Wix Results Presentation Deck

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Wix

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August 2015

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#1Wix.com Q2 2015 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," "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 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. 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: Q2 2015 $57.4 Million Collections¹ 1$61.7 million collections on a constant currency basis Wix.com $48.6 Million Revenue & 67.5 Million Registered Users 1.5 Million Premium Subscriptions#4Q2 2015 Highlights Financial Highlights: • Collections of $57.4 million, 44% Y/Y growth; $61.7 million or 55% Y/Y growth on a constant currency basis Revenue of $48.6 million, 43% Y/Y growth Strong premium subscription growth - 132,000 net adds, 48% Y/Y growth Adjusted EBITDA of $3.5 million, the Company's first EBITDA profitable quarter in its history Q2 results make Wix a unique combination of high top line growth and profitability Business Highlights: • Technology integration between WixShoutOut and Facebook: announced collaboration with Facebook that provides Wix users a streamlined way to create and launch Facebook ad campaigns from the Wix platform using WixShoutOut Enhanced WixHotels with channel management capabilities: users of WixHotels are now able to accept and manage bookings through 300+ OTAs and marketplaces, including Booking.com, Expedia, AirBnB and Travelocity Continued mobile growth: over 9.3 million mobile sites created on the Wix platform to date Significant platform engagement: users have saved over 148 million contacts onto the Wix platform Wix.com st 4#5WixShoutOut: the Easiest Way to Advertise on Facebook • Maximize reach beyond e-mail marketing Greatly simplifies process of creating ad campaigns on Facebook for SMBs Entire process completed within Wix environment Leverage ShoutOut content Shoutout Sale 25% Advertise on facebook Advertise your Shoutout with Facebook Ads Reach thousands of poptential new customers by promoting your Shoutsouts as an ad on Facebook. Wix.com Share your ShoutOut Use your favorite social networks to reach your customers and get more views P My Shoutouts ? http://stoutout.wix.com/so/bkrmpct Copy Link Your Paga Tiksbee 25 MEMORIAL SALE Sale 25% Upgrade 2 Beting Up Texi Customize for Facebook Ads Preview Ad Check out your Ad! Change anything to fit your style. Image/ Take advantage of 25% off your order and FREE SHIPPING the wess only. Use coupon code Mo Meine / 25⁰ Change image Preview Ad MEMORIAL GALE Recommended S 200820 Taget Audience> 4 Payment Confirmation Minimum Size: 254 133 לאת קווי - איפור מקצול Take advantage of 25% off your order and FREE SHIPPING this work only Use coupon code: Me Sale 25% OFF ThDay Men's Women's s.com MEMORIAL SALE! SARGEWIX.COM LÓP MES Comment Next→ Boalay FREE SHIPPING WII the Share 3 Promote your ShoutOut on Facebook We're turning your ShoulOut MEMORIAL SALE' into a Facebook Ad ✓Chooss Page Set Budget ← Back Target, budget and monitor Target Your Audience Set your budget and target your audience. Ray around to see how each affects the number of people you can reach Target Your Audience Location Age Gender ✔Preview Ad 130 USD + This is one teme naam amount is at Israel. Target Al Israel Target Audience> 19-06 AI Payment Confirmation Chande Charge Change x Cancel Next → Your Estimated Reach: 29,122-48,595 People 52.000 Next > 10#6Users and Subscriptions Registered Users (Millions, at End of Period) 8 11 14 17 20 22 25 28 32 36 39 42 46 50 54 58 63 34% Y/Y 88888 68 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 Wix.com Premium Subscriptions (Thousands, at End of Period) 470 549 627 707 790 1,019 908 1,125 1,233 48% Y/Y 1,503 1,371 192 223 266 298 338378414 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015#7Collections and Revenues Collections ($ Millions) 116% $30 $14 2010 77% $53 88% Wix.com 74% $99 Constant Currency: $61.7mm, 55% Y/Y $171 44% $40 $57 2011 2012 2013 2014 Q2 '14 Q2 '15 Revenues ($ Millions) 150% $10 2010 78% $25 2011 84% $44 2012 76% $80 2013 $142 43% $34 $49 2014 Q2 '14 Q2 '15 7#8Deferred Revenue Growth Deferred Revenue ($ Millions) 98% $5 2010 86% 67% $67 79% $52 ailil $37 96% $19 $10 2011 2012 Wix.com Deferred Revenue growth exceeding GAAP Revenue growth 2013 $87 2014 Q2 '14 Q2 '15 Revenues ($ Millions) 150% $10 78% 84% $25 $44 76% $80 | 2010 2011 2012 2013 $142 2014 43% $49 $34 Q2 '14 Q2 '15 8#9Consistent 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 June 30, 2015 141,101 1 2 3 4 5 125,898 6 7 8 9 81,827 35,620 10 11 12 13 14 Number of Quarters Passed 27,785 15 16 17 18 19 20 21 22 18.960#10Marketing Efficiency One Time Marketing, Ongoing Monthly Collections ... After 2 Quarter 0.7x $25 $17 To Date Q1'15 Cohort Marketing Cost ($mm) Data as of June 30, 2015 After 6 Quarters 1.9x Wix.com $18 $33 To Date Q1'14 Cohort After 10 Quarters 4.0x $8 Cohort Net Collections ($mm) $33 To Date Q1'13 Cohort ... After 14 Quarters 4.2x $20 To Date $5 Q1'12 Cohort After 18 Quarters 6.2x $18 To Date $3 Q1'11 Cohort After 22 Quarters 13.1x $14 To Date $1 Q1'10 Cohort 10#11Increasing Geographic Penetration Revenue by Geography (% of total revenue) 9% 17% 71% 2010 North America Wix.com 3% ■ Europe Latin America 14% 10% 26% 50% Q2 2015 Asia and others 63% Y/Y 50% Y/Y 56% Y/Y 43% Y/Y Growth Rate vs. Q2 2014 (Constant currency basis) 11#12Overview of FX Impact (in thousands) Collections F/X impact on Q2/15 using Q2/14 rates Collections excluding FX impact (in thousands) Collections F/X impact on Q2/15 using Q1/15 rates Collections excluding FX impact Wix.com Q2 '14 $39,875 $39,875 Q1 '15 $55,869 $55,869 Q2 '15 $57,368 4,364 $61,732 Q2 '15 $57,368 137 $57,505 Y/Y% 55% Q/Q% 3% 12#13Non 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% Q2 '14 $39,875 $33,931 82% $12,158 36% $23,091 68% 58% $2,655 8% ($4,250) 12% ($10,351) 30% Q2 '15 $57,368 $48,581 83% $16,297 33% $27,490 57% 48% $3,486 7% $3,499 7% ($8,158) 17% Y/Y% 44% 43% 34% 19% 31% N/M N/M 13#14Non 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) Q2 '14 $33,931 $27,839 82% ($10,351) ($4,250) Q2 '15 $48,581 $40,441 83% ($8,158) $3,499 14#15APPENDIX 15#16Reconciliation 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 Q2 '14 $33,931 5,499 $39,875 Q2 '15 $48,581 8,787 $57,368 16#17Reconciliation 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) Q2 '14 ($13,801) (57) (154) 1 344 587 20 3,430 5,944 (564) ($4,250) Q2 '15 ($12,279) (286) 2,076 2 743 1,203 156 3,787 8,787 (690) $3,499 17#18Reconciliation 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) Q2 '14 $27,533 306 $27,839 ($13,801) 3,450 ($10,351) Q2 '15 $40,191 250 $40,441 ($12,279) 4,121 ($8,158) 18

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