Wix Results Presentation Deck

due to strong adoption of our vertical applications and continued improvement in conversion. Our growth in the US is even more impressive given our scale with over 50% of our revenue coming from the US. Our gross margin on a non-GAAP basis was 86% of revenue in Q3 compared to 84% last year and was 87% of collections, compared to 85% in Q3 last year. Our performance this quarter was consistent with the long-term target we shared at our analyst day in Q2'16. R&D expense in the quarter on a non-GAAP basis was $22.2 million compared to $17.4 million in Q3 last year. The increase was primarily due to headcount increases to support our new product initiatives, including Wix ADI and a second major product. We still plan to soft-launch this product in 2016 and fully launch it publicly by spring of 2017. R&D expense was 25% of collections compared to 28% of collections in Q3 last year and 26% in Q2 2016. Our top line continues to grow faster than our R&D expense and we continue to generate incremental leverage on our technology investments on a year over year basis. We still expect R&D at 26% of collections in 2016 and are tracking very well against our target of 18-20%. S&M expense during the quarter was $38.7 million on a non-GAAP basis, up from $28.5 million last year as we continued to invest marketing globally to grow our user base and increase our overall brand awareness while remaining within our Time to Return on Investment (TROI) target range. Our strong top- line performance enabled us to invest more in marketing to grow our users during the quarter. We also incurred production and media costs for the global marketing launch of Wix ADI, and we supported the launch of new products including the Wix App and the Wix Pro Gallery. We continue to realize significant marketing leverage as S&M expense was 44% of collections compared to 46% of collections in the same quarter last year. We expect S&M in the range of 43-45% of collections for the full year Non-GAAP Gross Profit as a % Collections 84% 2014 30% 2014 56% 2014 28% 2015 85% 2015 Non-GAAP R&D as a % Collections 48% 26% 2015 2016E 85% 143 -45% Q3'15 Non-GAAP S&M as a % Collections 2016E 28% Q3'15 46% Q3'15 87% Q3'16 25% Q3'16 44% Q3'16 Wix.com

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