Wix Results Presentation Deck

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Wix

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May 2017

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#1First Quarter 2016 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 April 16, 2016. 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: Q1 2016 $77.5 Million Collections - Constant Currency¹ $61.6 Million GAAP Revenue ¹Based on constant FX rates from 1Q 2015; $75.7 million reported collections Wix.com & 82 Million Registered Users 1.9 Million Premium Subscriptions#4Q1 2016 Highlights Collections of $77.5mm, 39% Y/Y growth on a Y/Y constant currency basis, exceeding prior guidance of $74-75mm; reported collections of $75.7mm, 35% Y/Y growth • GAAP revenue of $61.6mm, 38% Y/Y growth, exceeding prior guidance of $60-61 million Net premium subscription growth of 170,000 Adjusted EBITDA of $2.7mm, exceeding prior guidance of $1-2mm Non-GAAP gross margin up Y/Y to 84% compared to 83% in Q1 2015 • Launched Wix Restaurants: Online order management service to enable restaurant owners to build and manage their business without relying on commission-based food ordering marketplaces ● ● ● • Awarded Google Apps Online Partner of the Year for second consecutive year: Wix was recognized by Google for Work for our efforts in promoting and marketing Google Apps through the Wix platform Successful partnership with City Football Group: As the official Website Design & Hosting partner for City Football Group Wix will leverage branding and sponsorship opportunities with Manchester City FC, New York City FC and Melbourne City FC. • Continued mobile growth: Over 15.7 million mobile sites created on the Wix platform to date Significant platform engagement: To date, users have saved over 290 million contacts onto the Wix platform ● ● Wix.com st 4#5Users and Subscriptions 32% Y/Y Registered Users (Millions, at End of Period) 11 14 17 20 22 Wix.com 25 28 32 36 39 42 46 50 50 58 63 68 72 77 82 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2013 2014 2015 2016 2012 Premium Subscriptions (Thousands, at End of Period) 549 223 266 298 338378414470 627 707 790 1,019 908 1,125 1,233 1,371 1,503 1,643 41% Y/Y 1,938 1,767 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 2016#6| Constant Currency - Collections and Revenues Collections ($ Millions) 77% $30 88% $53 74% $99 51% $171 $258 39% 1 $77 $56 2011 2012 2013 2014 2015 Q1'15 Q1'16 ¹Assumes constant FX rates from Q1'15 to Q1'16 and full year 2014 to full year 2015 Wix.com Revenues ($ Millions) $212 50% $142 ail. 76% 84% $80 41%. 78% $44 $45 $25 2011 2012 $63 2013 2014 2015 Q1'15 Q1'16 6#7| Reported - Collections and Revenues Collections ($ Millions) Constant Currency¹: 2015: $257.8mm, 51% Y/Y 1Q16: $77.5mm, 39% Y/Y 88% 77% $53 $30 74% $99 41% $171 $242 35% $56 $76 2011 2012 2013 2014 2015 Q1'15 Q1'16 ¹Assumes constant FX rates from Q1'15 to Q1'16 and full year 2014 to full year 2015 Wix.com Revenues ($ Millions) 78% $25 2011 84% $44 2012 76% $80 43% $142 $204 Constant Currency¹: 2015: $212.3mm, 50% Y/Y 1Q16: $62.7mm, 41% Y/Y 38% $45 $62 2013 2014 2015 Q1'15 Q1'16 7#8Deferred Revenue Growth Deferred Revenue ($ Millions) 86% $10 2011 ات 96% $19 2012 79% $37 2013 Deferred Revenue nearly all realized over next 12 months 57% $67 2014 $105 2015 ¹Assumes constant FX rates from Q1'15 to Q1'16 and full year 2014 to full year 2015 Wix.com Revenues ($ Millions) 78% $25 2011 84% $44 76% $80 43% $142 2012 2013 2014 $204 Constant Currency¹: 2015: $212.3mm, 50% Y/Y 1Q16: $62.7mm, 41% Y/Y 38% $45 $62 2015 Q1'15 Q1'16 8#9Consistent Behavior Active Premium Subscriptions from Q1 User Cohorts New Registered Users ↓ 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 919,221 126,962 Wix.com 102,980 92,019 62,071 33,747 29,612 18,513 Note: Data as of March 31, 2016 153,423 123,985 1 2 3 4 5 6 7 8 9 10 80,818 11 12 13 14 15 16 Number of Quarters Passed 35,326 27,397 17 18 19 20 21 22 23 24 25 18,940#10Shift to Annual Subscriptions % of New Subscriptions 51% 49% 55% 45% Wix.com 64% 36% 74% 73% 75% 77% 26% 27% 25% 23% Note: Data as of March 31, 2016 79% 77% 21% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 -Annual-Monthly 23% % of Total Subscriptions 16% Annual 84% Monthly 10#11Ongoing Cohort Conversions % of New Subscriptions by Prior and Current User Cohorts 60% 40% Q2'14 61% Wix.com 39% Q3'14 Note: Data as of March 31, 2016 64% 36% Q4'14 60% 40% Q1'15 -Prior user cohorts 62% 38% Q2'15 -Current user cohort 58% 42% Q3'15 63% 37% Q4'15 60% 40% Q1'16 11#12Growing 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 12#13Marketing Efficiency One Time Marketing, Ongoing Monthly Collections After 1 Quarter 0.6x $25 $14 To Date Q1'16 Cohort¹ After 5 Quarters 1.7x $19 $32 To Date Q1'15 Cohort¹ After 9 Quarters 2.6x Cohort Net Collections ($mm) $18 Marketing Cost ($mm) Note: Data as of March 31, 2016 ¹Excludes $6 million in Q1'15 and ~$7 million in Q1'16 for brand marketing expenses Wix.com $46 To Date Q1'14 Cohort After 13 Quarters 5.1x $41 To Date Q1'13 Cohort After 17 Quarters 5.0x $23 To Date $5 Q1'12 Cohort 13#14Increasing Revenue per Subscription Wix.com $36.70 $2.50 $34.20 Q1'15 $37.31 $3.50 $33.81 Q2'15 $38.57 $4.50 $34.07 Q3'15 $38.58 $5.25 $33.33 Q4'15 $37.49 $4.25 $33.24 Q1'16 ■ARPS (1) Adjustments (2) (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 14#15Increasing Geographic Penetration Revenue by Geography (% of Total) 9% 17% 71% 3% 2010 13% 10% 27% 50% Q1'16¹ North America ■ Europe Latin America Asia and others ¹Revenue by Geography and % Y/Y change based on constant FX rates from Q1'15 Wix.com 48% Y/Y 47% Y/Y 41% Y/Y 38% Y/Y Growth Rate vs. Q1'15 (Constant currency basis) 15#16Overview of FX Impact (in thousands) Collections F/X impact on Q1'16 using Q1'15 rates Collections excluding FX impact (in thousands) Collections F/X impact on Q1'16 using Q4'15 rates Collections excluding FX impact Wix.com Q1 '15 $55,869 $55,869 Q4 '15 $66,870 $66,870 Q1 '16 $75,694 1,790 $77,484 Q1 '16 $75,694 131 $75,825 Y/Y% 39% Q/Q% 13% 16#17Non 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 2011 $29,648 $24,600 79% $12,807 52% $21.364 87% 73% $2,806 11% ($12,457) (50%) ($17,923) 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) Q1 '15 $49,279 $44,524 83% $15,384 35% $31,357 70% 56% $3,329 8% ($493) (1%) ($9,604) Q1 '16 $75,694 $61,586 84% $20,041 33% $39,423 64% 52% $4,304 7% $2,664 4% ($5,397) Y/Y% 35% 38% 30% 26% 27% N/M N/M 17#18APPENDIX 18#19Reconciliation of GAAP to Non-GAAP (in thousands) Revenues Change in Deferred Revenues Collections Wix.com 2011 $24,600 5,048 29,648 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 Q1 '15 $44,524 $11,345 $55,869 Q1 '16 $61,586 $14,108 $75,694 19#20Reconciliation 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 2011 ($22,740) 41 127 212 592 4,733 5,040 (470) (12,457) 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 Q1 '15 ($16,026) 332 (1,063) (1) 556 925 155 4,048 11,345 (764) ($493) Q1 '16 ($19,912) (587) 399 O 649 1,244 187 1,183 6,137 14,108 (744) $2,664 20#21Reconciliation 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 ($17,923) 2012 $34,443 105 $34,548 ($14,972) 1,254 ($13,718) 2013 $65,216 490 $65,706 ($28,720) 7,767 ($20,953) 2015 $168,548 1,353 $116,738 $169,901 ($56,566) ($51,334) 2014 $115,733 1,005 16,319 ($40,247) 19,980 ($31,354) Q1'15 $36,713 295 $37,008 ($16,026) 4,315 ($11,711) Q1'16 $51,079 428 $51,507 ($19,912) 7,682 ($12,230) 21

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