Q1 2021 Wix.Com Ltd Earnings Call

Yeah.

Okay.

Ladies and gentlemen, thank you for standing by and welcome to the Wix Q1, 2021 earnings conference call. At this time all participant lines are in a listen only mode. After the Speakers' remarks day would be a question and answer session to ask a question. During this session you will need to press star one.

On your telephone please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today, Maggie O'donnell director of Investor Relations. Thank you. Please go ahead.

Thank you Cindy.

Morning, everyone and welcome to this first quarter 2021 earnings call. Joining me today to discuss our results are all besides abra honey, our CEO and co founder Nir, Zohar, President and CLO and Lee <unk> our CFO.

This call we may make forward looking statements and these statements are based on current expectations and assumptions.

Please consider the risk factors included in our press release and most recent form 20-F that could cause our actual results to differ materially from these forward looking statements.

Not undertake any obligation to update these forward looking statements.

In addition, we will comment on non-GAAP financial results and key operating metrics you can find all reconciliation between our GAAP and non-GAAP results in the earnings materials and our interactive Analyst Center on the Investor Relations section of our web site investors <unk> Dot com with.

With that I will now turn the call over to Akshay.

Hi, and thank you for joining us today.

<unk> all heard.

And then distribution here in the last 24 hours and I'm wondering as reported at the everybody in weeks he's safe at this moment and nobody got hurt.

Obviously in this country, we are all very well.

Yeah.

Weird and end of day knowledge of how to keep ourselves safe and so.

We do that and we know how to work in those situations. So I don't see any or predict any disruption to our business.

Because of the situation wishing everybody to lead actually be resolved as quickly and as safely as possible.

I want to say that day in weeks.

We have Jewish Muslims, Israelis Palestinians or working together to deliver that product and we think the Dcs the best way to create peace, but working together to do amazing things.

And.

Going back to business I wanted to mention something else right a year ago.

And we will ask how are we to weeks do after Corona virus cost and we are starting to be a day end of that and we predicted that we think we actually going to go faster and all the period of Corona virus and today, we can say that we've probably been correct because either the numbers actually.

Sure that we actually go and cluster.

And a lot of it is due to the diversified nature of our business and we don't just one specific segment that he is all about online we actually says many different things from restaurant events too and fitness centers.

And as the offline what is coming back.

We also go faster and non has that or do you think is that the more time as time passes we can continue to learn about the advantages of a SaaS model compared to Bon Jovi hosting companies coming together open source software, where you don't have that we'd like to maintain it you need to spend a lot of energy just to have been running.

And and and and of course security risk and very hard to modify so this old model I think compared with all new mall I think the gaps are growing and the knowledge of how much more value to get with you. He is also spreading and I mean, all of that is contributing to a continuous growth I'm very excited about day 2021.

And again wishing to everybody to keep safe.

And.

With that let's go to your questions.

Great. Thank you Avishai, operator, I think we're ready for our first question.

As a reminder to ask a question you will need to press star one on your telephone.

Your first question comes from Ron Josey from JMP.

Great. Thanks for taking the question all the time, obviously glad to hear everything safe there hopefully that that continues to I wanted to ask two please one just something you just said actually obviously if you can provide some more details I think you said that you're all fine well. It comes back re grow faster and so as you can you talk about that specifically clearly we have the point of sale product.

And others, but any insights that you are seeing that gives you confidence there would be great and then one other question that we constantly get I guess, it's just you know youre seeing continued strength in global payment volume I think you reiterated the $10 billion plus goal this year and net revenue retention is improving I think but.

But can you just talk about potentially being more aggressive here on sales and marketing I mean, it's hard to say given how much how fast sales and marketing grew but just talk about how you might be able to move faster or do you want to is it.

Oh regulating growth because of product launches and things along those lines. Thank you.

Oh of course so.

Thanks, Dan I also wanted to come back into business thrived thing a lot of them had a chance to.

Think about how long do you want to achieve and I don't want to grow a lot of new businesses have been solid day.

It's a lot of businesses were closed and I think this is something that allow us to actually provide really good solutions for those customers and help them in their recovery and rebuilding of our new business and because of weeks again right. If you look at the some of our peers, you'll see that <unk> focused a lot about online transaction.

But we also support a lot of the offline activities right. So the restaurants are events and.

And <unk>.

Consultants why doctors, there's so many things that we serve that are based a lot on offline activity and that.

That segment recovers, but it's more than compensate for day.

For the online business says that we're growing really fast during COVID-19.

The day season, what we're seeing now and that's why we're feeling confident that what we predicted a year ago about growing faster optical with is really what is happening.

No.

Hey, everyone and see you about your second question.

So hence.

It's a great one and you know obviously, we're not in a position to put our numbers against it at this stage, but definitely Oh and absolutely we're looking at into being more aggressive in sales and marketing and I think that we're seeing are two key.

Interesting change.

Changes in what happens in our model that are driving us to look into it and even experiment in it.

Well.

First and foremost.

The big returns, it's kind of the shift of.

People to do business on line that you've seen already last year is just continues.

That's clear, but above that day or two interesting factors that we're looking into one is the fact that now that we have more and more businesses that are core mercy and is obviously I said before the online commerce for US is he's not only it's diversified it's not only about online.

Retail stores, but it's also about services and and restaurants and hotels et cetera.

And you see you will see significant growth there. It also means that as we started garnering.

That's G. P V. It start accumulating into the COVID-19 value, which makes us think about how and when do we want them to be more aggressive.

Towards that and the second factor, which is also very interesting and also has a big impact on the core value are the partners, which are growing and they are multi buyers basically because they're the ones. The one design add the one partner will build multiple websites.

In many cases websites with <unk>. So so generally they are bringing much more value to the table than just a regular subscription.

Those two things are definitely things that get us to go deeper in understanding how we can be even more aggressive on sales and marketing going forward.

Yeah.

Great. Thank you.

Yeah.

Your next question comes from your call around Ian with Wedbush Securities.

Hey, good morning, guys. Thanks for taking the question that I'm glad to hear you're staying safe and hopefully things resolved.

And quickly there.

Two questions. One just maybe can you help us think through.

The guidance relative to the beat in one to you.

So the collections, you're guiding above the b M. So you're carrying forward and adding to the collections guidance on the revenue side.

It's kind of the opposite the raise in guidance is lower than our than the revenue beat in <unk>. So can you just help us think through those dynamics there.

I guess I wanted to ask on with two ex and and editor X in General can you talk about how how that can help them.

You get more traction.

I know, it's got good traction already and maybe a little bit more color just around editor X and how it's contributing and what it's doing so far.

Since it came out of beta.

Yes.

This is a little I'll take the first question.

So in order to answer we thought would actually.

<unk> tried to explain it in a full didn't you flew our boat business solution and creative subscription let.

Let me start with creative subscriptions.

I think that we had a really great quarter.

You know kind of setting a new baseline by the way when we look at the overall growth.

That we expect at this early stage of the year is in a way it's already the growth that we've seen last year. So I think that it's kind of amazing where we are setting a new baseline.

Specifically about the first quarter and so actually we saw everything happening on a positive way you Noah.

Conversion moving off ACP is actually increasing.

<unk> net adds actually increasing goodbye increased by 50% on a year over year basis.

That said, we were still a bit less than expected.

So our numbers for the first quarter from creative subscription because of a certain a channel partnership did that actually pushed further to the second half of the year.

So this is the reason why are we see creative subscription came actually a bit low than what we have expected. The last time on the other end business solution, but it actually was.

It wasn't more than what was expected mainly because of two reasons. The first one is payments that was performing amazingly well and the second one and I guess that it will have a much a higher seasonality effects with regard to <unk>. We said, so actually sold more <unk> than more than ever.

Now when we think about the revenue.

And this change of mix is actually has a.

A lot of different impacts from the revenue, meaning that business solution is recognized immediately.

Creative subscription is recognized over time.

So so this is why we actually beat by.

A few are one or two millions dollar on collections, but much more than that on revenue now when we look for the entire year.

No collection you know there is no change I mean.

Certain deal actually pushed to the second half, but its revenue actually pushed to next year.

So this is why you will see a lower fixed or lower increase of guidance on revenue.

Compared to the first quarter beat so this is in the wake from mentioning.

Just to summarize it's a different mix of product.

But still you know the first quarter actually.

The full quarter comp came much better than what we've expected.

In regards to color about editor X.

So I think that day, and we're very happy.

About.

The results for now, it's really really fast and so of course, obviously small numbers because it's a new product, but we can see that the growth is probably the fastest that we've added in any product before.

Okay.

And then just to put it in per se, it's 50% quarter over quarter.

David premium bodies, Barak, I didn't say something really new day, and I'm going to explain so.

Obviously, <unk> fantastic editing environment in which you can build design your site right and this is something that we should all be from doing what I expected, but the one thing that the editor X is that he is not still expected is that it is such a strong backend right. So you can actually if database you can just screams you can connect between different applications and.

This is something that he started to resonate in the market and I think that's kind of like make people really surprised that this is not another wave of detour, which actually is true solution for pretty much anything they want to achieve and build and we're seeing that this is resonating now one of the things we're going to enjoy that message and that those abilities into next year.

So 50% golf quarter over quarter.

And I think bigger and bigger projects being built or that it's been going pretty well.

Yeah.

Okay.

Your next question comes from Bernie Mcternan with Needham <unk> company.

Great. Good morning, Thanks for taking the question.

Just two from me was wondering first if you could just comment on what's driving the higher take rate expectations on a thought to exceed that.

1.25 to 1.3, and then secondly, just on the on the users are on the builders 340000 in the quarter up 25% I believe from the end of last year, what's what's driving the growth there and can you remind us how builders find clients and what role you play in that.

And then also if you have any insight into how their earnings have been trending, especially with so many more joining the platform. Thank you.

Hey, Bernie Sneer, I'm going to I'm going to take the first question about <unk>.

About payments and the take rate so we kind of touched about it last time and non and I think it's.

It's worth expanding there.

There's a few things that we're doing are doing it's not one thing, but I think all of them eventually a drive that increase in take rate.

One is.

It's just general.

Improve keep on improving the product itself and get more and more of our customers to select we experimented as they're prepared to go to a payment solution when they onboard on wix.

Definitely something that is driving.

The other thing is.

It is basically expanding we experiments into countries and geographies that currently we do not support so naturally once we do that.

We get we.

It will get deeper into the G. P V running in those in those geographies.

Lastly, our I think it's worth mentioning the initiatives we have around our Pos it's still early it's in a soft launch.

But we expect it to keep on increasing throughout the second half of the year indefinitely into 'twenty into 2022.

And that's another great value that is.

Actually it expands our reach into the G. P. C again, because it has the suddenly a connects us to the to the offline component of it.

And also from what you're already hearing from the from from the users who are participating into soft launch day are extremely happy about it because it connects all the dots for them. It connects basically it's not only about the website, it's really a an operating system for their business now because they have the website and the web the web and the mobile version.

Do you have the back office do you have the online payment and now they can also connect offline payments. So everything is happening in one place in a very seamless manner. So they're very very happy and of course that will increase our take rate on DG PV overtime.

Yeah.

Second part.

Sure.

So in terms of.

In terms of the partners.

You can see we've seen a we've seen a very significant.

Increase there.

I think it was roughly a four.

Four months difference.

25% growth to 34 340000 partners.

They find there's multiple ways in which they find clients some of them they bring on their own.

A big part is the weeks marketplace that drives a lot of traffic of people who come two weeks they either don't want to do it themselves really or they start their day bump into some some are some are some hardship underway and decided that they want to have someone professional do it with food for them and we help do the matching.

Taking you there.

And then we also are developing all the ties more and more partner programs and benefits we have the account management.

Teams.

Working out of mainly in New York, but also already in other geographies are.

Just helping them run their business better get a get more traffic and more clients, but also understand their product needs. So our side of the product becomes better.

So we can we can we can be more successful with the more professional audience.

Great. Thanks for taking the questions.

Your next question comes from Deepak, Matt Bannon with Wolfe Research.

Hey, guys. Thanks for taking the question can you provide additional color on what specifically led to trend below book has done.

Creative subscription side from the channel partnership that you noted I mean, along those lines how should we think about the size of the subscription business currently between various buckets that can do it he was buying a product directly coming from agencies partnerships and then other professionals doing it anything you can share there quantitatively.

Quantitatively would be great. Thank you so much.

Okay.

So we should go out to the first question Deepak about the channel partnerships.

This is something that is still not that significant or tweaks or things that I believe that you know.

Next year it will be more significant and this is part of the thing that you know also obviously I mentioned before about weak surfing.

More and more people and again I think that.

Essentially we are talking about the b to B and B to B it has its own.

You know kind of a way of clothing agreements.

And in a way we are learning that obviously.

But this specific deal was actually pushed.

Up to the second half of the U I assume that it's going to be closed.

Again, it's not something significant where it's a few millions of dollar, but obviously has an impact.

So I think that as we better understand you know how to how to forecast those kinds of deals, but we are going to see more and more of them.

In the future. So obviously you know the field the core of our business is growing and growing faster I mean, we mentioned that we sold.

The net.

Awesome.

<unk> actually increased by 50% on a year over year basis. So I do believe that this is kind of the quota sales continue to grow and in addition to that.

We're going to see more and more b to b businesses using weeks because essentially you know.

The best platform.

I will do so obviously you know when someone who has a different kind of customers and we want to serve weeks is actually contributing to his own success.

But again, it's not something significant.

Flow business this year I'm not sure that also next year.

But it's really really interesting.

Got it got it.

That's very helpful. And then if I can ask one quick follow up.

Little bit of a big picture question, how much do you think is the $10 billion and GP Leigh or 10 million plus of GP read that youre kind of.

Expecting this year accounted for the total potential of the platform you've talked about expanding it into more geographies, but are there more verticals more different types of businesses that you can roll. This out over the next two to three years and then potentially take this $10 billion to a significantly higher levels on the platform.

Okay.

Hey, Deepak its near so.

I would say, yes, absolutely I think that that you already see that about 40%.

<unk> <unk> is coming from the non online stores segment.

And that will expand okay to expand because we were still missing components of what needed. Therefore.

The full.

Food business solution for them.

As well as as the critical pieces I would say like the <unk> that I mentioned before.

You're running.

A yoga studio then you might do some of you on transactions online, but you definitely need something physical that can be deployed and used quickly.

When.

When customers when the trains.

<unk> come in and I think you've seen that we are improving and expanding the product where we're going to expand the Pos solution with some of our acquisitions to some of our acquisitions to date are aimed exactly at that you look at both of their eyes, AI and book and a speedy tab.

Acquisitions, they are aimed at <unk>.

Expanding the business our solutions for the in this case restaurants and in stores by the way rise AI, which is initially four stores because thats the existing product that they have and it's already being used.

Our plan is to actually take that offering and expand the loyalty and gift card solutions that day that it is <unk>.

Applies to all of our verticals, so basically make it into a full horizontal offering across our platform.

And you know.

Those will complement and increase.

Both our reach in the reach into the deep <unk>, meaning the take rate, but also they are improving the ability of the business itself to transact. It means that the day the size of the G. P V will continue to grow.

Okay. Thanks Neil.

Your next question comes from Jonathan Kees with Summit insights group.

Great. Thanks for taking my questions and great to hear that everyone is safe and healthy there and also it sounded like.

Which is.

He has taken a big step towards its ESG goals by being a model of inclusiveness and peaceful coexistence. So that's great to hear too.

My question.

Our revolving line S N M.

I wanted to double click on the commentary earlier about the aggressive levels of sales and marketing.

Obviously Q1.

Seasonally high 50 per cent year over year, and I expect that to trend down with like with seasonality, but.

We look past 2021 I mean, you've obviously given the guidance for 2021 in terms of where sales and marketing is as a percentage of collections, but as we look past 'twenty 'twenty. One are we should we think that theres going to be.

Continued elevated levels of sales and marketing or are you going to have more just like a shift within sales and marketing like right. Now with Q1, you talked about you had a higher degree of branding spending as well as our account management expansion will that.

Taper down be more of a maintenance level.

In 2022 and beyond or is that it's going to remain pretty high for foreseeable future.

<unk>.

Okay.

So.

Hi, Jonathan this is Neil.

So look I think that.

Order to try to.

Answer your question, let's look at 2000 22020, you know overall sales and marketing were about 37% out of collection by the way, it's better to look at it as a percentage of collection because T. O Y is based on collection.

And this year, we expect it to be you know about four points less than that meaning that we started to feed the leverage and we explained it last time, meaning that we increased the sales and marketing significantly in a very short period of time because of the large demand that we started to free.

Our platform and we've talked about it a lot you know the last few quarters.

By the way, we defend P O y.

And.

Obviously, we think we figured that it's actually continue.

Meaning that we still expect this year to invest a lot about sales and marketing. We also invested a lot about you know creating the infrastructure.

For the account management.

Guys you know too.

Both agencies and so on and you spoke about it but also investing a lot about the our branding.

The editor X.

For a full creator for agency for positive.

And this is very important to mention because you know some some of these investments in branding.

You know is something that we are going to feed the fruitfully.

Next year.

When this line of business is actually going to be a more and more significant and then you start to see the leverage of these investments meaning that in you know next year I assume that we are going to continue investment can finish marketing actually in dollars is going to be higher than this year, continuing what actually we are doing.

Day, but as a percentage of collection, we are going to see more leverage so it's going to go down.

So this is kind of the way that we're looking at it and by the way. This is what's happening you know in the last few years.

So do you see also just the shifts within the branding was branding is still going to stay steady.

The elevated.

It is going to stay pretty elevated at least you know for the few next few youre going to start to see the fruits the benefit.

This investment and this is why I think that next year, you're going to see more leverage even more than this year.

When I talk about the sales and marketing.

Got it. Thank you good luck guys.

Your next question comes from Brent Thill with Jefferies.

Thank you.

A lot of questions on the Q2 guide and I'm. Just curious if you could just talk about anything else beyond the channel partnerships pushing out I think you got it at the high end to two 6% sequential.

Last two years <unk> been doing doing north of 6% sequential suits I can see.

General slowdown and I think everyone's just trying to curious if theres anything else other than the channel pushout to account for that.

No so remember that the first quarter.

In terms of its seasonality is very very strong.

And this quarter also we had.

Much higher than expected.

No payments, which I believe that it's going also to continue into the second quarter. I mean, you think about the payment bullshit auction in the second quarter is going to continue to increase.

Even compared to the first quarter.

On the other end I mentioned G suite.

You know our revenue for the first quarter, which was pretty high.

Again, because of seasonality effect in much more than what we've expected.

It's not going to continue also to the second quarter.

So this is kind of imply to you.

What is our expectations with regard to the overall business solution is going to be more or less flat, but.

With regard to the creative subscription you know besides what I mentioned before there is no like.

No changes, obviously you know about.

Take into consideration.

That.

You know we are providing the guidance for the second quarter and for the full year.

There is also a sum of uncertainty.

Due to the period due to the epidemic viewed to be in different places also obviously you know it's less than what we had like a previous time, because we are providing guidance right.

But they do believe that besides of that there is nothing really.

No significant to report I think that what is interesting is actually besides of the noises between one quarter to the other is to look at the full year, where we actually are already set a new baseline for the growth and I do believe that obviously there is.

Kind of an upside that you might expect to have during the year, but I think that we want to be more conservative about it, especially because of the time that we are talking about.

But we are very happy and very excited about above the full year guidance obviously.

Thanks, Laura.

Your next question comes from Nick Jones with Citi.

Great. Thanks, Thanks for taking the questions I guess just could you provide an update on your M&A strategy from here you acquired speedy tab.

Right.

AI from the loyalty and rewards are there any other holes you see or solutions.

Or areas, you think would be interesting to add via M&A. Thanks.

Well I think this is avishai and thanks for the question I believe that day and she can be demonstrating our M&A strategy is mostly about enhancing the product offering.

Bringing a better solution for our customers unless about day customer acquisition.

And obviously both companies such exact companies, where we actually and wanted to add functionality that we felt day and we'll continue to improve our product line.

Customers enjoy weeks products even better.

Going forward.

We intend to maintain a similar strategy and continue to.

Approaching <unk>.

Companies that can make our offering better we think that we're really good at marketing and we have a very strong and loyal customer base.

So in line to more than half of our customers actually coming from.

Free social traffic, so mostly somebody recommended line tweaks.

Weeks to their friends and that's more than our customers.

It is now $1 6 million every month right.

New end users that are coming to wix and.

Uh huh.

And the.

So it's pretty.

So we believe that what makes sense to us is their ability.

Moving to continue and just improve our products and we have the customers will have to come for us and we think that by doing better that would be serving them better.

Thanks.

Your next question comes from Mark Mahaney with ISI.

Yeah.

Let me try two questions. Please first the Latin American.

Growth was relatively slow I think we've seen this with a couple of companies any indication that things are steadying are turning around in that region and secondly, the customer care growth goals you added 700 last year.

<unk> talked about it being up.

That you grew that in the March quarter, and that's putting pressure on gross margins.

What are your goals in terms of the number of customer care.

How much do you want to increase resources for customer care this year.

The first part I think that we all are aware that day.

Latin America has been going from Asami.

Periods and buffet from economy, and then from Corona and we hope they do recover that comes in.

And that day will be able to keep them safe.

And.

We continue to do our investment there based on tier lives. So we only invest when we know that we're going to get there we've done from that.

Marketing like but we will continue to support the product and do everything we need in order to provide the customer the best.

Solutions and help they need because this is the time that we should be doing for them.

In regard to the second question he wanted to be absolutely.

Hey, Mark.

Good to hear from you in terms of the customer care.

So naturally we are extremely happy with the investment we've done.

More than anything throughout 2020, it allowed us to support the massive growth that we've seen throughout the year.

And clearly that growth.

It continues and even surges into 2021. So we are very happy that we managed to scale up the organization the way we did.

As you if you can remember when we set out to do it even before the surge that the two.

2020.

We were also talking about a change in approach about our need to go more proactively in the way that we are.

We work with our customers.

To not only solve their issues, but actually understand whey. They are on the journey.

For you know, whether it's setting up their business, so even furthermore to becoming making this.

Successful and being sure that we that our carry is helping them move along that way not only sold one specific problem at a time.

And I think that's one of the great things that happened to us throughout the year is that not only did we managed to scale. We also managed to to walk through that changing.

In our approach and we've started to seeing that we started to see that pay off first of all the NPS in the places where we are we are exercising it.

It went up.

Over 50% and still are.

And it's still growing and our goal is obviously to expand that to basically all of our geographies oil from our languages.

All across the all across the globe that being said I think specifically if you look at the growth of the organization in 2021.

We were very happy actually to overachieve, a lot of our growth our plans throughout the first half of the year.

So we expect to still be growing it through the second half, but probably at a slower slower level and slower pace.

Because we feel we are very well geared now to go after all of those goals that I mentioned.

Golar that will improve the conversion will improve our user success will strengthen our brand and obviously will also positively positively influence our from us financially.

Thank you Nir. Thank you Amit your line.

Your next question comes from Sterling Auty with JP Morgan.

Yeah, Thanks, Hi, guys.

To circle back to accretive additions and kind of the pushout that you mentioned was this one partnership or was it a group and separately are you still getting the same I know that you manage to the ROI, but are you getting the same dollar for dollar impact on your customer acquisition spend.

That you were let's say, one or two quarters ago.

I missed the first one.

Yeah can you repeat.

The first one sterling yep.

First one just looking at the creative.

So could you talk a little bit about a push out towards the second half I want to make sure I better understand that.

A particular partnership or was that.

Group.

Wasn't clear.

Actually pushed out okay.

Yeah. It was it was a particularly powerful.

<unk>.

If you remember when we announced in the past a few of them like you know NTT in Japan, or a Turkish telecom.

Oh, the Vodafone deal that we closed so basically something that it's really similar.

That actually pushed to the second half of the year.

Got it and then the second part was.

Just when you look at your spend per customer acquisition.

I know you managed the ROI like is it still getting more expensive or you're getting the same kind of impact dollar per dollar that you have been getting you know.

The net cri.

Boundary that you set for yourselves.

Hey, Sterling mirror here, so I think dollar to dollar would be getting.

Similar returns as we had before.

And it's still you know, we still work underneath the <unk> formula.

With half.

That being said and you know with a with a with an eye for growth.

Going back to something I mentioned before we are seeing two two interesting.

The nominees now.

Our driving driving basically the cohort value and therefore, it gets us to think about what should be the right ROI targets.

At least to some extent and those are the fact that as we see more commerce happening on our platform and we touch more of the GPP, then naturally that spills over value into the cohorts.

And because of the nature of business is building GPU over time, it usually takes a bit longer to materialize, but as we're getting more and more of those we can start to quantify that and we have enough data to start to make to plan an experiment marketing according to it.

And the second one is again is the adoption by partners, who again multipliers of value because the build build multiple websites from multiple clients. In many cases also contributing GPC through those websites. So again, that's something that drive.

An uptake on the cohort value for those specific kind of users and we wanted to try to understand.

What we can do there in terms of being more aggressive with our marketing dollars.

Understood that makes sense. Thank you.

Your next question comes from Ken Wong with Guggenheim Securities.

Hey, thanks for taking share.

And I Hope you guys are gonna stay safe.

First I mean, we've been catching quite a few of your cookie or price videos over my social media stream for the last couple of months, so very very creative there.

Avi side, clearly you guys have struck a bit of a nerve there with with with the Wordpress. Scott just just wanted to know kind of how this marketing Blitz is resonating with partners are you seeing more conversion of Wordpress agencies.

Any color there would be great and then I have a follow up.

Now of course, so obviously I know the OCA ban was our marketing guys is having a bit of fun enjoying himself and they were pointing out the obvious.

Differences between.

The philosophy of workplaces that philosophy of weeks footing again, when you have a lot of open source com on a survey and somebody has to magically maintaining and does it total security vulnerabilities compared to a solution where everything has been down volume fully managed for you. It's very easy to 80 day seems to work with and the.

<unk> of course was well you know.

And the truth can be painful.

And we.

And we do see continuous.

Continuous anybody accelerated growth from their partners and designers, which aid that complaint.

Same for them.

I have to say that.

I'm very happy with the resolve that campaign I think there and it just shows that you know creating salary with a good day, so incentive humor.

And is actually pointing out the obvious truths.

Just probably the best way to do marketing it simply works.

Got it and then one just you guys mentioned that there's going to be this transition to bookings.

First just wondering if bookings and collections are meaningfully different today.

How should we think about what's driving that is it purely just the channel partner business or the other products.

In your portfolio that is contributing that we should be aware of.

So this view of bookings.

Equal to collections of 100% there is no difference because remember the collection is.

You know being calculated as revenue plus change in deferred revenue.

So obviously.

<unk>, let's assume that we close the b to B business. It was not collected about it was recognized as deferred revenue.

So therefore it is it is part of collection, although it is not that significant to date.

So I do believe that it was mostly around the meaning of the world, meaning that it's not really.

Change the way of calculating thing is mostly about the meaning of the world.

Because sometimes when you sign a b to B business.

Necessarily collecting everything in the World will go from we don't want to use the world collection.

Yeah.

So it might be that you know b to B is part of <unk>.

Channel partnerships part of it can be like you know deals that we're doing with the weak sciences.

Some of it with other partners that we might close in the future. The more you have to be obviously, you know the bigger it is gonna be.

I don't see that also next year is going to be that significant to our to our business or at least the portion of our top line.

Great. Thanks, and again I think that it's kind of booking is more like a standard being used today. So I think that it also makes sense for us to stop using you know kind of the standard Perm.

Okay.

Your next question comes from Josh Beck with KBC.

Thank you for taking the question and of course, we're all hoping the best resolution for you there in Israel.

I wanted to ask about the business solutions.

Our cash so many companies that have.

Have a G M D. R. G. PV component are not really providing our full year outlook.

Part of that is because it's difficult to know what happens as we really start to reopen so I'm just curious maybe how you built out that forecast what level of conservatism you baked in just would be curious to hear more on that topic.

Yeah of course, I think that are moving.

When I look at your until all the details. This is avishai and I wanted to say before debt that we assumed that usually if somebody does not being spent online and offline and there's been no shelf line pins.

And as our businesses right are so diversified and provide solutions and so many different fields. So many moving the vertical.

In many ways, we believe that.

And that our prediction and what we see now in terms of metrics. This will continue going forward, even if money shift from one area to another thing that is because if somebody does not spend money doing online shopping they might spend that money doing line going into the restaurants, because all going.

Going to a fitness center are going to see a consultant or and this week's serves all of those I do think that the same amount of money being spent will just go through different channels and that is why the cove I believed that we had predicted now obviously of course, we might be wrong, but we think feel very strongly about that.

I would just want to add that.

When you talk about we'll talk about business solution, obviously, it's not just.

Payments.

It has like no.

Other.

Kind of SaaS products over there like G suite like ascend like.

Other applications, but this is like you know this is really easy to predict.

I'm the same of our subscription model.

Yeah.

On payments impairments Youre right, but I think that you know what since it is kind of.

The first standard we actually reported we wanted to provide more color around.

Where we are going to do and this is why by the way. We also provided our estimation.

With regards to that.

Yes.

What we took as part of the of the forecast is very close to the current run rate that we see right now so we have pretty much confidence about you know how we're going to end up do you.

And you know I wanted to believe that it's you know that it's going to be higher than that.

Based on the increasing.

Line Commerce transaction.

But this is you know what we took as part of the guidance and this is why I feel very very comfortable about about the number.

Really helpful. I'll hop back in the queue. Thank you both.

Your next question comes from Lloyd Walmsley with Deutsche Bank.

Hi, Thanks, This is Chris on for Lloyd.

Maybe two on the data points on online E Commerce share of total collections I guess first just can you help clarify what is exactly included in that 33 per cent of total collections from a vertical and subscription basis.

And then second can you just talk a bit more about the slope of the share through 'twenty 'twenty and really kind of how that compares to how youre thinking about the share of collections.

Associated with these.

Uh huh.

With online commerce in 2021.

Okay. So with regards to the first one about the online.

Momentum being 33% basically to include.

As both subscription and we experiment.

So to answer your question.

And.

And about the show a phone in Columbus in 2021, Yeah. I mean, it's part of it's part of our guidance.

And.

What I mentioned before about you know exactly how we how we calculate how we focused it.

But it is part of our guidance.

Okay, so going from 25% and <unk>, 21% to 33% and I think you guys had flagged that you were at 30% for full year 2020 does that sort of.

It seems to imply that there may be a bit of a slowdown there in the I guess the slope of that share is that in my interpreting that wrong and.

Just any clarity around that.

No actually there is no slowdown over there.

Sure.

Not the total.

And if I can I can provide you later.

The exact percentage.

On the left of the call.

But no there is absolutely no flow down there actually anomaly in a way it's actually the opposite.

Okay great.

And maybe just you called out that 40% of GPP from non retail.

The letter could you just talk about how that looked.

A year ago and last quarter.

Let me Hey, Chris its Samir.

Sure.

It was obviously lower.

Last year, and as well as a little bit last quarter.

Simply because.

We've seen.

The adopt the massive adoption, we're seeing to our services business.

<unk> on our platform.

For specific on exact numbers currently we didn't disclose then I can maybe you can look it up and share later, but but we definitely see that adoption going up. So if you would've gone if you if you're going back in time a year two years back then the mass of the share of the <unk> would have been only <unk>.

Almost only the online stores, whereas today, it is going more and more towards that they've diversified a baseline that obviously I mentioned before.

Alright got it thanks for that color.

Your next question comes from Matt Pfau with William Blair.

Hey, guys. Thanks for taking my question wanted to ask on the strength that Youre seeing in North America, and some more details on what's driving that.

How much did the stimulus and in March impact that performance and then as a vaccination that would become more widespread in the U S. Economy has opened up a bit more how have you seen your customer base or have you seen any changes in terms of the types of customers you are adding in that region.

Thanks.

Of course this is avishai.

Yeah, I think as we all are aware it right 2020 was it hopefully here for small businesses not all of them, but the vast majority of them and today when we're seeing that and we did vaccines.

And a lot of being a lot of stuff has been rebuilt or just founded from zero.

And I think that's down in the highest contributor to our growth.

And we can say that we did see some effect of this theme of light. So the simulation and I think that was.

Really good and are running at high prices too.

The people behind it because it didn't have a lot of people to start.

With something which is above zero and go forward.

Well I think that we're going to see that day period would be a rebuild.

The founding of new businesses by over the next couple of years.

There's a lot of things that were destroyed.

In 2020 nano.

We built.

And Matt This is nir for the second question I think in terms of the impact that COVID-19 vaccines, I mean, we see that.

If America by the way we've seen it a lot in Israel by the way, which is a geography in which there's obviously.

A much more already a high distribution of vaccines and reopening.

So I think it's very interesting because.

You see some I would say on the on the online stores and the shift of people of people buying online maybe there's a small decline, but lower than you might have expected I think you've seen that there's a there's an actual change in consumer behavior.

<unk> of people who.

Started buying on line two.

Through the COVID-19 lockups, because they had to and I'm not willing really to go back to the way. It was before and then you will actually see what what is the kind of the obvious and as expected our reopening impact on.

You know on the <unk>.

As such as restaurants and.

In hotels I.

Obviously everything that has to do with hospitality large, but everything that has to do with with beauty and wellness again, because you know these things can reopen and accept.

And accept.

Our clients.

And in all of those areas I think we're seeing a significant updates naturally events, which were again in most cases, we're prohibited or limited in their capacity and indoor spaces, we see obviously a significant uptake in terms of.

The businesses are going back to two transacting in and basically growing their business again.

Great. Thanks, guys I appreciate it.

Operator, I think we have time for just one last question.

Thank you. Your last question comes from Trevor Young with Barclays.

Hi, Thanks for squeezing me in just real quick on the rise AI acquisition can you talk about the revenue model there and your plans to monetize that digital gift card and loyalty program going forward and then just on the channel partnership I think in one of the earlier questions. You said it was a few million dollar impact is that a few million dollars per quarter or per year.

For the full year. Thanks.

So for the for the for the second question. It's a few millions of dollars for the full year not for one quarter.

And with regard to raise it.

The revenue model is based on a subscription.

It is not it is not a significant although the serve you know hundreds of customers.

Really good product that already sell to hundreds of customers the way that we're thinking about how to monetize. It is obviously you know being part of our solution.

And you know.

E Commerce solution and then obviously you know with the increase.

And increased GPC increase our top line coming from a payment for example, but also increasing conversion of our customers because they actually are getting.

Getting a much better native solution to what they are looking for.

Alright, thank you.

We have no further questions at this time.

Great. Thank you Sandy and thank you everyone for joining us today.

Have a good day.

Thank you ladies and gentlemen, this does conclude today's conference call. Thank you for participating you may now disconnect.

Awesome.

Oh, hi, good interim we have 50 minutes alright.

Angleton.

No.

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Moving to.

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