Q4 2022 Wix.Com Ltd Earnings Call
Speaker 1: Good day and thank you for standing by. Welcome to the Wix.com conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone.
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Thanks, Chris and good morning, everyone.
Welcome to this fourth quarter and full year 2022 earnings call.
Joining me today to discuss our results are.
And co founder Nir, Zohar, President and COO and New York's finish.
During this call we may make forward looking statements.
<unk> are based on current expectations and assumptions please.
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.
Do 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 reconciliations between our GAAP and non-GAAP results in the earnings material.
In our interactive Analyst Center on the Investor Relations website section of our web site investors <unk> Dot com.
That I will turn the call over to Avishai.
Thanks, Emily and good morning, everyone.
2022, secondly, what was a challenging year.
But I'm happy to say that we finished on a strong note and we are entering 2020 free and more efficient company with a clear path to increasing profitability.
Our Q4 results illustrated our ability to respond to the changing environment.
We generated $52 million and free cash flow in Q4, our highest quarter ever.
And ahead of our guidance revenue in Q4 grew to $355 million also ahead of our guidance our increased focus on finding efficiencies closing managing.
Cost growth allowed us to drive considerable operating leverage during the quarter.
We will maintain this focus for the coming years and I believe each week.
Ebitdas to emerge from this time as an even stronger company.
Throughout 2022.
We manage for several challenges.
Tianjin, including persistent.
Inflation.
Forex volatility the invasion of Ukraine.
And overall global uncertainty.
This is on top of consumer behavior on the internet through setting to pre COVID-19 levels.
Despite this headwind headwinds.
The strong fundamentals of our business along with continued successful execution resulted in revenue growth and profitability.
Finishing strong.
Revenue in 2022 grew.
Grew 9% year over year to $1 $4 billion on a constant.
Currency basis revenue grew 11% year over year.
Much of this growth was driven by our <unk>.
This business with.
With BARDA revenues.
29% year over year as we continue to successfully capture more of the professional market.
Neil will share a bit more about our latest potential.
Operational updates in a few minutes and Leo will then drive dive into 2022 financial result swear itself.
Outlook for the coming year.
But before that I want to provide some more details on how we are.
Walgreens, our marketing strategy to create greater amount of efficiency with these investments as.
As we mentioned last quarter in September we began to test.
That is to adjust our marketing approach to focus on hiring users.
We accelerated this testing throughout Q4, reducing our acquisition marketing investment by nearly 50% in the quarter compared to the previous year.
<unk> of drilling this well fantastic, despite reducing acquisition marketing by Huh.
We have seen stable new coach bookings.
We believe the driver of this success is the strength of our brand.
Our investment in building, our global brand over the five over the past 15 years, it made wix synonymous with relevant Jenna Qian.
Keywords on data that we plan to continue this new.
Marketing strategy and expect investment and acquisition marketing to remain at this level reduced levels.
Our 2020 free.
I also plan to shift dollars to invest more into our brand to drive future growth.
While we increase focus on operation.
<unk> our strategy to build.
The best platform and amazing product for millions of users of all types around the world.
Man unchanged.
I am extremely extremely excited to highlight the recent launch.
Wix website creation with chat GPT.
Whereas <unk> is just a great tech and content and our website.
These products combine a leading innovation and a wet and website creation and with our expertise in AI technology, which started with the market force introduction of Wix Adi in 2016.
Hi, Techs creator users open Chad opening eyes chatter beauty to allow users to add specific text and create professional content on their website easily within seconds.
Moving to pinpoint of content, writing and generally improving the user experience.
We are implementing AI technology in a number of other ways as well and I'm excited for the pipeline of amazing product. We have in store for 2023 before I turn it over to Nir I wanted to take a moment to extend my gratitude to the entire <unk> team.
I'm very proud of the way the team managed for this last year.
But equally.
Teammates, we have been and continue to be directly impacted by the war anyway.
<unk> remain with you and your families.
Because of all of you and incredible work you do the potential of weeks in 2023 and beyond is unbounded and I'm excited for what is yet to come with that.
Over to you.
Thank you Alicia and thank you everyone for joining us today.
As I mentioned over the last year and a half we greatly increased our focus on operating efficiency and general prudence across the business.
Our efforts actually began at the end of 2021 as you were making plans for 2022.
Due to increasing volatility and uncertainty we began thinking more carefully about how we operate we reduced our hiring activity and took a closer look at what was working and what was not.
As we move through 2022 volatility continued with the war in Ukraine, decreasing energy prices high inflation and currency fluctuations.
We did not see improvement to the macro environment, we recognize that we needed to take the next step to help us achieve our profitability targets.
In August last year, we parted ways with many people and took much more caution around expenses across the company.
This rigorous review of our operations did not stop after this cost reduction plan.
Throughout the remainder of last year, we continued to examine our operations across the organization.
This ongoing focus along with technological gains achieved in recent years led to a recovering additional cost efficiencies and we made the difficult decision to rightsize. The organization further to meet current demand needs.
Sadly this meant asking approximately 7% of our employees to leave last week, which primarily occurred across our customer care organization.
While this was the right decision for our business. It was not taken lightly I want to extend my deepest gratitude to those impacted.
Thank you to everyone who has participated in our journey.
This head count reduction in addition to the efficiency and actions implemented throughout 2022 will bring down our total head count from nearly 6100 at the end of Q1 2022.
Roughly 5200 at the end of this current process.
Reflecting a 15% decrease.
Related to these reductions we expect to take a onetime charge of $20 million to $30 million in Q1 due to severance and modifications.
Of our real estate footprint as we align our office space with operating needs.
In addition to reducing the size of our care organization, we also implemented hosting efficiencies and further operational expense savings.
Recent actions are expected to yield an incremental $50 million of cost savings in 2023.
Or $65 million of savings on an annualized basis.
Combined with the cost reduction plan announced last August we have found a total of $215 million of annualized cost savings compared to the three year plan shared last may at our analyst day.
These savings will allow us to achieve our path to profitability faster than we previously predicted.
With that I will now hand, it over to <unk> to walk through more details on our financials.
Thanks, Neil let me start by running through our numbers for Q4 and full year before turning to some of our updated long term profitability expectations compared to what we shared last may at our analyst day.
Walk it up with some thoughts around 2023 outlook.
Avishai mentioned the fundamentals of our business remains strong, which led us to exceed the top end of our guidance range for revenue in Q4 total revenue was 255 million this quarter up 6% year over year and 8% on a constant currency basis total bookings were 371.
$8 million in Q4 also up 6% year over year, and 10% on a constant currency basis.
Transaction revenue of $38 9 million up 8% year over year. This growth was driven by higher GP fee of $2 6 billion up 4% year over year and the higher take rate as adoption of wix payments continued to increase.
<unk> revenue grew to $94 6 million up 23% year over year as more and more partners are building projects on wix.
Most impressively this quarter as a result of all the actions that we have taken to increase efficiency. We finished the year with free cash flow of 52 million in Q4.
Our guidance range.
This made Q4, the most profitable free cash flow quarter in our history, excluding investments in our new headquarters and we expect to continue this momentum in 2023.
Moving onto the full year results total revenue in 2022.
1.3 dollars 9 billion, an increase of 9% year over year or up 11% year over year on a constant currency basis total bookings were $1 47 billion up 4% year over year or up 7% year over year on a constant currency basis.
Our increased focus on efficiency led us to improve gross margins and greater operating leverage in 2022. This led to free cash flow within the range of a prediction at our analyst day in May 2022, we followed through with our commitment to reach our margin targets for this view and we plan to exceed.
Them next year.
Due to our focus on efficiencies, we have a strong path to profitability. We now expect to achieve key financial milestones, we laid out in our analyst day, approximately two years sooner than previously anticipated.
Our total non-GAAP gross margin is expected to increase to 66% in 2023 with an exit margin of 67 and creative subscriptions non-GAAP gross margin is expected to reach 80% into it into any tweaks at level, we do not expect to achieve until late 2024.
non-GAAP operating expenses are expected to be down to 59% to 60% of revenue for 2023 level previously anticipated for 2025.
We now expect more than $100 million non-GAAP operating income and positive non-GAAP net income in 2023 targets previously anticipated for late 2024.
And we now expect positive GAAP operating income and GAAP net income in 2025 targets previously anticipated beyond the three year horizon.
Our expectation is that our partners business will generate positive free cash flow by mid 2020 for more than a year ahead of our three year plan to share that in May 2022, the momentum achieved in 2022 and continued steps toward greater efficiency going forward demonstrate our full commitment to reaching.
The rule of 40 in 2025 under various growth scenarios.
Now, let me review our outlook for Q1 of 2023.
We expect total revenue in Q1 to be $367 million to $271 million, representing approximately 7% to 9% year over year growth.
For the full year, we expect total revenue to be approximately $1 51 billion to $1 54 billion, representing approximately 9% to 11% year over year growth.
I mentioned earlier improvements in both total gross margin in creative subscriptions gross margin in 2023, which will be driven by savings from cost efficiencies in customer care and hosting non.
non-GAAP operating expenses is 2023, I would expect it to be down year over year to 59% to 60% of revenue as operational efficiencies from our cost reduction effort materialize.
We also expect sales and marketing expenses to be 27% to 28% of revenue in 2023, a decline from 72% of revenue last year.
As Avishai mentioned.
As we evolve our marketing strategy, we are lowering our acquisition marketing investment throughout 2023 and plan to invest more into our brand in order to drive future growth.
Because we see stable nucor to bookings, we would reduce acquisition marketing investment going forward, we plan to take a portion of these savings and invest them in brand marketing activities. We will continue to develop specific plans through the first half of 2023 and expect brand marketing to divestment to be higher.
In the second half of 2023, we currently estimate this increase in brand marketing investment to be roughly 3% to 4% of revenue in the second half of 2023.
We still expect lower total sales and marketing expenses in 2023 compared to 2022 as our efficiency improved through this new strategy.
We expect depreciation expenses of approximately $17 million to $19 million non headquarters related capex of approximately $8 million to $9 million and headquarters related capex of $50 million to $55 million for the full year of 2023, B headquarters Capex was a bit lower in Q4, 2022, and a bit higher than 2023.
Then we had when we had communicated last quarter due to the timing timing reasons. The total cost of the projects remains the same.
Free cash flow, excluding headquarters investment is expected to be roughly $152 million to $162 million or 10% to 11% of revenue in 2023, we expect free cash flow margin to improve as we progress towards the year and exit 2023 with the free cash flow margin of approximately 12%.
13% driven by.
Driven by the new efficiencies and plan implemented in the first half of 2023 finally stock based compensation is expected to decrease to 15% of revenue in 2023 down from 17% of revenue in 2022.
As headcount across the organization declines, we expect stock based compensation as a percent of revenue to continue to decline year over year.
2025.
We accelerated profitability expected in 2023 will put us on the path to achieve the rule of 40 in 2025 with that we will take your questions.
Thank you.
At this time, we will conduct a question and answer session.
Our next question comes from the line.
Matthew Pfau of William Blair Matthew Your line is open. Please go ahead.
Okay.
Hey, great. Thanks for taking my question wanted to ask on the partner business and specifically the BTB partnerships. How is that pipeline looking for 2023 and are you expecting to sign any significant partnerships in 'twenty three.
Sure.
Okay.
So this is this is Leo I believe that we are increasing the funnel all the time on that on a quarter over quarter.
Actually increasing the filing in terms of potential partners.
We obviously don't expect huge partnerships will be fine every quarter.
But it will be at least once a year and we do have in defined on a few of them. So obviously, we are working on it but on top of it there are many others like them at like $50 million to $100 million, but but $10 million of a few millions of rollout that we are working with and finding every quarter.
Thank you.
Our next question comes from the line of Mark Mahaney.
Evercore ISI.
Boating him into the Q&A right now thanks for all the detail on the Mark Mahaney. Your line is open.
I'm here. Thanks for all the details on the change in marketing strategy or the the efficiencies in marketing strategy long term do you think that you've got kind of a sustainable cost learnings that mean that sales and marketing as a percentage of bookings or revenue are materially lower than what you had had before I'm trying to get at how much of this is kind of done.
Ruble cost efficiencies out of marketing if there any long term targets, you've thought about with sales and marketing Debbie I appreciate it. Thank you.
Hey, Mark this is Neil yes, definitely I believe that.
In the future we are going to see the sales and marketing dropping as a percentage of revenue I think that this is exactly where we are today and you know I wish I mentioned that in his.
At the very beginning I think that we build a very strong brand that allow us to do that.
And in parallel we are going to increase and investing in brand, but it will be only a portion of the savings that we got from lowering the.
Investment and acquisition.
So I believe that going forward, yes, definitely you will see our sales and marketing.
Dropping as a percentage of revenue and this is part of the leverage that we are talking about.
Thank you. Our next question is being put into the queue.
Our next question comes from Elizabeth quarter of Morgan Stanley Elizabeth Your line is open great.
Thank you so much.
And just to get an update on the overall kind of top of funnel demand.
A letter noted providing back at pre pandemic trends back in Q3, you noted in the top of the funnel will go a little bit above pre COVID-19. So my question is kind of what's the confidence level that the bottom on demand is behind us and what's embedded in your 2023 guidance and if there's any pockets that you are seeing greater impacts that would be great to hear thank you.
Yes. Thank you for the question. This is avishai I think that the.
Yes.
The confidence that we have is the data that we have we don't know if youre going to be another war and we don't know what.
The government I think award would do and how they react to things in the economy classes, where it's going to evolve too you probably have better and better information on that than we do.
So the confidence level is that what we're seeing for a while now we've got the news stable place and that came in place I think is a.
And it kind of obvious right because the Asian economy crisis, and we are post COVID-19.
I think.
Why do we are saying is that when we say we covenant.
Populating it means that we don't see any information.
Okay.
Kind of a cadence or give us a clue that as a change coming.
<unk>.
So I think that the.
<unk> gone through all the information that we have is showing that this is.
Pretty much the level of demand in an economy crisis.
But we have not.
Thank you on promoting our next question.
Okay.
This question comes from Brad Erickson of RBC capital markets spread. Please go ahead.
Thanks So.
You gave the net subscriber number.
You normally do at the end of the year, which I guess was up.
Call it modestly year over year reflected a lot of that churn you've talked about the last few quarters talking about the top of funnel and Youre seeing right now for subscribers, new subscribers and sort of what it's going to take to get back to the quarterly net add cadence that you used to do before Covid. Just curious if we can get back to those types of levels here this year or next.
Hey, Brad it's Amir so.
I wanted to kind of reiterate.
Our thinking around around around the net subs and actually give some more color.
First of all our foremost you have to remember we are always aiming.
Aiming to optimize and drive higher cohort value.
This is this is.
Led also to our decisions around focusing on higher intent users.
It's part of what we've done in terms of.
Uh huh.
How we made our pricing decision in terms of.
Be willing to take less subs, but they're higher priced with the higher value now when you think about what you see in 2022, you have to remember that.
The cohort of 2022, and 2021, which are relatively still young compared to 2022, we're very very big cohorts. They drove a lot of subs into the into the system and they've they've converted an elevated number they are retained at similar numbers in percentages.
In previous cohorts, but because because of their sheer size is bigger because the heightened demand of COVID-19 when I when some of them get canceled in terms of the sub.
That obviously creates an impact on the med sub throughout 2022 and that specific behavior will probably last a little bit longer as these cohorts mature and stabilize.
The other thing that we've seen is.
That the macro impact effect also existing courts, which makes out effect.
Because these are made also out of small businesses that are trying to retain and build a business in a much more challenging.
Environment and lastly, another thing that impacted 2022.
Was the need or the decision.
To eliminate the our business in Russia. After the update invade Ukraine. So I think all of those have.
<unk> had that kind.
Kind of impact on our net subs in 2022, but.
I want to say something which is illustrates something which I think is more reported here and this is about the AARP it when.
When you look at our Rps It has increased by by 29%.
From 2019, and when you think about that metric.
<unk> used to be in the past a very a very uniform metric for us because the variance between the different subscriptions was relatively very small.
And therefore, it increased over time, because we optimize pricing because we added more functionality.
To help people drive them towards a little bit of the higher subscription, but it was still very uniform in general in the.
Bless you.
For years, we are seeing a change a very significant change where we are getting much more complex websites being built on a platform for which the price point can go to the thousands and even through the hundreds of thousands of dollars, which means that <unk> is not uniform anymore, which also expand.
Why was the focusing our thinking about net add and focusing so much more about the absolute value in the cohort itself. So I hope that answers your question.
Okay.
Thank you.
Promoting our next question.
This question comes from.
<unk> of Citi. Your line is open.
Hey, good morning, guys.
You asked about chat GBT integration and now you guys have always talked about when you rollout Abi that was the big driver of conversion and I know, it's really early.
But just thinking through that Theres any parallels.
Do you expect that this might drive a bump in conversions.
As we go through the year, and then just going back to the marketing.
Fee.
And that 50% is there a little bit more you could share as to kind of.
The learnings from that.
Is that Youre, just targeting higher higher intent customers or users that are going to convert at a higher rate or spend more does that mean that you are focused less on maybe the DIY creators.
The software he's got all that or is that not the right REIT. This mike on that thanks.
Alright, so ill start with your first one yes, we've been I think when we started Adi wait.
Wage Adi, which is a artificial design intelligence right.
It was the first day I think.
AI products to the mass market.
Maybe with the exception of some things.
The voice speech.
So we've been ahead of the curve in that for a while.
Weeks today, we have a lot of different things.
For example, with the way for you to edit images with the AI so without to upload their product will clear the background and they make the photo better. That's one example.
And that we released a few years ago Adi and now we introduced <unk>. So this is really opening IHI GPT.
And some hybrid we built and we know that one of the hottest thing for many people.
Why the content on the web site.
By adding chat GPT.
We make it.
Well a lot simpler right and.
A bit more creative and in many cases, so I think it's a tremendous value for our users.
Okay.
And in the next year Youre going to see some additional vehicle thing that we're doing with AI now again to simplify.
Our users are.
Hum.
Our users are interacting and creating.
Web site, which is.
Kind of a complex it might be it's a very complex thing because think about it as many different assay. So actually you're right. Many different pieces I'll have to look to get the Gothic has to come altogether.
We have a lot of things, we can do there to make a week simpler and better use for Ziff Davis.
When it comes to acquisition.
So we are attaching the right point, there which is.
Yes. This is.
If you look at the brands, which are very strong band for <unk> I think we did a very good job emphasizing that while we've seen in the last day pre COVID-19, we already seen that the brand was separating itself from the rest of the quarter.
During COVID-19.
Lot of new people over there I have that.
We're not thinking about building glass of another head too. So it was a massive opportunity to reeducate the big portion of the population about weeks.
And and and.
Thanks.
And last year, we started to notice that the brand has become so strong that it's more than the generic generic way that people actually look for.
So that is all for safety Adas and of course, we've proven that now by the fact that we can actually eliminate a lot of that direct acquisition and brand equity pulse. The next thing that we're doing of course is building starting to work and assuming their strategy for where we are less strong.
And Thats why we will continue to invest in branding and of course, we there.
With the acquisition, but.
As we own.
Even if we go off the partners right where of a complex web site.
Brand value that we have from weeks an investment that we did carries into that debt, which is enabling us to do that with a smaller end.
Acquisition cost.
Thank you. Please standby will promote the next question.
Yes.
This question comes from Andrew Boone of JMP Securities. Your line is open.
Thanks, So much for taking my question can you help us understand the impact of the price and changes per port Q and then how does that relate to 2023 guidance. Thanks. So much.
So.
So we still see the effects of the price increases that we did last year and this one is going to continue I believe until May where we completed everything I mean this is part of the of the guidance that we have provided meaning that it's already embedded in.
Embedded there.
I think thats very important to mention that we feel also increasing our pool obviously.
Thats just a result of the price increase but also for the change in the mix in our customers and I think Thats also a new spoke about it.
And provide some explanation about it but we see a major change in mix, which also drive with your output.
Continuing to drive the outflow up and I believe that this is something that will continue also later, even after the effect of the price increases that we've made.
Thank you, bringing forth a next question.
Okay.
This question comes from John <unk> of Jefferies. Your line is open.
Hi. Thank you. This is champion on behalf of Brent Thill at Jefferies.
Two questions one on the 23 guide I'm wondering what you're assuming on the macro and the comments you had mentioned that assumption for Q1 is it the macro does not deteriorate. So I just wanted to see what it will be if we do enter into tough recession and then a quick second one just what you're seeing so far quarter to date, we're already two months in.
And any change in trends in Q4. Thank you.
So.
With regard to the macro I think Thats, obviously, I mentioned that before we assume that the macro as it is right now meaning that we didn't.
Even try to try to forecast what will be the effect what would be the changes in the macro obviously, if we see that macro is improving that will be an upside.
Especially around the.
The GPP and do we experiment.
With regard to the overall guidance that we have provided.
What we did a few of them is that you know that obviously fundamentals are still very strong, but we didn't assume any change in our kpis.
We did in the few many changing those fundamentals and they and they are very stable also throughout the first quarter at least so far.
We continue to see strong growth in partner and this is something that is really important information, we keep talking about the growth.
But the bulk of we are still taking market share.
This is a kind of a model for hyper growth and I believe that this is something that will continue also in 2023 and also beyond that.
Hey, John in terms of forward, we've seen January February and kind of relate to so what obviously I did comment earlier.
So to this point I'm sure that you would would've loved to be the first management team to talk about the recovery, but certainly that's not the case.
Don't see any decline, but also no major improvement at this point.
Basically kind of stability at where we are now.
Thank you promoting our next question.
This question comes from Ken Wong of Oppenheimer <unk> Company. Your line is open.
Great. Thanks, a lot I just wanted to dig into that.
That took a bit of a step down I am just wondering if you could maybe.
Give us a little context in terms of some of the moving pieces and how you think that number should settle in one.
The kind of demand environment stabilizes.
Sure <unk> here.
So in terms of the NR you have to remember our principal debt.
You think about the kind of the step down.
Put it.
It is compared to 2021.
We still had.
A big component of Covid that benefited in terms of the size of it obviously you know we're still have.
Positive NR. So so we are happy with the result.
When you look at kind of what made the impact.
So I would say that.
Generally speaking, we've seen and I mentioned it before the macro slowness also fixed a little bit the existing cohorts again because these are.
Small tiny businesses that are trying to to keep on working in maintaining their business in <unk>.
Harsher environment, and obviously that has an effect on them.
Taking that a beta of kind of a more of a deeper dive into what is.
Whereas most of the slowdown I would say it is around commerce and by that obviously also the effected GPP that comes with it.
But we think these are these are the main things then we.
<unk> two will remain.
Pretty much the same level.
Thank you.
Our next question.
Okay all right.
This question comes from Trevor Young of Barclays. Your line is open.
Great. Thanks can you just help us understand what's informing the revenue acceleration throughout the year in 'twenty three is it FX headwinds abating because it would seem to me based on your prior comments that the lift from pricing starts lapping out in May, but then you're kind of contemplating a little bit of an acceleration through year end is that.
Coming from the partner side some of the Vistaprint finally, kicking in just any color there would be appreciated.
So actually it's very simple I think that.
Q1, when you compare Q1 on a year over year basis compared to Q1 of 2022, which was very strong. So the comps are different remember that.
The overall slowdown.
More or less started during the screening.
So obviously the next three quarters.
Totally different console, that's obviously and I'll explain the differences.
Nothing beyond that.
Thank you.
Promoting our next question.
First question comes from Deepak with dividend of Wolfe Research. Your line is open.
Hey, guys. Thanks for taking the question. So first wanted to ask about the product focus areas in 2023, I know you rollout <unk> integration, but what are the main priorities from a product standpoint for this year and where do you kind of expect to see meaningful progress and then also potentially incremental contribution to.
Topline growth and then obviously.
The cost reduction you've done so far I wanted to ask your views on the efficiency levels do you feel like the staffing levels and then the AG productivity is at a healthy level Pan out right now after these actions as we head into 2023. Thank you so much.
Okay.
Of course so.
Ranga product focuses.
Well the core of it is pretty much the same.
And as we think that we have to hedge going forward one is our own.
<unk> business.
Where we have some very cool things coming and then you're going to see some additional announcement a lot of demand in the area of AI, but not only that.
So youre going to see is yes, I think some very exciting things coming in this year.
And on the other hand, and we spend a lot on the.
The partners and then we have a lot of things that we need to do there. So that is a very exciting because it's the.
The creation of <unk>, and what we should be doing and where we are so we're going to close a lot of that gap this year, which is good.
The best offering.
For partners.
As we head into the latter part of the year.
And the.
So that's.
Where most of our product focus ease I want to mention for a minute.
And we just released a new packages for enhancing utilization available.
Okay, we will release a protocol codecs.
All of those are aimed.
Only at partners right for people that actually build professional websites that are very deep functionality and I think we're going to continue to do that.
Youre going to see some additional very exciting things that we do for marketing, allowing our customers to do better marketing.
Some nice project going Darrin I think that we see really good traction.
A.
And with that maybe you want to take the next part yes, absolutely.
The organisers organizational productivity I think it's actually at a high level and increasing.
I think.
The changes we've done throughout the second half of 'twenty, two well received extremely well within the company and have helped us to become even better than what we do.
You also have to remember that.
Late October we moved we started moving into our new headquarters in Tel Aviv.
That on its own had a fantastic impact on morale and on productivity because people can be worked closer at a much much much better environment.
And it also allowed us to call back the employees to the office.
Which we believe is a better way for us to operate in a better way for us to manage.
Before we did the move to the new headquarters, we just did not have enough office space. So obviously now that there is a change that is also a great contributor.
So when when we are heading into 2023, especially from that kind of a standpoint of the productivity and the.
Connection within the organization of the company, we're actually feeling very very confident.
That we are kind of shedding some of the I would say the bad behavior that we adopted during COVID-19, because we had to but still did and going back to where we are excelling in executing.
Okay.
Thank you promoting our next question.
First question comes from Chris <unk> of Credit Suisse. Your line is open.
Hi, Thanks for taking my question I had a question.
Your partnership with Amazon multichannel fulfillment. So maybe it's still early days and it's a Boston assay was rolled out in first quarter of 2022. When he comes started the patient more headwind.
In the light of the recent availability of <unk>, Brian just wanted to hear your thoughts about potential of deepening your partnership with Amazon on that operating or are you happy with multichannel bookings right now.
So we're very happy with the progress there.
It's a combination of being happy on that specifically and also developing what we think can be a very interesting future relationship with with Amazon.
Around commerce.
For our business and other things that we may be doing together in the future.
I cannot go into the details, but but we are definitely happy with it.
Thank you that completes our Q&A session I would now like to hand, the conference back over to the company for any further comments.
Yes.
Thanks, everyone. Thanks, Christopher hosting that.
Thanks, everyone for joining today and we'll talk to you next time have a good day.
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Lower Johan during Q&A, you can dial star one one.
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Lower Johan during Q&A, you can dial star one one.
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