Wix.com (WIX) 11 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Wix Q2 2021 earnings conference call. At this time, all participants are in listen-only mode. After the speakers presentation, there will be a question-and-answer session [Operator Instructions] I'd like to hand the conference over to your speaker today, Maggie O'Donnell, Director of Investor Relations. Please go ahead.

Thanks, Angie. everyone. morning, Good Wix's to of Earnings XXXX And Second Call. welcome Quarter

Shemesh, to Joining President are Lior as discuss Avishai [Indiscernible]. today Farrell and as of Joe Abrahami, and Zohar, results Nir our me well Co-Founder, CEO COO, CFO, and

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

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

our website, the call You I go the center be ahead. results and turn on non-GAAP Earnings investors.wix.com. will Q&A Relations now Joe, interactive Joe to can moderating reconciliations the in of section With the analyst find with Investor between that, our GAAP will who materials all over the in our team.

and we Maggie, start off something this bit to make several and us going thanks Lior. Avishai, going different I'm between are just this just that call. There We're Thanks moderating Q&A on little joining bit of things call. a a by to want Nir on do to everyone for a sure are today. captured

that will read in lot dialed we move obviously ahead go we from have then of in. a And and those can some already You the materials and provided. that to queued questions

we'll start So on Avishai.

on just for released your giving we thoughts QX. and the results startup that here Just

quarter. Wix to of team this say execution Well, that first I'm the want of proud all, on I very

just more world the a place going only not people happens. There's knows this you is or to we stay is stimulants? has if positive. Wix Are mean, online I people What that to we again, government back generally, Are negative. that move had confusion [Indiscernible] joining now uncertainties happen the normality going do we to we everything something lockdowns is a was what we we quarter, if because KPI, right. predict nobody predict. at going assume come had the that either of which guidance. one -- will a see is know we from it's and it's were that back happen, out because I end XXXX, obviously to to assumptions What we up time vaccines have the and seen of coming ended While going restaurants, on based and end are And just is started like moving think, regular to sadly waves lower that we businesses, all world COVID or going assume look likely of users in wrong. actually And to to the normality. be it, going two to hotels, guidance down, to we proven more the with Delta or that offline that part cases our can people what's we Are confusion around events, of working. Most to that that build pay we big the and up the and give first to moved and those don't we're phase? arrived are getting did things the working. next. of salaries has starting and governments back lot look else And we If less we actually At have didn't again actually

people be what to were of how delayed it's lot it, and to for vacation, then is lot talk yet, see we're a we a part thing going very And bigger going stayed right but [Indiscernible] QX. that me, this will interesting be long for everything and excuse. to not is kind that's and about of that happen. pretty people think thing much delay the So and a an else, And other [Indiscernible] of to is that's into deals a we went analyzed, mostly, had a those like

I think underlying that is still well. the fundamentals business doing really of the

Great.

we've do it the is you So fatigue? results you it's How know uncertainty confident you it's here our -- if that coming we believe how they so experienced. are? that feel the caused do what do that uncertainty? where competition, Why What talked if about QX uncertainty product it's

many absolute I going So I you to at on that, what actually have look things that ended, an going numbers But more so published, this and on am what's subscriptions. talked are results can much about And see as We bigger growing yesterday, actually faster. their every faster, number point basis, we and revenues collection more think for we on out faster, right? we percentage given is we a growing competition, right? we so metric, were

think so seen right? around. And I with that everything not probably competition, it's We've it

a we dis and building right, at, to but what move it it went massive down these thing things Wix. then other start, the Well, of users right? of The kind joining beginning -- offline the seen look to of we've the is And amount like that it happens in stopped, uses year. really that what lower

vaccines oh, wait a be I on in obviously And that that -- have to I users, should more a of to had that any or being a friend what the logical Should lockdown? on we to to ahead We September. Dr. tend So, close be Israel, place. is that because I most than knows. answering voted -- you the lot can something if we in lot lot course a and more least again? talk And all we think business reduced time. we our a a users We'll than [Indiscernible]. just users do at like, talk Nobody course the there my God, and most sensitive this be our bit for of they talked the the know don't school planet. I to businesses be other it should users, right? my of of doing, people

massive I a that effect. So is mean

Yeah.

right? behavior. go you this fair, we it vaccinations back know because nobody -- to our profession QX, didn't don't it. if We and be how And not predict really predict predicted to is To virus

probably should and on have account the guidance Corona would we be good on the the this really is but given guidance. a we we our that and However, happen cautious idea with vaccine, have guidance with probably think into and wider provided We shares. profession what the take should should not we more

you've bit So strong. of What saw the Dive trends are into the are little in that that mentioned a positive more. quarter? some we fundamentals

of quarter. unlike Per-user improvement. actually right? it's higher going seeing number convert? the It see to account less, actually massive So it's been, Then ever. a that's Wix so than [Indiscernible], imagine renewal but don't is was this fused it we [Indiscernible] -- And ever, last always us you So again, that the unchangeable a for QX is has amount also go most to the the KPI the conversion, be the and which stable to higher and -- rights consistent year. would actually going highest likely And most that. this output, And -- is is important Renewal so is How actually important We're one. highest many right? right? ever first the

year. has important right? is We other doing Wix So, for future see designer than our of is We grown with are We strategy. accelerated three or line our well target in KPI, most than the a which industry and is any do and the before. just and much [Indiscernible] expanded, a that things, as those again. actually I very E-commerce our percentage KPIs. think Partners see joining that. business cornerstone of faster

with the again, else [Indiscernible] of have joining So good. exception amount of say I looks Wix, really to everything the

And an Product Development, announcement new yesterday about product. too. We had a

lot coming. of So there's products a new

development last a region. big not of proud team -- is and hurting in Of the anyway, months. bond what I'm X and the was course, so happened in the product

Great.

are are we happening, bit to investors cohorts. some little that's those? XXXX, wonder So we're I you cohorts on seeing and of lot let's you the obviously because 'XX. piece large as Nir, We going added the to -- quarter the want we really to really now start cohorts as anniversary cohorts really first turn how dive said, large more to this and lap on from in of key QX those I think in a of What big now a why are

Sure.

cohort, you are the these also the all said, through QX of at If in look As pre-COVID better but KPI. XXXX, [Indiscernible] you they're the than every XXXX, basically is under cohorts then COVID which cohorts.

So essentially they are bigger.

to seems we have that mention a we've Venus the in packages that board the it seen to build which need QX over basically packages. higher-priced a and they the over the see higher higher XXXX. buying is same which This forward. the by same. in year such and important mentioned. The the that and When theme the and for Workspace, XXXX We They're much business. they retention. Their higher, still highlights it's of definitely higher goes but that actually I also [Indiscernible] and have -- see going QX Avishai obviously ARPU GPV that then we've continuing going do it's throughout users more being impact on better how stronger is leads seen from over the [Indiscernible]. but We quarter, now or basically cohorts they business time, choosing going behavior to the as Again, the renew, Across retention, as these score current year, something's across-the-board I for annual are conversion. it intense good aside them, and adopting for into Google to think this and very But is the key applications, now,

commerce our that. collections little Great. commerce We QX a bit comprised strength was And of focus from to QX. Obviously, of shared XX% this as up part quarter, I there. which in mentioned on were more materials just

why for strong beneficial seeing Nir, that's commerce. in Share, we're so strength So online us?

so support you [Indiscernible] trainer, is when basically like, and -- not for look restaurants, of a to not it's commerce and more on a while is continue. at events, is that It's being I Any knew can significant and we forth. through booking believe we'd fitness become, first -- things the some becoming on the SEC. I we our only every [Indiscernible] so now in it's retail, more would and compounding stores. our for that is going because something only the of users commerce of you commerce and hotels, have online activity -- transaction So this extent, all, glossary,

was of and those, impact For all before convince all, the online of moving between the they first offline.

We the very capture able of range time. of as to commerce spent We well. wide POS. That [Indiscernible] increase to that's will activity something And on also the some our a over be that in introduced order old it's platform.

So obviously, and it increases. more of more capture the

hit solution the and the and the services. is so and past more we they also higher a and [Indiscernible] The that. our compound the past because expanding. as in products time. staying of of team itself, obviously and acquisitions more and a that we for and technology year keeps continue only verticals out second time. user of value enrolling online. that it that months at amount do those [Indiscernible], part the growth effect we've it is convert value [Indiscernible] and COVID even done by the great with our itself doing and past rate, the see all more so with so this things delivering is we and products of And of GPV into value need compounding in years our one investing innovating obviously complement few compounds -- to into that us this the heavily more huge We've been since said, done and by long over each generates are And every We've the R&D for had We've payments offering expanded companies to then they product I seen of XX more a and [Indiscernible] the will

take able by We GPs to better better a get are rate. making and being touch more

financial also the to back that's contribution commerce to has it. expanding going the another thing -- obviously So that's that back

cohorts exciting update quick what a growth partners. think this you as as give contributed I area Great. Avishai, can well? quarter that's And in saw another, well a as partners we on

and their freelancers, partners, of that also ever. Working that the time. at So We again, is of And the like the X is is it's of also is course, which speed partners number all -- well in we new on agencies. XX% Editor active growing, signed Wix highest number quarter-over-quarter. doing speed

going -- happy it's with significant. massive that. year it to getting size to bigger to base Editor will that we're build the of So X see -- still on I is of of A then small the but small, the top couldn't is, the well. It lot very with right? top Wix, is actually so Because being becoming us a Editor. next the course the we're think the lot [Indiscernible] -- compared attracts start that doing classic it and of X contribution, Editor saying agencies projects or is very designers. always it's we're And right agencies also that of

on X,XXXs, talking build sites something a Vistaprint Because for want it's that about that VIstaprint issue, to we very we Wix like Japan, designing that, mega deal. we a that what ways many, think is XXXs build believe me, what we're have -- of important. happen see designer will been for they was [Indiscernible] would will why? and the those I confirmation number in I NTP, and point -- So many large VIstaprint. Platform. mega is out for a is that sites in will users, many,

And so our our had a much we to using partner. do and to product we and pretty define technology everywhere that

So of now I big before of VIstaprint technology, for demand think moving. guys our more is is course even the really GAAP technology in confirmation one that so entities the that vast peak yours in

point And for regarding think so me, partner strong strategy. that I is very a our

talk Let's morning made as we Mark was obviously a that pretty because significant VIstaprint this well. that announcement about

share So this an you Nir, alliance little is why strategically? more don't us about for why important such a bit

Joe. Absolutely,

big it's deal I a commercial commercial obviously, with think, big impact. a

their know-how for a important. for order and of small years for we of become timing small pre online this and that the extremely services other are meaning or us deliver need our And product and to do content, businesses biggest business partner technology layer basically us XX on also ambition saying the to globe, tiny and with of no demand. that, their their and basically is businesses growing to that presence designed words, value helping and there on that And of digital think market. to to I we that into is agency massive like Avishai, in to come choice customers. someone their

you've Wix. and the our new "We before." go it's and getting or think XX% the And that had without that the people signal, that the or do who then of useful -- the to because to offering own work to something owner massive a able we more that to the the these this innovation their and what certain the a classic with offers that of something I Avishai continued bigger are which driving obviously attached full partners using our can role is traffic to of we're brand has the engine of to the last the developers sales includes aid be and I than [Indiscernible], on Internet tiny is say, have all to use biggest in [Indiscernible]. and AVI X% is as Vistaprint everything in the towards Editor that as come now, suite want business achieve think which to massive a all companies, technologies testament and themselves, answered to well [Indiscernible] bigger fee Velo everyone. loan meaning were huge of of to whether That's X create with technology layer this weeks strength And Editor need in choosing it. professional if they designers, power the few the of within is products years they The to with

for So us. very I very, exciting obviously this is think something

us? know what does know commercially, we mean this for beyond strategy want to investors Because

be e-commerce to of the not commercial platforming just going work -- the They're were massive. over we're details Wix, to business, the full-grown I'm so announced having operating website the on going move for is only to ability X,XXXs and but can't years be that branded has XXXs going now, going the about But GPV experience, the to is think about, users. forward those site think and end more, their much the agreement, going [Indiscernible]. -- to being to delivery I to about different built websites offering of to be have the what go the of spend about Wix of going be to builder XXXs X,XXXs transitioning they transition move it, and entirely integration websites to going it's applications business which that's were systems about of deeper you their are the CRM their about capture having the It's customers verticals, come to to going on what you deliver of to if be been going -- of if to is the side assets new yesterday. and Vistaprint not to is to that's from about entire the Naturally, all -- is announced. to Wix. other the It

essentially, think masking over also So few the potential the I of is years years. next

Great.

to dig Let's bit Creative a could, Subscriptions We little about into Business a QX financials Share, the of want on bit QX. more. more in to results move Solutions you versus little for the little the results. if bit a

all to number of what Subscription regard the that this Creative actually mentioned is to reasons low-end as With collection, about our came users before the because Wix. Avishai Sure. in coming of the

from even the than the what really other actually expected. On quarter. came growth than the better a good first Business had bit the Payments, coming better Solution we've end, We a Wix

spoke also quarter, it. actually quarter as the it about lower expected. of Workspace effect much pretty and we into that the I seasonality first Google the about think than While And came last

well. gross bit we on what more saw, as by segment and Great little margin margin gross a

see both in in we margin expected as started gross places. to So improvement actually

that first And is the what some Business support our because The this Solutions, our is Subscription. especially will gross to of going gross We started in Creative mainly infrastructure. actually over increase. improvements we've half year. is expected. we in that second scale made the up. payments there leverage it's was believe to one from margin in while next customer saw continue to And I've toward investments that do gain the than margin something continue, actually better I

this that up, scale payment Obviously, better due the are While leverage to in getting the there. margin over see we mostly business.

Great. And And mentioning QX did what marketing marketing. quarter. think that around then final in we thing with the I worth is is in investment the

could as you much -- down [Indiscernible] So But using, how it's was mainly return. [Indiscernible] model that ROI, in which a the you users we as our [Indiscernible] and we seen can notice, new that, saw we're than And is based on marketing the invest much -- a how as due expectations. slowdown. to we've

So by going down. default, marketing investments our are

fast think we changes to a I great reacting market. truly that are how of it's the example in

marketing was always time when really opposite If was that fast return. don't you, is fast. a when invest is see and we we actually This the do return, really the demand a we but bit quite last actually the when not and year remember, see the reaction huge, investment it increase the our do we we

we're think the we from still of the near do. returns cohorts And And we we walk an that's that why seeing managed on example the I marketing year. seeing last cohorts, that investment those way benefits our the increased we're through

Absolutely.

Let' to guidance. go on

Just talk together put guidance? about QX how we

lot the of fourth QX I the The August, is is July, why good to half quarter. if the about very almost guidance. to we our already we the started the confusion uncertainty is range and are early case. the of about QX mid-May, this obviously even Actually, in QX this guidance. most trend the our main quarter, in and That continued expanding customers guidance. a also the We're our said, is so feel spoke reason about actually is among guide the uncertainty of about Obviously, we this going part how

Okay.

back QX Just we to getting move QX. into before

booked partnerships QX guidance. So that were about some that the in we Talk how mentioned and affects already. there more

the of part BXB is well. we the XX significant third is already Actually, as And in mentioned before, a shareholder we already of the most update of second-half as our and of booked quarter. partnerships guidance booked is guidance. it part partnership QX about first BXB our in in mentioned that So quarter million

book we mega-deal that growth, again, in will more good in we much quarter. But which growth, is the second continue obviously, already part that cash because mention, solid. fourth generate the So larger the it's also it through I in that -- long-term, believe it We obviously But quarter, a that even in important for just that how year. the we decline it's And they it also also lumpy. to drive also to initiatives steady me going partnerships quarter. very quarter, make of it's beginning, the It's create will something quarter new strategic and a and of believe flow be that. But have to of a second sequential it our us. another and the that this more and actually a the something Very way, organic third quarter for lumpy, solid and be the next seen initiatives. contributing in is BXB in saw in fourth at example contribute we expect very long-term, our growing we've it's is think is third

in we finally, give And Great. guide segment overall by on a to little give But segment? you can color guidance. QX, QX, in

Yes.

mention, in Business mainly payments QX QX on payments [Indiscernible] that strong We going actually it's strong and well. in growth fourth still in Solutions in impact will general from see So doing what seasonality. applications. quarter We We very say can feel the due QX. predict I track, Very important QX, and some growth. to between to into

then QX. and Great,

still guidance. where But is. that's provided uncertainty mentioned You the most we of

think about how with how do -- So QX we guidance the up full-year think here? we -- come and did it about for

to harder self-precision, usually predict able it's make to uncertainty obviously do. with So we

two at looking we're that way the it scenarios. in basically a So

if lower-end, down. uncertainty continues the to capture is drive one first The

the improve it here. seems is second high-end from actually The

happen. no both this idea to is to more those of have But range we provide what the going what I sense capture why makes is wider or So options.

So true of the range this we're remainder that of for year is comes providing. about a the

It is within the most a will range likely range. and true be

investment flow. all this changing And then pre-cash is plans How the finally, for of updated year? we our

actually some plans on So view happened impact because how And that our is flow. that We our most the of to actually that temporary Wix, plan. things Obviously, nothing part will pre-cash we as none but that the of changes any continue by last, know guidance except our it's our of is you long something doing we based it's this time number Company time a of don't the at our of point growth on much of it -- by on effect. the is see based that, marketing, It's stop on as other which the term. decrease on of traffic, users are the for in join building way, -- any effect to and to going not have not going impact of default, DIY. besides investment. to But the based our we're is why of that doing in the and reflected decision

Okay, great.

they're over we can on think to items. you I'll think others that back it I some and Maggie, I the turn questions helpful from phones. take all

now. ready Yeah. for Operator, Great. think we're questions I

from with comes Your [Operator the Ron Josey of JMP first Securities. question line Certainly. Instructions]

bit question just that. affected little for around talk presence that well your top all like more to appreciate comments about slowdown is, and is do then, commentary put But hear And slowdown good versus was to can and Great, activity it question more seems follow-up the how of the Payments, a this just how a more, I format. just commerce the to around the from taking guess at presence, talk to for Wix you and I differently. the funnel commerce speak thanks new hold. but online there. continues to on wanted us

the ever In you're XXXX. forward talk the is Avishai, think highest better sewing letter, was to know, in ARPU you and I Though, higher the just at XXXX conversions near. retention. due pulled demand about You cohorts,

Just up-selling starting on talk about they're insights or or higher more a not you any mean or that. level because more pull-forward a what products by at little out buying do just folks

presence pull-forward then So and Thank versus commerce. you.

this course, commerce. Avishai. I'll is with Of start

I presence based other -- or that things store or we're people think know if for be about going that in online. are on doing When many -- like will something don't is thing to only seeing there. back or so for? people [Indiscernible] the events that slowdown to lockdown who's not what for we're presence things a go

We commerce. coming one lot and described we invest a the about XX% start improvement to in of still So just basically, their -- and with This in in we of than right? products beating -- also -- thing more seen while was that their that the from tourism, before. an past, see [Indiscernible] and to people the can -- a a slowdown cohorts that we're strong, commerce, because urgent finish but And continue a the is we lot made for with faster as pandemic first to presence of commerce are second in to and the gaps we question, that online customers the XX% not so percentage bit commerce your saw last the working Wix. is to in I other getting we is it that better, of regards converting we more of it have had year that.

new seen. that with user that along the that with So is registration. fact seen slowdown -- we've then And we've

you. Thank

improvement cohorts that high out to a to want so I as it's conversion see not also compared XXXX, the there than higher just past. as point still is But we the significant XXXX, but

Thank very you, Avishai, helpful.

Morgan with of the Your line comes Elizabeth Elliot next question from Stanley.

Hi. Thank you so much.

guess, GMV may on rates. Just Does adoption XX% that but the to goals know a mentioned default progress more have by [Indiscernible] you that follow-up. I that and -- then kind is on the any to hitting And any those guys be new of quick signposts COVID variants? Payments it's then, Thanks. on hurt trending color expansion helpful. the incrementally intake have XX services-oriented. on of, as kind of goal, about can your confident of if billion would of question And and the the I incrementally a some fact option any the Wix [Indiscernible] GPD

A lot placed. targets of for it service-oriented. GPV We that where with was questions. line the see we But I are being yes, think in that do we

right be. of still we much seeing are this to and as coming obviously, in because it's it beneficial XXXX, even used commerce the And commerce And that but more head happening we into because stay we that this to percentage component So have we essentially in year. same area. there pretty lot the a people XX had into

don't in have close, we we than in is in of do very it So, can more something before. terms we In Payments that that yet that working so Wix better countries countries. sell. to the the hard we offer This countries that it is we're we're adoption all offer globally, saying

so than And before. higher

I one? think I your answers miss did or that all of question

accelerate and from was just on how adopting the how of start new when should delayed the a model? platform the you BXB us Thank there you level helpful. we strategy expectations the more start go-to-market think any a can through That you. Wix move announcement. partnerships adding And you. those partners partnerships over. expect? higher any Is walk to then you follow-up Thank users And on and finding timing Can VIstaprint customers on to

that? Lior, you want take to

one. I'll take this Yeah, Sure.

they – funnel. the -- just case how to where the the Vistaprint adopting in of when about asked if and is And products. a in customers [Indiscernible] do initial you them have when customers -- started into after -- Vistaprint Well, Wix. grow they goal terms So they broadening of the [Indiscernible]

offering product which thing designs the which to there the doing Vistaprint find be And offering learn to the who But part the platform to way. going for places offering will agency-like We And offer that's best week [Indiscernible] the the in also ago. the that and that possible head. empower. another for are, a play that. with while will required is offer me very happen be according We'll XX platforms goal is the they that. final technology of Wix segment is of way the will to them an put will obviously their possible much will Headwind, the best best in

then we're about soon, We're next early going terms be -- it's In of to styling, year. talking talking

you. Thank Great.

of Your with next line Brad the RBC from Capital. Erickson question comes

on thanks, talking the more Hi, you're a guys. about. guidance first the guess and uncertainty little I clarity just

we follow-up. to think what all Thanks. the would acute COVID understand if online, and what -- reopen, would degree business? to clarify kept would flared fully of up just but do their I if that appreciate your or have businesses and the I can on happen that be then again guess And I have a can everyone business effects the totally you things

Yeah.

seeing did, well, see when And question? we're is COVID this business, it's the assumed was pandemic. Is of familiar -- first during with think was into part we'll I hurt a that actually with then that events, business, now. -- we but did and if of to that is give went lot our I started in we would And that least that also and we those at became once natural a slow it we lot way course acceleration for in all, ended hotels, to studios we would like our up What be of the of fitness, be those not businesses, that big lacking yet going the catch-up. going we place, like what a it were better answering back XXXX much that and that we And a lot happen. really things yoga, a salons, we your it beauty this be that places restaurants, things of you and finished are pandemic, expected a a obvious some of end. guidance that of lot think to the part to have what's

Yes, BXB follow-up just the a that's at. then what we're partnerships. getting And on

in maybe I that mentioned the the another Thanks. contemplated everything this second push one to as came You the the The in half year? closing guidance confidence half, of quarter half that your you've think second is what's for second level up well. last and question

think only have time be we will As those about, actually mentioned, numbers. we it providing that I the we

like the XX tell very But year, on I nature in already half most our I for year. lumpy deal of -- as again, guidance. can we the What second business, all have to been at at of I terms is anticipate explain of think signed be to We're of beginning. in transparent and already before, half the done. is the it's about close the we what our the mentioned of half second part of have intention the We you, to second the as million the it most of of -- and more in booked. guidance that year very this also that's least do

Got it. Thanks.

Ygal Your next the Wedbush from line comes of question with Arounian Securities.

guys. morning, good Hey,

more is Is pull-forward confident and So there a the saying, go fully concerned that? of smaller just we've smooth said is of at customers I Also, wanted Is users. on a or in hitting the pull-forward to the your of doing you about one partner so I funnel be for of least Are -- comments are the question, rest top that we've little clear. not the you the think hitting second agency in was ever pause been. then, your as the whether maybe users? the better and to the gone of the the why the of you funnel? pause, It And [Indiscernible] is just the feels impact partners earnings it stronger new than sounds just that of that the conversion established back -- seeing or it are that necessarily you that the like pull-forward. through the are are are. larger, seeing some noticed business them not not ones are agency top same like case? kind than themes And wasn't in it's bit

try first a also a me partners. projects answer bit with So to we do and of new see Let slowdown coming right? question,

effect they similar to us. are so And experience

years will sense. for that conversion. Although, users then So forward, pull-forward pull we [Indiscernible] the cohort cohorts right? with a convert we that why going makes what smaller free This call same join SX in joined playing while And scale. you of we've from in still years admitted be. convert time. that this a in we over the have of few converting. most XXXX that from So right? XXXX, first for -- the is scale, life we Old will this not true made The which on the on is that, that play how least convert. and say the let's but look and and amount few And all months, with ago, still if Wix, of they're as that these have a of seen Wix users you and conversion users will went at up, few is product that Company. that see suddenly users really that X/X And we to perceive we been or are rate at if that has a of felt to something faster in the pulled conversion that months the we

the how or but effect was it now at 'XX, Then if While rate, behaved part of we a we're just early to, look if behaving look compared XXXX XXXX at so these better. actually right? is to -- compared how that high still so -- we

used be are in were where we in XXXX. to the what in So we between somewhere past to

as just -- it exploded. our the pandemic most not still but so history, as good than corona is And of better when of course,

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Yeah.

it's -- think of first all, of partner. on I that -- the really the nature on depends

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in had how to On the Vistaprint expected and next start you letting partnership year.

that we and once set-up customers wanted see With is historical Wix, to from the subscriber-based like Vista's happens? the cohorts of disclose. mix in you I the of that half over existing than there to to guys being terms migration then, pull-forward, were of net might these double-click on that seems a just more previous used previously. It And adds the

We new the haven't obviously recently, the out from versus how customers ratio new cores? it older look broken more that like coming [Indiscernible] does but

Yeah.

to customers, we're it's from for about partners? number many talking have. joining question quarter going to massive the to too those It that Wix. I see of it's two going Nir we is that mean, increase to obviously, be I And it be Once to Subscription start, to new the is Creative many migration yeah, going in quarter. or you that The -- Premium to Subscription significant. one was XXX,XXX me it's about early it's migrated we're that of Wix. going mentioned think subscriptions tell But first

too regard XX% similar. coming quarter in it's change cores are is think of year to quarter about this has going in old that dynamic if quarter, question the gross second in from say. typically a the good happen one six or adds a in I new very second XX% early to it's months, So one, in to it's the nothing only and With

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Hey the guys, couple ones. just of a taking thanks for questions

next bigger on. the BXB five, this give then, question, you about range side, your half, you expect XX% color this can on on guidance collection the Solutions, provided this mean, you. few business share just be some is First, to on And going incremental the de-selling growth Business we about on the they the like get around Thank for in total follow Subscription and some anything context of the know you of will on but up about how and can and in bigger to 'XX a collections XX already greatest in so should same think I second six incrementally forward this great. growth subscriptions year. years? to should we points think implies 'XX But side over the kind Creative I million do how XQ.

Yeah.

with second has as actually, an question it or also basically one. will the the So impact relates [Indiscernible] first we business. Look, I just the because -- to start it started

second the XX talking So for about in new example, is we mostly premiums. half, million mentioned about which the

premiums be we can going top partnerships of expect Now, even are for successful those to Most new likely, be [Indiscernible] renewed. to on of way. it's think that. Those be more

for why partnerships of do every the just sold technology a demand to invested question, expect see much quarter. the this business the of it will to on the higher that. it's at first our reason We've So that so this big To the believe results continue a need to believe Yes. in question market the demand very the partnership the started in before, our and regard part going I many, to to in to see that about beginning, brand into single be more-and-more out. that has lumpy, Creative I it mentioned yes, that we brand. business? in is we going I in impacts With is in I is we as take Subscription grow, bigger many it the like years answer because next we're do terms value but few yes. consideration. yields, in your dollar collection you asked And our

uncertainty actually -- Business Subscription of payments, to in is our the The I Creative the due forecast the because it's stable to low compounding As a due uncertainty. because Solution most had grow is mentioned And what, affect to before wish mostly I about know payments of you -- effect. the decrease are is Subscriptions the is we Creative as that s. continuing this

view things. we going to Creative how is is any this be Obviously, if going see So to are improvements, we first on Subscriptions.

Got it.

That's Okay. much. very helpful. you so Thank

have day. today time we great all Thanks the everybody that's have, joining for us a

concludes conference This call. today's

lines disconnect wonderful a and You time have at may your day. this now

much, Thank you Angie. so