#1Wix.com Earnings Results Third Quarter 2017 ITG KY (4) triku ka IT Consulting & Services 4X APAR: 1 MUNAK.CRE Pixw.w#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), non-GAAP net income (loss) per share, non-GAAP R&D expense, non-GAAP S&M expense, and non-GAAP G&A expense (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 loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP R&D expense represents R&D expense calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization. Non-GAAP S&M expense represents S&M expense calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related costs and amortization. Non-GAAP G&A expense represents G&A expense calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, withdrawn secondary offering expenses and acquisition-related costs. Non-GAAP net loss represents net 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) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP income (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 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 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. 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, including 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 presentation are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict, including the timing of product releases, 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 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 2016 annual report on Form 20-F filed with the Securities and Exchange Commission on March 28, 2017. 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. Wix.com 2#3Key Metrics: Q3'17 Registered Users (000s) 92,374 Q3'16 23% Y/Y 113,923 Q3'17 Premium Subscriptions (000s) Improvement in Conversion 2,294 Q3'16 33% Y/Y 3,053 Q3'17 Collections ($000s) Improvement in ACPS $87,270 Q3'16 38% Y/Y $120,119 Q3'17#4Q3'17 Financial Highlights • Revenue of $111.0 million exceeded prior guidance of $109-110 million; 47% Y/Y growth • Collections of $120.1 million exceeded prior guidance of $117-118 million; 38% Y/Y growth • Gross margin on a GAAP basis was 83%, compared to 85% in the third quarter of last year Non-GAAP gross margin of 84%, compared to 86% in Q3'16¹ Free cash flow was $18.9 million compared to $9.4 million in Q3'162; 101% Y/Y growth • Net premium subscription additions were 188,000 total subscriptions were up 33% Y/Y to 3.1 million Added 5.2 million new registered users - total registered users were 114 million, representing 23% Y/Y growth ● ¹Non-GAAP gross margin represents GAAP gross profit adjusted for the impact of share-based compensation expense, acquisition-related costs, and amortization divided by revenue 2Net cash provided by operating activities for the third quarter of 2017 was $22.1 million, while capital expenditures totaled $3.1 million, leading to free cash flow of $18.9 million Wix.com st 4#5● ● Q3'17 Business Highlights Addition of Wix ADI has driven significant increases in conversion: A year since the release of Wix ADI, results show that adding ADI to our platform has had a material impact on our conversion of registered users to paid subscriptions. To date, millions of websites have been created using ADI leading to significant incremental contribution of future collections to our user cohorts. Launched partnership with Clube de Regatas do Flamengo: Wix launched a partnership with top-tier Brazilian soccer team Clube de Regatas do Flamengo. As part of the agreement, Wix will serve as the official website design and hosting partner of Clube de Regatas do Flamengo. The partnership will also feature promotional activities with some of Flamengo's first team players. Announced integration with Photos in Apple's macOS High Sierra: Wix announced its integration with Photos as part of the macOS High Sierra release. The integration enables Mac users to create stunning Wix online photo albums with just a few clicks, directly within Apple's Photos app. Wix Mobile Growth: Wix users have created 30 million mobile sites to date, making Wix one of the largest mobile site development platforms globally. Global E-commerce Platform: E-commerce subscriptions reached over 417,000 during the quarter. Growth of e-commerce and other vertical application subscriptions continues to exceed overall subscriptions growth and accelerated during the quarter, highlighting Wix's broad reach with small businesses. Desktop and Mobile Business Management and Growth Solutions: Continued engagement with the Wix ecosystem is illustrated by over 669 million user contacts saved onto the Wix platform by our users. Leveraging Wix's CRM system on the desktop and the Wix App on mobile devices, business owners can track their customer activity data, manage relationships, communicate using Wix Engage, get paid via Wix Invoices and launch marketing campaigns and newsletters via Wix ShoutOut, our email marketing solution, from a single location, anywhere. Wix.com 5#6The Wix Platform Wix.com Novice Wix ADI Wix Editor Wix Code Expert 6#7Users and Subscriptions Registered Users (millions, at End of Period) 25 28 32 36 39 Wix.com 42 46 50 50 58 63 68 72 77 82 87 92 97 23% Y/Y 103 114 109 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2012 2013 2014 2015 Premium Subscriptions (000s, at End of Period) 1,503 1,643' 1,37:50 414470549627707790908 01125233" 1,767 1,938 2,121 2,294 2,465 2,673 33% Y/Y 3,053 2,865 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2012 2013 2014 2015 7#8| Revenue and Collections Revenue ($ millions) $54 $57 Wix.com $62 $69 $76 $84 $93 $104 47% Y/Y $111 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Collections ($ millions) $62 $67 $76 $81 $87 $98 38% Y/Y $115 $117 $120 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 8#9Deferred Revenue Growth Deferred Revenue ($ millions) $95 $105 $119 Wix.com $132 $143 $157 $182 $195 42% Y/Y $204 ▬▬▬▬▬▬▬ Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Deferred Revenue nearly all realized over next 12 months Revenue ($ millions) $54 $57 $62 $69 $76 $84 $93 $104 47% Y/Y $111 ▬▬▬▬ Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17#10Accelerating Free Cash Flow Generation Free Cash Flow¹ ($ millions) $5 $8 Q3'15 -$2 $10 $19 Q3'16 $15 $17 101% Y/Y $19 $15 Q3'17 $36 Q4'15 Q1'16 Q2'16 Q4'16 Q1'17 Q2'17 2015 2017E 2016 ¹Net cash provided by operating activities for the third quarter of 2017 was $22.1 million, while capital expenditures totaled $3.1 million, leading to free cash flow of $18.9 million Wix.com 88- 91% Y/Y $68-69 10#11Growing With Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts New Registered Users 1Q17 5,875,165 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 919,221 178,663 Wix.com 126,962 102,980 92,019 62,071 33,747 29,612 18,513 237,675 Note: Data as of September 30, 2017 181,075 1 2 3 4 5 6 7 8 9 10 11 138,909 115,971 78,650 34,553 26,852 17,648 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Number of Quarters Passed 11#12Long-Term Subscriptions % of Gross New Subscriptions 77% 23% 79% 21% Wix.com 77% 75% 23% 25% Note: Data as of September 30, 2017 65% 35% 70% 30% 65% 35% 67% 33% 64% Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 -1 Year or Longer -Monthly 36% % of Total Subscriptions 18% 82% 1 Year or Longer Monthly 12#13Ongoing Cohort Conversions % of Gross New Subscriptions by Prior and Current User Cohorts 58% 42% Q3'15 63% Wix.com 37% Q4'15 Note: Data as of September 30, 2017 60% 40% Q1'16 62% 38% Q2'16 Prior user cohorts 60% 40% 63% Q3'16 37% Q4'16 Current user cohort 59% 41% Q1'17 63% 37% Q2'17 60% 40% Q3'17 13#14Marketing Efficiency One Time Marketing, Ongoing Monthly Collections ... After 3 Quarters 1.1 x $32 $34 To Date Q1'17 Cohort¹ After 7 Quarters 2.1 X $25 $52 To Date Q1'16 Cohort¹ Cohort Net Collections ($ million) After 11 Quarters 3.2x $19 $61 To Date Q1'15 Cohort¹ Marketing Cost ($ million) Note: Data as of September 30, 2017 ¹Excludes ~$6 million in Q1'15, ~$7 million in Q1'16, and ~$9 million in Q1'17 of brand marketing expenses Wix.com ... After 15 Quarters 4.1x $71 To Date $18 Q1'14 Cohort After 19 Quarters 7.1x $58 To Date $8 Q1'13 Cohort 14#15Average Collections per New Annual Subscription $132 Q3'15 Wix.com $132 Q4'15 $141 Q1'16 $145 Q2'16 $150 Q3'16 $153 Q4'16 $156 11 Q1'17 Note: Based on full-priced (excluding sales), new annual subscriptions purchased in the US for each quarter. $156 Q2'17 $158 Q3'17 15#16Increasing Geographic Penetration FX-Neutral Revenue by Geography (% of Total) 9% 17% 71% 3% 2010 14% 8% 26% 52% Q3'17¹ North America ■ Europe Latin America Asia and others ¹Revenue by Geography and Y/Y change based on constant FX rates from Q3'16 Wix.com 47% Y/Y 41% Y/Y 44% Y/Y 50% Y/Y Growth Rate vs. Q3'16 (Constant currency basis) 16#17Non-GAAP Financial Results 2016 2017 Q3 Q3 75,611 $ 111,031 87,270 65,053 86% 120,119 93,744 84% 32,037 29% 22,167 29% 25% 27% 38,723 49,303 51% 44% 44% 41% 5,330 8,986 7% 8% 6% 7% Non-GAAP Operating Income (Loss) (1,166) 3,418 % of revenues (2%) 3% % of collections (1%) 3% (1,569) 353 Non-GAAP Net Income (Loss) Non-GAAP items exclude the impact of share-based compensation expense, amortization of intangibles, withdrawn secondary expenses and acquisition-related expenses Wix.com 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 $ Full Year 2015 2014 $141,841 $ 203,518 171,255 241,687 116,738 169,901 82% 51,121 83% 67,977 36% 33% 30% 95,173 28% 116,732 57% 67% 56% 48% 11,567 14,458 7% 8% 7% (41,123) 6% (29,266) (29%) (14%) (24%) (12%) (40,246) (31,354) 2016 $ 290,103 342,069 246,614 85% 87,570 30% 26% 151,759 52% 44% 19,814 7% 6% (12,530) (4%) (4%) (14,817) 17#18APPENDIX#19Reconciliation of GAAP to Non-GAAP Measures in 000s Revenue Change in deferred revenue Collections in 000s GAAP Operating Loss Share Based Compensation Amortization Acquisition-related Expenses & Withdrawn Secondary Expense Non-GAAP Operating Loss in 000s GAAP Gross Profit Share Based Compensation Acquisition-related expenses Amortization Non-GAAP Gross Profit Wix.com Q1 Q2 $44,524 $48,581 $11,345 $8,787 $55,869 Q1 $36,713 $295 2015 Q4 Q3 $53,582 $56,831 $7,998 $10,039 $57,368 $61,580 $66,870 $37,008 Q1 ($17,328) $4,048 Q2 Q3 ($10,774) ($10,370) $3,787 $5,322 $156 $155 $155 $0 $0 ($13,125) ($6,832) ($4,893) 2015 2015 Q2 Q3 $40,191 $44,420 $250 $428 $0 $0 $0 $0 $40,441 $44,848 Q4 ($10,163) $5,577 $170 $0 ($4,416) Q4 $47,224 $380 $0 $0 $47,605 Q1 $61,586 $14,108 $75,694 Q1 ($19,768) $6,137 $187 $1,183 ($12,261) 2016 Q3 Q2 $68,730 $75,611 $12,723 $11,659 $81,453 $87,270 2016 Q2 Q3 ($10,490) ($9,032) $6,927 $7,163 $186 $188 $397 $514 ($2,980) ($1,166) 2016 Q1 $51,079 $428 Q2 Q3 $57,712 $64,587 $475 $466 $0 $0 $0 $0 $0 $0 $51,507 $58,187 $65,053 Q4 $84,176 $13,476 $97,652 Q4 ($4,742) $7,821 $187 $614 $3,879 Q4 $71,438 $429 $0 $0 $71,867 2017 Q1 Q2 $92,538 $103,522 $22,008 $13,599 $114,546 $117,121 2017 Q1 Q2 ($20,471) ($10,563) $8,982 $11,979 $186 $1,240 $3,765 $860 ($7,538) $3,516 Q1 $77,675 $506 $0 $28 $78,209 2017 Q2 $85,497 $695 $1,040 $0 $87,232 Q3 $111,031 $9,088 $120,119 Q3 ($11,454) $13,035 $948 $889 $3,418 Q3 $92,204 $783 $757 $0 $93,744 19#20Reconciliation of GAAP to Non-GAAP Measures in 000s Research and development (GAAP) Options compensation Acquisition-related expenses Amortization Non-GAAP research and development Selling and marketing (GAAP) Options compensation Acquisition-related expenses Amortization Non-GAAP selling and marketing General and administrative (GAAP) Options compensation Acquisition-related expenses Non-GAAP general and administrative Wix.com Q1 $17,448 $1,959 $0 $105 $15,383 $32,006 $599 $0 $50 $31,357 $4,587 $1,195 $0 $3,392 Q2 2015 $18,233 $1,831 $0 $106 $16,297 $28,237 $697 $0 $50 $27,490 Q3 Q4 $20,065 $21,901 $2,592 $2,852 $0 $0 $105 $120 $17,368 $18,929 $29,437 $30,330 $861 $920 $0 $0 $50 $50 $28,526 $29,359 $4,495 $5,288 $1,009 $1,441 $0 $3,486 $0 $3,847 $5,156 $1,424 $0 $3,733 Q1 $24,472 $3,111 $1,183 $137 $20,041 $40,454 $981 $0 $50 $39,423 $5,921 $1,617 $0 $4,304 Q2 2016 Q3 $25,483 $26,536 $3,558 $3,718 $397 $514 $136 $138 $21,392 $22,167 $6,693 $1,772 $0 $4,921 $36,026 $40,010 $1,122 $1,237 $0 $0 $50 $38,723 $50 $34,854 $7,073 $1,743 $0 $5,330 Q4 $28,877 $4,156 $614 $137 $23,970 $40,022 $1,213 $0 $50 $38,759 $7,281 $2,022 $0 $5,259 Q1 2017 Q2 $32,669 $4,726 $1,713 $136 $26,094 $29,165 $36,749 $6,586 $860 $138 $54,329 $48,016 $1,419 $611 $1,778 $0 $62 $50 $52,249 $46,176 $11,148 $11,295 $2,920 $2,331 $1,413 $0 $8,375 $7,404 Q3 $40,252 $7,190 $889 $136 $32,037 $51,184 $1,826 $0 $55 $49,303 $12,222 $3,236 $0 $8,986 20#21Reconciliation of GAAP to Non-GAAP Measures in 000s GAAP Net Loss Share Based Compensation Amortization Acquisition-related Expenses & Withdrawn Secondary Expense Tax benefit related to exercise of options Non-GAAP Net Loss in 000s Net cash provided by operating activities Capital expenditures, net Free Cash Flow Wix.com Q1 Q4 ($16,026) ($12,279) ($11,724) ($11,305) ($19,912) ($11,420) ($9,643) ($6,182) $5,322 $5,577 $6,137 *100 $155 $170 $187 $0 $0 $1,183 $162 $175 ($11,711) ($8,159) ($6,088) ($5,396) ($12,230) ($3,713) ($1,571) $2,697 $4,048 $155 $0 $112 Q2 $3,787 $156 $0 2015 $178 2015 Q3 $159 Q1 Q2 Q3 Q4 ($581) $5,248 $6,687 $9,522 ($2,081) ($1,851) ($1,285) ($1,125) ($2,662) $3,397 $5,402 $8,397 Q1 Q2 $6,927 $186 $397 2016 $197 2016 Q1 ($925) ($1,209) ($2,134) $10,185 Q3 $7,163 $188 $514 $208 Q4 $7,821 $187 $614 $258 Q4 Q2 Q3 $11,314 $10,470 $19,714 ($1,129) ($1,046) ($1,031) $9,424 $18,683 2017 Q1 Q2 ($20,885) ($14,264) $8,982 $11,979 $1,240 $186 $3,765 $860 $0 ($7,952) $0 ($185) 2017 Q1 Q2 $16,397 $19,651 ($1,616) ($2,239) $14,781 $17,412 Q3 ($14,519) $13,035 $948 $889 $0 $353 Q3 $22,063 ($3,128) $18,935 21