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Wix.com Ltd.$115.45$3.453.08%

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 Wix First Quarter 2017 Results Exceed Expectations as Business Continues to Accelerate - Raises Full Year 2017 Financial Outlook
   Wednesday, May 10, 2017 1:00:00 AM ET

--Free Cash Flow of $14.8 million or $17.5 million excluding DeviantArt acquisition-related costs - an increase over $(2.1) million in Q1 last year

--Added a Record 5.9 million Registered Users(1) - Ended Q1 with over 103 million

--Grew Premium Subscriptions(1) 38% Y/Y to 2.7 Million on Record Net Additions of 208,000

--Increases 2017 Outlook for Collections, Revenue, and Free Cash Flow

Wix.com Ltd. (WIX ), a leading global software platform for small businesses to operate online, today reported another strong quarter of financial results for the first quarter ended March 31, 2017. In addition, the Company provided its initial outlook for its financial performance in the second quarter of 2017 and raised its expectations for the full year 2017.

"Our growth acceleration continues as we begin 2017 with a very strong first quarter," said Avishai Abrahami, Co-founder and CEO of Wix. "We continued to extend our technology leadership through product innovation, efficiently acquire new subscriptions, and grow our brand globally. Continued investment in our platform resulted in the strongest net premium subscriptions additions in our company’s history, and we surpassed the 100 million registered user milestone - an amazing achievement. We also launched our newest product Wix Video, a unique and innovative solution that enables our users to display and distribute video in a fully customized way. We continue to execute very well against our strategic priorities and believe the pipeline of innovation planned for 2017 will result in an even more robust product and technology platform."

Lior Shemesh, CFO of Wix, commented, "Our top-line growth accelerated again this quarter driven by an increased number of registered users and improved overall conversion of registered users to premium subscriptions. These increases drove 40% growth in the net subscriptions we generated from our Q1 2017 user cohort on a year-over-year basis while maintaining the same TROI of 7 to 9 months. We also generated significant free cash flow while continuing to invest in advancing our platform and broader marketing activities, including our Super Bowl campaign. We are raising our full-year financial outlook to reflect our strong Q1 performance and our confidence in the momentum of our business for the remainder of 2017."

Q1 2017 Financial Summary

                                                                                                                                                  
                                                                                                                  Three months ended
                                                                                                                        Mar 31,
                                                                  ------------------------------------------------------------------------------------------------------------
$ in thousands                                                       2017          2016       Y/Y growth                                               Prior Q1 2017
                                                                                                                                                                                                                                      Outlook
                                                                  --------- -------------------- -------------------- ---------                                           ----------                                           --------------------
Revenue                                                             $92,538       $61,586                                               50%                                                $89,000 - 90,000
Collections                                                        $114,546                                             $75,694                                               51%                                               $107,000 - 109,000
Free Cash Flow                                                      $14,781                                            ($2,134)                                               NM
Operating Loss                                                    ($20,471)                                           ($19,768)                                               NM
Non-GAAP Operating Loss                                            ($7,538)                                           ($12,261)                                               NM
                                                                                                                                                                                                                                

Q1 2017 Results and Highlights

-- Revenue increased 50% to $92.5 million compared to $61.6 million for the first quarter last year

-- Collections increased 51% to $114.5 million compared to $75.7 million for the first quarter last year

-- Gross margin on a GAAP basis was 84%, compared to 83% in the first quarter of last year. Non-GAAP gross margin was 85%, compared to 84% in the first quarter of last year

-- GAAP operating loss was $20.5 million compared to loss of $19.8 million in the first quarter a year ago. On a non-GAAP basis, operating loss was $7.5 million compared to an operating loss of $12.3 million in the first quarter last year

-- GAAP net loss was $20.9 million, or $(0.47) per share, compared to a net loss of $19.9 million, or $(0.49) per share for the first quarter of 2016

-- Non-GAAP net loss was $8.0 million, or $(0.18) per share, compared to a non-GAAP net loss of $12.2 million, or $(0.30) per share for the first quarter of 2016

-- Free cash flow was $14.8 million compared to $(2.1) million for the first quarter of 2016. Excluding incremental investments and one-time costs related to the acquisitions of flok and DeviantArt, free cash flow was $17.5 million

-- Added 208,000 net premium subscriptions in the period to reach 2.7 million as of March 31, 2017, a 38% increase over the first quarter of 2016

-- Added 5.9 million registered users in the first quarter. Registered users as of March 31, 2017 were 103 million, representing a 25% increase compared to the first quarter of 2016

Recent Business Highlights

-- Launched Another Significant Product - Wix Video: As video becomes pervasive online, Wix has launched Wix Video, an industry-first product that gives video creators and business owners the power to fully customize and monetize their content. Wix Video provides users with an industry-leading solution for showcasing, sharing and selling videos online. It enables users to combine hosted and third-party videos into a single playlist and ensure high quality streaming and smooth playback due to its adaptive streaming technology. Wix Video also allows users to keep all the revenue they generate and the ability to deliver videos to their customers via subscriptions, rentals or individual purchases.

-- Acquired DeviantArt, Pairing Wix Capabilities with Creative Global Community: Wix acquired DeviantArt, one of the world’s largest online communities dedicated to artists, art enthusiasts and designers. Wix believes that the acquisition represents inherent opportunities in key growth areas for Wix including product development, brand recognition and increased traffic potential. Wix will provide technology and marketing expertise to the DeviantArt universe enabling its users to further their reach and increase engagement, both online and on mobile.

-- Launched Multi-Country Campaign with Manchester City All-Stars in Latin America: Wix and the English Premier League’s Manchester City teamed up for an all-star campaign, featuring the Club’s star players, to reward a Wix user in Latin America. The multi-country campaign granted an amazing opportunity to a user and football fan to promote their winning brand throughout Latin America and beyond. Manchester City players Sergio Aguero, Gabriel Jesus, Claudio Bravo and Aleix Garcia served as spokespeople for the campaign.

-- Announcing Timeline for New Platform-Wide Product: Wix intends to launch a closed beta of a new major product in June and publicly reveal the product in the following months.

-- Initiated Comprehensive Scaling of Support Infrastructure: To meet the growth in numbers of registered users and premium subscriptions, Wix has launched several initiatives to scale and improve its global user support function. These initiatives include product improvements, greater automation and an increased number of support agents. Wix believes that these initiatives will reduce the occurrence of common user issues and help resolve issues faster for users across the globe.

-- Wix Mobile Growth: Wix users have created over 24 million mobile sites to date, making Wix one of the largest mobile site development platforms globally.

-- Global E-commerce Platform: E-commerce subscriptions reached 357,000 during the quarter. Growth of e-commerce and transaction-enabled websites continues to exceed overall subscriptions growth and accelerated during the quarter, highlighting Wix’s broad reach with small businesses.

-- Strong Platform Engagement: Continued engagement with the Wix ecosystem is illustrated by 533 million user contacts saved onto the Wix platform by users. Leveraging Wix’s MyAccount CRM system, business owners track customer activity data, manage relationships and communicate using Wix ShoutOut, Wix’s email marketing solution.

Financial Outlook

The Company is introducing its outlook for the second quarter of 2017 and is increasing its outlook for the full year 2017 as follows:

-- For the second quarter of 2017:

                                       
                                                         Q2 2017 Outlook                                                  Y/Y growth
                                                      -------------------                                           ----------------------
Revenue                                                $101 - $102 million                                          47% - 48%
Collections                                            $116 - $117 million                                          42% - 44%
                                                                                                                     

-- For the full year 2017:

                                                                  
                                                                                              FY 2017 Outlook
                                                               Prior(1)                                                     Updated (2)                                                   Y/Y growth
                                                         -------------------                                           -------------------                                           --------------------
Revenue                                                   $417 - $419 million                                           $421 - $423 million                                                45% - 46%
Collections                                               $461 - $467 million                                           $473 - $477 million                                                38% - 39%
Free Cash Flow                                             $63 - $64 million                                             $67 - $68 million                                                 85% - 88%
                                                                                                                                                                                      

Conference Call and Webcast Information

Wix.com will host a conference call at 8:30 a.m. ET on Wednesday, May 10, 2017 to answer questions about the financial and operational performance of the business during the first quarter 2017. 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, supplemental data sheet and supporting slides to its Investor Relations website at https://investors.wix.com/results.cfm. 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 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 May 17, 2017 at 11:59 p.m. ET by dialing 855-859-2056 (US/Canada) or 404-537-3406 (International) and providing Conference ID: 7871041.

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.

Wix.com is a leading global software platform for small businesses to operate online with over 105 million registered users worldwide. Wix was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations, professionals and individuals to take their businesses, brands and workflow online. Wix ADI, the Wix Editor and a highly curated App Market enable users to build and manage a fully integrated and dynamic digital presence. Wix’s headquarters are in Tel Aviv with offices in Be’er Sheva, Berlin, Dnepropetrovsk, Kiev, Los Angeles, Miami, New York, San Francisco, Sao Paulo, and Vilnius.

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, non-GAAP gross margin, non-GAAP operating loss, free cash flow, 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. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense and acquisition-related costs divided by revenue. Non-GAAP operating loss represents operating loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. Non-GAAP net loss represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, and acquisition-related costs. 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. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures.

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 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 its guidance as to free cash flow to cash flow from operations because it does not provide guidance for cash flow from operations. As items that impact cash flow from operations 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 cash flow from operations 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," "outlook," "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, including the timing of product releases, 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; our ability to maintain and enhance our brand and reputation; 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; 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 2016 annual report on Form 20-F filed with the Securities and Exchange Commission on March 28, 2017. 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.

(1) Registered Users and Premium Subscriptions exclude members and subscriptions from DeviantArt.

(2)Prior and updated outlook reflects the revised guidance announced in connection with our acquisition of DeviantArt in February 2017, which was furnished on Form 6-K on February 23, 2017. As previously disclosed, this outlook reflects incremental contributions from the DeviantArt acquisition of $9 million to collections and $8 million to revenue and a reduction in previous 2017 free cash flow outlook of $8 million. We anticipate that incremental investments into DeviantArt for the next two to three years including 2017 will be up to $20 million and that the impact will be breakeven at some point in 2019.

                                                                                           
                                                                                                       Wix.com Ltd.
                                                                                           CONDENSED CONSOLIDATED BALANCE SHEET
                                                                                                      (In thousands)
                                                                                                                                                                                            
                                                                                                                                                                Period ended
                                                                                                                           December 31,                                                                March 31,
                                                                                                                 --------------------------------                                          --------------------------------
                                                                                                                               2016                                                                      2017
                                                                                                                 --------------------------------                                          --------------------------------
                     Assets                                                                                                  (audited)                                                                (unaudited)
                     Current Assets:
                        Cash and cash equivalents                                                                $                        93,064                                           $                        90,897
                        Short term deposits                                                                                               78,240                                                                    72,674
                        Restricted cash and deposit                                                                                          931                                                                     1,085
                        Trade receivables                                                                                                  8,279                                                                     9,828
                        Prepaid expenses and other current assets                                                      17,346                                                 24,229
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                       Total current assets                                                                           197,860                                                198,713
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                     Property, equipment and software, net
                     Long-Term Assets:
                        Property and equipment, net                                                                                        8,750                                                                     9,168
                        Prepaid expenses and other long-term assets                                                                        2,622                                                                     3,003
                        Intangible assets and goodwill, net                                                             5,452                                                 46,551
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                       Total long-term assets                                                                          16,824                                                 58,722
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                                                                                                                                                                         
                                                                                                                 --------------------------------                                          --------------------------------
                      Total assets                                                                               $                       214,684                                           $                       257,435
                                                                                                                 ==================== ==========                                           ==================== ==========
                                                                                                                                                                                            
                     Liabilities and Shareholder’s Deficiency
                     Current Liabilities:
                        Trade payables                                                                           $                        20,709                                           $                        26,277
                        Employees and payroll accruals                                                                                    20,230                                                                    27,978
                        Deferred revenues                                                                                                146,987                                                                   169,708
                        Accrued expenses and other current liabilities                                                 18,847                                                 21,877
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                       Total current liabilities                                                                      206,773                                                245,840
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                                                                                                                                                                                            
                        Long term deferred revenues                                                                                        9,746                                                                    12,039
                        Long term deferred tax liability                                                                                     634                                                                       426
                        Long-term loan                                                                                      -                                                  1,219
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                       Total long-term liabilities                                                                     10,380                                                 13,684
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                                                                                                                                                                         
                                                                                                                 --------------------------------                                          --------------------------------
                      Total liabilities                                                                               217,153                                                259,524
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                                                                                                                                                                                            
                     Shareholders’ Deficiency
                       Ordinary shares                                                                                                        74                                                                        74
                       Additional paid-in capital                                                                                        241,154                                                                   259,138
                       Other comprehensive income (loss)                                                                                   (389)                                                                     2,892
                       Accumulated deficit                                                                          (243,308)                                              (264,193)
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                     Total shareholders’ deficiency                                                                   (2,469)                                                (2,089)
                                                                                                                 -------------------- ----------                                           -------------------- ----------
                                                                                                                                                                         
                                                                                                                 --------------------------------                                          --------------------------------
                     Total liabilities and shareholders’ deficiency                                              $                       214,684                                           $                       257,435
                                                                                                                 ==================== ==========                                           ==================== ==========
                                                                                                                                 
                                                                                                                                     Wix.com Ltd.
                                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
                                                                                                                      (In thousands, except loss per share data)
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2016                                                                                           2017
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                       (unaudited)
                                                                                                                                                                                                                                  
                     Revenue                                                                                                      $                        61,586                                                                $                        92,538
                     Cost of revenue                                                                                                    10,507                                                   14,863  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                      Gross Profit                                                                                                                         51,079                                                                                         77,675
                                                                                                                                                                                                                                  
                     Operating expenses:
                      Research and development                                                                                                             24,472                                                                                         32,669
                      Selling and marketing                                                                                                                40,454                                                                                         54,329
                      General and administrative                                                                                         5,921                                                   11,148  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Total operating expenses                                                                                           70,847                                                   98,146  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Operating loss                                                                                                                       (19,768 )                                                                                      (20,471 )
                      Financial income, net                                                                                                                   505                                                                                            148
                      Other income (expenses)                                                                                                -                                                        -  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Loss before taxes on income                                                                                                          (19,263 )                                                                                      (20,323 )
                      Taxes on income                                                                                                      649                                                      562  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Net loss                                                                                                     $                       (19,912 )                                                              $                       (20,885 )
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                  
                     Basic and diluted net loss per share                                                                         $                         (0.49 )                                                              $                         (0.47 )
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                     Basic and diluted weighted-average shares used to compute net loss                                             40,378,899                                               44,695,951  
                     per share
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                     Wix.com Ltd.
                                                                                                           ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP OPERATING LOSS
                                                                                                                                     AND NET LOSS
                                                                                                                                    (In thousands)
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2016                                                                                           2017
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                     (1) Share based compensation expenses:                                                                                                                                            (unaudited)
                        Cost of revenues                                                                                          $                           428                                                                $                           506
                        Research and development                                                                                                            3,111                                                                                          4,726
                        Selling and marketing                                                                                                                 981                                                                                          1,419
                        General and administrative                                                                                       1,617                                                    2,331  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                       Total share based compensation expenses                                                                           6,137                                                    8,982  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     (2) Amortization                                                                                                                         187                                                                                            186
                     (3) Acquisition related expenses                                                                                                       1,183                                                                                          3,765
                     (4) Taxes on income                                                                                                   175                                                        -  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Total adjustments of GAAP to Non GAAP                                                                        $                         7,682                                             $                        12,933  
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                     Wix.com Ltd.
                                                                                                              RECONCILIATION OF OPERATING LOSS TO NON-GAAP OPERATING LOSS
                                                                                                                                    (In thousands)
                                                                                                                                                                                                                                  
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2016                                                                                           2017
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                       (unaudited)
                     Operating loss                                                                                               $                       (19,768 )                                                              $                       (20,471 )
                     Adjustments:
                      Share based compensation expenses                                                                                                     6,137                                                                                          8,982
                      Amortization                                                                                                                            187                                                                                            186
                      Acquisition related expenses                                                                                       1,183                                                    3,765  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Total adjustments                                                                                            $                         7,507                                             $                        12,933  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                               
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                     Non GAAP operating loss                                                                                      $                       (12,261 )                                                              $                        (7,538 )
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                     Wix.com Ltd.
                                                                                                            ADJUSTMENTS FOR RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
                                                                                                                                    (In thousands)
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2016                                                                                           2017
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                       (unaudited)
                     Gross Profit                                                                                                 $                        51,079                                                                $                        77,675
                      Share based compensation expenses                                                                                                       428                                                                                            506
                      Acquisition related expenses                                                                                           -                                                       28  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Non GAAP Gross Profit                                                                                              51,507                                                   78,209  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                  
                     Non GAAP Gross margin                                                                                                                     84 %                                                                                           85 %
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  
                                                                                                                                     Wix.com Ltd.
                                                                                                           RECONCILIATION OF NET LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET
                                                                                                                                    LOSS PER SHARE
                                                                                                                      (In thousands, except loss per share data)
                                                                                                                                                                                                                                  
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2016                                                                                           2017
                                                                                                                                  -----------------------------------------------------                                          -----------------------------------------------------
                                                                                                                                                                                                       (unaudited)
                     Net loss                                                                                                     $                       (19,912 )                                                              $                       (20,885 )
                     Share based compensation expense and other Non GAAP adjustments                                                     7,682                                                   12,933  
                                                                                                                                  -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                     Non-GAAP net loss                                                                                            $                       (12,230 )                                                              $                        (7,952 )
                                                                                                                                  ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                  
 Basic Non GAAP net loss per share                                    $                         (0.30 )                      $                         (0.18 )
                                                                      ==================== ========== ====================   ==================== ========== ====================
 Weighted average shares used in computing basic Non GAAP net loss      40,378,899       44,695,951  
 per share
                                                                      ==================== ========== ====================   ==================== ========== ====================
                                                                                                                                                                                                        
                                                                                                                           Wix.com Ltd.
                                                                                                                      KEY PERFORMANCE METRICS
                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                        March 31,
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                                                        2017
                                                                                                                     --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                       (unaudited)
                     Revenues                                                                                        $                     61,586                                                                $                     92,538
                     Collections                                                                                     $                     75,694                                                                $                    114,546
                     Free Cash Flow                                                                                  $                     (2,134 )                                                              $                     14,781
                     Number of registered users at period end (*)                                                                          82,271                                                                                     103,234
                     Number of premium subscriptions at period end (*)                                                                      1,938                                                                                       2,673
                                                                                                                                                                                                                                                                                                                                                                                     
                     (*) the numbers without DeviantArt
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                           Wix.com Ltd.
                                                                                                             RECONCILIATION OF REVENUES TO COLLECTIONS
                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                        March 31,
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                                               2017
                                                                                                                     --------------------------------------------------                                          -------------------- -----------------------------
                                                                                                                                                                                       (unaudited)
                     Revenues                                                                                        $                     61,586                                                                $                     92,538
                     Change in deferred revenues                                                                        14,108                                                22,008  
                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     Collections                                                                                     $                     75,694                                             $                    114,546  
                                                                                                                     ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                           Wix.com Ltd.
                                                                                                  RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
                                                                                                                          FREE CASH FLOW
                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                        March 31,
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                                                        2017
                                                                                                                     --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                       (unaudited)
                     Net cash provided by operating activities                                                       $                       (925 )                                                              $                     16,397
                     Capital expenditures, net                                                                          (1,209 )                                                                 (1,616 )
                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     Free Cash Flow                                                                                  $                     (2,134 )                                                              $                     14,781  
                                                                                                                     ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                           Wix.com Ltd.
                                                                                                  RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO
                                                                                                                FREE CASH FLOW EXCLUDING DEVIANTART
                                                                                                                         ACQUISITION COSTS
                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                        March 31,
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                                                        2017
                                                                                                                     --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                       (unaudited)
                     Net cash provided by operating activities                                                       $                       (925 )                                                              $                     16,397
                     Capital expenditures, net                                                                                             (1,209 )                                                                                    (1,616 )
                     DeviantArt acquisition costs                                                                            -                                                 2,738  
                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     Free Cash Flow excluding DeviantArt acquisition costs                                           $                     (2,134 )                                                              $                     17,519  
                                                                                                                     ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                           Wix.com Ltd.
                                                                                                   RECONCILIATION OF PROJECTED REVENUES TO PROJECTED COLLECTIONS
                                                                                                                          (In thousands)
                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                   Three Months Ended                                                                                                                                                      Year Ending
                                                                                                                                                                                      June 30, 2017                                                                                                                                                     December 31, 2017
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------
                                                                                                                                             Low                                                                                        High                                                                              Low                                                                     High
                                                                                                                     --------------------------------------------------                                          --------------------------------------------------                                          -----------------------------                                          --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                     
                     Projected revenues                                                                              $                    101,000                                                                $                    102,000                                                                $                    421,000                                           $                       423,000
                     Projected change in deferred revenues                                                           $                     15,000                                             $                     15,000                                                52,000                                                 54,000
                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------                                           -------------------- ----------
                     Projected collections                                                                           $                    116,000                                             $                    117,000                                             $                    473,000                                           $                       477,000
                                                                                                                     ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== =======                                           ==================== ==========
                                                                           
                                                                                                                                   Wix.com Ltd.
                                                                                                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                  (In thousands)
                                                                                                                                      
                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                        March 31,
                                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                            2016                                                  2017
                                                                                                                                     --------------------------------------------------                                          --------------------------------------------------
                                                                                                                                                                                                       (unaudited)
                     OPERATING ACTIVITIES:
                     Net loss                                                                                                        $                    (19,912 )                                                              $                    (20,885 )
                      Adjustments to reconcile net loss to net cash used in operating
                      activities:
                       Depreciation                                                                                                                         1,244                                                                                       1,297
                       Amortization                                                                                                                           187                                                                                         320
                       Share based compensation expenses                                                                                                    6,137                                                                                       8,982
                       Tax benefit related to exercise of share options                                                                                       175                                                                                           -
                       Increase in accrued interest and exchange rate on short term and                                                                      (230 )                                                                                      (114 )
                       long term deposits
                       Deferred income taxes, net                                                                                                             (26 )                                                                                      (213 )
                       Decrease (increase) in trade receivables                                                                                               978                                                                                        (364 )
                       Increase in prepaid expenses and other current and long-term assets                                                                 (1,589 )                                                                                    (3,913 )
                       Increase in trade payables                                                                                                           4,624                                                                                       4,508
                       Increase in employees and payroll accruals                                                                                             222                                                                                       4,955
                       Increase in short term and long term deferred revenues                                                                              14,108                                                                                      22,008
                       Decrease in accrued expenses and other current liabilities                                                       (6,843 )                                                                   (184 )
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                         Net cash provided by (used in) operating activities                                                              (925 )                                                                 16,397  
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     INVESTING ACTIVITIES:
                      Proceeds from short-term deposits and restricted deposits                                                                             4,766                                                                                      16,386
                      Investment in short-term deposits and restricted deposits                                                                            (7,000 )                                                                                   (10,650 )
                      Purchase of property and equipment                                                                                                   (1,209 )                                                                                    (1,616 )
                      Payment for Businesses acquired                                                                                        -                                               (29,834 )
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                         Net cash used in investing activities                                                                          (3,443 )                                                                (25,714 )
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     FINANCING ACTIVITIES:
                      Proceeds from exercise of options and ESPP shares                                                                                     3,321                                                                                       7,320
                      Credit line repayment                                                                                                  -                                                  (170 )
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                      Net cash provided by financing activities                                                                          3,321                                                 7,150  
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     DECREASE IN CASH AND CASH EQUIVALENTS                                                                                                 (1,047 )                                                                                    (2,167 )
                     CASH AND CASH EQUIVALENTS--Beginning of period                                                         39,226                                                93,064  
                                                                                                                                     -------------------- ------- --------------------                                           -------------------- ------- --------------------
                     CASH AND CASH EQUIVALENTS--End of period                                                            $                     38,179                                             $                     90,897  
                                                                                                                                     ==================== ======= ====================                                           ==================== ======= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170509006672r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170509006672/en/

SOURCE: Wix.com Ltd."> <Property FormalName="PrimaryTwitterHandle" Value="@Wix

Wix.com 
Investor Relations: 
Ryan Gee, 415-223-2610 
ir@wix.com 
or 
Media Relations: 
Vivian Hernandez, 415-517-6539 
pr@wix.com


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