Wix.com (WIX) 9 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Wix Q3 2023 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 first speaker today. Emily Liu with Investor Relations. ahead. go please Emily,

], Quarter morning, XXXX Stacy the Welcome Wix's Third Call. and [ everyone. good to Thanks,

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

materially that statements, results press we on these are recent release from and Please and forward-looking expectations to factors risk XX-F these consider statements most During the the make could included statements. and actual call, assumptions. may differ cause based our current in forward-looking Form our

We undertake not any do these obligation forward-looking to statements. update

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

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

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

and to delivered consecutive or is for million, expectation $XX third morning, a XX% and both more cash generated grew ahead our Emily, another $X of million exceeds our expectations. above good high We of than QX of flow tremendous $XXX growth free in everyone. end that quarter of the guidance. profitability We million revenues, which quarter. Revenue Thanks,

result of revenue free year. year-to-date, at set flow in we our are Day August. and XXXX the expect again And the guidance raising for to now target margin outperformance cash we finish a of As ahead our Analyst

an up engine about to and want growth I to years XXXX spend my year, our begin we that come. products talking the outstanding expect time into of we today wrap will As going to primary most be

year-over-year. strong of QX, was Like a Wix in partners driver our XX% performance line AI. business Studio and growing top our prior quarters, meaningful

best-in-class their that ongoing successful understand better product community. with continue through the professionals needs find dialogue We innovation to resonate to and

that As we Studio. Analyst over and the took our years at in have created all Day week spoke from we learned we partners August, about

energy management with partners, all web consensus for more and that everything feedback provide for product and and resounding they The of the is needs. has project still been cornerstone incredible. to want reception new their Our KPIs creation

responsive studio new across and love pages the sizes. such code and are assistant code them high-touch to inside IDE, particularly technology allowed design AI screen on which consistent The as errors the different Wix AI also simplify web detect that easily. enjoying write tasks Users clinic time-sensitive ensuring

More importantly, studio them and helping while client scale ultimately, productivity optimized their business. Partners their elevating workflow offering, own

and experience tutorials workflow place enabled to like partners easily time all management, for Features into cash and kits projects to manage with and board teams built one client resources. the of end of seamless their agencies allow saving client in clients, provide and

number live and already to Studio generating thousands registered We conversion GPP. have active own accounts sites The expectations. have of of existing total of many our studio sites and exceeded studio

it have possible from traveled allowed and other. could [indiscernible] countless sign All the opportunity success of been hundreds partners across the to will this educational that cities early forms learn around globe, team to Q&A not over from onboarding us the each X partners XX give sessions. Studio X for to and workshop These to months hear of of directly without bring

now is partners. live fully Studio Wix to oil

offering. let confidence this a business. about of as of in industry-leading have excited are did terms Wix. professionals off we These AI product product to team community growing period gas execute add gives of own what GenAI ahead in We well innovation growth the and that and to a strong me factors the continue continues We our in not long

AI for pages by to AI our leveraging professionals of enable latest powered of released their groundbreaking Earlier feature for the products, our and benefits SEO-friendly better from each looking at make areas, was SEO creation AI an generate we As we have friction co-creation safety AI a looking spoke our for with working decade our SEO nearly powerful about learning Analyst to reduce first product. Day, and efficiency a AI this machine this tools, AI site by users. first we and week, adjustments with Meta tool Tag collection to both within Creator, their real-time and enhance and

are using Experience was efficiently. get This second all order the we AI financial to busy and Conversational to quickly but a for and online. online utilizing to succeed The done our milestones, feature demonstrate is has at accelerate to These many paves tools AI way our continue to help year Wix yet. of been products now businesses Chat It which types leadership Businesses. more not live, with in in users still onboarding new AI

fourth continue even to into the growth expect accelerate further. quarter the strong profitable momentum and We

the Finally, beyond before a over to it to strategy them. than against I backdrop, from trajectory. The global I and Nir, more Wix execution challenges end in ago our Israel but growth a our with terrible world imagination, like quick no thought. in and ever of was unprecedent is terrorist stronger it current is a turn navigated strength different. met and the the of a ultimately before I'd This confident month Even attack team am with

With Nir. it will to hand that, I over

Thank and you, you, joining thank us everyone, for Avishai, today.

which business the I spoke drive seen we revisit performance year, about Day, that strong will far at Following we've in our want Analyst growth coming so key our expect we to the the pillars this years.

Avishai revenue. was in mentioned, Partners another of growth First, quarter accelerating QX as

with coming growth in partner. projects with Partners a particularly business more Studio long per The to We months ramps. ahead, continue Wix Wix Studio of runway partners increase been Wix to an as the opportunity of initial and expect in has fantastic

in more and solutions continue GPV. also business products adopting driving partners see meaningful to We growth

give in we these Partners' sales again Partners by creators stable behaviors Compounding business, our confidence cohorts and the growth is in once us which compounding revenue continue. growth reaccelerating that will and this Combined, saw complemented growth profitable quarter.

the drive early building weeks, already and higher and Avishai space. weeks monetization conversion, retention in leadership maintain the about in experience impact to its spoke innovation market-leading business for as our technology positive AI position we our product AI as expect have its early conversion powerful we We -- as well revenue. and its chat website seen on in and products our

We recovery our with this believe paired have that return more ] that confident will macro continue pipeline our double-digit will and innovation, we trend our growth. AI products in to I'm [ business self-creators

outstanding higher pillar Wix adoption our Solutions XX% highlighting increased strategy of as third Payments. The increasing as is saw growth. We of Business in year-over-year, revenue well QX, growth GPV transaction

continued growth [ ]. expect increases as self-creators better GPV as applications business and both in partners revenue adoption across and drive We well will transaction of

experienced of the increases year, to first momentum half in the and we ahead. our years in the excitement about This quarter it was a continuation what's of the in growth come

Israel. to war to and like our do With amidst of not accounted no I'd our the impact as for and going we continues. anticipate war forward, all there ongoing on operations our continuity Finally, in our business any operations business been plan significant disruption in employees briefly address the has place, even

internal reminder, completely of As are a and Israel. located and our of outside cloud-based networks all infrastructure

throughout Importantly, users our have to period. support disruptions any performance this not experienced or

responsibilities. global of duty implemented than to up As on already weeks efforts In as we their the we product our well-being to priorities X, and our workforce to have In lines. called October were the and contingencies immediate following have response, on less successfully time military and take our mitigate we X% of families, focused development delays slight we experienced impact pipeline. their to shifted product on employees shared, we some

We to intend for not development delays these plans. overall product our impact

rollout number global products, Studio of the last as launched including well the successfully full AI a Over several of have our newest weeks, we as capabilities.

features the and We new coming in will continue planned. introduce quarters as products to

Our people environment. obviously a Israel to in new are adjusting work

a prioritizes safety and teams way the are mental and them including can, families. with work that We routine well-being supporting of physical in we their implementation the any of our

broader to In addition has users our supporting time community implemented our well. initiatives as multiple global our during Wix this team support to and teammates,

leveraging platform, the the our platform in footprint war ensure of global impacted and by robust technological connect need are who the resources, most. small and those those are reliability expertise vital it depending for on to businesses as with our We

this look of to times. along The partners, of and confidence growth team in the our community with our forward support give strategy better me all we resiliency incredible of users as

to Lior? to I against through that, our hand plan. over With and our progress refreshed outlook X-year walk financials Lior it will

Thanks, both growth our exceeded results carried positive profitability and forward another quarter We momentum that Nir. of into QX expectations. with

provided Our increase exceed year-to-date us exceptional full in provide and Analyst in performance X-year in our achieve confidence increased Day at our to enable year to again our plan the milestone and guidance August. even ability

XXXX. flow now minimum year is of the of flow expect margin with for margin striking XX% targeted cash free of to to We free the distance which exit XX% within cash XX%

in share more Additionally, than we free $X August. in of XXXX share the cash per also anticipated per to $X.X above generate flow expect

generation quarter of income full year. of XXXX throughout to QX, and in consecutive be flow dilution well. GAAP careful positive net year positive income achieve Notably, robust achievable As profitability in expect a to with GAAP net XXXX, result free management expected for second GAAP following we cash the the as

as puts ahead in us GAAP I'm incredibly it proud of this the target our achievement plan. of X-year

XX% grew now coupled increased driven $XXX guidance of range the payments top QX GPV, were transaction million, to was and third XX% initiatives. of to total Strong XX% as revenue grew more consecutive $XXX on XX% in by up Partners in year-over-year adopt accelerating to Total growth. of continue top Partners continue This details GPV take year-over-year execute resulted our year-over-year. revenue year-over-year than With as an growth Total accelerating of XX% rate growth QX, by contributing Partners our our revenue million on again this was weak exceeded overall quarter. million GPV, of strategic third to a the merchants growth to quarter Moving the line quarter. XX% end we in $X with in marking year-over-year. bookings business. up

Today, the looking I profitability, integrate and a highlight [ without our our Before a scaled end. to X their BXB rigs signing move tremendously business to we move are on to customers to After of business. since take any to ] the our into business bring from BXB stand-alone meaningful able has I partnership, profitable our years to technological additional power with now is investments first want of basis. on large

this partnership we earlier strategic on terms and this of XX beyond able We our months. quarter. signed future usage more uncertain well the on this partners forward. shift result be macro pipeline but an a example is significant we recognize no basis. obligation BXB based This environment, partnership space unbilled recognized Intuit this is ongoing represents our to a offer as [indiscernible] model believe partnership with a As opens bookings going in are in of will we now longer One opportunities as evolution contractual to potential the achievement

improvements margin profitability prior the to made this now points to gross compared on was basis up quarter. XX% approximately quarter. Moving XXX Non-GAAP of the year

better fourth as continue a business. associated was well marketing payments our benefit in compensation of generated nonrecurring [ budget. to to quarter income, with of more from well cost included as positive Wix to consecutive Studio, optimized as non-GAAP which our annual ] revenue. gross We margin operating both XX% We as increases activities the structure increased according

execution operating quarter. increases These partially the headcount as well overhead year to continued streamlined prior on our marketing and in were lower as expenses expense compared strategy offset by

achieving accelerates excludes a generated stronger X-year or expected $XX our XX% than XX% grew CapEx and of cost cash target this and to the that headquarters. we flow of growth revenue quarter. this of As to Note over cash result Free plan. path million continued build-out in to structure, our flow related year-over-year our the leaner free our

outlook XXXX. to and want QX finish with I Now our for

representing year-over-year. to in revenue million, QX XX% be million $XXX growth other to expect XX% to We $XXX

to Following revenue $X.XXX revenue increasing again. approximately full expect we an previous our representing to year-to-date, year-over-year XX% of expectation be growth, $X.XXX outperformance XX% from now billion, billion our increase to XX% XX% year year-over-year total growth. outlook approximately our are We to

as we expect We XXXX. also exit accelerating profitability

are approximately We $XXX revenue. XX% cash free or to increasing our million $XXX of to million flow for XXXX outlook for

us minimum of throughout our year increase dilution with putting free compares closer XX% margin XX% cash much rate for exit the indicates approximately of exit to XX%. of XX% flow of this outlook approximately us updated margin previous management share along enables XXXX. or free free an flow This free to anticipated flow per and to XX% cash our cash cash target cash to year, our to outlook million $XXX flow This of and This flow for year. the free careful $XXX also revenue million

path plan ability incredible our target X-year XX to we as ever least long the performance with of confident Following in so year, XX% the free accelerate I'm at a far XXXX. this Rule more a expected flow in than to achieve our margin cash of

ready Operator, questions. for we are now

Trevor Our Barclays. question comes first from Instructions] [Operator with Young

Great.

any deceled easier bookings, basis just in a looks ex the insights It deceleration both of slight First, compare. on reported in FX. on particularly the light and like it

question, And then on and acceleration the Asia? geo offset market to basis, North in Europe slowdown America a in And what second drove what that partially drove that.

answer is So Lior. both the I questions. will This of

to we regard with So expected. the in it where came bookings,

it's also business. I spoke that changes to briefly mentioning BXB actually before. worth think the We a partnership, and positive about see I it this very

I and the with previous integration As we customers, mentioned partner. products previous before, with completed

not macro necessary our willing to are to as people any by So the it's we partners to do that that don't do of you vendor. a not at commitment partners, forward. it when the have our for us not going Also, willing obviously, to again. long-term to It from commitment am regard way, provide I means with environment, demand my kind look

from we one as So multiyear year. to part going on, recognize not now a bookings, are more is than least commitment that at of

to to to have of but term, short it's long -- it's impact on important going effect going on not have bookings And any a a but revenue. not So negative term. It's mention. kind

Second reason of no as just higher plan, new partly BXB subs monthly as by from we is geographies. booking. had in Again, on a the to your specific slightly there well impact other driven question, revenue, about partnerships percentage

of lapping from increase first was that, from the XXXX. is believe, price that the spring of I reason, quarter because full Third -- fact

However, we [indiscernible] compounding Solutions. growth driven benefited by from in Business

tools more that launched, strong all we that going remember from Studio just increased kind to I compensated also the of for So terms we than that forward, growth increase conversion, revenue. in but see already have have, we it's AI for we of yet even that. believe we need example, the also that benefited but engines in contribution that not

geo to growth. question With the about second the regard

So in this going XX%, quarter was we Europe the accelerating. mistake, X%, not was a that slide had meaning to of X%. It last actually quarter, up

So that geo. have confusement the kind in of expand of we that the part

question from with next comes Arounian Ygal Citi. Our

wishes guys for X and of have in and wishing you families to okay First and you the everyone I times guys questions. have hope been Israel all, better region. best and and

impact First, that's just on there. the and acceleration driving Studio in Partners the and

until third the guys some you Has that still bit been Or and little a products, it impact think notable a coming feels driver the more contributing of it numbers the really but is you more like you're it? seeing the a seeing you start launch lot numbers. to good I signs, through it's yet. meaningful acceleration typically, quarter? not a new when takes [indiscernible] in seeing early it more time Are it's

better And the then on side, the on a AI driving follow-up around comments conversion. just

expand seeing So a products coming you're lot monetization on of and new through. just retention? what Can conversion, comment AI in KPIs you around conversion, on the that

Partners. about the Yes, question first so I with start will

right. impact Studio you're significant still We So of just we launched because a it. absolutely don't see

we is about are that think so excited this it. why I

for growths from X, to that we necessarily the compounding we've are meaning any our buying remember see more effect using see products The example, and it see of including that [indiscernible] done now with ads. more we the right payments, it, Google few everything And coming that Studio. quarters entire still previous Editor not need and of ago, a we like Partners, benefit that now, we right agency that or

for in a engine so partners. that why Partners believe increase to for because business and A part Studio future. because us of excited is in a it The reason big So tremendous the continue growth great we we see solutions. are of increase is we

to it are year. of some next see We going

we regards we the products in regards KPI most in I question in AI believe deploying products. an success in actually to are in that what do from kind our launching, important we of your second new was which effect probably is seeing to which mostly And we improvement conversion. by are different see conversion, measure improvement and

in understand The smarter user achieve. to And a of that starting for lot effort able that of that the are able very able the that of terms content why a is of and trying the not to Wix from would we that manually. with top result are improvement just better user is to in skeleton, to are better is create also in results point The knowledge to fill From able way, and good we normally is are that, business we need you information lot generate reason for the of conversion. fill dramatically questions that, ask in we business Wix. is the a that to your website AI, for to their on a is on user reduced. and amount see And to of that a the have

comes from Andrew Securities. Our next question Boone JMP of

also to to have well are going two guys. framework and guys marketing I those as [ returning forward. double-digit items. We sales growth had tie comment Historically, the strong with ] back of self-creators back [indiscernible] very wanted you between a you

can [ else to And ramp you you specifically back either anything we just about ] or how to double-digit about performance want unpack Getting marketing growth talk expect marketing to we so there? should and self-creators as think your

this is Andrew, Lior. so

the looking tools mentioned, I Avishai that products. future the see specific for So to believe at past conversion, example. launched, about we growth the almost AI be that of upside just tremendous and managed for entire we that history potential example, a Obviously, increase to was due deliver the more for to we Wix the and in

Payments, for like We example. also business see of a our usage much tools solution bigger

gain [ including growth macro will that in a the to So for double-digit do recovery and self-creators ]. be we future, the we looking believe the at hopefully, everything market able and and

just gross to I change unpack [ then margins. And do touch from you analyst think how that just forward? about going Can help there? improvement us wanted And Any Great. profit ]? the on we deck

So yes, certainly.

saw a two tremendous we from places. in this year mostly And gross margins came margin. So improvement it in

we one savings that is of improvements with The activity. hosting first lot infrastructure, the have a and of our know most you

organization, that we So efficient. benefiting care [ lot about from more be of AI but our savings of all to there, example, tools ] us also over a enable kind had for

year, be I I year. we're Business seen sure especially around So drastic improvement to as I believe see most will see that not some from I'm also the -- don't that that improvement. to we was more this that next year, going gross it the more more of the fact that, are Solutions. but but margin this from coming that believe going we've improvement efficient, certainly much see better a being we

next For as year out and able something year. next transaction continue will increasing, rate are revenue. more again drive margins up that of we gross take example, margins this will to also generate believe is is Payments I that

was profitability, about gross question or example, just The the margin operating for the expenses? overall the

keep was to margin. it gross else. let I'll to profit I somebody going

from Our with comes next Zhang question Chris UBS.

regarding I question marketing first this year. the the expense So have

direct Partners of acquisition competitors much previously to can the direct guide return the [indiscernible] expect more unpack leaning the marketing of channels more you that for the about much maybe as You into now Can spend And of mentioned from lowered Partner the spend. environment the basis on the you a the up? your one reduction, response by right channels, revenue. talk go how how you about as from to percentage also, XXX the more points drivers

Nir. it's Chris,

understanding get so strengthened brand throughout buying leverage of maybe us. we little strategy, strength year, ROI if can financial kick worked marketing the Generally, brand the can our a and because years. because this the last in simply against the But I change for We last think communicated of compensating Lior is aspects I'll our needed. strategy well better that we transit it more that extremely go into off much few already

continuing So release basically the dollars this of Studio. also of we the lot towards strategy, Wix but this launch communicated deploying year, and marketing a

when second of of the Now that internal of But about we spend put release half we kind QX an the Studio, the of was explained year. the share if launch. the cadence and in you we mainly Wix remember most about of

to didn't budget. launching spend And existing So use need partners. to we we of and therefore, were marketing most our the to

to the -- So always use plan its the some to it internal was create of the the the was of savings, more in plan, QX. internal towards within plan way, which great. we more was put put Even to QX. of the But by managed QX, goal

That than of few being the adoption It's expected. fantastic. of the we weeks Studio, even is at said, the looking higher first launch

deployment we and So QX that marketing dollars heading be between XXXX. the of more believe the done actual will into gradually

of comment super how helpful. if to also can dollars marketing? And That's putting and about And return thinking [ growth just trajectory -- self-creators you incremental think guess the you're also some related I ] I probably or dollars on environment. the kind acquisition in that's the in

the now, this change We stronger. the has I So believe see strength with that show that than I that of that year, return changed managed marketing. fact made to regard And consistent the that a stable. of great next a actually not to believe the of it's with the know our beginning And is obviously, of We I the due that amount investment of brand the last over strategy is and [ sustain brand. to less same there's quarter. Right X less see become continue than something obviously dramatically compared much much years. the much, this self-creators [indiscernible] that we've think couple you is last working think can that also the we we that ], generate, collection in to to the from and change quarter.

do over change ]. [ significant any there we see self-creators for not So

& from question Needham comes next Company. Our Bernie of McTernan

to or much talking and that maybe like you Wix on that prayers just -- the ], you of team. about just with guys Great self digits? wise growth growth. you Maybe technology creator control How back on that even to double-digit getting that you just [ versus get to and macro, double reiterating control thoughts anything marketing can can call out back waiting the to

Nir. it's Bernie,

cannot So a that I is product obviously, towards there's macro growth lot a control, that if can think a on we believe innovation is do to to environment. we recovery anticipate we environment that be our and growth. don't the [ of something control. self-creators But ], even And in obviously, plus any that generating

part is deeper From what that and the we've foremost, around seen a AI I explained for wide obviously, and product or innovation of the already, ] think self-creators conversion that that conversion. and and that AI have milestone the are plan. that Abrahami for, first can is how drives the [ And we we big in aiming does creation growth product. a Avishai and AI much marketing just is we follows first for -- driver first something this -- improvement be

think from So if that what alone, a can ]. conversion more [ standpoint But then marketing significant the growth. self-creators we the to we potential consider terms improves, towards of obviously, do we for there's want in

our events, and we very GPV or wide part part -- a whether and which is it or other The also growing eCommerce stores they're of on the selling Solutions, and seen on of of growing side. strength. have the Business side although have we've the, restaurants it's are self-creator much they Business hotels of growth on big partner faster or that a and or [ and significantly Solutions, both we is And adoption side, side variety, platforms, the ] okay? scheduling The of

that definitely Google driver is e-mail other there a growth GPV solutions, well marketing, more the business are cetera. So solutions et advertising, as as

recovery top yes, our it. it. we in on drive come can So our is, and belief will That's of hopefully, control,

really on adoption you some Studio. you're their more Wix Wix terms being share tangible more love expected. seeing, would get tangibly early in in to just just just follow occurs adoption just I then of comment you what's higher of whether happening workload, it's like think than Studio. what as taking partners the but Anything terms exactly can in And know of Understood. days, it's up to you're just the do Or like efficient?

is at think using many just of are the look do the a more I I of Studio. familiar is people lot it are And partners a of is kinds part to it of you time. that think -- there It There Well, more that variety. software. Studio. a very Wix that when that design using Then Wix similar different freelancers

software design the different adopt continue easy you websites traditional because power can of normally very very of it's then strong, will would tools, that seasons to in for Wix because require for create AI the to and you to professional And specialize Studio. that thing the very finish of AI the So web variations it designs.

website and the the enable CSS live really In the very built want. and way we specification ability to kind hood go seeing is sketch what the the mode professional mode to make having it it code and the you change -- the the case we're finish more a to companies, into exact into while below take real sketch the that of then where into is that that we things in quickly, you a that it of

we a tremendous serve better time. projects. into in going hire is while to of operation, of that for would things. to making very expensive can We people beyond do thing, efficiency the things do the so overall, specific means, even increased right, it that terms amount the require overall And What then

we're to different partners, different seeing of values course. So of kind

from question Company. comes with Wong Our Oppenheimer next & Ken

Avishai, to on MailChimp ] I [ Intuit agreement. the touch wanted

CRM, utilizing seemed their releases tools. earlier largely their marketing towards to press lean I the think

deals, BXB kind partners be level same with these builder. Can duration much then Wix potentially a any on mentioned website mean comments And using shorter great. those of of just the you You how bilateral to we understand to the following is forward? help it's of kind us agreement. exclusivity shift of two would up on the should Yes, going there assume a commitment

I'll the Lior. Nir. it's then Ken, hand first Intuit it and question tackle over to

I Intuit side So and on think to also maybe on what do we other in -- the together intend portfolio. functions other the terms of Mailchimp

of overlap offering, from that the is there's in users, -- lot users their conversations in terms that Intuit different fantastic the and many it's very of profile meaning over for and of the team overlap many of terms the think us I the we what's but few Wix in a ways It's quarters. very clear complementing the we've each little other First, had places. with in are very last interesting

able these [ be value possible The the we'll a experience be of spaces way to idea end for way but map in for seamless user as Mailchimps possible the for Intuit the the best the flow up that Wix and hooking core us deliver end as the core start is customer. possible ] is values of customer, the to will to and of best and

combined that product It tools better means presence pay where and will from And the will will are we willing for lot and healthy better we're not. they'll upside effort services. eventually where -- be our creation offering are much they better who spending standpoint and be more to user spending a have end the not. offering, that And lot digital of for have they're the a very a on experience we the

BXB? and and is and we're generate to most win-win-win a is So want users. importantly, Wix Intuit, customers our the the the, Lior, going which here, you take the hope obviously, something to

Yes, sure.

the I remain not the So first fact is Ken, that is the only to if anything of that believe that your booking about conservative. is arrangements, will X of I beyond type no change more all, we have exclusivity, there we exclusive. that it's, recognize year. in a question, meaning it believe that change will the

to of product market I right bring in best the Second, their the the there's no partners. And customers. Wix that to want serve order power are believe do we to we have to that. best They need. the in alternative now

saving it's solution. R&D also best that think cash, and them I provide them with R&D money the

So this is something that will continue.

reason, is make second The is of lumpiness this sense one that why booking it obviously, commitment to than longer recognize because the business. any of doesn't as year

agreement You quarter. can huge one have a in

huge quarters, no following the there's agreement. -- other The -- no other

making kind So lumpy sense. the of quarter, kind doesn't make it's and of this it between business

any impact And it case, involve in doesn't revenue. on any

what larger town for in partnership more decision. negotiate negotiate then the secondly, more this us assets commitment, be So that, on you open you because I on the And make order don't would believe to on is that important successful. the best it's

Company. will Zgutowicz from question Benchmark with come final the Mark Our

a Just gross on margin the question. follow-up

next Just there. been customer rate months leverage leverage meaningful terms gross curious margin XX How like have run other of over lever how on that's driving care you in much efficiencies? more the versus hosting points

meaningful And into expectations how XQ that at in BB the was look to 'XX then Partners second revenue as regard? partnership any just question, and you curious contribution

can question. going [indiscernible]. to always be details case the So the I'll It's with efficient how about more not the way. start I'm we by with first provide

some to be to and efficiency needs also for I contribution efficient it more mention we and more also look around more We we be see can margin some ways but year, that more are fact are the going more to from in be efficient. next did gross payments. that

as more profitable we business. payments scale in up this are We

there will cases obviously, And drive efficiency. be more can we where

go to that, I'm do of into it. not but we going going are So course, details the of to

of Partners contribution the to for year. of partnership this BXB regard the With

So it business. it's any SaaS course, was SaaS more a other business last significant than as year. And of

more in that So of be Business times say most of in most the nature and mostly it. the more as the Wix that from the actually Partners that our are see did and significant mention But see in it. that many the joining -- the we getting we the I following years. it past agencies. improvement fact the like This we have. coming will that from compounding that more driver like effect more we growth must I It's coming of strongest and agencies is more

conclude This the you participating This program. question-and-answer today's the session. does concludes conference. for in Thank

now disconnect. may You