Wix Results Presentation Deck

Average revenue per subscription (ARPS) increased to $157 in Q2 from $154 in Q1 2018. ARPS is calculated as total revenue over the last four quarters divided by the average number of subscriptions over the same period. The increase was driven by adoption of vertical applications and an improved mix of higher priced subscription packages. We believe that ARPS is the best measurement of our monetization per subscription going forward. Non-GAAP gross margin was 80% of revenue in Q2. Under ASC 605, second quarter 2018 non-GAAP gross margin as a percent of revenue would have also been 79%. We continue to benefit from scale, efficient resource management and the use of multiple providers to meet the growing bandwidth and storage needs of our users. Non-GAAP R&D expense was $37.8M in Q2 compared to $36.8M in Q1 2018 and $29.2M in Q2 2017. As a percent of collections, R&D expense was 24% in Q2 2018, compared to 23% in Q1 2018 and 25% in Q2 2017. The incremental margin on R&D expenses compared to the prior year is a reflection of our ability to drive positive returns through investment in product development and innovation. The success of several products released in recent years, most notably Wix ADI, prove our ability to drive positive returns on R&D investments. We anticipate further leverage in R&D driven by recent products such as Wix Code. Wix.com - 6- Non-GAAP Gross Margin Q2'18 gross margin includes the impact of the Google agreement accounting change 83% 2015 28% 85% 2016 2015 85% Non-GAAP R&D as a % of Collections 84% 2016 2017 Q2'17 26% 25% Im 25% 80% Q2'18 24% 2017 Q2'17 Q2'18

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