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Wix.com Ltd (NASDAQ:WIX)
Q4 2019 Earnings Call
Feb 20, 2020, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning. My name is Cindy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Wix 2019 Fourth Quarter and Full Year Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

[Operator Instructions]

For those on the webcast, you may submit questions throughout the event by typing in the Submit A Question box on your screen. I will now turn the call over to Maggie O'Donnell, Director of Investor Relations. Please go ahead.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Cindy. Good morning, everyone, and welcome to Wix's Fourth Quarter and Full Year 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 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 and shareholder update, as well as our Interactive Analyst Center on the Investor Relations section of our website, investors.wix.com.

Before I turn the call over to Avishai, I want to mention that we will be hosting an Analyst and Investor Day on March 18th in New York. Please email us at ir@wix.com if you are interested in receiving an invitation.

Now, I will hand it over to Avishai, who is going to say a couple of words about the quarter.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Thank you, Maggie, and welcome, everyone. We ended 2019 on a very strong note. We finished the year with 28% collection growth on an FX-neutral basis, which was higher than we expected. By all accounts, it was a fantastic year. Before we go to questions, I just want to emphasize how excited I am about 2020. Never before had we had so many new initiatives, new products and new opportunities heading into a new year. In 2020, we will, for the first time ever, surpass $1 billion in collection. It is a great symbolic milestone for our business and what I think of is the beginning of Wix second act. It is a symbol of how we have become so much more than a website builder. Wix today is the home of over 165 million people who not only build a website on our platform, but also manage the communication and relationship with their customers, their fans and their users. It is a place where a full business can be run, allowing a small business the same opportunities as a big one. With the recent announcement of Editor X, a whole new market is opening to us. We see huge opportunity in this market of larger businesses and global brands. We believe that with upcoming launch of Editor X, combined with Corvid, that our offering is remarkably better than any product in the market today. We are ready. We are executing against it, and we have more to come. My management team and I are extremely bullish about what this means for our business, and I believe it will accelerate our growth in the next couple of years.

With that, we can now take your questions.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Avishai. Operator, can we take the first question, please?

Questions and Answers:

Operator

Your first question is from Ron Josey from JP Morgan.

Ron Josey -- JMP Securities -- Analyst

Great, thanks. I'm from JMP, and I just wanted to ask a little more about the new disclosures in the quarter around Creative Subscriptions and Business Solutions. Maybe Avishai and Lior, I think that the data is extremely helpful as to understand the drivers of the business, but any additional context of what's included in the breakdown of the drivers, specifically with Business Solutions? I know G Suite and Payments are included. So, any insights there would be helpful. And then maybe taking a step back, as we think about, as, Avishai, you mentioned the new day or whatever of Wix coming forward, just the approach in deciding why these new reporting lines are most relevant? Thank you very much.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

So, I am going to ask Lior to describe what is included. And then I will take the second question.

Lior Shemesh -- Chief Financial Officer

Sure. So, first of all, with regard to the -- in general to the changes that we've made, we feel that those changes actually serve and provide much more transparency into our business. And we need to understand that our business has evolved in the last few years. As we mentioned many times in the past, we are no longer just a website builder, we are much more than that. And I think that the breakdown of the revenue of the topline into those two separate segments actually provide the right transparency in order to really to understand the business and the changes that we went through.

With regard to the content of each of them, the Creative Subscription, in a way, it includes all the packages that we sell and monetize, including also the domain. While the Business Solution, when you think about it, this is exactly the changes that we went through. Include all the different application as well as Payments, applications like G Suite, Ascend, obviously Payments, and many other initiatives that were included over there. We believe that if we take, for example, the Editor X would be a great contribution to the Creative Subscription in the future and to its growth. And obviously, for the Business Solution, we see a big potential specially coming from Payments and other application and more solution that we intend to introduce in the future.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

So, second part of your question, why we think that it's time that we actually start to report additional information. I think that as price discrepancy between customers grows, and we now have customers that are paying $5 a month, and then, people that pay a thousand times that on Wix. And we believe that just telling about the amount of subscription become less clear, because, obviously, each one of them holds dramatically different value. As a result, we think that we need to provide more transparency. And on the standard subscription base model of the website building part and then on the other side, on the business management growth that we also see growing very quickly.

Ron Josey -- JMP Securities -- Analyst

Great. Thank you very much.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Ron. Can we have the next question, please?

Operator

Your next question comes from Ken Wong from Guggenheim. Please go ahead.

Ken Wong -- Guggenheim Partners -- Analyst

Great, thanks for taking my question. So, this question is just regarding fiscal '20 growth. When I think about your outlook, the first thing that popped into my head is just some of the headwinds that you guys experienced in fiscal year '19. I think a lot of us were expecting maybe subs reaccelerating, customer support contributing, I think you guys had mentioned 5 points of growth, and then also seeing some traction with Corvid. When thinking about your outlook, how are you feathering in some of those elements? Have some of those pieces been pushed out a little? Any color there would be great.

Lior Shemesh -- Chief Financial Officer

Hey, Ken. This is Lior. Sure. So, I think that -- let me start with the fourth quarter. We managed to beat our own expectation during the fourth quarter, and that was -- and by the way, also in term of the net addition in term of subscriptions. And that was, for us, a great indication for the strength of our business and especially, the new initiatives like growing into the creative market, and also with Corvid, and other new initiatives like Payments and so on. We believe that looking in the last few years, we have a really strong track record of growth, which I believe that will continue. We're entering into a new market with a huge opportunity and we feel really, really excited about it. We actually started to see things happening, and I believe that it will generate even higher growth in the second-half of the year, once we'll start to monetize on Editor X. Obviously, not everything is part of our guidance because some of it is still in progress, and some of it we simply need to understand exactly what will be the model, especially when we talk about the Editor X and the monetization that's going to be in the second-half of the year. A very important thing to remember, we've never had so many new products in initiative. And we believe that those new products and initiatives are going to provide more upside for us in the coming -- in the near future.

Ken Wong -- Guggenheim Partners -- Analyst

Great. And then maybe if we can just -- I'm not sure if you guys have kind of thought this through yet, but thinking about the creative business and then the business segment, any rough sense of how we should be thinking about growth between those two buckets?

Lior Shemesh -- Chief Financial Officer

So, obviously, what we provided the guidance is just one number. And I think that it's something that we didn't want to provide guidance for both of them separately, and let me try to explain why. Sometimes, there is a mix between subscription to business solution. And I believe that at this stage, it makes much sense to provide only one number, but then again, we provide you with the model and how the subscription -- creative subscription is actually acting, especially together with the ARR that we provided for the first time, which going to provide you much more color and transparency about how to try to predict it, but at this point of time, we feel very comfortable in providing just one number with regard to the guidance.

Ken Wong -- Guggenheim Partners -- Analyst

Great. Thanks a lot, guys.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Ken. Can we have the next question, please?

Operator

Your next question comes from Ygal Arounian from Wedbush Securities. Please go ahead.

Ygal Arounian -- Wedbush Securities -- Analyst

Hey, good morning, guys. Maybe I'll try the guidance question a little bit more directly with agency question. You guys are clearly excited about agency, professional designer market. You've put a lot of the pieces together over the course of 2019. Any way to help investors understand how much that's contributing today? We're early there, but how much is it contributing? How much is it contributing to the overall guidance for the year? And I understand that there's upside if it starts to build out, but is it built into guidance at all? And then a related follow-up. You put the sales team in place over the course of last year. I feel like Editor X was a kind of big missing piece in the go-to-market for the sales team. And so if you'll also help us understand how the sales team is contributing to the agency push. If that helps accelerate growth and expand opportunity, and did they need Editor X before they were really able to make meaningful headway in that market? Thanks.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

I think that -- This is Avishai, trying the first part. So, what we do see is that we have really good growth on the professional creators and agencies, which exceeds the 50% growth year-over-year. And we're very excited about that. It will be starting to become significant numbers. As we've started to see that the opportunity there is not just real, but it's something that is available for us and we can easily participate, where we started to work on Editor X because it will give us even the ability to further accelerate into that domain. One of the things we really like about this domain is that if you look at it in terms of what is the companies who provide tools for the creators and designers on web design, it's really a bunch of old tools with companies that are boring. And I think that this is the time where we have really a massive opportunity. Obviously, like everything else, we provide guidance for the things that we do know that we're able to achieve and all the things that we hope we will achieve. So, the portion that we are aware that we can achieve is already in the guidance. Everything else is, hopefully, we're going to continue to beat guidance that we provide.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Ygal. Can we have the next question, please?

Operator

Your next question comes from Deepak Mathivanan from Barclays. Please go ahead.

Deepak Mathivanan -- Barclays Capital -- Analyst

Hey, guys. Thanks for taking the questions. Two quick ones from us. So, first, the advertising spend was up 14% last year, which has fairly decelerated over the past couple of years. I know 2019 is a bit of a unique year given the pricing changes and shifts toward more sales force, but are you facing constraints on ad returns and ROIs to acquire new users at this time? How should we think about the advertising spend in 2020 and then going forward? And then the second question is for Avishai. Where is payments penetration right now? Maybe talk about it in terms of new subscribers or existing subscribers. Is the adoption curve kind of tracking as you had originally expected? How does it compare to your expectations? Thank you.

Lior Shemesh -- Chief Financial Officer

Yeah. Let me start with the marketing. Today, we are still under the seven months to nine months TOI. There was no change by the way in terms of the way that we actually do the marketing in the go-to-market with regards to that. We are still able to generate the growth in term of the number of users that we are getting and we can actually see that as part of the numbers. And we don't see any changes with regards to that. As for the agencies, obviously, we already started the process of breaking it down for our own use in order to measure it, obviously, separately, but let's remember that as part of the two million users that we bring every month, there are many of them that are agencies, and many of them are creators. That said, I don't expect the seven months to nine months to change in the near future.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

And this is Avishai. In respect to -- regarding who's using Payment today -- and so, when we released this product, we assumed that the majority of the new users will adopt it. And we do see that happening. And we estimated there was going to be some move from all customers, and what we see today is that we actually have a bit more than we expected, move from our old customers into Payments, I think because of the quality of the way that you can actually track transactions. And so, as usual, we see both of them going very well. The majority of new users today on Wix are choosing Wix Payment, and pretty much everybody who changed or added payment solution on an old store and any kind of a transactional base product on Wix is moving to Wix Payment. So, we are very proud of the product and, obviously, it already returned a lot of the value that we expected. And I think that it will continue to do so.

Maggie O'Donnell -- Director of Investor Relations

Thanks for your question, Deepak. Can we have the next question, please?

Operator

Your next question comes from Naved Khan from SunTrust. Please go ahead.

Naved Khan -- SunTrust Robinson Humphrey -- Analyst

Yeah. Thanks a lot. So, I think previously you guys talked about at least a 3x return on this expanded customer support. Is that still the expectation for 2020? And then in your prepared commentary, your talked about implementing a more proactive approach to support. Can you just maybe discuss that in more detail? And then secondarily, can you maybe give us some more color on what drove the acceleration in revenue collections for business solutions in the fourth quarter?

Lior Shemesh -- Chief Financial Officer

Sure. So, this is Lior. I will start with the first part, and Nir will shed some more light about the progress. So, we still feel very strong about the opportunity in 2020 with regard to the care and we still feel very strong about the returns, about the 5% that we indicated last year. Obviously, some of it already incorporated into our guidance, but not all of it, because in a way it's still work in progress. So, I think that we might get some upside during this year and certainly next year, but Nir will elaborate more about it.

Nir Zohar -- President & Chief Operating Officer

Hey. So, I think generally, for a company our size, doing such a change for the customer is really a big -- it's a huge undertaking. And I think we move forward a lot, and then we had to align ourselves a little bit while we were making some mistakes on the way. But all-in-all, I think that we're heading in a very positive direction. We've given a high cadence of training now, all of our agents to adopt this new approach, which we really believe in. I believe that by the end of this quarter, or very early in Q2, we'll finish all of the training program. But the good news is that since this is a cadence which we do it in groups, we already start seeing some of the agents that have been chained to, who're taking phone calls. And there, I can say that we're seeing extremely positive signs first and foremost by just much higher satisfaction in the customers that talk with those agents, significantly more satisfied and then once we are still getting people who haven't had the training. And also, I would say on the financial side, there is potential, because in much higher conversion rate for the three users that coursed in and who converted to premium after talking to agents that have been trained, as well as when you look at premium users who call in and are just adopting a much higher level and more expensive level of our additional services. So, I think that we have a very, very high conviction that this is going to be a very successful undertaking in 2020 and in years to come.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

[Speech Overlap] Yes. With regard to the second question about the Business Solution growth. So, we see, obviously, and this is what we indicated also last quarter, is about the payment growth. So that was one of the reason why we see the acceleration in growth on Business Solution, and also much better adoption of application, including G Suite that we've seen on a year-over-year basis.

Naved Khan -- SunTrust Robinson Humphrey -- Analyst

Got it. Thank you.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Naved. Can we have the next question, please?

Operator

Your next question comes from Nat Schindler from Bank of America.

Nat Schindler -- Bank of America Merrill Lynch -- Analyst

Yes. Hi, guys. So, just looking at Slide 11, for the first time, your cohorts for 2019 were behind your cohorts of the previous year or any of the previous years. And, is that because of the cutoff of Connect, and do you expect that going forward?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

The answer is yes. That is exactly, because of the fact that we removed the Connect My Domain package.

Lior Shemesh -- Chief Financial Officer

But I think that you can go back two [Phonetic] slides and look at the cohort value, I think which is a more important part, you can actually see that it is still ahead of any cohort before that in terms of year.

Nat Schindler -- Bank of America Merrill Lynch -- Analyst

And that brings up another question, when you say you're billing, you're getting customers that are a thousand times more valuable, or many times more valuable than previous ones. I assume you mean agencies, but are you billing the agencies on a per-website basis, or as -- just as they probably were prior to 2019, or are you changing it to bill them a kind of more enterprise pricing?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

So, agencies are just part of it. And yes, and then they can be a very different pricing model. But also we have customers that, through payment and through buying enterprise packages and buying huge amount of applications, are just paying us a substantially higher amount than the lower customer, right? So -- and that is part of the reason that we felt that subscription alone does not necessarily reflect the value of customers. And as you just showed, right, with your question, which is the Q1 cohort of 2019 on absolute number looks smaller, but if you look at the dollar amount, it is higher. So, -- And that just showed that. And this, we believe that this discrepancy and this difference will continue to grow going forward. And so, it's important to be able to establish the right matrices.

Nat Schindler -- Bank of America Merrill Lynch -- Analyst

Great. Thank you.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Nat. Can we have the next question, please?

Operator

Your next question is from Brent Thill from Jefferies. Please go ahead.

Brent Thill -- Jefferies -- Analyst

Thanks. In the US, the growth rate was really consistent throughout the year, but you did see a pretty material deceleration in the Europe business starting at 32% growth going to -- ending at 21%. Can you just maybe talk through some of the reasons why you're seeing such a major deceleration in what's about a quarter of your business?

Lior Shemesh -- Chief Financial Officer

Sure. So, I think that if you look at the chart, so obviously, the North America was extremely strong for us. And as we mentioned many time in the past, we do the TOI based on channel and geography or even country. So, the fact is that, for example, many of our new initiatives will launch in the US. So, obviously, help the TOI and therefore, we can see that in term of the marketing, it was more efficient for us than other places. I think that you know the rest of the regions were pretty much consistent. The only place where in the fourth quarter we saw like a kind of decrease compared to last time was actually in Asia Pacific, and it was mostly because of Australia. I guess that it's got to do with the fires and everything that's happened over there in the fourth quarter.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

And in regards to Europe, again, I think that, as Lior said, a lot of the new initiatives will act first in the United States. But also things like Brexit and instability in Russia, it slowed down business and we can see already that is picking up back. And luckily, I mean, Brexit finally has been decided on. [Speech Overlap]

Brent Thill -- Jefferies -- Analyst

Thanks for the color, just a quick follow-up. I know you mentioned you're moving away from subs as a metric, but you originally held a view that premium subs should accelerate in 2020. Are you still holding that view or not? Thank you.

Lior Shemesh -- Chief Financial Officer

Yes, yeah, of course. We actually even feel much more bullish about it when we are starting the year. And I think that Q4 is a great indication for that. We actually managed to beat our own expectations in term of net subs. And we're going to still, by the way, we're going to still provide subscription in 2020 and later on, on an annual basis. But again, I must say that from our point of view, after everything that we discussed about the evolution of our business and what Avishai mentioned before, ARR, the way that we presented it, explain and show the business and the way that we actually look at our business in a much, much better way.

Brent Thill -- Jefferies -- Analyst

Thank you.

Maggie O'Donnell -- Director of Investor Relations

Thank you, Brent. Can we have the next question, please?

Operator

Your next question comes from Lloyd Walmsley from Deutsche Bank. Please go ahead.

Chris Kuntarich -- Deutsche Bank -- Analyst

Thanks. This is Chris on for Lloyd. Could you just talk about how you guys are thinking about the attach rate of some of these new functions associated with Editor X, both functions you guys talked about in the letter related to collaboration, management and growth. And then maybe second, can you just talk a little bit about how you guys are thinking about the value of these additional functions versus the value that the core Editor X product would provide on a stand-alone basis? Thanks.

Lior Shemesh -- Chief Financial Officer

I think that in regards to Editor X, the most important thing is that it opens Wix to a completely new market. Things like responsive design, very close to the HTML level, and really powerful editing of CSS enable professional designers to dramatically accelerate their work. We didn't launch the product yet, right? We just announced it, and we hope to fully release it before summer. So, we not yet have the ability to share performance and revenues or anything else. In terms of value, it's a different pricing model. Of course, it's a different product to a different crowd, which we believe is by far the most superior product out there addressing this market and provide tremendous value, especially combined with Corvid. So, it's going to have a different price model and a higher price model, of course. And then when we actually release it, we'll be happy to share it.

Chris Kuntarich -- Deutsche Bank -- Analyst

Got it. Thanks.

Maggie O'Donnell -- Director of Investor Relations

Great. Thanks, Chris. Can we have the next question, please?

Operator

Your next question comes from Jason Helfstein from Oppenheimer. Please go ahead.

Jason Helfstein -- Oppenheimer -- Analyst

Hey, guys. It's Jason. So, two questions. At what quarter this year will all subs be on the new pricing plan? And then secondly, is DeviantArt still a margin drag? And if so, maybe help us understand how much it was a drag on last year, however you want to do it, either free cash flow or your EBITDA. Thanks.

Lior Shemesh -- Chief Financial Officer

Sure. So, with regard to the first question about the price increase, so obviously, we are going to see the end of it, or the effect of it, in the second quarter. So, this is with regard to the first question. With regard to the DeviantArt, and I think that later Nir will elaborate about it some more, we basically launched the new product; we see an amazing first results in term of the business metrics. It's part of our guidance. It's yet not big, but we believe that we are going to generate much more growth from DeviantArt in the future.

Nir Zohar -- President & Chief Operating Officer

Hey, Jason. It's Nir. So, as Lior mentioned, I think definitely on the margin side, DeviantArt is the drag. It is very small, probably not that significant. But I think what's more interesting is that throughout 2019, we managed to pretty much over roll and release the new product of DeviantArt, which, so to speak, kind of stopped the bleeding in terms of decline in the amount of users and new registrants and...

Lior Shemesh -- Chief Financial Officer

Tripled, more than tripled in auto new registration.

Nir Zohar -- President & Chief Operating Officer

Yeah. So, as I said, we not only managed to stop that bleeding as we linked it and actually gone into the path of growth there, which we think is tremendous. So, growth in adoption in terms of new users, but also in the behavioral adoption within the community itself, how much people are uploading new media items and then you are [Phonetic], how much people are communicating with each other and commenting. And this is basically, I think, the right time for us to start working and how do we add value for those users that we can monetize on? That's definitely what we're going to do throughout 2020.

Jason Helfstein -- Oppenheimer -- Analyst

Just a quick follow-up. There was just accounting question. There was a non-GAAP sales and marketing $1.7 million add back. Just what was that related to?

Lior Shemesh -- Chief Financial Officer

Again, $1.7 million of non-GAAP sales and marketing?

Jason Helfstein -- Oppenheimer -- Analyst

Yeah, it was in the reconciliation tables. Fine, we can take it offline, or I will talk to you later.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

It's probably the stock-based compensation expenses, but we can go over it offline.

Maggie O'Donnell -- Director of Investor Relations

All right. Thanks. Can we have the next question, please?

Operator

Your next question comes from Mark Mahaney from RBC Capital. Please go ahead.

Mark Mahaney -- RBC Capital Markets -- Analyst

Thanks. I wanted to ask about gross margin trends in both segments, Creative Subscriptions and Business Solutions. They've been -- They came down this last year. You provided the reasons why; the investments in Customer Care and in this mix shift toward G Suite and the Wix Payments. It sounds like going forward, you expect Creative Subscriptions gross margins to kind of stabilize in '20? Would it then theoretically after '20 start rising again as you get scale against the customer care organization costs? And then on the Business Solutions side, it sounds like gross margins could be up or down. It'll just depend on the product mix shift. Is there a way to know at what level those gross margins could stabilize, maybe not in '20 but at some point in the future? Thank you.

Lior Shemesh -- Chief Financial Officer

Yes. So, I think that you described it quite good. I think that the gross margins for the Creative Subscription are more or less stable. I think that the more that we actually get the benefit from the customer support and obviously from start to monetize on, for example, on Editor X. So, I think that we might see some upside on the gross margin. With regard to the Business Solution, you're absolutely right; this really depends on the volume of payments, for example, on volume of new products that we're going to launch, it will be part of it. It's really hard to tell, but the most important thing that they are all adding incremental dollars. So, this is the way that we're actually looking at it.

Mark Mahaney -- RBC Capital Markets -- Analyst

Okay. Thank you, Lior.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Mark. Can we have the next question, please?

Operator

Your next question comes from Sterling Auty from JPMorgan. Please go ahead.

Sterling Auty -- J.P. Morgan -- Analyst

Yeah. Thanks, guys. I apologize if you covered this, but how do we think about how the FX impacts will kind of unfold through the year, especially around collections?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Well, Sterling, it's hard to tell. Most of the impact that we have, actually when you look at 2019, we know excluding the FX effect, the growth was 28%. It was about -- on a year-over-year basis, it was $12 million. Many analysts say that it's going to reverse in 2020, but it's hard to tell and certainly we cannot tell that. So, I hope that we will start to see the benefit of the euro and the British Pound versus the dollar. But it's hard to tell.

Sterling Auty -- J.P. Morgan -- Analyst

Okay. And then one quick follow-up, if I may. Just when I look at the products roadmap, you've done some vertical solutions through the years and then some horizontal, obviously, the new Editor update. How do we think about where the focus of the innovation will be as you look throughout 2020 and into 2021? Is it going to be more of the horizontal broad-based solutions like what you did with Editor, or could we go back and see something that's a little bit more vertically focused?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

I think that at this stage, we're going to continue to focus on the Editor X and similar initiatives in order to complete our offering to go after the creatives and agencies. So, that is probably what you're going to see most coming -- this year. We're playing with a few verticals. And but it's not necessarily something that we're going to release this year.

Sterling Auty -- J.P. Morgan -- Analyst

Got it. Thank you, guys.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Sure.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Sterling. Can we have the next question, please?

Operator

Your next question comes from Josh Beck from KeyBanc. Please go ahead

Josh Beck -- KeyBanc Capital Markets -- Analyst

Yeah. Thank you for taking the question. I wanted to ask about the monetization strategy around Editor X and how it impacts Corvid. Are you looking at those things differently? Now that you have both products, maybe you could just give us update. I realize it's an evolving strategy.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Of course. This is Avishai. So, Corvid and Editor X actually complete each other, right? Because one of them allows you to design the website in a super professional way and the other one allows to program and add all the super advanced functionality on the website. So, in many ways they multiply the power of each other. When we look at it, right, so Editor X is, of course, good and monetization would be aligned toward professional and then the fact that they are doing the design part of it. On Corvid -- And so Editor X, a lot of it will be geared toward how do we help designers and align their business with -- our business model with their business model. And Corvid is when you go deeper, right? If you have a large customer, right, and enterprise customer, we're going to find -- you're going to find as Corvid will have more and more terms of payment in order to be able to scale that in the right way. So, in kind of way, it's more of a matrix than a linear line, where Corvid goes deeper into each customer and Editor X is actually allowing designers to work on multiple accounts. And that's how we think about the business model.

Josh Beck -- KeyBanc Capital Markets -- Analyst

Okay, that's helpful. And just to follow-up, it seems like one of the benefits of Editor X is that it has richer tie-ins with a lot of CSS platforms. So, I'm just wondering, is that benefiting from -- It seems like there's a industry shift toward headless commerce and headless website? Is Editor X in any way benefiting from that trend?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Yeah. Well, I do believe so. You can do all that easily with Editor X and that really simplify the amount of works did and enhance the result that you're probably going to get.

Josh Beck -- KeyBanc Capital Markets -- Analyst

Very helpful, thank you.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Yes.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Josh. Can we have the next question, please?

Operator

Your next question comes from Nick Jones from Citi. Please go ahead.

Nick Jones -- Citi -- Analyst

Yeah. Thank you. I just have one question. In the shareholder letter, you pointed to partners at one-time sales growing, I think, more than 50% year-over-year, which is great growth. But with Editor X and ADI and a lot of the tools you've created, at kind of increased speed, can you kind of talk about the opportunity there to maybe partner with higher volume professionals who are doing a lot more than 10, maybe 100 sites a month, or is that kind of out of reach today?

Avishai Abrahami -- Co-Founder & Chief Executive Officer

So, this is exactly what we started to do in 2019. And we hope to continue to do it successfully in 2020. I think that it's a big milestone for Wix that it's able now to -- that for us, a company, to be able to work with the top agencies out there and to see the excitement they get from our products. So, Editor X, I believe, will continue to enhance exactly this trend. And as you said, it's already 50%. So -- and it's a big number, so we're very excited about it.

Lior Shemesh -- Chief Financial Officer

And I just want to add here, in terms of what we want to offer in Editor X and discussed that at the launch event two weeks ago, around Editor X is going to be a whole suite of functionality that is geared exactly toward those more bigger kind of professional designers and agencies. So, I think that through 2020, we will definitely be able to care for them even better than we did in '19.

Nick Jones -- Citi -- Analyst

Great, thank you.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Nick. I think we have time for just one more question. Operator, can we have the last one?

Operator

Your last question comes from Matt Pfau from William Blair. Please go ahead, sir.

Matt Pfau -- William Blair -- Analyst

Hey. Thanks, guys, for taking my question. Just another one on the partner program. Maybe you can discuss which geographies you've seen the most success with the partner program. And then as you look at where you're allocating your investments, are there certain geographies that are better suited for the partner program than others? Thanks.

Nir Zohar -- President & Chief Operating Officer

Absolutely. So, it's Nir. I think currently, I would say the key geography is the United States and North America. Not solely, we do have people from across the globe as were a global company. But definitely in terms of how we launched it and focused our first efforts, it's more -- we're garnering more attention in North America. Definitely in the future and part of, I think the potential here is that we are going to expand it to other geographies, and I think that it should be extremely successful all across the globe.

Matt Pfau -- William Blair -- Analyst

Great. Thanks, guys.

Maggie O'Donnell -- Director of Investor Relations

Thanks, Matt. Operator, I think we actually may have time for one last question if you don't mind.

Operator

We have a question from Ron Josey from JMP Securities. Please go ahead.

Ron Josey -- JMP Securities -- Analyst

Great. Thanks for sneaking me back in, guys, I was just thinking maybe as we are listening to the call and thinking about the broader landscape, and as Wix increasingly goes up market, can you just talk more broadly about the competitive landscape both on the DIY and do-it-for-me business? I think we are seeing just newer products launched across the landscape, and just wanted to get your thoughts overall. Thank you.

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Well, of course. So, I think that, as you said, we now have two kind of competitive landscapes. And the first one is the do-it-yourself. And I think that as time passes, it's become clear that the gap between us to our competitor is growing every year and we launch a new product, it's becoming always bigger. I think that news from the recent days just emphasize again the difference between open source being hosted on a domain-selling company with generic hosting, right? And the lack of security where everybody can just hack into your website and it's so hard to maintain it, compared to a fully integrated and secured platform like Wix. And so we see that and I think a lot of that is just making it easier for us to explain the tremendous value that we're bringing to our customers. As for the -- if you look at the designers and professional market, there are not really too many solutions in these market, which is I think what allow us to actually be so bullish about it. Most of the offerings are old offerings made by old companies and very little that is actually exciting there, which I think give us a tremendous opportunity to innovate and continue to capture a big portion of this market.

Maggie O'Donnell -- Director of Investor Relations

Great. Thank you, Ron. Thanks for the questions you asked today. Thanks, everyone, for joining.

Operator

[Operator Closing Remarks]

Duration: 46 minutes

Call participants:

Maggie O'Donnell -- Director of Investor Relations

Avishai Abrahami -- Co-Founder & Chief Executive Officer

Lior Shemesh -- Chief Financial Officer

Nir Zohar -- President & Chief Operating Officer

Ron Josey -- JMP Securities -- Analyst

Ken Wong -- Guggenheim Partners -- Analyst

Ygal Arounian -- Wedbush Securities -- Analyst

Deepak Mathivanan -- Barclays Capital -- Analyst

Naved Khan -- SunTrust Robinson Humphrey -- Analyst

Nat Schindler -- Bank of America Merrill Lynch -- Analyst

Brent Thill -- Jefferies -- Analyst

Chris Kuntarich -- Deutsche Bank -- Analyst

Jason Helfstein -- Oppenheimer -- Analyst

Mark Mahaney -- RBC Capital Markets -- Analyst

Sterling Auty -- J.P. Morgan -- Analyst

Josh Beck -- KeyBanc Capital Markets -- Analyst

Nick Jones -- Citi -- Analyst

Matt Pfau -- William Blair -- Analyst

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