Wix.com Ltd.

Good day, and thank you for standing by. Welcome to WIC's first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After this speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automatic message advice when your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Emily Liu of Investor Relations. Please go ahead.

Thanks, and good morning, everyone. Welcome to WICS's first quarter 2024 earnings call. Joining me today to discuss our results are Avishai Abrahami, CEO and co-founder, Meera Zohar, our president and COO, and Lear 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 Avi Shai.

Thanks, Emily, and good morning, everyone. We had a fantastic start to 2024. As we built upon the strong momentum and milestones of last year, we exceeded our expectations across many areas of our business in the first quarters by executing on our product strategies, growth initiatives, and commitment to balanced profitable growth as a result We continue to differentiate ourselves and grow market share as users increasingly choose Wix as the go-to platform to achieve their goals online. We kicked off the year with a strong growth. Booking in Q1 grew to more than $457 million. Exceeding expectations, revenue grew to $420 million above our guidance. This outperformance drove free cash flow which grew to more than $111 million. This new high watermark in our profitability journey is a milestone that we all will go into more details shortly. The strong growth we saw this quarter was driven by improving business fundamentals, which I'll let Neil discuss in a few minutes, an incredible part of innovation. In particular, we are seeing remarkable results from the product milestone achieved last year, a leading portfolio of AI technology and Wix Studio. First, our suite of AI product is performing extremely well. Notably, this quarter, we released the highly anticipated AI website builder. This is our corner store AI product. It leveraged our 10 plus years of web creation expertise and unparalleled knowledge base of users' behavior through a conversational AI chat experience. Users describe their intent and goals. AI technology then creates a professional, unique, and fully built out website that meets the user needs and dreams. Importantly, the AI generated site includes all relevant pages with personalized layout themes, text, images, and business solutions, such as scheduling, e-commerce, and more. Best of all, these websites are fully optimized with rich, reliable infrastructure, including security and performance, as well as built-in marketing, SEO, CRM, and analytic tools. There is truly nothing like this on the market. Excitingly, feedback on the AI website builder has been incredible. In just a few short months since its launch, hundreds of thousands of sites have already been created using this tool by both circulators and partners. This strong response and utilization is a testament to the depth of our AI expertise and strength of our product. We did not step off the gas after this milestone release and recently added more products to our AI portfolio in order to make the site building experience easier and more enjoyable. In April, we released a suite of AI-powered image enhancement tools that provide users with the capability to create professional images on their own. High-quality images are an essential part of a professional website, but often hard to achieve without the help of a professional photographer. New users will be able to easily erase objects, generate images, and edit them to add or replace objects with a simple prompt, all without ever leaving the weeks A few weeks ago, we also released the AI Portfolio Creator, which uses in-house AI image clustering technology and the latest AI model to enable users to easily and professionally showcase an online portfolio. This creates a smooth, intuitive portfolio building experience that generates unique and professional options in moments. These new capabilities are just the start of a robust pipeline of AI-enabled products still to come this year, including a variety of vertical AI business assistance that will be released for the year. A couple of these assistance are currently in beta testing and seeing great results and feedback. I can't wait to share this and more. We're seeing a tangible benefit from our entire AI offering, particularly a better conversions amongst users into premium subscription. I strongly believe that our AI capability will be a significant driver of self-created growth in 2024 and beyond. I'd like to finish with an update on Wix Studio, which continues to perform ahead of plan. Since its launch in August, over 1 million studio accounts have been created by agencies and designers. The majority of these studio accounts are created by larger agencies completely new to Wix. This is an encouraging sign that we continue to win market share. Existing professionals are also increasingly using Studio to complement their classic editor project with most of our top partners having built at least one project on Studio. Moreover, fast conversion of these accounts has resulted in more Studio Premium subscriptions than anticipated. This high conversion demonstrated powerful design, creation, and workflow management capabilities that professionals cannot get anywhere else. As a result, we expect the lifetime value of our partners' user base to continue to improve as partners build more projects on Studio over time. As a reminder, the lifetime value of our partner is already multiple times higher than that of our self-creators. We continue to add new innovative capabilities and improve the Studio platform. In April, we introduced the ability for partners to sell Studio templates in the marketplace. This feature enabled partners to market and sell studio templates they've created, thus increasing their earning potential while organically fostering the studio ecosystem. With more new features on the horizon, we remain confident that studio will be a significant driver of power and growth in the years to come. With the momentum we've started this year, I'm confident that we are successfully executing on our strategic initiative and growth pilots. These are many exciting things are still to come in 2024, an impossible but incredible team here at Wix. So thank you to the entire team for your hard work and dedication to our users. With that, Nih, over to you.