Focus Existing Cohorts Maintain and Improve Product Experience User Growth Marketing Geographic Expansion New Cohorts Conversion ARPS Product Development TAM Expansion 133#134Excellent Track Record of Increasing KPIs New Registered Users (000's) Prem. Subs after 1st Quarter (000's) +30% 4,568 Q1'15 Note: Data as of March 31, 2018 5,926 Q1'18 +107% 103 Q1'15 213 Q1'18 +11% $138 ARPS Q1'15 $154 Q1'18 134#135Driving Growth: TAM Expansion Sources of Collections Key Drivers of Collections Investment Focus Existing Cohorts Maintain and Improve Product Experience User Growth Marketing Geographic Expansion New Cohorts Conversion ARPS Product Development TAM Expansion 135#136Addressable Market Expansion Sources: Verisign, Whols database, internal data $30B+ Existing Market 3.5 million Wix premium sites →DIY website builders 136#137Wix Code Expands Addressable Market by 10X ~330M Existing active domains Sources: Verisign, Whols database, internal data $300B+ 3.5 million Wix premium sites →DIY website builders Every time we improve capabilities at Wix, the DIY website builder opportunity expands Wix Code expands the entire opportunity 137#138Wix Code monetization framework Users Opportunit y Wix Wix Users WIX EXPERT Wix Experts and Agencies Increases in conversion دا> Pro Developers Considering higher pricing: Higher tier packages Variable pricing based on usage Subscription + variable pricing combination Other opportunities under consideration 138#139Vertical ERPs E-commerce Hospitality Restaurants Music Photography Marketing E-mail SEO Logos Manage & Grow Your Business Multi-$100 Billion+ Mobile Website Building $300 Billion+ Customer Management CRM Support Communication E-mail Productivity 139#140Wix.com Target Model 140#141R&D and FCF Margins Can Change Based on Growth State R&D investment Y/Y growth FCF Margins High collections growth Increase Modest Increase Steady state growth Decrease ↑ Increase High collections growth will push out timing of reaching target model but will result in higher FCF at steady state 141#142New Products are a Growing Part of R&D Investment ||| 2016 2017 2018E New Product R&D Investment (% of collections) Base R&D Investment (% of collections) 142#143On a path to reaching our financial targets 143#144Continuing To Drive Leverage In The Model Non-GAAP Gross margin (% of revenue) R&D (% of collections) S&M (% of collections) G&A (% of collections) FCF margin (% of collections) 2015 83% 28% 48% 6% 6% 2016 85% 26% 44% 6% 11% 2017 85% 25% 40% 7% 15% 2018E 80% 35-36% 15-16% Note: Reconciliations from Non-GAAP to GAAP figures are available in the appendix. Gross margin % decrease due to Google accounting change Target Model (Steady State) 80-82% 18-20% 28-30% 6-7% 30% 144#145Committed to Reducing Share Dilution 145#146Implementing Cashless Net Exercise Cashless Net Exercise Exercised options Strike price Price @ exercise Cash equivalent to employee Total new WIX shares issued Current 100 $50 $100 $5,000 Note: based on the share price as of June 1, 2018 100 100 $50 $100 $5,000 50 Upon exercise of option, Wix will issue only the net shares Remaining shares withheld at fair market value equal to the exercise price and will not be returned to shares reserved for issuance under our incentive plan Implemented for future equity grants and retroactively on existing issued options. Result: ■ Lower number of new shares issued upon the exercise of options Economic benefit similar to a share repurchase program Expected to decrease share issuances for option exercises by approximately 1.6 million shares based on current share price 146#147Takeaways Proven business model and strong track record Confident in ability to generate growth Expanding product offering resulting in expanding TAM Confident in achieving target model 147#148Highlights 130M Registered Users with 2M New registered users every month Website building is a +$300B market: Wix Code expands addressable market by 10x Existing cohorts expected to generate future collections of $4.3 Billion Every new 100K Net Subscriptions = $165 Million in Collections over 8 years at an 80% Gross Margin TROI remained stable over the last 3 years while marketing investment and collections grew 2.3x On track to achieve target model 148#149Appendix ANALYST& INVESTOR DAY 2018 Wix.com#150Non-GAAP Financial Results 2017 Q1 $92,538 $114,546 $342,069 $483,989 $159,655 $109,952 $246,614 $359,708 $78,209 85% 80% $36,785 85% $87,570 30% 85% $121,293 $26,094 28% 27% 28% 23% 23% 26% 25% $52,249 $64,423 $151,759 $195,041 56% 47% 52% 46% 46% 40% 44% 40% $7,404 $9,506 $19,814 $34,275 8% 7% 7% 8% 6% 6% 6% 7% $9,099 ($7,538) ($762) ($12,529) (8%) (1%) (4%) 2% (7%) (0%) (4%) 2% ($7,952) 2) ($2,121) ($14,555) ($549) in 000s Revenues Collections Non-GAAP Gross Profit Gross Margin % Non-GAAP R&D expenses % of revenues % of collections Non-GAAP S&M expenses % of revenues % of collections Non-GAAP G&A Expenses % of revenues % of collections Non-GAAP Operating Income (Loss) % of revenues % of collections Non-GAAP Net Income (Loss) 2018 Full Year 2017 2016 Q1 $137,775 $290,103 $425,636 Note: non-GAAP items exclude the impact of share-based compensation expense, amortization of intangibles, withdrawn secondary expenses and acquisition-related expenses; Q1 2018 based on ASC 606 150#151Reconciliation of GAAP to Non-GAAP Measures in 000s Revenue Change in deferred revenue Collections in 000s GAAP Gross Profit Share Based Compensation Amortization Acquisition Related Expenses Non-GAAP Gross Profit Note: Q1 2018 based on ASC 606 2016 Q1 Q2 Q3 Q4 $61.586 $68,730 $75,611 $84,176 $14,108 $75,694 $12,723 $11,659 $13,476 $81,453 $87,270 $97,652 2016 Q1 Q2 Q3 $51,079 $57,712 $64,587 $428 $475 $466 $0 $0 $0 $0 $0 $0 $51,507 $58,187 $65,053 2017 Q1 Q4 Q2 Q3 $92,538 $103,522 $111,031 $118,545 $22,008 $13,599 $9,088 $13,658 $114,546 $117,121 $120,119 $132,203 Q4 Q1 $77,675 $71,438 $429 $506 $0 $0 $28 $0 $71,867 $78,209 2017 Q2 Q3 $85,497 $92,204 Q4 $100,869 $946 $695 $783 $1,040 $757 ($1,292) $0 $0 $0 $87,232 $93,744 $100,523 2018 Q1 $137,775 $21,880 $159,655 2018 Q1 $108,731 $1,079 $142 $0 $109,952 151