Wix Results Presentation Deck

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Wix

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Technology

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May 2015

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#1Wix.com Q1 2015 Earnings Summary HENRY COOPER WEB Jelk Web Design Stedin it court ADAM SCHARF#2Safe Harbor Forward-Looking Statements This presentation 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 and may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek" and similar terms or phrases. The forward-looking statements contained in this presentation are based on 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; 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 annual report on Form 20-F filed with the Securities and Exchange Commission on March 31, 2015. Any forward-looking statement made by us in this presentation 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. 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, adjusted EBITDA, non- GAAP net loss and non-GAAP net loss per share (collectively the "non-GAAP financial measures"). Collections represents the total cash collected by us from our customers in a given period and is calculated by adding the change in deferred revenues for a particular period to revenues for the same period. Adjusted EBITDA is defined as net loss before interest, bank charges and other financial expenses (income), net unrealized losses (gains) on hedging transactions, other expenses, taxes on income, depreciation amortization, and other unusual or non-recurring expenses, share-based compensation expense and including the effect of the changes in deferred revenue and prepaid domain registration costs. Non-GAAP net loss represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense and other non-GAAP adjustments. Non-GAAP net loss per share represents non-GAAP net loss divided by the weighted average number of shares used in computing GAAP loss per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared 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 it provides 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 presentation. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The company has not reconciled adjusted EBITDA guidance to net profit because it does not provide guidance for net profit. As items that impact net profit 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 net profit is not available without unreasonable effort. Certain data in this presentation was obtained from various external sources, and the company has not verified such data with independent sources. Accordingly, the company makes no representation as to the accuracy or completeness of that data or to update such data after the date hereof. Such data involves risks and uncertainties and is subject to change based on various factors. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the company. Wix.com 2#3Key Metrics: Q1 2015 $55.9 Million Collections¹ $44.5 Million Revenue 1$59.6 million collections on a constant currency basis Wix.com 62.5 Million Registered Users 1.37 Million Premium Subscribers#4Q1 2015 Highlights Financial Highlights: • Collections of $55.9 million, 49% Y/Y growth, 59% Y/Y growth on a constant currency basis Revenue of $44.5 million, 54% Y/Y growth Strong premium subscription growth - 138,000 net adds, 51% Y/Y growth Adjusted EBITDA of $(0.5) million • Increasing adjusted EBITDA guidance for the second time since February Business Highlights: Launched WixMusic: enables musicians to integrate into their Wix website an advanced music player, an easy to use digital asset management system and e-commerce capabilities to sell music commission-free Continued mobile growth: over 7.8 million mobile sites created on the Wix platform to date Significant platform engagement: To date, users have saved over 100 million contacts onto the Wix platform Wix.com st 4#5Users and Subscriptions Registered Users (Millions, at End of Period) 8 11 14 17 20 Wix.com 22 25 28 32 36 39 42 46 50 54 35% Y/Y 58 63 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Premium Subscriptions (Thousands, at End of Period) 470 192223266298 338378414 549 627 707 790 908 1,125 1,019 51% Y/Y 1,371 1,233 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 LO 5#6Collections and Revenues Collections ($ Millions) 77% 116%^ $14 $30 88% WiX.com $53 2010 2011 2012 74% $99 $171 Constant Currency: $59.6mm, 59% Y/N 49% $38 $56 I 2013 2014 Q1 '14 Q1 '15 Revenues ($ Millions) 150% $10 78% $25 2010 2011 84% $44 76% $80 $142 54% $29 $45 2012 2013 2014 Q1 '14 Q1 '15 6#7Deferred Revenue Growth Deferred Revenue ($ Millions) 86% $10 96% Wix.com 79% $19 $37 $67 Deferred Revenue growth exceeding GAAP Revenue growth 70% 98%A $5 2010 2011 2012 2013 2014 Q1 '14 Q1 '15 $46 $78 Revenues ($ Millions) $142 76% $80 ail. 84% 54% 78% $44 $25 150% $29 $45 $10 2010 2011 2012 2013 2014 Q1 '14 Q1 '15 7#8Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts New Registered Users ↓ 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 Q1'10 919,221 102,980 Wix.com 92,019 62,071 33,747 29,612 18,513 1 2 3 Note: Data as of March 31, 2015 131,291 4 5 6 7 8 9 Number of Quarters Passed 84,638 10 11 12 36,559 13 14 15 16 17 28,375 18 19 20 21 19,206 8#9Marketing Efficiency One Time Marketing, Ongoing Monthly Collections ... After 1 Quarter 0.6x $25 $11 To Date Q1'15 Cohort Marketing Cost ($mm) Data as of March 31, 2015 After 5 Quarters 1.6x Wix.com $18 $28 To Date Q1'14 Cohort ... After 9 Quarters 3.7x $8 Cohort Net Collections ($mm) $30 To Date Q1'13 Cohort ... After 13 Quarters 4.0x $5 $18 To Date Q1'12 Cohort After 17 Quarters 5.9x $17 To Date $3 Q1'11 Cohort After 21 Quarters 12.5x $13 To Date $1 Q1'10 Cohort#10Increasing Geographic Penetration Revenue by Geography (% of total revenue) 9% 17% 71% 2010 North America Wix.com 3% ■ Europe Latin America 13% 10% 27% 51% Q1 2015 Asia and others 74% Y/Y 37% Y/Y 60% Y/Y 50% Y/Y Growth Rate vs. Q1 2014 10#11Overview of FX Impact (in thousands) Collections F/X impact on Q1/15 using Q1/14 rates Collections excluding FX impact (in thousands) Collections F/X impact on Q1/15 using Q4/14 rates Collections excluding FX impact Wix.com Q1 '14 $37,515 $37,515 Q4 '14 $49,279 $49,279 Q1 '15 $55,869 3,739 $59,608 Q1 '15 $55,869 1,829 $57,698 Y/Y% 59% Q/Q% 17% 11#12Non GAAP Financial Results (in thousands) Collections Revenues Gross Margin % R&D expenses % of revenues S&M expenses % of revenues % of collections G&A expenses % of revenues Adjusted EBITDA % of revenues Net Loss % of revenues Wix.com 2012 $52,479 $43,676 79% $16,229 37% $28,956 66% 55% $3,304 8% ($5,354) 12% ($13,718) 31% 2013 $98,673 $80,473 82% $26,511 33% $52,591 65% 53% $6,077 8% ($1,897) 2% ($20,953) 26% 2014 $171,255 $141,841 82% $51,120 36% $95,173 67% 56% $11,569 8% ($11,260) 8% ($40,247) 28% Q1 '14 $37,515 $28,847 82% $10,711 37% $21,644 75% 58% $2.552 9% ($2,886) 10% ($11,316) 39% Q1 '15 $55,869 $44,524 83% $15,384 35% $31,357 70% 56% $3,392 8% ($493) 1% ($11,711) 23% Y/Y% 49% 54% 44% 45% 33% N/M N/M 12#13Non GAAP Financial Summary (in thousands) Revenues Gross Profit Gross Margin Net Loss Adjusted EBITDA Wix.com 2012 $43,676 $34,548 79% ($13,718) ($5,354) 2013 $80,473 $65,706 82% ($20,953) ($1,897) 2014 $141,841 $116,738 82% ($40,247) ($11,260) Q1 '14 $28,847 $23,785 82% ($11,316) ($2,886) Q1 '15 $44,524 $37,008 83% ($11,711) ($493) 13#14APPENDIX 14#15Reconciliation of GAAP to Non-GAAP (in thousands) Revenues Change in Deferred Revenues Collections Wix.com 2012 $43,676 8,803 $52,479 2013 $80,473 18,200 $98,673 2014 $141,841 29,414 $171,255 Q1 '14 $28,847 8,668 $37,515 Q1 '15 $44,524 11,345 $55,869 15#16Reconciliation of GAAP to Non-GAAP (in thousands) GAAP Net Loss Adjustments: Interest, bank charges & other financial expenses (income), net Unrealized losses (gains) on hedging transactions Other expenses (income) Taxes on income Depreciation Amortization Withdrawn secondary offering expenses Acquisition related expenses Stock-based compensation Change in deferred revenue Change in prepaid domain registration costs Adjusted EBITDA Wix.com 2012 ($14,972) (487) 2 496 871 1,020 8,803 (1,087) ($5,354) 2013 ($28,720) (18) 469 18 1,572 1,229 7,054 18,200 (1,701) ($1,897) 2014 ($56,566) 262 (2,124) 14 3,052 2,662 153 365 65 13,937 29,414 (2,494) ($11,260) Q1 '14 ($14,917) (118) (122) 3 501 472 365 65 2,945 8,668 (748) ($2,886) Q1 '15 ($16,026) 332 (1,063) (1) 556 925 155 4,048 11,345 (764) ($493) 16#17Reconciliation of GAAP to Non-GAAP (in thousands) GAAP Gross Profit Stock-based Compensation Non-GAAP Gross Profit GAAP Net Loss Stock-based Compensation and other Non GAAP Adjustments Non-GAAP Net Loss Wix.com 2012 $34,443 105 $34,548 ($14,972) 1,254 ($13,718) 2013 $65,216 490 $65,706 ($28,720) 7,767 ($20,953) 2014 $115,733 1,005 $116,738 ($56,566) 16,319 ($40,247) Q1 '14 $23,607 178 $23,785 ($14,917) 3,601 ($11,316) Q1 '15 $36,713 295 $37,008 ($16,026) 4,315 ($11,711) 17

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