Wix.com Reports Second Quarter 2015 Results

Reports Strong Top Line Growth and Positive Adjusted EBITDA and Free Cash Flow, Becoming a Unique Combination of High Growth and Profitability

—Second quarter collections increased to $57.4 million, a 44% increase year-over-year and to $61.7 million, a 55% increase on a constant currency basis—

— Second quarter revenues increased to $48.6 million, a 43% increase year-over-year —

— Positive adjusted EBITDA of $3.5 million, the Company’s first profitable quarter in its history —

— Added 132,000 net premium subscriptions for a total of over 1.5 million —

TEL AVIV, Israel, Aug. 5, 2015  — Wix.com Ltd. (Nasdaq:WIX), a leading global web development platform, today reported financial results for the second quarter ended June 30, 2015.

“Our innovative products and technology platform answers a clear and constantly growing market need and continued to generate strong growth in premium subscriptions, collections and revenue in the second quarter. I am also happy to report that we achieved positive adjusted EBITDA and free cash flow for the first time in our history, a significant milestone,” said Avishai Abrahami, CEO and Co-founder of Wix.

“More and more, businesses and individuals are choosing Wix to build and manage their online presence. We added nearly five million registered users in the quarter, the most in our history, and added 132,000 net premium subscriptions. Looking ahead, we remain excited about our ability to attract new users and subscriptions to our platform based on the power and  accessibility of our offerings.”

Lior Shemesh, CFO of Wix, commented, “The achievement of positive adjusted EBITDA for the first half of the year and our expectation that we will maintain profitability going forward reflects our success in scaling our business and the benefits of the operating leverage inherent in our freemium business model.”

Second Quarter 2015 Results and Highlights

Collections increased 44% to $57.4 million compared to $39.9 million for the second quarter of 2014

Excluding the impact of year-over-year changes in foreign exchange rates, collections would have been $61.7 million, an increase of 55% versus the prior year

Revenues increased 43% to $48.6 million compared to $33.9 million for the second quarter of 2014

GAAP net loss was $(12.3) million, or $(0.31) per share, compared to a net loss of $(13.8) million, or $(0.37) per share, for the second quarter of 2014

Non-GAAP net loss was $(8.2) million, or $(0.21) per share, compared to a non-GAAP net loss of $(10.4) million, or $(0.27) per share, for the second quarter of 2014

Adjusted EBITDA was $3.5 million compared to $(4.3) million for the second quarter of 2014

Added over 132,000 net premium subscriptions in the period to reach 1.5 million as of June 30, 2015, a 48% increase over the prior year

Added nearly 5 million registered users in the second quarter to reach over 67.5 million as of June 30, 2015, a 34% increase compared to the prior year

Business Highlights

Announced technology integration between WixShoutOut and Facebook: The Company announced a technology collaboration with Facebook that provides Wix users a streamlined and simplified way to create and launch Facebook ad campaigns from the Wix platform using WixShoutOut. This integration allows Wix users to maximize reach by automatically creating Facebook Page-post ads from the content of the user’s ShoutOut and launching the campaign from the Wix platform.

Enhanced WixHotels with channel management capabilities: Users of WixHotels are now able to accept and manage bookings that come through over 300 OTAs and marketplaces, including Booking.com, Expedia, AirBnB and Travelocity, through a recently launched partnership with myallocator by Cloudbeds. This new functionality enables easy-to-use channel management for property owners using the WixHotels booking engine, increasing the value of this product for Wix users.

Continued mobile growth: Over 9.3 million mobile sites have been created on the Wix platform to date, making Wix among the largest mobile site development platforms globally. Significant platform engagement: To date, users have saved over 148 million contacts onto the Wix platform,enabling users’ ability to track activity data performed through apps connected to the WixHive, manage customer relationships and communicate using WixShoutOut.

Financial Outlook For the third quarter of 2015, the Company is introducing the following outlook:

The Company is updating its outlook for the full year 2015 as follows:

Conference Call and Webcast Information

Prior to the previously scheduled quarterly conference call, Wix will provide a written summary of the quarter along with a supplemental data sheet and supporting slides. These materials are offered to provide shareholders and analysts with additional time and detail for analyzing results in advance of the Company’s quarterly conference call. The materials will be available approximately one hour before the conference call at http://investors.wix.com/results.cfm.

Wix.com’s second quarter 2015 teleconference and webcast will be held at 8:30 a.m. ET on Wednesday, August 5, 2015 and will include only brief comments by management followed by a question and answer session. The summary document will not be read on the call.

To participate on the live call, analysts and investors should dial 866-393-4306 (US/Canada), 734-385-2616 (International) or 1-809-315-362 (Israel) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through August 12, 2015 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 87859114.

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 http://investors.wix.com/.

Upcoming Events

Wix management will present at the Oppenheimer 18th Annual Technology, Internet & Communications Conference in Boston on August 11, 2015 at 3:05 p.m. ET. Wix has posted a link to the webcast on the “Investor Relations” section of the Company’s website at http://investors.wix.com/.

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, adjusted EBITDA, 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. 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. 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, 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 of GAAP to Non-GAAP Financial Measures” table in this press release. 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.

Forward-Looking Statements

This press release 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,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this press release 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 forwardlooking 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 2014 annual report on Form 20-F filed with the Securities and Exchange Commission on March 31, 2015. 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.