WIX - Earnings call 4 2023

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Operator

Good day, and thank you for standing by. Welcome to the Wix Q4 2023 Earnings Conference call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Emily Liu, Investor Relations. ahead. go Please

Emily Liu

morning, Full good to Fourth Wix's Thanks, XXXX everyone. Earnings and Year Call. Quarter and Welcome

Joining me COO; today CEO to discuss our results Nir our our Shemesh, and are Zohar, President Lior and and CFO. Co-Founder; Avishai Abrahami,

from could this to release these are forward-looking and any Form and these assumptions. consider most based forward-looking included differ factors that and statements the expectations recent we risk these do make cause current in We During results not call, to Please obligation statements, materially forward-looking our may actual on our statements. statements. XX-F press undertake update

In financial non-GAAP addition, results operating metrics. comment we will and on key

the all in between and Interactive materials Investor can GAAP and of on our reconciliations our website, Relations the find section investors.wix.com. earnings non-GAAP results in You Center our Analyst

turn I'll over to call the Avishai. that, With

Avishai Abrahami

good Thanks, everyone. on for the any and for strong market business a Wix. position milestone achieved key web grew maintained was user creation profitability. year with XXXX as executed our growth successfully platform best-in-class for innovation leadership any go-to Emily, We record initiatives and and the morning, share

exceed provided progress a targets X Day. year minutes. we made to to in few in through our us growth applying Lior XXXX, at the we the incredible walk and August now years expectation will expect position plan in the we around updated The accelerate this the Analyst details

also ourselves leader in pivotal AI not level proven me, AI a product as by For a potential we company year We advance advancement, a of facing broader be then, to peers. disruption. believe our remembered started XXXX will but beneficiary the others, be an suite. only of among Since off we've year the

years developing we extended product an right code impressive AI the of spent as across will in toolkit more already and easily, our features and website design and AI-powered layer, embedding year, businesses new our meaningfully that content more manage have This create AI operations. efficiently. help We capabilities optimize past written as and well and users web technology their content include Wix to visual X

The responsive tech year code several AI last the image key tag AI design other and creators an for AI businesses, experience AI assistant, among AI product AI AI creators introduced and chat Meta in design, include tools.

released site and feedback recently AI also generator heard so fantastic We our have far.

first full-blown, I website a tailored believe be integrated based on this relevant application creates will business tool market the and the ready-to-publish that user with prompt. on AI

having benefited the excellent has Our all and partners year. engagement both creators technology with our shown the past users over

at majority today X the AI using of the creation web tool users new least are on In fact, journey.

This has increased users and well friction reduced in as our creation conversion and the for as monetization. resulted improve enhanced experience

of We AI driver expect technology XXXX in to significant growth be beyond. our and a

especially processes Wix, research everyone Wix We our improve development also internal an of platform This to many to internal building at include to leverage and tandem. user allow features open for at AI-driven in contribute deployment velocity. AI AI that

specific assistant, and this high-quality scratch. scale. user also having have team are efficiently start dedicated product AI to assistant Gen to and tools able AI-based which develop platforms, and features at develop conversational allow own needs best from to We a platform release at Wix we to With tailored their any without to

frictionless to improve product well to helping as experience continue us, to our to We more more build expect and we creation major for suite make AI be users web our for advantage tools a as competitive operations. AI as

have currently agencies this than premium with partners And to to this Studio in our we of expected subscriptions more Studio year, offering created cornerstone have made development at web huge account. Since for and In addition a have August, partners we Studio, XXX,XXX introduction we the our step platform. freelances point. AI, more than

created were innovation by Most on notably, accounts Studio market our and testament that successful of With nearly the before. far, who a strong and new our most share professionals product had is is to not Wix to success trailblazing our start created partners half This of Studio in so date. amongst am larger feedback our winning I agencies. confident and all outperformance the Studio

product initial the our X has most we market have and year-over-year professional no in the considerable freelance we've in see slowing. incredible Since XXXX, we been tailored investment made This momentum strides XX% in the revenue growing agency the plans a growth by continue with partners building driven And in market. recent to nearly best-in-class for quarters. of

the for improvement new tools and There exciting way of are partners. a on number

broader Studio expect growth in be of coming years. the offering professional a to product We in our to meaningful catalyst

past for be another Wix year ahead of the XXXX, upon the of XXXX of it entire you for your you that that year. hard success build the I work milestone I'm Looking will am team, and unbounded is Thank confident potential. to and because excited incredible

With you. that, to over Nir,

Nir Zohar

share bit in top the about business XXXX, strong growth that a fundamentals, performance XXXX. in to the underpinning Thank growth achieved the and primary expect line you, like accelerate to more Avishai. drivers I'd we

performed and among the non-coding was strongest cohort cohorts extremely XXXX The history. well in our

frame greatly 'XX benefited cumulative first bookings through behind in $XX.X cohort X generated its tailwinds. This level second only cohort, cumulative in from QX the quarters. bookings QX COVID which Our this of highest 'XX is million time

the amounts QX higher cohort to lower to particularly targeting Due cohorts. given with of base previous users marketing of is 'XX user marketing acquisition the smaller streamlined impressive performance compared our strategy, investments. significantly intent This

of the and Wix testament is platform the including cohort solid business, here monetization. a to strong brand of provides the success the and fundamentals improved also users. This our value conversion scale our Our to steadily behavior demonstrates

XX% solution to higher $XXX adoption users, higher to increased mix more packages intent pricing driven higher business onboard up particularly continue commerce-oriented and as than by shift tiered year-over-year, partners. usage and in XXXX, a and of improved we ARPS to continued products

We now improved next the generate billion illustrating retention XX expect XXXX. bookings prior in model demonstrated increasing of existing year, to our differentiated the and $XX.X behavior in the to net product offering. user from cohorts also years, XXXX cohorts Existing in over compared XXX% power by business XXX% to over revenue

outlook of before that a to coming in believe will our growth does, the Turning the year. we drivers to but bookings want in XXXX. Lior will the highlight accelerate I details moment, share he

First, success. a has the been launch Wix great of Studio

of more will the seen Studio projects Wix existing our to partners partner new have bring in Wix on believe which of drive We many overall continue and build will to partners cohorts. We in partners an join increase growth monetization our platform. activity

to leading product online. meet conversion our expect we and and their users ARPS enables goals positively Second, to trend of resonate continues to as suite

has expect to see and AI from benefits and and mentioned, we XXXX ramping this been incredible, initiatives Avishai conversion our as for entire Third, uptick year. toolkit the of self-creators milestone partners both of monetization AI

bringing businesses and GPV adopt on that in business Fourth, we expect and commerce applications. continued generate new users success

We commerce will from growth also benefit the users. GPV from compounding existing of

price implemented pricing they of the This existing to and deliver the to is value recent action recently higher goal have new our pay. of aligning price users subscriptions. for we Finally, part continuously growing we

pricing Our historically, with with retention responded within users extremely to the us increases, our have our strong approach well past that working. cohorts which confidence is during provides

and incremental we continue XXXX price our believe XXXX increases innovate room deliver to and to as value as Following to we is users. there this considerable one, as well price still increase in

expectations. business outlook forward. are experience With to seen we've the Because we growth continued of our will cadence I continue price drivers hand explore actions that Lior? momentum so and financials, We it these expect at potential to confident details far, and this in XXXX walk year a to going an now over more XXXX. in improved through XXXX will that, to acceleration our Lior on similar

Lior Shemesh

strong very puts a believe on us path XXXX XXXX going note, finished XXXX. We into which a Nir. great on Thanks, we and

XXXX, and products macro Wix well giving to in as fundamentals As success growth to a AI improving environment, business in seen track continue early accelerate us confidence our we on us our accelerate our year-over-year which we year-over-year XXXX. have the puts growth to improve, bookings believe revenue in as ability with in Studio

shared We significantly we and expect of August outperform believe in rule XX the the in targets Day our now Analyst we at XXXX. that to will surpass XXXX

outlook, unless want all noted. our the of and to through Note summarize non-GAAP details results. data XXXX of otherwise quickly Before that I year QX our XXXX go financial are full I

million, growth by year-over-year. grew driven QX XX% was partners which primarily $XXX up Revenue total XX% year-over-year. was revenue, revenue

As Avishai our great to exceeding expectations. Studio a start, is mentioned, off

subscriptions XX% grew revenue QX in QX year-over-year. in revenue grew year-over-year, and nearly Business Solutions XX%

expect the million XX% $XX We in gross QX XX% or and to margin to grew total operating nearly revenue. of income

investment In grew and sales in the million we to expenses brand. our increased Studio Wix $XX QX, as quarter-over-quarter marketing

While we brand especially the strategy, with to leverage in to in we continue expect in our due to Studio streamlined marketing investing self-creators, marketing plan continue XXXX. gaining

from $XX high efficiencies. million QX and restructuring free as revenue costs, cash of benefit headquarters excluding we XX% continue or was to over flow, operating

and Moving billion, or ended XXXX $X.XX gross basis a XX%, on creative was an subscription's XXXX grew margin We compared XXX up total $X.XX ARR points year-over-year. year nearly full revenue year-over-year, to of to to billion over of with Total improvement results. XXXX. XX% XX%

operating infrastructure as our subscriptions to guidance. flow, of implemented sustained improved AI XX% as we into grew This efficiencies improved of of improving meaningful X our of year, support even to costs, and ahead integrating result housing $XXX Solutions a free a and the plan. excluding leverage in year in and restructuring benefit partners cash generated in This free the margin In expectations XX% a aided the the costs and benefited Throughout revenue gross year Creative past well our as partially in we included was by workflows. significant headquarters business, margin prior by X from optimization cost, expanded XX% efficiencies gross driven and of our margin of years. XXXX, flow gross we Business cash full growth ahead milestone continue And and XXXX. million to broader X-year for margin over strong total from of a margin

business improvements to continued margin commerce continue We to stable expenses continue generate incremental the operating scaling as base business partner our grow. expect of and the our to from

As million, the year. I'm was which percent years, $XX year couple declined to net the expect our as costs, for margin we due free income finished including first now a significantly a compensation profitability that the of profitability. last as result, our flow of stock-based for also of to plan. revenue happy in and partner's This with GAAP XXXX, management straight third outlined the of of costs exceed report throughout XXXX to target GAAP XXXX cash we X-year careful

our results the our from We of incremental and successful us strong position These have incremental that growth to growth our revenue these very can innovation, half believe returns years at couple We reaccelerated me of strong profit. continue year-over-year of to in the the cost we put continued incremental fantastic drove generate as strong the operating and product due capture, efforts efficiency drove into results business. user accelerate Wix growth strong to we a over the the of confidence implemented last -- implementing and costs fundamentals XXXX, and demonstrate gives profitability cadence efficiency in profitability.

I spend for expectations And rest want my to of time on the our XXXX.

visibility as stable business We behaver, to our are due confidence and positively strong in environment bookings reintroducing the and particularly our and core annual guidance partners macro in business. improved trending

billion For total we XX% expect $X.XX year bookings acceleration to or XX% an full year-over-year, XXXX, the $X.XX XXXX. of billion from to

of We to growth subscription the is guidance the bringing high to year-over-year to the bookings, the in primarily total half particular, of half expect it in XXXX year-over-year of to the growth second acceleration in range. second double-digit creative end XX% In be accelerate expected XXXX. of at bookings

anticipated you can growth update. through in in Nir achieve the in the bookings shareholder business year-over-year XXXX. This accelerating growth additional of growth walked XXXX, you our drivers find information the revenue positions and to

$X.XX revenue to the XX% to be total year-over-year. $X.XX year For billion full to billion we XX% XXXX, expect or

million to in We QX expect to $XXX $XXX revenue or million XX% year-over-year. XXXX of XX%

meaningful continue generated the an basis. GAAP operate we in a both XXXX the We efficient in on evidenced to as manner and leverage non-GAAP by business operating

efficiency on plan We basis. to improvement growth with in same a to gross and strong operate gross XXXX anticipated in margin the year-over-year due expect profit

XX% of margin gross we XXXX, with ahead non-GAAP the total gross we be XX% year approximately the of plan full to in full year, for August. non-GAAP the Business For margin to shared Solution expect XX%

We also minimal due expect in to to operating leverage expenses growth generate year-over-year. additional

of remain marketing sales XX% XX% revenue. to than We to full expect year, also to to roughly XX% And August plan. better for non-GAAP XX% non-GAAP the operating expenses to XXXX similar and be at of our revenue

capitalize we continue we to will marketing We on Studio as activities its since related Wix with launch. XXXX have growth the throughout seen

GAAP anticipate our growth XXXX. operating We efficiency strong net generate and income that in will operating positive in profit

XX% of million $XXX cash million cost XX% or of We XXXX. in expect to revenue free excluding generate to headquarters flow to $XXX

of cash We X-year more will $X share free expect our guidance XXXX ahead plan. flow this free in share combination than to in per in diluted cash activity with flow translate repurchase our

decline As a consecutive approximately we revenue manage of continue XXXX, expect for compensation percent line we the third dilution, stock-based X-year to of plan. revenue to our to in expenses responsibly XX% in as year with

expenditures, cost capital year million. million costs in build-out, first half of headquarters of including this headquarters expect final associated our anticipate and We we the with of million in to to approximately roughly be to new the $XX incur million new the will XXXX, our $XX cost $X $X

We We ourselves are to and we believe very positioned year. reaccelerate generate excited incremental about the have upcoming growth profitability.

will questions. we now take your that, With

Operator

will from Our Instructions] be first question [Operator Morgan of Porter Stanley. coming Elizabeth

Elizabeth Elliott

pros both conversion quarter. did wanted also capturing the follow strong to some I through and Studio continue a funnel the rates, on better the on up that Wix Congrats of about AI the premium comments at the has look been years. When as of percent last with that friction kind registered a reducing build a users, at to we pressured Great. few subs of self-creators website. metric for

should improve the detract to in rates? success And conversion on see ratio point not, to start where you So would if us XXXX? we better this

Nir Zohar

think, Nir. -- Elizabeth, Well, I it's

and probably towards that drive whether platform. intent, premium think done more is better impacted it absolute an general we've it different to a KPI spend more not subs goal as willing or generally get look -- by generally as significantly goes our in since percentage the be the marketing I higher more. to towards pricing, may the to to changes that users like things at best goes It on are number

and conversion definitely, of definitely But manner some different at per look as a at self per source we have reaccelerated cases, and the rates, the over a the it we traffic when So activity look some well we geography in as of self-creators different the when look separately, time. partners. we in at

I believe the And cohort it where in trend. think, not easily, getting the actually value we're demonstrated We best at is on very actually that the which increasing is that stabilizes our close the surpassing in of thing to we've it's look to fact, and only having COVID are the and to the the strongest -- the even point gaining height business ones the history. obviously cohort, that's product real I that way all these the which to are hood. under understand best And on impact of the think improvements an

Elizabeth Elliott

plan as just given now you understand and of just still XX levers on the follow-up, the XXXX versus the investment of around in excepted growth, algorithm roughly less revenue I accelerate you the a about guys XXXX. top unchanged maybe growth ask And to an opportunity line before? prior wanted invest and to framework are we're of given to think between Great. growth in improvement investment? investment, rule do How the a the suggested exceeding need your with initial seeing revenue to X-year just helpful Understanding

Lior Shemesh

as is, we way the of our or to to a the before, the drive acceleration or terms overpass we significant growth. The XXXX. goes of half will demonstrated significantly Therefore, has both surpassing free growth and operating now flow, of much bottom of the second the further we the get XX see a better I be XXXX, to indication expect accelerating obviously we same less incremental a it's rule level. Remember bit, little at this profitability will of only for mentioned that that rule XX. cash in that combination see that of every that a growth acceleration So revenue be we which that us, reason in most of why will of I revenue is -- profitability in as think keep right great more in line expenses the

Operator

from Our Instructions] be [Operator of coming next question Jefferies. Thill will Brent

Unknown Analyst

Brent [indiscernible] The bookings is growth. on This is Thill. question

in of creators, But -- mentioned each going factors in ranking half confidence on. about incremental meaningful them in mentioned you to you several of behind is will of so those? there terms the way of it's like when You you the contribution in Studio from terms think a accelerate have terms level of come of them and

Lior Shemesh

Yes.

will next at because definitely look continuation of to model. I better So much of it at that Remember a obviously, it's years, be looking SaaS the XXXX XXXX couple think we and that that. are

that believe launch half second that So is is every the and way, growth the product, time we a we the accelerated. XXXX, new time of why much obviously. passes, more more by see contribution, we to be is going the -- This

But XXXX better be also much again, then than XXXX. will

day, we're In from the is first will did end in is our that launching products. also reason this new the growth, we company, how in the new future. I the definitely we some technology, and product is drive And and what have products. to past, the features, of new we the this a we a think mostly continue do

So definitely, We in with it. We the demand. it's launch business launching the the from Studio. our see It was market. how great us. agencies see for see We the coming traction use a partners

I the new a more few mentioned number are of XX% times think, new. as know, about we accounts you than with

to that us, the to I proxy a us it's major significantly for -- the think it's in are the that would growth for much it driver that fact be see next we going few more years. great

demand as we've that optimize done third macro that we'll our like to into what the AI, continue done the see will we you basis. which fourth this a one overall mentioned see next [indiscernible] to it, trying on continue as in about everything future. do the a the in is know, past, which we tremendous a is pricing strategy. we've we that is And reason, is And of results one second The with always, the we believe out year.

Unknown Analyst

was what the of mentioned in kind could And positively you to more that's had when details you're other your it. wondering that's remarks, I actually Actually, seeing if you specifically? question trending prepared leading macro share Great.

Nir Zohar

generally, massive. the of still and seeing a But positive website the partner on is GPV not trending in of behavior the in I the the being formed our our both Well, think self-creator it's through terms on definitely, business of I side. side users, terms we are think the of platform going

selling booking of cases, to these upward selling of most a but only think tickets wide a that shops And selling in activity to I have scheduling are goods, events, also we're not so seeing very time, have also cetera. You remember booking, we commerce, that people hotels, trend. et digital positive

think a feel makes I economy. So macro that's us what the more bit about comfortable

Operator

Instructions] [Operator will question next come And our of Ygal from Citi. Arounian

Ygal Arounian

Good AI up -- could the through. innovation about the to you coming that? And comment there's talking things what generator, in new site share a on expect can pipeline the from all know coming and we the pipeline, them users are general product early I on product more of maybe here see all there's kind expectations in that and anything the don't if the strength more launch that you're you the on the that for are what seeing seeing, specifically more here? of when could you're if

Avishai Abrahami

course. Of

the that think I with I'll generator. -- site start

the about I'm people? what come It's would and Tell us a unique, New and in the business are located? released that you what a City will the for York people say, staff to makes start How with And -- AI great those many I way on -- some in specific X. website, we your where So people specialize you you interview members. things. I and we'll and in you SPA version meaning call

will all a content right? great images. -- generate we result, has you is for website that text a as content, be and the the And And

then the the different will choose get The you actually experience want where have designs And how like. can other this that for generate AI will design to look you to you thing you.

I blue and you want can So for professionals more I that, it change or tell I colors, are that the want thing, don't or the colors I like why this color will you you. there I are variation a like yellow. colors I that want please And do on

say, you generate small or bit doing can a in you generate we really hand, something with the don't different images, to many the design, website. that, can On doing other is very like with I well, a a what of are full-blown variation also ways, the similar

it's XX% The result something on it's that that. to the you have than sometimes right, that probably but XX%, website less is of need of is average, sometime that

to shortened to do an XX%. amount it So and amazing gives you by to your of that the need XX% start way you work website about

I further is websites even have And exciting. create think exciting your ideals it really to it's coupled more with and about on more but your business. and just make product own that considering it take very that some better fantastic how beautiful even also tightly a it's we cool vision more not

lot -- that self-creators, see And manage is mostly you business. lot we're working your so mostly on, a things a coming. other we of in going to of for are that There's how

to make and we business should be next they you figure what assistance take successful to So works or Wix, are customers at better, not. what the to your we can adding our don't saying how run to see our millions and that have being we how the level. business help businesses of how out things millions And and are and recommend to say, they more do opportunity what's the

food you it have and I -- that I also is you" to should automated learn found better? an If to it, be think how similar you're and to I on by to can unique do you, better. lot that, website of post the a tell be way more "Well, on AI your or if studio done that of more also should think it -- yoga AI. a businesses else is to can anybody is believe what the and what And about what so don't consume something to to about the we I that opportunity really kind this amazing things is right can be think I regarding working things

can be doing things recommend just not will AI for a it lot the you. of So

another course, of Wix exciting in on. map long of road that you're that coming is going project Studio, year. a working there's things really this see we're to And that exciting So

Ygal Arounian

Very helpful.

on follow-up a Just that.

answer quarter, I sequentially on talked in think decelerated in bit for here things great will an easier a a I double-digit on is lot a or on obviously, was Nir back about? And quarter. this, last the that, AI the for -- and on it to think that think Do But previous year-over-year right it this about that but address to lot seeing commented business just to of the these you think components focus the -- comp still growth. growth self get is framework that? there what else that's creators, there get you you've of something

Lior Shemesh

mention Yes. price But business that super I increase from perspective. of we spring lapping it's of things, not the a XXXX. that from also obviously, is -- to of the deceleration Well, that few think were important necessarily result a with the

this I So to, the you think in and also Nir long increases obviously, to have as XXXX. quarter, optimization believe be we something we as know, optimize basis see we we need of the pricing. spoke that the mentioned, but it as obviously, doing will a on that last regular we that about results We price half second obviously is

self-creators, year. of believe the that monthly a The plans the we I second second percent thing had half slightly of the about higher in

that already we AI and believe self-creators growth long not is conversion we the again, everything just will of that are and we above of the effect run, self-creators. that believe increased see that so a and of all new doing because for and So that increase on. started it I growth it in And also it's will the which product because we obviously, AI also the the bring of the mentioned headwind product has to right environment X now But XXXX. double-digit the be a that in with how then the examples macro can most improving. be

Operator

from be Mahaney And of Instructions] next our [Operator question Mark coming Evercore ISI. will

Mark Stephen Mahaney

over revenue to years I It's XX%, and company too just want cut marketing XX% expenses sales by see are by and marketing often those X grow the roughly get sales not and you about numbers leverage. ask right.

it significant that about partners sustainability talk scale fact going enough forwards? fixed you've Is upcoming pretty Is reached increasing of year marketing keeping and more can you revenue? sales where leverage it you the where to from contribution for know sales that and cost talk fixed due the and become the I a awareness but guidance just that. again So to of about expense the and due just a through potential forwards? just gave is, going this have as for marketing brand the

Nir Zohar

Mark, it's Nir.

in I you remember marketing say but areas part a high also But more spend era, surge we've high businesses they in So touched plays which definitely, seen high very our a brand. I was think in forced And -- increase the because demand, of where so before online yes, many people leading were drivers. the partners in both because anything, and you there that, combined years up towards And go XXXX, it. about to actually in I COVID a would think throughout naturally scaled is on weren't. mostly that to now a brand in than our it recognition that have the kind extremely

brand. of essence, revenues sales investment a remarkable, and we've much came not which us decrease only that XXXX -- to go an traffic, That and it that it whether by -- was testing you the marketing that basis. was our traffic was organic traffic, throughout replaced very through got which we again, intent it ongoing strength in do kind even in traffic. seen, we they see really kind buying the thought a what helps lower lot does it base growing to time. on that we of the but will continue What And generated stabilize the code smaller Simply lost to that are of can And basis the even crazy where and led us and exposure late we of at the a period we by of that higher quickly of because marketing. not a point started

actually it generated better So financial results.

self from believe So opportunities. we can investment some side, the that the time be fluctuation fixed standpoint, much yes, cost, marketing on do obviously, pretty on based with our a creative over

XXXX, side the where the Whereas see investment terms marketing. into we business, we're to think look more I we're of with seeing when product especially in studio the on the on side is going fantastic the results of

Operator

Our Instructions] Zang question of will from come UBS. [Operator Chris next

Unknown Analyst

the little products, the compared on a and discussed the here? you just your the wonder share also pricing the you're you factors example, that how to release level about? more update of about and about that's the for guidance And shareholder currently increase bit increase, detail in timing if underway. pricing which a XXXX, into little in I thinking the could extent

Nir Zohar

Chris, it's Nir.

is I'll talk think kick in terms and to different how it. geographies off subscription of there's this of But it a Lior between and over the of guidance obviously, part variation, what modeling hand generally, about and I depends the different to then kind already in prices, parameters. I the be are because cadence, Europe really expanded on the to and in in those new and And roughly for place increase globally. in XX% say X% again, U.S. they're to percentage would different the going

Lior this on to when something for of be also renew, they only terms share there. overflow in and in that's so throughout obviously, year XXXX. that's actually cadence thoughts more increase the effect will into the they going guidance subscriptions, And about the can

Lior Shemesh

an is customers, it's guidance. all something all that the cover when actually tested increase. it regard and into implemented, upside that with guidance to the increase, geos. we places for our will we this those consideration not Very of implemented the our and to price we not of test important the we obviously if will price probably that provided mention be to So took And

Unknown Analyst

Understood. if a quick may, helpful. follow-up. super That's think I just And I

revenue Just for by your region.

our little part a maybe the Q-on-Q regions about and that smaller bit. other fluctuates a the slight behind you that? is Asia drivers saw is usually talk correct, Asia can And if and calculation a decline, actually

Lior Shemesh

revenue? about Are North you talking the America

Unknown Analyst

Asia it's other. and Sorry,

Lior Shemesh

kind -- a Well, a like other Asia has customer and Asia of believe small an specific other. and of I is that channel. of amount impact

of it's So fluctuated. kind

that we've launched has in a when been by obviously, at, that, for second North like Europe think look half America, I example, only impacted year. last product you of and the specific it

about I way of see see specifically it's it. great now, a about talking do that. Google the we Right that effects So think Ad, I'm to

But launched kind we show to ability coming impact from to significant a our other, really new impact products. to product, specific a customer, depends a it with huge introduce with a activity. channel specifically and was especially new the on Asia it on fluctuating, is regard numbers the Since on of

Operator

be Instructions] from of Our coming will next [Operator Young Barclays. Trevor question

Trevor Young

Great.

impacts timing of may impact? share. works walk As this the I it, partners. on you revenue to us First, be later contra that and trying revenue accounting through year arrears. how recognized potentially kind partner a expanded the how the Can revs just and I'm it's understand understand the there of in just for

Lior Shemesh

Sure.

So net a be on basis. the will revenue recognition

very it subscription we XXX know, $X,XXX if So but will only are his that for period of the XX%, the similar basis. a service, other that, and do, example, from about got partner share we any we net just you so over be going to as on recognize is the to

So there example, margin, the profit. operating no or be of for the on impact gross the profitability will

providing the them to a ability a very be it's this other a them, them believe time subscription a are. long product period that of I solution that our the launched, combination SaaS as it's Studio, program I great a is great think kind amazing for together that the X of hand from partners; it's a it's with model, for we actually on base we hand, a just win-win get business to the

any So it I we will it's not for drivers on the be going believe impact an that or future. of growth that definitely, one but have our the significant margins, effect believe to

Trevor Young

follow-up, outsized And implied so a in That's Solutions step XX% a payments Was 'XX, fiscal Business kind of to helpful. XX% just on more in a pricing actions XQ, that for drove Google what workspaces? margin is then that Workspace? step-up. as the And of really Google that versus down mix in

Lior Shemesh

like reasons. are there So many

in we our payments. with And volume GPV the increase in the on, with increased in up. that we that obviously I the up, QX, have And increase payment better the holidays way, payments. reasons Solution say And means think XXXX Increase why scaling by When one that the usually, always profit. better will get reason is you all GPV. so and a that #X going so in this increasing believe is the of of We is be that, of margin we Business We margins. gross payment reason. see that. see is the the

Operator

this back closing conference our remarks. Q&A turn concludes for And session. the I now the would company like to to

Emily Liu

you talk for everyone, Bye. we'll to Thanks, quarter. next us today, Thanks. joining and

Operator

you Thank concludes for participating. conference today's call. This

disconnect. now may You

Wix.com (WIX) 21 Feb 242023 Q4 Earnings call transcript