Wix.com Ltd.

Good day and thank you for standing by. Welcome to the Wix's first quarter 2026 earnings conference call. At this time, all participants are on 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. You will then hear an automated message advising that your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host for today, Emily Liu, Head of Investor Relations. Please go ahead.

Thanks, and good morning, everyone. Welcome to WIX's first quarter 2026 earnings call. Joining me today to discuss our results, Nir Zohar, President and Co-Founder, 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 20-F 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 except as required by law. 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 it over to Nir.

Thank you, Emily. Hello, everyone. Before we begin, I would like to share that Avishai sends his best He won't be on the call today because he very recently celebrated the birth of his son. We offer him our warmest congratulations and I am certain he is looking forward to connecting with all of you soon. The velocity of change within our industry has been remarkable throughout the last few quarters. As this momentum increases, it is increasingly evident which organizations are truly designed for longevity. Over the past several quarters, the pace of change in our space has been extraordinary. And the faster things move, the clearer it becomes to me which companies are built to last. The winners in the AI era will be ones that have the underlying systems and infrastructure needed to actually run and scale AI effectively, as well as the product depth for AI to be integrated seamlessly into solutions that are genuinely useful for users. All of this needs to be underpinned by a deep understanding of the market and user expectations. This is a major competitive advantage for Wix, and importantly, one that is very difficult to replicate. In this new era, our goals remain the same. Place value in the hands of our users, increase our market share, cement our position as one of web creation's defining players, and be the platform users choose when they build online. I want to emphasize that we have been intentionally building toward AI's ability to transform online creation for years. This was demonstrated in as early as 2016 with our launch of Artificial Design Intelligence, or ADI, and most recently in the rollout of Wix Harmony, as well as our acquisition of Base44, now the largest AI-powered app creation platform in North America by market share. AI has made building online simple, and anyone can generate a simple, good-looking website in minutes. But that's as far as it goes. The real complexity begins the moment you hit publish. How does it drive engagement? How do you host it, get found on search engines, run your storefront, secure your customers' data, and actually operate a business day to day? These are the hard problems, and we've been solving them for 20 years through continuous product innovation and user feedback. We continue to set the standard for what's possible in the online creation market, and I am proud to share that we recently achieved an important innovation milestone. Wix has built and deployed our first proprietary LLM. This model was built specifically to power the design engine of Wix Harmony, and the early results are compelling. Our internal testing shows our model is meaningfully faster than the alternatives, produces fewer errors, and delivers noticeably better outcomes for users building Harmony websites. We also have complete control in our own product development and improvement cycle. We can iterate daily, guided by feedback from our massive user base, in ways that a general purpose model simply cannot. Importantly, building and relying on our own LLM means significantly lower inference costs that sit firmly within our own control as we scale the Harmony platform. We expect this Wix-built LLM to be the first in a broader portfolio of proprietary AI models across a number of use cases as they become increasingly central to our product roadmap. As AI models become widely available across the industry, I believe differentiation will increasingly come from the experience built on top of these models and around agentic capabilities. That's exactly where we've invested and where we continue to push. Owning our proprietary model gives us a unique depth and data advantage that can't be replicated, while also providing greater cost control and significantly lower inference costs. Still, we also have the flexibility to continue to leverage the best third-party models for the right use cases. So, we are never constrained. This breadth of options combined with the unique assets we've built means our users will always get the best possible outcome. I also want to be clear about something fundamental. For Wix, web creation has always been our mission. Not an off-the-cuff offering on the side, Two decades of singular focus on these users and on this market. That depth of expertise layered on top of the meaningful investments we've made into infrastructure and our integrated product environment over many years is not something a new entrant can replicate quickly or easily. This defining strategic advantage combined with our brand strength, scale, and ecosystem creates a powerful competitive moat. And it's why hundreds of millions of people around the world rely on us today for online creation. Turning now to the new first quarter cohort, which saw 6.4 million users, which now includes base 44. This Q1 2026 user cohort generated nearly $52 million in bookings in its first three months, a 46% increase compared to the bookings generated by the Q1 2025 cohort over its first three months. Putting base 44 aside, our new core Wix users generated healthy bookings with growth nearly as strong as what we saw in the Q1 2025 cohort last year, despite a slightly smaller user base. This growth is particularly encouraging as Q1 2025 was by far the strongest post-COVID cohort and a high bar to reach, underscoring the continued demand for our growing suite of web creation offerings and the power of our platform. New cohort bookings were driven by noticeably improved year-over-year and quarter-over-quarter conversion of new users into paid subscriptions, powered by Harmony, which was rolled out in late January across our main geographic markets. Monetization of these new users was also strong, as they purchased higher-priced subscriptions and increased attach of business solutions, signaling the growing mix of high-intent users compared to the prior year quarter cohort. This quarter, we ramped up our marketing efforts meaningfully, as anticipated, driven by incremental spend on base 44%. We went all in on capturing Base44's robust top-of-funnel demand, which continued its strong upwards momentum in building our brand as a leading AI-powered application creation platform. In addition to strong demand, we also saw positive signs in the user behavior and cohort quality of Base44. Retention is improving as more users are choosing annual subscriptions, either through new purchases or renewals. Monetization is also steadily increasing, resulting in stable TROI even as marketing spend stepped up in the first quarter. As a result, Base44 achieved $150 million in ARR in mid-May, demonstrating sustained growth momentum on the $100 million of ARR achieved in early March. Acquisition marketing spend for Base44 and CoreWix excluding Super Bowl expenses and AI costs attributed to free users, totaled approximately $90 million this quarter. Time to return on this $90 million is projected to be seven to nine months. This accounts for a similar return timeline on spend in the core WIX business, as we saw in previous years, as well as Base44's longer but stabilizing return horizon. Existing user cohorts were healthy with bookings growth continuing to be driven by strong retention and solid monetization. This strength was again slower than anticipated partners growth as a result of smaller partners cohorts added over the past few quarters as we pulled back partners focused marketing spend. The smaller top of funnel drove user mix to shift towards self-creators and away from partners in recent quarters. We expect this dynamic to remain a drag on partners' bookings and revenue growth going forward as we continue to narrow our funnel while we realign our marketing strategy and build out significant platform and product enhancements. Before I turn it over to Lior, I want to address how we are operating amid the current war in the Middle East that began in late February. First and foremost, our teammates and their families are safe. which always remains our top priority. That said, with more than 60% of Wix employees located in Israel, we did experience a headwind to the productivity of our team over the past couple of months. As a result, certain product timelines for our partners' audience have been pushed out. We're working hard to catch up as fast as we can and minimize the impact of these delays, but above all else, We want to ensure all products perform against our high standards and are truly the best on the market before we put them out to users. Still, we are not backing off of our ambitious product roadmap and our excitement for the robust AI and more advanced tools still to come in 2026 remains unchanged. Finally, I want to quickly touch on our execution of the repurchase program that we announced earlier this year. In April, we completed a modified Dutch auction tender offer of approximately 18 million shares for $1.6 billion. By repurchasing nearly 30% of our equity base, we were able to return meaningful value to shareholders. We believe this will prove to be very accretive to our existing shareholder base in the long run as we execute on our strategic plan. With that, I'll hand it over to Lior.