Wix Results Presentation Deck

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Wix

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April 2017

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#1Q4 2015 and Full Year WIX.com Earnings Results#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," "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 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, Collection and Revenue on a constant currency basis, adjusted EBITDA, free cash flow, 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. We adjust collections and revenue to measure them on a constant basis by assuming the same exchange rates as the prior period applied to the reported figures in the current period. Adjusted EBITDA is defined as net profit or 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. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. 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 and net cash flow of the company, enhances the overall understanding of past financial performance and future prospects, and allows 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: Q4 2015 $70.7 Million Collections - Constant Currency¹ $56.8 Million GAAP Revenue ¹Based on constant FX rates from Q4 2014; $66.9 million reported collections Wix.com & 77 Million Registered Users 1.8 Million Premium Subscriptions#4Q4 2015 Highlights Collections of $70.7mm, 43% Y/Y growth on a Y/Y constant currency basis, exceeding prior guidance of $69-70mm; reported collections of $66.9mm, 36% Y/Y growth GAAP revenue of $56.8mm, 37% Y/Y growth, exceeding prior guidance of $55-56mn Net premium subscription growth of 125,000 Non-GAAP Gross margin remains strong at 84%, up from 81% at time of IPO (Q3 2013) Adjusted EBITDA of $7mm, exceeding prior guidance of $5-6mm, 50% Q/Q growth Free cash flow of $8.4mm ● ● ● • Launched Wix Bookings: end-to-end online appointment booking solution that is seamlessly integrated into a website, helping owners grow their business online ● ● ● Successful Super Bowl 50 campaign in partnership with DreamWorks Animation: comprehensive campaign across multiple channels generated over 150 million engagements before the spot aired during the game Continued mobile growth: Over 13.5 million mobile sites created on the Wix platform to date Significant platform engagement: To date, users have saved over 250 million contacts onto the Wix platform Wix.com st 4#5| Full Year 2015 Highlights • Collections of $257.8mm, 51% Y/Y growth on a Y/Y constant currency basis, exceeding prior guidance of $256-257mm o Reported collections of $241.7mm, 41% Y/Y growth • Revenue of $212.3mm, 50% Y/Y growth on a Y/Y constant currency basis, o GAAP revenue of $203.5mm, 43% Y/Y growth, exceeding prior guidance of $202-203 million • Net premium subscription growth of 535,000 and 19 million new registered user additions - largest annual increases in company's history Adjusted EBITDA of $14.7mm, exceeding prior guidance of $12-13mm Well above beginning of year guidance of $2-5mm, demonstrating increasing leverage in model • Free cash flow of $14.5mm ● • Non-GAAP Gross margin improved to 83% Marketing expense of 48% of collections, at low end of guidance and improvement from 56% of collections a year ago - demonstrates increasing efficiency in marketing spend and incremental margin growth ● Wix.com LO 5#6Users and Subscriptions 33% Y/Y Registered Users (Millions, at End of Period) 8 11 14 17 20 Wix.com 22 25 28 32 36 39 42 46 50 54 58 63 68 72 77 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 Premium Subscriptions (Thousands, at End of Period) 549 470 192223266 298 338378414) 627 707 790 1,019 908 1,125 1,233 1,371 1,503 43% Y/Y 1,767 1,643 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 6#7| Constant Currency - Collections and Revenues Collections ($ Millions) 116% 88% 77% $53 $30 74% $99 51% $171 $258 43% $49 $71 $14 2010 2011 2012 2013 2014 2015 Q4 '14 Q4 '15 Based on constant FX rates from Q4 2014 and full year 2014 Wix.com Revenues ($ Millions) $212 50% $142 76% Sil $80 84% 44% 78% $44 $25 $42 $60 150% $10 2010 2011 2012 2013 2014 2015 Q4 '14 Q4 '15 7#8| Reported - Collections and Revenues Collections ($ Millions) 116% 88% 77% $53 $30 74% $99 41% $171 $242 Constant Currency¹: 2015: $257.8mm, 51% Y/Y Q4 '15: $70.7mm, 43% Y/Y 36% $49 $67 $14 2010 2011 2012 2013 2014 2015 Q4 '14 Q4 '15 ¹Based on constant FX rates from Q4 2014 and full year 2014 Wix.com Revenues ($ Millions) 84% 78% $44 $25 76% $80 43% $142 $204 Constant Currency¹: 2015: $212.3mm, 50% Y/Y Q4 '15: $59.8mm, 44% Y/Y 37% $42 $57 150% $10 2010 2011 2012 2013 2014 2015 Q4 '14 Q4 '15 8#9Deferred Revenue Growth Deferred Revenue ($ Millions) 98% $5 2010 $10 57% $67 79% mil $37 96% 86% $19 2013 2011 Deferred Revenue nearly all realized over next 12 months 2012 $105 2014 2015 ¹Based on constant FX rates from Q4 2014 and full year 2014 Wix.com Revenues ($ Millions) 84% 78% $44 $25 76% $80 43% $142 $204 Constant Currency¹: 2015: $212.3mm, 50% Y/Y Q4 '15: $59.8mm, 44% Y/Y 37% $42 $57 150% $10 2010 2011 2012 2013 2014 2015 Q4 '14 Q4 '15#10Consistent 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 92,019 Wix.com 62,071 33,747 29,612 18,513 Note: Data as of December 31, 2015 162,993 127,465 1 2 3 4 5 6 7 8 9 81,594 10 11 12 13 14 15 Number of Quarters Passed 35,423 27,526 16 17 18 19 20 21 22 23 24 18,807 10#11Shift to Annual Subscriptions % of New Subscriptions 51% 49% 56% 44% Wix.com 65% 35% 75% 74% 25% 26% Note: Data as of December 31, 2015 76% 77% 79% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 -Annual-Monthly 24% 23% 21% % of Total Subscriptions 17% Annual 83% Monthly 11#12Ongoing Cohort Conversions % of New Subscriptions by Prior and Current User Cohorts 56% 44% Q1 '14 60% Wix.com 40% Q2 '14 Note: Data as of December 31, 2015 61% 39% Q3 '14 64% 36% Q4 '14 -Prior user cohorts 60% 40% Q1 '15 -Current user cohort 62% 38% Q2 '15 58% 42% Q3 '15 63% 37% Q4 '15 12#13Growing Base of Cohort Collections Annual collections by user cohort 2010 2011 2012 2010-2014 User Cohort Collections In 2014: $167 million In 2015: $182 million¹ 2013 2010 2011 2012 2013 2014 12015 collections are constant currency assuming FX rates remained the same as in 2014 Wix.com 2015 2014 I 2015 I | I I I ($ Millions) $300 $250 $200 $150 $100 $50 $0 13#14Growing Base of Cohort Collections Quarterly collections by user cohort $19.7 1Q13 Wix.com $22.2 2Q13 $26.2 3Q13 $30.6 $44.6 $39.9 $37.5 $49.3 $55.9 $57.4 Existing Cohorts New Cohort 2Q15 $61.6 3Q15 $66.9 4Q15 ($ Millions) $80 $75.7 1Q16 $60 $40 $20 $0 14#15Marketing Efficiency One Time Marketing, Ongoing Monthly Collections After 4 Quarters 1.2x $22 $19 To Date Q1'15 Cohort₁¹ After 8 Quarters 2.3x $18 $40 To Date Q1'14 Cohort Marketing Cost ($mm) Note: Data as of December 31, 2015 ¹Excludes $6 million in brand marketing expenses Wix.com After 12 Quarters 4.6x $8 Cohort Net Collections ($mm) $37 To Date Q1'13 Cohort ... After 16 Quarters 4.7x $22 To Date $5 Q1'12 Cohort After 20 Quarters 6.8x $20 To Date $3 Q1'11 Cohort After 24 Quarters 14.1x $15 To Date $1 Q1'10 Cohort 15#16Increasing Revenue per Subscription Wix.com 8% $36.26 $1.00 $35.26 Q4 '14 8% $36.70 $2.50 $34.20 Q1 '15 ARPS (1) 6% $37.31 $3.50 $33.81 10% $38.57 $4.50 $34.07 7% $38.58 $5.25 $33.33 Q4 '15 Q2 '15 Adjustments (2) Q3 '15 Adj. Y/Y Growth (1) ARPS = current period GAAP revenue / average of ending premium subscriptions in current quarter and ending premium subscriptions in prior quarter (2) Adjustments for year-over-year constant currency and estimated adjustments for annual mix shift, assuming 56% (equal to Q2 2014) of new subscriptions in quarter are annual in each period beginning Q3 2014 16#17Increasing Geographic Penetration Revenue by Geography (% of Total) 9% 17% 71% 3% 2010 13% 11% 29% 47% Q4'15¹ North America ■ Europe Latin America Asia and others ¹Revenue by Geography and % Y/Y Change based on constant FX rates from Q4'14 Wix.com 47% Y/Y 55% Y/Y 53% Y/Y 36% Y/Y Growth Rate vs. Q4'14 (Constant currency basis) 17#18Overview of FX Impact (in thousands) Collections F/X impact on Q4/15 using Q4/14 rates Collections excluding FX impact (in thousands) Collections F/X impact on Q4/15 using Q3/15 rates Collections excluding FX impact Wix.com Q4 '14 $49,279 $49,279 Q3 '15 $61,580 $61,580 Q4 '15 $66,870 3,837 $70,707 Q4 '15 $66,870 919 $67,789 Y/Y% 43% Q/Q% 10% 18#19Non 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 Wix.com 2012 $52,479 $43,676 79% $16,229 37% $28,956 66% 55% $3,304 8% ($5,354) (12%) ($13,718) 2013 $98,673 $80,473 82% $26,511 33% $52,591 65% 53% $6.077 8% ($1,897) (2%) ($20,953) 2014 $171,255 $141,841 82% $51,120 36% $95,173 67% 56% $11,569 8% ($11,260) (8%) ($40,247) 2015 $241,687 $203,518 83% $67,977 33% $116,733 57% 48% $14,458 7% $14,721 7% ($31,354) Q4 '14 $49,279 $41,559 82% $14,428 35% $26,341 63% 53% $3,329 8% ($1,309) 3% ($9,604) Q4 '15 $66,870 $56,831 84% $18,928 33% $29,360 52% 44% $3,733 7% $7,025 12% ($5,397) Y/Y% 36% 37% 31% 11% 12% N/M N/M 19#20APPENDIX 20#21Reconciliation 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 2015 $203,518 38,169 $241,687 Q4 '14 $41,559 7,720 $49,279 Q4 '15 $56,831 10,039 $66,870 21#22Reconciliation 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 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) 2015 ($51,334) 2,172 1,243 11 2,765 4,999 636 18,733 38,169 (2,673) $14,721 Q4 '14 ($15,076) 245 (227) 9 1,751 879 119 3,883 7,720 (612) ($1,309) Q4 '15 ($11,305) 740 140 6 772 1,399 170 5,576 10,039 (512) $7,025 22#23Reconciliation 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) 2015 $168,548 1,353 $169,901 ($51,334) 19,980 ($31,354) Q4 '14 $33,999 247 $34,246 ($15,076) 5,472 ($9,604) Q4 '15 $47,224 380 $47,604 ($11,305) 5,908 ($5,397) 23

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