Slide 1: Q3 2024 Earnings Call Prepared Remarks
November 20, 2024 Q3 2024 Earnings Call Prepared Remarks 1
Slide 2: Emily Liu, Investor Relations
Emily Liu, Investor Relations Thanks, and good morning, everyone. Welcome to Wix's third quarter 2024 earnings call. Joining me today to discuss the results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, our President and COO; and Lior Shemesh, our CFO. During this call, we may make forward-lo
Slide 3: Avishai Abrahami, Co-founder and CEO
Avishai Abrahami, Co-founder and CEO Thanks, Emily and good morning, everyone. We are happy to report another consecutive quarter of accelerating growth. Through focused execution of our key strategic initiatives and improved business fundamentals, we were able to deliver impressive year-over-year b
Slide 4: AI onboarding tool
merchants whose priority is getting online efficiently and selling successfully. All of this is translating into top-line benefit. Tests in our most recent Self Creator cohort showed a 13 percent uplift in conversion rate from our AI onboarding tool. We anticipate the platform to continue to resonat
Slide 5: Studio updates
creation experience. Importantly, these will also be the first AI products we plan to monetize directly. We are on the edge of unforeseen innovation and I’m looking forward to the positive impact it will have on our users. Moving on to Studio – we are continuing to see exceptional results, which Nir
Slide 6: Studio and Self Creators
All of this has culminated in what you see today with the early success of our Studio platform and strong sustained Partners revenue growth over the last couple of years. While our product roadmap includes new tools and features for professionals, I am confident that we have the right strategy and c
Slide 7: Thank you
Thank you, as always, to all of our teammates for your dedication to making Wix a best-in-class platform. And thank you to our users for trusting us to help you achieve your goals. Ok, Nir, over to you. 7
Slide 8: Nir Zohar, President & COO
Nir Zohar, President & COO Thank you Avishai. I’d like to start with a quick update on our user cohorts. Q3 was another great quarter of accelerating growth and I’d like to break down the business drivers that helped us reach these results. Starting with our newest cohort, we added nearly 5 million
Slide 9: Q1'24 user cohort
Additionally, the Q1’24 user cohort continues to outperform all non-COVID cohorts, despite having a smaller user base. This is a testament to the strength of our platform and the value of our offering. We’re seeing continued conversion of users into paid subscriptions at a healthy clip as they build
Slide 10: Studio momentum
This quarter marked one year since the release of Studio, which has become the core product for Partners to create and manage their projects on Wix. We’re seeing excellent results as this platform increasingly resonates with both new and existing Partners. Bookings growth attributable to Studio subs
Slide 11: Commerce platform growth
Finally, we continued to see healthy growth of our commerce platform. In the third quarter, GPV growth accelerated to 14 percent year over year and increased quarter over quarter. This unseasonably strong GPV was driven by continued execution of our commerce initiatives, including: ● driving adoptio
Slide 12: Lior Shemesh, CFO
Lior Shemesh, CFO Thanks, Nir. Our continued focus in delivering best-in-class products, particularly innovations within our AI suite and Studio platform, as well as solid business fundamentals resulted in accelerated growth this quarter. With Rule of 40 now well within reach this year, I am even mo
Slide 13: Studio contribution
Studio contribution as new agencies adopted the platform and Partners already on Studio renewed and increasingly built more projects. As a result, bookings attributable to Studio subscriptions accelerated sequentially this quarter with 75 percent of bookings from new Partners deriving from Studio ac
Slide 14: Self Creators and commerce
Importantly, we anticipate Self Creators growth to accelerate while the robust profitability profile of this business continues to improve. Growth across Self Creators and Partners was underpinned by the strong commerce performance you heard about from Nir. Better GPV growth coupled with a stable se
Slide 15: Operating margin and outlook
operating expense base was stable compared to the previous quarter. Non-GAAP operating margin remained strong at 20 percent of revenue. Q3 free cash flow totaled $128 million dollars, or 29 percent of revenue, due to continued strong top line growth and an efficient operating cost base. These result
Slide 16: Full year revenue outlook
For full year revenue, we are revising outlook upwards to $1,757 million to $1,764 million dollars, or 13 percent year over year growth. On the cost side, we expect non-GAAP total gross margin of approximately 69 percent for the full year and non-GAAP operating expenses to be 49 percent of revenue,
Slide 17: Growth acceleration and 2025
However, we are not laying off the gas. We remain committed to continuing to make progress over and above this milestone. I believe there is still much room for further growth acceleration and ample margin expansion in 2025 and beyond. The sustained bookings acceleration we’ve seen this year along w