Wix.com Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the WIX Q2 2022 earnings 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 need to press star 11 on your phone. I would like to turn the call over to your host, Emily Liu, Investor Relations Analyst. You may begin.

Thanks, and good morning, everyone. Welcome to WIX's second quarter 2022 earnings call. Joining me today to discuss our results are Abishai Abrahami, CEO and co-founder, Mir Zohar, our president and COO, and Lior Shemesh, our CFO. During 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 20F that could cause our actual results to differ materially from these forward-looking statements. We 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 materials and in our interactive analyst center on the investor relations section of our website, investors.wix.com. With that, I'll turn the call over to Avishai.

Thank you, Emily, and good morning, everyone. Thank you for joining us today. I want to start our call this morning with some comments about Q2 and the highlights of some of the key points from our Analyst and Investor Day in May. Neil will walk you through a few operational updates on the business, and Leo will wrap it up with the financial highlights and an update on guidance. As you know, COVID obviously brought a massive surge of people and businesses to the Internet, propelling a business beginning in early 2020. We were forced to respond to the need of our users, helping them generate income while their offline income was brought to a standstill. As part of our response to the high demand, we increased our hiring activity. Now that we are post-COVID, the addition of new users to the funnels came back to similar rates to 2019 levels. and people are buying less on the Internet and buying less offline. This results in many of our users selling less, which lowers our GPV. This is not unique to us, as many Internet companies feel it. So, as the market continues to be volatile, which we obviously cannot control or predict, we are increasing our focus on what we can control to achieve the profitability targets we shared in the three-year plan we presented in May. We committed to this plan, and we are executing on it. And so, as we announced today, a $150 million cost-saving plan to allow us to meet our profitability targets and accelerate gross margins and operating margins in 2023, even if market conditions remain unchanged. Nir and Leo will walk you through more of those details. Now, let's talk about the quota. We are satisfied with how the fundamentals of our business remain strong in Q2. Revenue grew more than $345 million, or 9% year-over-year, about where we expected, and grew 11% year-over-year on a constant currency basis. The fundamental measure of our business performance remains very strong. In fact, our average revenue per subscription is now 32% higher as of this quarter compared to Q2 2019. This is very positive as conversion and retention remain the same over this period. This tells us that users are finding much more value in our platform. Our partners business also continue to perform well, growing revenues 31% year over year. This is on top of an incredible 87% year over year growth that we saw in the same quarter last year. Transaction revenues grew 13% year-over-year, and we continue to see increased adoption of weeks' payment growing our tech rate. Even with consumers spending slower, our GPV continued to grow. Even more amazing is that since Q2 2019, our GPV has grown 360%, which is incredible. So even with the demand coming back to 2019 level, our key growth initiative are producing strong results. Stepping back, I want to summarize some of what we shared at our analyst and investor day and expand more on our strategic strategy going forward. Since the IPO, we have scaled revenues from $80 million in 2013, nearly 17 times to $1.3 billion over the last year. while serving hundreds of millions of users across the globe. Our focus on product innovation and development, as well as marketing, has been a key driver of this growth. The first stage of our growth was introducing an elegant and simple website builder that anyone could use to create online. Many of our innovations, drag and drop, mobile design, and AI design, are now widespread across our competitors. Last month, we introduced our new Wix editor, which I'm very proud of and excited about. The new Wix editor combines the best of our Wix editor and Wix ADI and we will provide a user with an even better creation experience than before. In addition, it will bring efficiency and increase velocity to our product development. This is the most significant update to our Wix editor in many years and we believe it will contribute significantly to increase conversion and user success online. We have tens of millions of users, and it was clear they wanted more. So we moved into a second stage, which was an increased focus on businesses. We invested in what our users are telling us they want to manage and grow their business online. Over the last several years, we introduced many vertical commerce applications, communication, and marketing tools for businesses and payment capabilities. SafeCreator's business generates over $1 billion in annualized revenue and is very profitable, as we share with you in May. In fact, our SafeCreator business alone generates more revenues and is more profitable than the largest of our competitors serving the same market. We have now expanded into a third stage, and that is addressing the online creation needs of partners, professional creators, agencies, and enterprises. Our expansion has been informed by what we hear from our users. We now have industry-leading infrastructure that delivers performance among the fastest in the industry with vast security and high availability. We are now praised by partners for our outstanding SEO capabilities. We have massively improved our commerce application to meet the needs of professionals and agencies. And we have Velo for application development and Editor X for advanced design needs. All of this development requires us to invest a significant amount of resources into not only R&D but also our marketing to build and run for professionals. This expansion has grown our total addressable market significantly to eight times larger than it was in 2017 to over $200 billion today. We believe we will scale our partner business to become profitable. Our optimism is supported by a strong behavior in our partners' cohorts, which grow booking annually from three to four times this first year within the first three years, and the number of professionals coming to Wix every day to continue growth. We shared our three years plan for achieving this scale and profitability, and we are committed to it. And despite the market volatility we are experiencing during this period, I'm more excited about Wix today than I've ever been. With that, I want to turn it now to Neil.