PR Newswire | Aug 6, 2020 01:00AM EDT

08/06 00:00 CDT

Wix Reports Outstanding Second Quarter 2020 Results- Momentum across the platform led to a record breaking quarter-- Added over 9.3 million registered users in Q2, an increase of 64% y/y-- Revenue of $236.1 million, up 27% y/y; 28% y/y on a y/y constant currency basis-- Collections of $265.9 million, up 33% y/y; 35% y/y on a y/y constant currency basis-- Creative Subscriptions ARR increased 22% y/y to $790.9 million as of Q2-- Net subscriptions additions of 346,000 in Q2, bringing total premium subscriptions to over 5 million; total net additions in 1H 2020 nearly as much as all of 2019- July 2020 results show strong growth continuing in Q3- Responding swiftly to opportunity with increasing marketing investment as the need for online creation and commerce rapidly grows-- Investing capital into growth demonstrated by future collections of the Q2 user cohort over the next 8 years expected to be approximately 90% higher than the prior year's cohort- Continued execution with significant product launches: expanded eCommerce capabilities and Editor X public release delivered on time to further help users create and grow online- Initiating Q3 outlook for revenue and collections, reflecting sustained momentum -- expecting revenue growth of 26-27% y/y and collections growth of 31-34% y/y in Q3 NEW YORK, Aug. 6, 2020

NEW YORK, Aug. 6, 2020 /PRNewswire/ -- Wix.com Ltd. (Nasdaq: WIX) today reported strong financial results for the second quarter ended June 30, 2020, exceeding the high end of its guidance ranges for both revenue and collections. In addition, the Company provided its initial outlook for the third quarter of 2020.

"The trends that began in late March continued throughout the second quarter, driving record-setting results," said Avishai Abrahami, Co-founder and CEO of Wix. "The need for business owners to move online quickly, communicate with customers, and deliver goods and services has never been more imminent, and the Wix platform continues to provide millions of users with the ability to thrive during these unprecedented times. Our focus remains on the success of our users, and we continue to deliver innovative products and technology, marked this quarter by the public launch of Editor X and our expanded eCommerce offering."

Nir Zohar, President and COO of Wix added, "Throughout the second quarter, we continued to experience positive trends as a result of continued economic disruption globally. Our results in July tell us that these trends are continuing, potentially indicating a new baseline of growth for our business. We will continue to support our users in their needs so they can be successful throughout the ongoing disruptions to their lives and businesses."

Lior Shemesh, CFO of Wix said, "Our business has seen an immense uplift in demand in recent months, driven by the rapidly increasing importance of having an online presence. We added a record 9.3 million users and 346,000 net premium subscriptions in the second quarter, reflecting this strong demand and our ability to meet the needs of our users. We are responding to this continued heightened demand by increasing our investment in marketing, which based on our historical data, will drive continued collections and revenue growth in the near future."

Q2 2020 Financial Results

* Total revenue in the second quarter of 2020 was $236.1 million, compared to $185.4 million in the second quarter of 2019, an increase of 27% y/y * On a y/y constant currency basis, Q2 revenue would have been $237.9 million, up 28% y/y * Creative Subscriptions revenue in the second quarter of 2020 was $190.2 million, compared to $157.0 million in the second quarter of 2019, an increase of 21% y/y * Business Solutions revenue in the second quarter of 2020 was $45.9 million, compared to $28.4 million in the second quarter of 2019, an increase of 62% y/y

* Creative Subscriptions ARR was $790.9 million in the second quarter of 2020, compared to $648.2 million in the second quarter of 2019, an increase of 22% y/y * Total collections in the second quarter of 2020 were $265.9 million, compared to $199.6 million in the second quarter of 2019, an increase of 33% y/y * On a y/y constant currency basis, Q2 collections would have been $269.8 million, up 35% y/y * Creative Subscriptions collections in the second quarter of 2020 were $217.7 million, compared to $170.5 million in the second quarter of 2019, an increase of 28% y/y * Business Solutions collections in the second quarter of 2020 was $48.2 million, compared to $29.1 million in the second quarter of 2019, an increase of 66% y/y

* Our Q2 user cohort generated $10 million in revenue and $38 million in collections in Q2, which are 66% higher than the year ago cohort. Users purchased Business and eCommerce subscription packages and annual and multi-year packages at a higher frequency * Total gross margin on a GAAP basis in the second quarter of 2020 was 70%, compared to 75% in the second quarter of 2019. Total GAAP gross margin declined y/y due to incremental investments in Customer Care and sequentially due to the faster revenue growth of the Business Solutions segment * Creative Subscriptions gross margin on a GAAP basis was 80%, compared to 81% in the second quarter of 2019. The y/y decline was related to the investment in expanding our Customer Care organization * Business Solutions gross margin on a GAAP basis was 30% compared to 39% in the second quarter of 2019. The decline was related primarily to the growth of Wix Payments and the expansion of Customer Care

* Total non-GAAP gross margin in the second quarter of 2020, calculated as non-GAAP gross profit as a percent of revenue, was 71%, compared to 76% in the second quarter of 2019. Total non-GAAP gross margin declined y/y due to incremental investments in Customer Care and sequentially due to the faster revenue growth of the Business Solutions segment * Creative Subscriptions gross margin on a non-GAAP basis was 81%, compared to 82% in the second quarter of 2019. The y/y decline was related to the investment in expanding our Customer Care organization * Business Solutions gross margin on a non-GAAP basis was 32%, compared to 40% in the second quarter of 2019. The decline was related primarily to the growth of Wix Payments and the expansion of Customer Care

* GAAP net loss in the second quarter of 2020 was $(57.7) million, or $(1.06) per share, compared to a net loss of $(16.7) million, or $(0.33) per share, for the second quarter of 2019 * Non-GAAP net loss in the second quarter of 2020 was $(14.2) million, or $(0.26) per share, compared to non-GAAP net income of $17.0 million, or $0.34 per share for the second quarter of 2019 * Net cash provided by operating activities in the second quarter of 2020 was $50.0 million, while capital expenditures totaled $3.3 million, leading to free cash flow of $46.7 million, compared to $30.8 million of free cash flow in the second quarter of 2019, a 52% year-over-year increase * Excluding the capex investment associated with our new headquarters office build out, free cash flow would have been $47.1 million, up 53% y/y

* Added 346,000 net premium subscriptions in the second quarter of 2020 to reach 5.0 million as of June 30, 2020, a 17% increase over the total number of premium subscriptions at the end of the second quarter of 2019 * Added 9.3 million registered users in the second quarter of 2020. Registered users as of June 30, 2020 were 182 million, representing a 18% increase compared to the end of the second quarter of 2019

Recent Business Highlights

* Launched extended eCommerce solution, offering merchants access to advanced online business tools, such as dropshipping, automated sales tax calculations, streamlined order and fulfillment, and integrated sales channels, including social media and marketplaces * Announced the official launch of a new brand and innovative website creation platform, Editor X. Previously available in a closed beta program and now open to the public, Editor X caters to web designers and agencies who are looking for advanced design capabilities * Launched eCommerce solution for U.S. based merchants selling hemp-derived cannabidiol (CBD) products online, enabling these merchants to create an eCommerce website, process payments online, manage and ship inventory and grow their CBD businesses where government and state regulations permit * Expanded Customer Care team to a new office in Denver, Colorado to bolster existing efforts to provide best-in-class service to millions of users * Conducted the third annual Wix Playground Academy, a three month intensive web design program taught by Wix professionals and award-winning designers, in a completely online format for the first time. The students participated in the Social Good Project, building websites for 14 non-profits

Financial Outlook

Our outlook for Q3 reflects continued momentum of new registered users as well as the growth in monetization of our user cohorts. We believe these behaviors will drive y/y collections growth above 31% in Q3.

During Q2, we increased advertising investment by approximately 90% y/y, and we acquired the largest user cohort in our history, which we expect will return future collections that are approximately 90% higher than the previous year's Q2 cohort. This return supports our decision to be more aggressive with our marketing investment. We plan to continue the increased investment in advertising as long as positive returns continue.

Our Marketing team responded to the surge in demand quickly and aggressively, a testament to the strength of our team. We believe this level investment will drive higher revenue and collections over the coming years and will expand profitability and free cash flow over time as well.

We are introducing Q3 guidance as follows:

Q3 2020 Outlook Y/Y growth

Revenue $247 - 250 million26 - 27%

Collections $270 - 275 million31 - 34%

Free Cash Flow $15 - 17 million (42) - (49)%

Free Cash Flow (excluding ~$1 million in $16 - 18 million (38) - (45)%capex for future Wix HQ office build out)

This guidance assumes FX rates as of today. We continue to experience trends that are tailwinds to our top line growth. However, given the uncertainty related to COVID-19 and macroeconomic conditions, it is difficult to predict how long and to what degree these trends will remain; therefore, we are only providing guidance for the third quarter at this time.

Conference Call and Webcast Information

Wix will host a conference call at 8:30 a.m. ET on Thursday, August 6, 2020 to answer questions about the financial and operational performance of the business for the second quarter ended June 30, 2020. The conference call will include a brief statement by management and will focus on answering questions about our results during the quarter. To enhance the Q&A portion of this call, the Company has posted a shareholder update and supporting slides to its Investor Relations website at https://investors.wix.com/. These materials provide shareholders and analysts with additional detail for analyzing results in advance of the quarterly conference call.

To participate on the live call, analysts and investors should dial +1-888-771-4371 (US/ Canada) or +1-847-585-4405 (US Toll) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through August 13, 2020 at 11:59 p.m. ET at https://onlinexperiences.com/Launch/QReg/ShowUUID=D0DBA6CF-E305-452B-976E-19713D114599&LangLocaleID=1033 with passcode 49852245.

Wix will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the Company's website at https://investors.wix.com/.

About Wix.com Ltd.

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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, cumulative cohort collections, collections on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP tax expense (collectively the "Non-GAAP financial measures"). Measures presented on a constant currency or FX neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Collections represent 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. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual. Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual, amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude capital expenditures associated with our new headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization.

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 these measures 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 tables provided below. The accompanying tables have 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 is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, cumulative cohort collections, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company's control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Forward-Looking Statements

This document 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, including, but not limited to revenue, collections and free cash flow, and may be identified by words like "anticipate," "assume," "believe," "aim," "forecast," "indication," "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 document, including the full year guidance, 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, including through our Wix Partner Program; uncertainty surrounding the duration and severity of COVID-19 and its effects on our business, including changes in consumer dynamics shifting to online and increased GMV on our platform; our ability to create new and higher monetization opportunities from our premium subscriptions; our ability to enter into new markets, and attract new customer segments, and our ability to successfully enter into partnership agreements; our ability to maintain and enhance our brand and reputation; our prediction of the future collections generated by our user cohorts; our share repurchases made pursuant to our share repurchase plan; our ability to manage the growth of our infrastructure effectively; our ability to effectively execute our initiatives to scale and improve our user support function, including through the recent expansion of our Customer Solutions organization by engaging additional agents around the world to provide 24/7 support in nine different languages; the success of our sales efforts; customer acceptance and satisfaction of new products and other challenges inherent in new product development; changes to technologies used in our solutions; or changes in global, national, regional or local economic, business, competitive, market, regulatory and other factors discussed under the heading "Risk Factors" in the Company's 2019 annual report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2020. Any forward-looking statement made by us in this press release 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.

Investor RelationsMaggie O'Donnellir@wix.com914-267-7390

Media Relations:pr@wix.com

Wix.com Ltd.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(In thousands, except loss per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Revenue

Creative $ 157,012 $ 190,169 $ 308,376 $ 366,715Subscriptions

Business 28,407 45,890 51,333 85,331Solutions

185,419 236,059 359,709 452,046

Cost of Revenue

Creative 29,296 38,510 55,943 73,900Subscriptions

Business 17,366 31,972 30,434 58,652Solutions

46,662 70,482 86,377 132,552

Gross Profit 138,757 165,577 273,332 319,494

Operatingexpenses:

Research and 61,486 75,464 119,669 146,180development

Selling and 71,329 119,333 157,047 215,489marketing

General and 20,103 24,531 38,569 49,967administrative

Total operating 152,918 219,328 315,285 411,636expenses

Operating loss (14,161) (53,751) (41,953) (92,142)

Financial (580) (3,339) (2,310) (2,194)expenses, net

Other income 8 28 32 59(expenses)

Loss before (14,733) (57,062) (44,231) (94,277)taxes on income

Taxes on income 2,001 674 3,243 2,612

Net loss $ (16,734) $ (57,736) $ (47,474) $ (96,889)

Basic anddiluted net loss $ (0.33) $ (1.06) $ (0.95) $ (1.82)per share

Basic anddilutedweighted-average 50,273,017 54,695,477 49,917,692 53,266,895shares used tocompute net lossper share

Wix.com Ltd.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

Period ended

December 31, June 30,

2019 2020

Assets (audited) (unaudited)

Current Assets:

Cash and cash equivalents $ $ 268,103 173,950

Short term deposits 294,096 406,033

Restricted cash and deposit 1,149 925

Marketable securities 164,301 174,624

Trade receivables 16,987 18,830

Prepaid expenses and other current 19,211 49,888assets

Total current assets 763,847 824,250

Long Term Assets:

Property and equipment, net 31,706 32,926

Marketable securities 177,298 245,211

Prepaid expenses and other long-term 9,926 13,243assets

Intangible assets and goodwill, net 37,641 44,509

Operating lease assets 79,249 81,112

Total long-term assets 335,820 417,001

Total assets $ 1,099,667 $ 1,241,251

Liabilities and Shareholder's Equity

Current Liabilities:

Trade payables $ $ 37,687 73,059

Employees and payroll accruals 41,938 66,306

Deferred revenues 289,148 344,515

Accrued expenses and other current 56,464 65,036liabilities

Operating lease liabilities 18,949 17,372

Total current liabilities 444,186 566,288

Long term deferred revenues 21,969 29,265

Long term deferred tax liability 1,585 1,574

Convertible senior notes 358,715 369,664

Long term loan 1,219 1,219

Long term operating lease liabilities 64,244 68,402

Total long term liabilities 447,732 470,124

Total liabilities 891,918 1,036,412

Shareholders' Equity

Ordinary shares 94 104

Additional paid-in capital 611,083 695,412

Other comprehensive loss 1,357 10,997

Accumulated deficit (404,785) (501,674)

Total shareholders' equity 207,749 204,839

Total liabilities and shareholders' equity $ 1,099,667 $ 1,241,251

Wix.com Ltd.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

OPERATING ACTIVITIES:

Net loss $ (16,734) $ (57,736) $ (47,474) $ (96,889)

Adjustments toreconcile net loss tonet cash used inoperating activities:

Depreciation 2,927 3,537 5,585 7,109

Amortization 738 566 1,470 1,132

Share based 27,565 34,967 52,472 65,685compensation expenses

Amortization ofdebt discount and 5,194 5,516 10,311 10,949debt issuance costs

Decrease in accruedinterest and exchangerate on short term 105 15 594 62and long termdeposits

Amortization ofpremium and discountand accrued interest (10) 438 41 717on marketablesecurities, net

Deferred income 402 (55) 533 (1,721)taxes, net

Changes inoperating lease - 5,158 - 9,446right-of-use assets

Changes inoperating lease - (4,588) - (9,817)liabilities

Decrease (increase) 161 (1,765) (4,532) (1,617)in trade receivables

Increase in prepaidexpenses and other (3,942) (6,931) (11,141) (21,605)current and long-termassets

Increase (decrease) (3,222) 26,172 1,328 34,974in trade payables

Increase inemployees and payroll 4,223 11,585 12,235 23,694accruals

Increase in shortterm and long term 14,144 29,792 40,233 62,663deferred revenues

Increase in accruedexpenses and other 5,629 3,287 10,599 10,203current liabilities

Net cash provided by 37,180 49,958 72,254 94,985operating activities

INVESTING ACTIVITIES:

Proceeds fromshort-term deposits 55,000 9,225 81,775 26,225and restricteddeposits

Investment inshort-term deposits - (49,000) (26,000) (138,000)and restricteddeposits

Investment in (108,693) (100,867) (136,616) (230,168)marketable securities

Proceeds from 21,601 65,656 29,056 154,911marketable securities

Purchase ofproperty and (6,235) (3,264) (11,065) (8,207)equipment

Capitalization ofsoftware development (191) - (389) (132)costs

Investment in othershort and long-term (2,800) (643) (2,800) (5,643)assets

Payment for - - - (6,626)Businesses acquired

Purchases ofinvestments in - (685) - (785)privately-heldcompanies

Net cash used in (41,318) (79,578) (66,039) (208,425)investing activities

FINANCING ACTIVITIES:

Proceeds fromexercise of options 7,512 12,312 14,190 19,287and ESPP shares

Net cash providedby financing 7,512 12,312 14,190 19,287activities

INCREASE (DECREASE)IN CASH AND CASH 3,374 (17,308) 20,405 (94,153)EQUIVALENTS

CASH AND CASHEQUIVALENTS-Beginning 348,088 191,258 331,057 268,103of period

CASH AND CASHEQUIVALENTS-End of $ 351,462 $ 173,950 $ 351,462 $ 173,950period

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Creative 157,012 190,169 308,376 366,715Subscriptions

Business 28,407 45,890 51,333 85,331Solutions

Total Revenue $ 185,419 $ 236,059 $ 359,709 $ 452,046

Creative 170,493 217,696 347,387 426,493Subscriptions

Business 29,070 48,155 52,555 88,216Solutions

Total $ 199,563 $ 265,851 $ 399,942 $ 514,709Collections

Free Cash Flow $ 30,754 $ 46,694 $ 60,800 $ 86,646

CreativeSubscriptions $ 648,176 $ 790,916 $ 648,176 $ 790,916ARR

Number ofregistered 154,039 181,585 154,039 181,585users atperiod end (*)

Number ofpremiumsubscriptions 4,295 5,007 4,295 5,007at period end(*)

(*) Excludes users and subscriptions of DeviantArt

Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Revenues $ 185,419 $ 236,059 $ 359,709 $ 452,046

Change indeferred 14,144 29,792 40,233 62,663revenues

Collections $ 199,563 $ 265,851 $ 399,942 $ 514,709

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

CreativeSubscriptions $ 157,012 $ 190,169 $ 308,376 $ 366,715Revenue

Change indeferred 13,481 27,527 39,011 59,778revenues

CreativeSubscriptions $ 170,493 $ 217,696 $ 347,387 $ 426,493Collections

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

BusinessSolutions $ 28,407 $ 45,890 $ 51,333 $ 85,331Revenue

Change indeferred 663 2,265 1,222 2,885revenues

BusinessSolutions $ 29,070 $ 48,155 $ 52,555 $ 88,216Collections

Wix.com Ltd.

RECONCILIATION OF REVENUES AND COLLECTIONS EXCLUDING FX IMPACT

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Revenues $ 185,419 $ 236,059 $ 359,709 $ 452,046

FX impact onQ2/20 using Q2 - 1,824 - 3,335/19 rates

Revenueexcluding FX $ 185,419 $ 237,883 $ 359,709 $ 455,381impact

Y/Y% 28% 27%

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Collections $ 199,563 $ 265,851 $ 399,942 $ 514,709

FX impact onQ2/20 using Q2 - 3,922 - 6,271/19 rates

Collectionsexcluding FX $ 199,563 $ 269,773 $ 399,942 $ 520,980impact

Y/Y% 35% 30%

Wix.com Ltd.

TOTAL ADJUSTMENTS GAAP TO NON-GAAP

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(1) Sharebased (unaudited) (unaudited)compensationexpenses:

Cost of $ 1,436 $ 1,869 $ 2,747 $ 3,500revenues

Research and 14,119 18,216 26,375 34,401development

Selling and 4,506 5,395 9,254 9,963marketing

General and 7,504 9,487 14,096 17,821administrative

Total sharebased 27,565 34,967 52,472 65,685compensationexpenses

(2) 738 566 1,470 1,132Amortization

(3)Acquisition 53 1,697 53 2,636relatedexpenses

(4)Amortizationof debt 5,194 5,516 10,311 10,949discount anddebt issuancecosts

(5) Sales taxaccrual andother G&A - (485) - 1,489expenses(income)

(6)Non-operatingforeign 140 1,305 1,592 432exchangeexpenses(income)

Totaladjustments of $ 33,690 $ 43,566 $ 65,898 $ 82,323GAAP to NonGAAP

Wix.com Ltd.

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Gross Profit $ 138,757 $ 165,577 $ 273,332 $ 319,494

Share basedcompensation 1,436 1,869 2,747 3,500expenses

Acquisitionrelated - 305 - 305expenses

Amortization 141 - 283 -

Non GAAP Gross 140,334 167,751 276,362 323,299Profit

Non GAAP Gross 76% 71% 77% 72%margin

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Gross Profit -Creative $ 127,716 $ 151,659 $ 252,433 $ 292,815Subscriptions

Share basedcompensation 1,226 1,485 2,375 2,807expenses

Non GAAP GrossProfit - 128,942 153,144 254,808 295,622CreativeSubscriptions

Non GAAP Grossmargin - 82% 81% 83% 81%CreativeSubscriptions

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Gross Profit -Business $ 11,041 $ 13,918 $ 20,899 $ 26,679Solutions

Share basedcompensation 210 384 372 693expenses

Acquisitionrelated - 305 - 305expenses

Amortization 141 - 283 -

Non GAAP GrossProfit - 11,392 14,607 21,554 27,677BusinessSolutions

Non GAAP Grossmargin - 40% 32% 42% 32%BusinessSolutions

Wix.com Ltd.

RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS)

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Operating loss $ (14,161) $ (53,751) $ (41,953) $ (92,142)

Adjustments:

Share basedcompensation 27,565 34,967 52,472 65,685expenses

Amortization 738 566 1,470 1,132

Sales taxaccrual andother G&A - (485) - 1,489expenses(income)

Acquisitionrelated 53 1,697 53 2,636expenses

Total $ 28,356 $ 36,745 $ 53,995 $ 70,942adjustments

Non GAAPoperating $ 14,195 $ (17,006) $ 12,042 $ (21,200)income (loss)

Wix.com Ltd.

RECONCILIATION OF NET LOSS TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NETINCOME (LOSS) PER SHARE

(In thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Net loss $ (16,734) $ (57,736) $ (47,474) $ (96,889)

Share basedcompensationexpense and 33,690 43,566 65,898 82,323other Non GAAPadjustments

Non-GAAP net $ 16,956 $ (14,170) $ 18,424 $ (14,566)income (loss)

Basic NonGAAP net $ 0.34 $ (0.26) $ 0.37 $ (0.27)income (loss)per share

Weightedaverage sharesused incomputing 50,273,017 54,695,477 49,917,692 53,266,895basic Non GAAPnet income(loss) pershare

Wix.com Ltd.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Net cashprovided by $ 37,180 $ 49,958 $ 72,254 $ 94,985operatingactivities

Capitalexpenditures, (6,426) (3,264) (11,454) (8,339)net

Free Cash Flow $ 30,754 $ 46,694 $ 60,800 $ 86,646

Capex relatedto future Wix - 408 - 891HQ officebuild-out

Free CashFlow,excludingcapex related $ 30,754 $ 47,102 $ 60,800 $ 87,537to future WixHQ officebuild-out

Wix.com Ltd.

RECONCILIATION OF BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THEDILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

Three Months Ended Six Months Ended

June 30, June 30,

2019 2020 2019 2020

(unaudited) (unaudited)

Basic anddilutedweighted 50,273,017 54,695,477 49,917,692 53,266,895average numberof sharesoutstanding

The followingitems havebeen excludedfrom thedilutedweightedaverage numberof sharesoutstandingbecause theyareanti-dilutive:

Stock options 7,744,708 4,906,490 7,744,708 4,906,490

Restricted 2,289,069 2,190,991 2,289,069 2,190,991share units

ConvertibleNotes 3,104,251 3,104,251 3,104,251 3,104,251(if-converted)

63,411,045 64,897,209 63,055,720 63,468,627

Wix.com Ltd.

RECONCILIATION OF REVENUES TO COLLECTIONS

(In thousands)

Three Months Ended

September 30,

2019

(unaudited)

Revenues $ 196,791

Change in deferred 9,069revenues

Collections $ 205,860

Wix.com Ltd.

RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS

(In thousands)

Three Months Ended

September 30, 2020

Low High

Projected revenues 247,000 250,000

Projected change in 23,000 25,000deferred revenues

Projected Collections $ $ 270,000 275,000

Wix.com Ltd.

RECONCILIATION OF COHORT COLLECTIONS

(In millions)

Three Months Ended

June 30,

2019 2020

Q2 Cohort revenues 6 10

Q2 Change in deferred 17 28revenues

Q2 Cohort Collections $ $ 23 38

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SOURCE Wix.com Ltd.