Wix.com Ltd. (NASDAQ:WIX) Q3 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 08:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Wix.com 2019 Third Quarter Financial Results Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today Maggie O'Donnell, Director of Investor Relations. Please go ahead.
Thanks, Sarah. Good morning everyone and welcome to Wix's Third Quarter 2019 Earnings Call. Joining me today to discuss our results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, President and COO; and Lior Shemesh, 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 the 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.
In addition, we will comment on non-GAAP financial results, you can find all reconciliations between our GAAP and non-GAAP results in our press release, presentation slides, shareholder update and our Interactive Analyst Center on the Investor Relations section of our website investors.wix.com.
Now, I will hand it over to Avishai Abrahami, who is going to say a couple of words about the quarter. Avishai?
Thanks, Maggie, and good morning everyone. Q3 was another solid quarter. We've added 114,000 net subscription in the quarter. Collections were higher than our guidance and we are raising our outlook for the full year when you adjust for changes in exchange rates. Collection from our newest user cohorts are higher than last year's cohorts, which shows the success we have had in increase in the value of our product and optimizing pricing. The future collection of our existing cohorts is now expected to be over $6 billion over the next 8 years. This result proved that we have a very strong and consistent core business that continues to grow. We are also seeing great early success in many of our new products and initiatives. The investment in marketing to professional is showing very positive trend. The perception in the market of Wix as a professional tool is increasing. And we have seen strong growth in users that build multiple website. In fact, collection from users that have 10 or more subscription grew approximately 50% in the last year. We are excited about this progress and we'll continue to develop our offering for this market.
We recently launched Wix Fitness, our newest vertical offering, that focus on one of the fastest growing categories on Wix. Use of Corvid is increasing and this product has been an important part of our ability to attract high quality and professional users. We also continue to see positive growth in payments and we are making positive advancement in expanding the customer solutions. We are ending 2019 on a strong note. We are very excited about the upcoming year. Thank you for your support through this year and for joining us today. Maggie?
Thank you. Operator, can we have the first question please.