Wix Results Presentation Deck

cash flow while maintaining investment in the business to drive growth. Our GAAP losses narrowed, and we generated positive operating income of $3.5 million on a non-GAAP basis. Our total cash balance increased $21.6 million to $186.2 million at the end of Q2. Reaffirming financial guidance for 2017. The success we experienced in Q1 2017 carried into Q2, and we are anticipating the momentum to continue through the second half of the year. We materially raised our guidance after strong Q1 results and reaffirm that same guidance for the year. Financial Performance Revenue of $103.5 million was a new record and also exceeded the high end of our prior guidance of $101-102 million. Revenue growth accelerated to 51% year over year from 50% last quarter. Collections were a record $117.1 million in Q2 2017, above the high end of our guidance range of $116-117 million, and 44% higher than Q2 2016. The strong growth in Collections was primarily the result of continued improvements in conversion of registered users to premium subscriptions and due to continued improvement in our strong renewal activity. Collections per new subscription remained $156 in Q2, an 8% increase over Q2 2016. Users continue to purchase subscriptions with a vertical application attached. Wix Stores and Wix Bookings continue to be our most popular vertical applications. New premium subscription purchased with a vertical application in Q2 increased 42% over the year ago quarter. Non-GAAP gross margin was 84% of revenue compared to 85% in the year ago quarter and 84% in Q1 2017. The slight decline in gross margin was attributed to primarily increased hosting costs associated with DeviantArt. Over time, we anticipate hosting costs associated to DeviantArt will decline as its infrastructure - 3- $61.6 $75.7 $68.7 $141 $81.5 Revenue (in $ Mn) $75.6 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Collections (in $ Mn) $145 Q1'16 Q2'16 $84.2 $87.3 $92.5 $97.6 $150 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 51% Y/Y Collections per New Annual Subscriptions $103.5 $153 44% Y/Y $114.5 $117.1 $156 $156 Q3'16 Q4'16 Q1'17 Q2'17 Wix.com

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