#1home design 500 Wix.com Q1 2014 Earnings Summary illustration 000 hat's up: 2013 On The Road Camper Design Series coming soon! B.LOVE BLOVE STUDIOS recent projects handmade natural skincare E about contact 000 A4 http://www.blovestudios.com/ m - ***** skincare 0 AM http://www.mo-skincare.com/ C 100% natural communication through 000 http://www.mo-skincare.com/ about us handmade natural skincare RECC mo skincare products welcome to branched out contact us Rema skin 000 47 ļ http://www.branchedout.co.uk/ branched out INSULATION SOLAR RENEWABLE REA Facebook C eee 000 AP http://www.burasurfhouse.com/ Welcome About HOME BACK PACKERS Surf House Book your FREE Survey Today: Services ACT ON CO2 http://www.chadlefkowitz-brown.com/ Contact CHAD LEFKOWITZ-BROWN SAXOPHONIST | COMPOSER HO THE HOSTEL LA45 B Departur Od Nights 1#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 our annual report on Form 20-F for the year ended December 31, 2013 filed with the Securities and Exchange Commission on March 20, 2014. 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, 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. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of share-based compensation expense, withdrawn secondary offer expenses and acquisition related expenses. Free cash flow presents cash flow from operating activities minus capital expenditures. Free cash flow represents cash flow from operating activities minus 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 they 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" table in the Annex to 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 income because it does not provide guidance for net income. As items that impact net income 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 income 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 2014 $ $37.5 Million Collections Wix.com | $28.8 Million Revenue ง 46.2 Million Registered Users 908,000 Premium Subscribers#4Highlights Financial Highlights: Collections Y/Y growth of 91% to $37.5 million Revenue Y/Y growth of 86% to $28.8 million Record premium subscription growth - 118,000 net adds, 65% Y/Y growth Business Highlights: Launch of Wix Hive - enables shared data across Apps that users can leverage to manage and grow their business through the Wix Cloud Payments partnerships with Yandex.Money and MercadoPago New go-to-market partnership with REG.RU Continued investment in R&D talent to drive product development and in marketing and branding to drive subscription growth Wix.com 4#5Beyond Website Creation Wix.com WIX Manage and Grow WIX Create My Account Dashboard Notifications Business Apps Premium Services Mobile Apps Wix Editor Wix App Market Wix Mobile Lists Content and Tools 01#6Intelligent Apps Actionable Data Integrated Tools Contact Forms Wix.com eCommerce Purchase History Real-time Updates Business Management Payment Data Email Marketing Wix Hive 1888 ㅠ Invoicing / Payments Contact Data Click Data#7Software Strategy: Wix OS APP MARKET WIX EDITOR Wix.com DATABASES Provide SMBs the ability to run their business online, all from the Wix Cloud !!! WIX MOBILE 7#8Users and Subscriptions Registered Users (Millions, at End of Period) 8 11 2011 14 Wix.com 17 20 22 25 2012 28 32 36 39 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 42 45% Y/Y 46 2014 Premium Subscriptions (Thousands, at End of Period) 192 223 266 2011 298 338 378 414 2012 470 549 627 707 2013 65% Y/Y Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 790 908 2014 8#9Collections and Revenues Revenues ($ Millions) Collections ($ Millions) 116% $30 $14 77% Wix.com 88% $53 2010 2011 2012 $99 91% $20 $38 2013 Q1 '13 Q1 '14 150% $10 78% $25 84% $44 2010 2011 2012 $80 2013 I 86% $29 $16 Q1 '13 Q1 '14 9#10Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts Registered Users Q1'14 4,089,253 92,019 Q1'13 3,714,472 Q1'12 2,651,656 Q1'11 1,833,897 Q1'10 919,221 62,071 Wix.com 33,747 29,612 18,513 1 2 Note: Data as of March 31, 2014 3 4 5 89,722 6 39,669 30,679 Number of Quarters Passed 19,945 7 8 9 10 11 12 13 14 15 16 17 10#11Marketing Efficiency One Time Marketing, Ongoing Monthly Collections After 1 Quarter 0.5x $18 To Date Q1'14 Cohort Wix.com After 5 Quarters 2.2x $8 Q1'13 Cohort Marketing Cost ($mm) Note: Data as of March 31, 2014 $18 To Date After 9 Quarters 2.9x $13 To Date Q1'12 Cohort Cohort Net Collections ($mm) ... After 13 Quarters 10.3x 4.6x $14 To Date After 17 Quarters Q1'11 Cohort $11 To Date Q1'10 Cohort 11#12Non-GAAP Financial Summary (in thousands) Revenues Gross Profit Gross Margin Net Loss Adjusted EBITDA Free Cash Flow Wix.com 2011 $24,600 $19,350 79% ($17,923) ($17,035) ($12,353) 2012 $43,676 $34,548 79% ($13,718) ($13,070) ($4,555) 2013 $80,473 $65,706 82% ($20,953) ($18,244) $1,173 Q1 '13 $15,522 $12,540 81% ($4,400) ($4,196) $236 Q1 '14 $28,847 $23,785 82% ($11,316) ($10,650) ($371) 12#13APPENDIX Wix.com 13#14Reconciliation of GAAP to Non-GAAP (in thousands) Revenues Change in Deferred Revenues Collections (in thousands) Net Cash (used)/from Operating Activities Capital Expenditures Free Cash Flow Wix.com 2011 $24,600 5,048 $29,648 2011 ($10,599) (1,754) ($12,353) 2012 $43,676 8,803 $52,479 2012 ($3,608) (947) ($4,555) 2013 $80,473 18,200 $98,673 2013 $4,243 (3,070) $1,173 Q1 '13 $15,522 4,152 $19,674 Q1 '13 $640 (404) $236 Q1 '14 $28,847 8,668 $37,515 Q1 '14 $1,097 (1,468) ($371) 14#15Reconciliation of GAAP to Non-GAAP 2011 2012 2013 ($22,740) ($14,972) ($28,720) (in thousands) GAAP Net Loss Adjustments: Financial expenses (income), net Other expenses (income) Taxes on income Depreciation Withdrawn secondary offering expenses Acquisition related expenses Stock-based compensation Total adjustments Adjusted EBITDA Wix.com 41 127 212 592 (487) 2 496 871 4,733 1,020 $5,705 $1,902 ($17,035) ($13,070) 603 18 1,572 1,229 7,054 $10,476 ($18,244) Q1 '13 ($4,916) (261) 283 236 462 $720 ($4,196) Q1 '14 ($14,917) (84) 3 501 472 365 65 2,945 $4,267 ($10,650) 15#16Reconciliation 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 2011 $19,310 40 $19,350 ($22,740) 4,817 2012 2013 $34,443 $65,216 105 490 $34,548 $65,706 ($14,972) ($28,720) 1,254 ($17,923) ($13,718) 7,767 Q1 '13 $12,507 33 $12,540 ($4,916) 516 Q1 '14 $23,607 178 $23,785 ($14,917) 3,601 ($20,953) ($4,400) ($11,316) 16