#1Earnings Slides First Quarter 2020 May 14, 2020 #WixEmailWidget Name Column 2 Visit our website Mobile Email Address blumns Site Change Columns f Edit View Apps#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, cumulative cohort collections, revenue on a constant currency basis, and free cash flow (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.. 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 "Appendix" below. The accompanying tables have 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 also not reconciled future collections over the next eight years from existing user cohorts. Items that impact future revenue and deferred revenue over an eight year period cannot be reasonably predicted. Accordingly, a reconciliation to revenue is not available without unreasonable effort. Forward-Looking Statements This document 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, and may be identified by words like "anticipate," "assume," "believe," "aim," "forecast," "indication," "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 document, 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, the uncertainty surrounding the duration and severity of COVID-19 and its effects on our business including changes in consumer dynamics shifting to online and increased GMV on our platform and our ability to predict future financial results due to the global and regional impact of COVID-19; our ability to grow our user base and premium subscriptions; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, for example through our recent strategic partnerships; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading "Risk Factors" in the Company's 2019 annual report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2020. 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 result of new information, future developments otherwise. 2#3Highlights ● ● ● ● ● Strong user growth as demand for online presence accelerates Newly acquired user cohorts generating significantly more revenue and collections than user cohorts created in prior periods Existing users converting to subscriptions at higher rates driving "negative" churn Increasing purchases of Business packages and higher adoption of Business Solutions driving revenue and collections per subscription Quickly adapting products to meet changing needs of users 3#4Outstanding April 2020 Results +63% new registered users y/y 1.9 Apr¹19 $5.7 3.2 Apr¹19 Apr 20 +76% April cohort collections y/y $10.1 in millions Apr¹20 in $ millions 207% Net premium subscription additions y/y 136% Ascend purchases y/y 580% Net new Wix Stores subscriptions y/y 167% Net new Wix Restaurants subscriptions y/y 123% New Wix Payments merchants m/m 66% GMV transacted through Wix Payments m/m in April 2020 4#5Q1 2020 Results#6Strong revenue growth Revenue ($ millions) Business Solutions Creative Subscriptions $146 $19 $127 Q2'18 $156 $21 $135 Q3'18 $164 $21 $144 Q4'18 $174 $23 $151 Q1'19 ¹Y/Y change based on constant FX rates from Q1'19 $185 $28 $157 Q2'19 $197 $32 $165 Q3'19 $205 $33 $171 Q4'19 +24% y/y +25% cc y/y¹ $216 $39 $177 Q1'20 $426 $34 $391 2017 $604 $78 $525 2018 $761 $117 $644 2019 6#7Strong collections growth... Collections ($ millions) Business Solutions Creative Subscriptions $160 $19 $141 Q2'18 $163 $21 $142 Q3'18 $176 $20 $156 Q4'18 $200 $23 $177 Q1'19 ¹Y/Y change based on constant FX rates from Q1'19 $200 $29 $170 Q2'19 $206 $32 $174 Q3'19 $227 $36 $191 Q4'19 +24% y/y +25% cc y/y¹ $249 $40 $209 Q1'20 $484 $35 $449 2017 $658 $78 $580 2018 $832 $121 $712 2019 7#8...combined with robust free cash flow generation Free Cash Flow ($ millions) $24 Q2'18 $24 Q3'18 $33 Q4'18 $30 Q1'19 $31 Q2'19 $29 Q3'19 $37 Q4'19 +33 y/y +35% y/y (excl. HQ capex)¹ ¹Exluding approximately $0.4M capital expenditures related to the buildout of our new headquarters offices $40 Q1'20 $71 2017 $102 2018 $127 2019 8#9ARR demonstrates consistent growth ($ millions) $531 Q2'18 $561 Q3'18 $587 Q4'18 $622 Q1'19 $648 Q2'19 $680 Q3'19 $707 Q4'19 $739 Q1'20 Note: Annualized Recurring Revenue (ARR) is calculated as Monthly Recurring Revenue (MRR) multiplied by 12. MRR is calculated as the total of (i) all active Creative Subscriptions in effect on the last day of the period, multiplied by the monthly revenue of such Creative Subscriptions, other than domain registrations (ii) the average revenue per month from domain registrations; and (iii) monthly revenue from other partnership agreements. 9#10Increasing monetization of user cohorts Cumulative Collections from Q1 User Cohorts ($ millions) $140 $120 $100 $80 $60 $40 $20 $0 $28 $75 $110 126 $124 $116 $118 $89 Number of Quarters Passed $44 April Cohort Collections. +76% y/y $10.1 $37 $5.7 Apr¹19 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 34 35 36 37 38 39 40 41 Note: Data as of March 31, 2020. Excludes collections from users coming from the Wix Logo Maker funnel. It also excludes collections from Flok, DeviantArt and Wix Answers Apr¹20 $26 •Q1'10 Q1'11 Q1'12 -Q1'13 -Q1'14 -Q1'15 -Q1'16 -Q1'17 Q1'18 Q1'19 Q1'20 10#11Existing cohorts are a growing source of future collections Actual and Potential Future Collections From Q1'10- Q1'20 Cohorts Q1'10 Q3'10 Q1'11 Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 $7.2 Billion Expected future collections from existing cohorts over the next 8 years (up 31% y/y) Q1'15 Q3'15 Q1'16 Q3'16 Q1'17 Q3'17 Q1'18 Q3'18 Q1'19 Q3'19 Q1'20 Q3'20 Q1'21 Q3'21 Q1'22 Q3'22 Q1'23 Q3'23 Q1'24 Q3'24 Q1'25 Q3'25 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1'26 Note: Data represents actual Collections from Q1'10-Q1'20; cohorts since creation and forecasted future cumulative collections through Q3'27, based on current cohort behavior Q3'26 Q1'27 Q3'27 11#12Efficient marketing based on 7-9 month TROI One Time Marketing, Ongoing Collections ... After 1 Quarter 0.5x $57 $28 Q1'20 Cohort Marketing Cost ($ million) After 5 Quarters 1.4x $55 $75 Q1'19 Cohort After 9 Quarters 2.5x $44 $110 Q1'18 Cohort Cohort Net Collections ($ million) After 13 Quarters 4.0x $32 $126 Q1'17 Cohort After 17 Quarters 5.0x $25 $124 Q1'16 Cohort Note: Data as of March 31, 2020; 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 marketing costs in the same cohort. We aim for 100% TROI in 7-9 months. Numbers are rounded to the nearest million. Marketing Cost includes marketing expenses associated with the acquisition of users. Cohort Net Collections do not include collections from users coming from the Wix Logo Maker funnel or collections from Flok, DeviantArt and Wix Answers 12#13Increasing geographic penetration FX-Neutral Revenue by Geography (% of total) and Q1'20 Y/Y Growth 6% 25% 13% North America ■ Europe 56% Latin America Asia and others Note: Q1'20 Revenue by Geography and Y/Y change based on constant FX rates from Q1'19 North America +30% Y/Y Europe +22% Y/Y Latin America +6% Y/Y Asia and others +19% Y/Y 13#14Appendix#15Reconciliation of GAAP to Non-GAAP Financial Measures in 000s Revenue Change in deferred revenue Collections in 000s Net cash provided by operating activities Capital expenditures, net Free Cash Flow in millions Cumulative Cohort Revenue Cumulative Cohort change in deferred revenue Cumulative Cohort Collections 2018 Q4 Q2 Q3 $146,132 $155,600 $164,197 $13,763 $7,177 $11,861 $159,895 $162,777 $176,058 2018 Q2 Q3 $27,268 $27,607 Q4 $36,055 $ (3,411) $ (3,916) $ (3,391) $23,857 $23,691 $32,664 2019 Q1 Q2 Q3 Q4 $174,290 $185,419 $196,791 $204,588 $26,089 $14,144 $9,069 $22,095 $200,379 $199,563 $205,860 $226,683 2019 Q1 Q2 Q3 Q4 $35,074 $37,180 $36,073 $41,237 $(5,028) $ (6,426) $ (6,846) $ (3,766) $30,046 $30,754 $29,227 $37,471 Q1'10 Q1'11 Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 $25 $35 $42 $84 $111 $107 $112 $110 $90 $52 $1 $2 $2 $5 $7 $9 $12 $16 $20 $23 $26 $37 $44 $89 $118 $116 $124 $126 $110 $75 $21 $28 2020 Q1 $215,987 $32,871 $248,858 2020 Q1 $45,027 $(5,075) $39,952 2 2017 2018 2019 FY FY FY $425,636 $603,704 $761,088 $58,353 $54,681 $71,397 $483,989 $658,385 $832,485 2017 2018 2019 FY FY FY $83,052 $115,709 $149,564 $(12,369) $ (14,076) $ (22,066) $70,683 $101,633 $127,498 Apr¹19 Apr 20 $1 $5 $6 $2 $8 $10 Note: non-GAAP items exclude the impact of share-based compensation expense, amortization, amortization of debt discount and debt issuance costs and acquisition-related expense. Numbers may not add due to rounding. 15#16Reconciliation of GAAP to Non-GAAP Financial Measures in 000s Creative Subscriptions Revenue Change in deferred revenues Creative Subscriptions Collections in 000s Business Solutions Revenue Change in deferred revenues Business Solutions Collections 2018 Q2 Q4 Q3 $126,716 $134,579 $143,621 $13,934 $140,651 $7,266 $12,047 $141,845 $155,668 2018 Q4 Q2 Q3 $19,416 $21,021 $20,576 $(172) $(89) $(186) $19,244 $20,932 $20,390 2019 Q4 Q1 Q2 Q3 $151,364 $157,012 $164,761 $171,355 $25,529 $13,482 $8,810 $19,450 $176,893 $170,493 $173,571 $190,805 2019 Q1 Q2 Q3 Q4 $22,926 $28,407 $32,030 $33,233 $560 $662 $259 $2,645 $23,486 $29,070 $32,289 $35,878 2020 Q1 $176,546 $32,251 $208,797 2020 Q1 $39,441 $620 $40,061 2017 2018 2019 FY FY FY $391,347 $525,350 $644,491 $57,778 $54,769 $67,272 $449,125 $580,119 $711,763 2017 2018 2019 FY FY FY $34,289 $78,354 $116,597 $575 $(88) $4,125 $34,864 $78,266 $120,722 1 $3 Note: non-GAAP items exclude the impact of share-based compensation expense, amortization, amortization of debt discount and debt issuance costs and acquisition-related expense. Numbers may not add due to rounding. 16