Wix.com (WIX) Q1 2021 Earnings Call Transcript

Wix.com (WIX 0.75%)
Q1 2021 Earnings Call
May 12, 2021, 8:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Wix Q1 2021 earnings conference call. [Operator instructions] Please be advised that today's conference is being recorded. [Operator instructions] I would now like to hand the conference over to your speaker today, Maggie O'Donnell, director of investor relations. Thank you.

Please go ahead.

Maggie O'Donnell -- Director of Investor Relations

Thank you, Cindy. Good morning everyone and welcome to Wix's first-quarter 2021 earnings call. Joining me today to discuss are Avishai Abrahami, our CEO, and co-founder; Nir Zohar, our president, and COO; and Lior Shemesh, our CFO. During the 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 and key operating metrics. You can find all reconciliation between our GAAP and non-GAAP results in the earnings material and our interactive Analyst Center on the Investor Relations section of our website investors.wix.com.

With that, I will now turn the call over to Avishai.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Hi, and thank you for joining us today. I'm sure you all heard in the discretion hearing the last 24 hours. And I want to report that everybody in Wix is safe at this moment and nobody got hurt. Obviously, in this country, we are all very well aware and have the knowledge of how to keep ourselves safe.

And so, we do that, and we know how to work in those situations, so I don't see any or predict any disruption to our business because of the situation. Wishing everybody that it will actually be resolved as quickly and as safely as possible. I want to say that in Wix, we have Jewish, Muslims, Israelis, Palestinians, all working together to deliver our product, and we think that this is the best way to create peace by working together to do amazing things. And going back to business, I want to mention something else.

About a year ago, we were asked, how will Wix do after coronavirus has passed? And we are starting to be at the end of that. And we predicted that we think we are actually going to go faster at the end of the period of coronavirus. And today, we can say that we've probably been correct. You see that our numbers actually show that we are actually going faster.

And a lot of it is due to the diversified nature of our business. We don't just serve one specific segment that is all about online, we actually serve many different things from restaurants to events, to fitness centers. And as the offline world is coming back, we also grow faster. Another factor I think is that the more time as time passes, we can continue to learn about the advantages of a SaaS model compared to a bunch of hosting companies coming together, open-source software, where you don't have the ability to maintain it.

You need to spend a lot of energy just to have it running. And of course, security risk is very hard to modify. So, this old model, I think, compared with our new model, I think the gaps are growing. Actual value we get with it is also spreading.

And I think all of that is going to be leading to our continuous growth. I'm very excited about 2021, and again, wishing everybody to keep safe. And with that, let's go to your questions.

Maggie O'Donnell -- Director of Investor Relations

Great. Great. Thank you, Avishai. Operator, I think we're ready for our first question.

Questions & Answers:

Operator

[Operator instructions] Your first question comes from Ron Josey from JMP.

Ron Josey -- JMP Securities -- Analyst

Great. Thanks for taking the question, Avishai. Glad to hear everything's safe there. Hopefully, that continues.

I want to ask two, please. One, just something you just said actually, Avishai, if you can provide some more details. I think you said that if the offline world comes back, we grow faster. And so, as you -- can you talk about that specifically? Clearly, we have a point-of-sale product and others.

But any insight that you're seeing that gives you confidence there would be great. And then one other question that we constantly get I guess is just, you know, you're seeing continued strength in global payment volume. I think you reiterated the $10 billion-plus goal this year and net revenue retention is improving, I think. But can you just talk about potentially being more aggressive here on sales and marketing? I mean, it's hard to say given how much how fast sales and marketing grew, but just talk about how you might be able to move faster, or do you want to? Is this a regulating growth because of product launches and things along those lines? Thank you.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Of course. So, I often would come back into business, right, thinking a lot of them had their chance to think about what they want to achieve, how they want to grow. A lot of new businesses have been founded and as a lot of businesses were closed. And I think this is something that allows us to actually provide really good solutions for those customers and help them in their recovery or rebuilding of a new business.

And because of Wix again, right, if you look at some of our peers, you'll see that they are focused a lot about online transaction. But we also support a lot of the offline activities, right? So, the restaurants, events, consultants like doctors, there's so many things that we serve that are based a lot on offline activity. And as that segment recovers, right, it more than compensates for the online business. It says that we're growing really fast during COVID.

I think that this is what we're seeing now and that's why we're feeling confident that what we predicted a year ago about growing faster after COVID is really what is happening now.

Lior Shemesh -- Chief Financial Officer

Hey, Ron, it's Lior. About our second question, so it's a great one and, you know, obviously, we're not in the position to put our numbers against it at this stage. But definitely and absolutely, we're looking into being more aggressive in sales and marketing. And I think that we're seeing two key interesting changes in what happens in our model that are driving us to look into it and even experiment in it.

Well, you know, first and foremost, you know, the big returns that's kind of the shift of people to do business online that we've seen already last year is just [Audio gap] and that's clear. But above that, the two interesting factors that we're looking into, one is the fact that now that we have more and more businesses that are commerce-ing. And as Avishai said before, the online commerce for us is not only diversified, it's not only about online retail stores, but it's also about services, and restaurants, and hotels, etc. And we see significant growth there.

It also means that as we start garnering that GPV, it starts accumulating into the core value which makes us think about how and when do we want to be more aggressive toward that. And the second factor, which is also very interesting and also has a big impact on the core value are the partners which are growing. And there are multipliers basically because they are, you know, the one designer, the one partner will build websites, in many cases, websites with the GPV. So, generally, they are bringing much more value to the table than just a regular subscription.

And those two things are definitely things that get us to go deeper in understanding how we can be even more aggressive on sales and marketing going forward.

Ron Josey -- JMP Securities -- Analyst

Great. Thank you.

Operator

Your next question comes from Ygal Arounian with Wedbush Securities.

Ygal Arounian -- Wedbush Securities -- Analyst

Hey. Good morning, guys. Thanks for taking the question. And glad to hear you're staying safe and hopefully, things resolve safely and quickly there.

Two questions. One, just maybe could you help us think through the guidance relative to the beat in 1Q. So, the, you know, collections, you're guiding above the beat, so you're carrying forward and adding to the constant guidance. On the revenue side, it's kind of the opposite.

The raise in guidance is lower than the revenue beat in 1Q. So, could you just help us think through those dynamics there? And I guess I want to ask on Wix 2X and Editor X, in general, can talk about how that can help, you know, give more traction kind on the rec side, I know it's got good traction already. And maybe a little bit more color just around Editor X and how it's contributing, and what it's doing so far since it came out of beta.

Lior Shemesh -- Chief Financial Officer

Yeah. Ygal, this is Lior. I would take to the first question. So, in order to answer it, I will actually try to explain it in for the new -- for both business solution and creative subscriptions.

Let me start with creative subscriptions. I think that we had a really great quarter, you know, kind of setting a new baseline. By the way, when we look at the overall growth that we expect at this early stage of the year, in a way, it's already the growth that we've seen last year. So, I think that it's kind of amazing where we are setting a new baseline, specifically, about the first quarter.

So, actually, you know, we saw everything that is happening on a positive way. You know, our conversion moving up, ACPS is actually increasing, net adds actually increasing by -- increased by 50% on a year-over-year basis. That said, we were still a bit less than our expected, you know, our numbers for the first quarter for creative subscription because of a certain channel partnership deal that actually pushed further to the further year. So, this is the reason why we see creative subscription came actually a bit lower than what we have expected last time.

On the other end, business solution was actually -- was more than what was expected, mainly because of two reasons. The first one is payments that was performing amazingly well. And the second one, and I gave that it was a much higher seasonality effect with regard to G Suite server. So, we actually sold more G Suite then more than ever.

Now, when we think about the revenue and this change of mix is actually -- has a, you know, a different impact on revenue. Meaning that business solution is recognized immediately, while creative subscription is recognized over time. So, this is why we actually beat by, you know, a few, $1 million or $2 million on collection but much more than that on revenue. Now, when we look for the entire year, you know, collection, you know, there is no change.

I mean, this certain deal actually pushed to the second half, but its revenue actually pushed to next year. So, this is why you see a lower effect or lower increase of guidance on revenue compared to the first-quarter beat. So, this is in a way worth mentioning. And, you know, just to summarize, it's a different mix of products, but still, you know, the first quarter actually -- or the full quarter come -- came much better than what we have expected.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Ygal, in regards to color about Editor X, so I think that we are very happy about the results for now. It's growing really fast, and it's of course, obviously, it is small numbers because it's a new product. But we can see that the growth is probably the faster that we had in any product before. The -- just to put it in perspective, 50% quarter over quarter.

The thing about this product, right, is something really new there and I'm going to explain. So, obviously, it has this fantastic editing environment in which you can build, design your site, right, and this is something that we should all be doing. And designers expect that. But one thing that Editor X that is not so expected is that it has such a strong back end, right? So, you can actually have databases and you can do scripts, you can connect between different applications.

And this is something that started to resonate in the market. And I think that's kind of like make people really surprised that this is not a web editor, it's actually a full solution for pretty much anything they want to achieve and build. And we're seeing that this is resonating now when I think we're going to enjoy that message and those abilities in the next year. So, 50% growth quarter over quarter.

And I think bigger and bigger projects are being built to that. And it's going pretty well.

Ygal Arounian -- Wedbush Securities -- Analyst

Thanks, guys.

Operator

Your next question comes from Bernie McTernan with Needham and Company.

Bernie McTernan -- Needham & Company -- Analyst

Great. Good morning. Thanks for taking the question. Just two for me.

I was wondering, first, if you could just comment on what's driving the higher take rate expectations on the thought to exceed the 1.25 to 1.3. And then secondly, just on the users -- or on the builders, 340,000 in the quarter, up 25%, I believe, from the end of last year. What's driving the growth there? And can you remind us how builders find clients and what role you play in that? And then also, if you have any insight into how their earnings have been trending, especially with so many more joining the platform. Thank you.

Nir Zohar -- President and Chief Operating Officer

Hey, Bernie, it's Nir. I'm going to take the first question about payments and the take rate. So, you know, we kind of touched about it last time, and I think it's worth expanding. There's a few things that we're doing.

It's not one thing, but I think all of them eventually drive that increase in take rate. One is, you know, just general -- keep on improving the product itself and get more and more of our customers to select Wix payments as their preferred go-to payment solution when they onboard on Wix. And that definitely is something that is driving it up. The other thing is basically expanding Wix payments into countries and geographies that currently we do not support.

So naturally, once we do that, we get deeper into the GPV running in those geographies. And lastly, I think it's worth mentioning the initiative we have around on our POS. It's still early. It's in soft launch mode, but we expect it to keep on increasing throughout the second half of the year and definitely into 2022.

And that's another great value that is, you know, naturally, it expands the -- our reach into the GPV again because it has the -- certainly, connects us to the offline component of it. And also, from what we're already hearing from the users who are participating in the soft launch, they are extremely happy about it because it connects all the dots for them. It connects basically -- it's not only about the website, it's really an operating system for the business now because they have the website and the web and the mobile versions of the -- at the back office. They have the online payments.

And now they can also connect offline payments. So it's -- everything is happening in one place in a very seamless manner. So they're very, very happy. And of course, that will increase our take rate on the GPV over time.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Second part.

Nir Zohar -- President and Chief Operating Officer

Sure. So in terms of the partners, as you can see, we've seen a very significant increase there. I think it was roughly a four-month difference at a 25% growth to 340,000 partners. They find -- there's multiple ways in which they find clients, some of them they bring on their own.

Another big part is the Wix marketplace that drives a lot of traffic of people who come to Wix. They either don't want to do it themselves really, or they start and they bump into some hardship on the way and decide that they want to have someone professional do it for them, and we help do the matchmaking there. And then we also are developing all the time more and more partner programs and benefits. We have the account management teams working out of mainly New York but also already in other geographies, just helping them run the business better, get more traffic and more clients, but also understand their product needs.

So our side of the product becomes better, so we can be [Technical difficulty] successful with the more professional audience.

Bernie McTernan -- Needham & Company -- Analyst

Great. Thanks for taking the question.

Operator

Your next question comes from Deepak Mathivanan with Wolfe Research.

Deepak Mathivanan -- Wolfe Research -- Analyst

Hey, guys. Thanks for taking the question. Can you provide additional color on what specifically led to trends, the low forecast on the creative subscription side from the channel partnership that you noted? I mean, along those lines, how should we think about the size of the subscription business currently between various buckets? They can do it just by buying a product directly, you know, coming from agencies, partnerships, and then other professionals doing it. Anything you can share there qualitatively or quantitatively would be great.

Thanks so much.

Lior Shemesh -- Chief Financial Officer

So, with regard to the first question, Deepak, about the channel partnerships. You know, this is something that is still not that significant at Wix. I think that I believe that, you know, next year, it will be more significant. And this is part of the thing that, you know, also Avishai mentioned before about Wix serving, you know, more and more people.

And again, I think that [Audio gap] about B2B. And B2B has its own, you know, a kind of way of closing agreements. And in a way, we are learning that, obviously. But this specific deal was actually pushed up to the second half of the year.

I feel that it's going to be closed. Again, it's not something significant. Well, it's a few millions of dollars. But obviously, it has an impact.

So I think that we better understand, you know, how to forecast those kind of deals. But we are going to see more and more of them, you know, in the future. So obviously, you know, still the core of our business is growing and growing fast. I mean, we mentioned that.

We saw that the net [Audio gap] increased by 50% on a year-over-year basis. So I do believe that this is kind of the core that is still going to continue to grow. And in addition to that, we are going to see more and more B2B businesses using Wix because essentially, you know, it's the best platform out there. So obviously, you know, when someone has a different kind of customers and you want to serve Wix, it's actually contributing to its own success.

But again, it's not something significant for our business this year. I'm not sure that also next year, but it's really, really interesting.

Deepak Mathivanan -- Wolfe Research -- Analyst

Got it. No, that's very helpful, Lior. And then if I can ask one quick follow-up. A little bit of a big picture question.

You know, how much do you think is the $10 billion in GPV -- or $10 billion-plus in GPV that you're kind of, you know, expecting this year account for the total potential of the platform? You know, you talked about expanding it into more geographies. But are there more verticals, you know, more different types of businesses that you can grow this out, say, over the next, you know, two to three years and then potentially take this $10 billion, you know, to a significantly higher level on the platform? 

Nir Zohar -- President and Chief Operating Officer

Hey, Deepak, it's Nir. So I would say, yes, absolutely. I think that, you know, you already see that about 40% of our GPV is coming from the non-online stores segment. And that will expand, OK? It will expand because we're still -- you know, we're missing components of what is needed there for the full business solution for them, as well as critical pieces, I would say, like the POS that I mentioned before.

If you're running a, you know, a yoga studio, then you might do some of your transactions online, but you definitely need something physical that can be deployed and used quickly, you know, when customers and when the trainees come in. And I think, you know, you've seen that we're improving and expanding the product. We're going to expand the POS solution with some of our acquisitions to -- with some of our acquisitions to date are aimed exactly at that. If you look at both the Rise.ai and both -- and the SpeedETab acquisitions, they are aimed at expanding the business solutions for, in this case, restaurants and stores.

By [Technical difficulty] Rise.ai, which is, you know, initially for stores because that's the existing product that they have and is already being used, our plan is to actually take that offering, expand the loyalty and gift card solutions that it supplies to all of our verticals. So basically, make it into a full horizontal offering across our platform. And, you know, those will complement and increase both our reach and the reach into the GPV, meaning the take rate, but also, they are improving the ability of the business itself to transact. It means that the size of the GPV will continue to grow.

Deepak Mathivanan -- Wolfe Research -- Analyst

OK. Thanks, Nir.

Operator

Your next question comes from Jonathan Kees with Summit Insights Group.

Jonathan Kees -- Summit Insights Group -- Analyst

Great. Thanks for taking my questions, and great to hear that everyone's safe and [Technical difficulty] there. And also sounds like Wix is -- has taken a big step toward its ESG goals by being a model of inclusiveness and peaceful coexistence. So that's great to hear, too.

My questions are revolving around S&M. I want to double click on the commentary earlier about the aggressive levels of sales and marketing. Obviously, Q1, it's seasonally high, 50% year over year, and I expect that to trend down like with seasonality. But, you know, as we look past 2021, I mean, you've obviously given the guidance for 2021 in terms of where sales and marketing is as a percentage of collections, but as we look past 2021, are we -- should we think that there's going to be continued elevated levels of sales and marketing? Or are you going to have more just like a shift within sales and marketing? Like right now, with Q1, you talked about you had a higher degree of branding spending, as well as account management expansion.

Will that taper down, be more in the maintenance level, you know, in 2022 and beyond? Or is that going to remain pretty high for the foreseeable future? Thanks.

Lior Shemesh -- Chief Financial Officer

Yeah. So, hi, Jonathan, this is Lior. So look, I think that in order to try to, you know, to answer your question, let's look at 2020. 2020, you know, overall sales and marketing were about 37% out of collection.

By the way, it's better to look at it as a percentage of collection because, you know, TROI is based on collection. And this year, we expect it to be, you know, about four points less than that, meaning that we started to see the leverage, and we explained that last time, meaning that we increased the sales and marketing significantly in a very short period of time because of the large demand that we started to see to our platform. And we've talked about it a lot over the last few quarters. By the way, with the same TROI, and obviously, we see that it's actually continued.

Meaning that we still expect this year to invest a lot about sales and marketing. We also invested a lot about, you know, creating the infrastructure. So, the account management, you know, guys, you know, to support agencies and so on, and Nir spoke about it. But also investing a lot about the -- our branding, you know, the Editor X, you know, for our creators, for agencies, for partners.

And this is very important to mention because, you know, some of these investments in branding, you know, is something that we are going to see the fruits of it, you know, next year, when this line of business is actually going to be more and more significant. And then you start to see the leverage of this investment, meaning that in, you know, next year, I assume that we are going to continue investment in sales and marketing actually in dollars. It's going to be higher than this year, continuing what actually we are doing today. But as a percentage of collection, we are going to see more leverage, so it's going to, you know, go down.

So this is kind of the way that we are looking at it. And by the way, this is what's happened, you know, in the last few years.

Jonathan Kees -- Summit Insights Group -- Analyst

So, do you see also just the shifts within the branding? Or is branding is still going to stay pretty elevated?

Lior Shemesh -- Chief Financial Officer

It's going to stay pretty elevated, at least, you know, for this year. Next year, you're going to start to see the fruits, the benefits of this investment. This is why I think that next year, you're going to see more leverage even more than this year when we talk about the sales and marketing.

Jonathan Kees -- Summit Insights Group -- Analyst

Got it. Thank you, Lior. Good luck, guys.

Operator

Your next question comes from Brent Thill with Jefferies.

Brent Thill -- Jefferies -- Analyst

Thank you. A lot of questions on the Q2 guide. If you could just talk about anything else beyond the channel partnerships pushing out. I think you guided at the high end, the 2.6% sequential.

The last two years, you've been doing north of 6% sequential. So it's a considerable slowdown, and I think everyone's just trying and curious if there's anything else sort of in the channel push-out to account for that?

Lior Shemesh -- Chief Financial Officer

No. So remember that the first quarter, you know, in terms of its seasonality, it's very, very strong. And this quarter, also, we had much higher than expected, you know, payments, which I believe that it's going also to continue into the second quarter. Meaning that the payment portion actually in the second quarter is going to continue to increase even compared to the first quarter.

On the other end, I mentioned G Suite, you know, revenue for the first quarter was pretty high. Again, because of seasonality effect and much more than what we've expected. It's not going to continue also to the second quarter. So this is kind of implied to you.

You know, what is our expectations with regard to the overall business solution? It's going to be more or less flat. But with regard to the creative subscription, you know, besides of what I mentioned before, there's no like -- no changes. Obviously, you know, bear -- or take into consideration that, you know, we are providing the guidance for the second quarter and for the full year. There is also some of uncertainty due to the period, due to the epidemic, due to the in different places.

Also, obviously, you know, it's less than what we had like our previous time because, you know, we are providing guidance, right? But I do believe that beside of that, there is nothing really [Audio gap] to report. I think that what is interesting is actually beside of the noises between -- one quarter to the other is to look at the full year where we actually already set a new baseline for the growth. And I do believe that, obviously, there is kind of an upside that you might expect to have, you know, during the year. But I think that we want to be more conservative about it, especially because of the time that we are talking about.

But we are very happy and very excited about the full-year guidance obviously. 

Brent Thill -- Jefferies -- Analyst

Thanks, Lior.

Operator

Your next question comes from Nick Jones with Citi.

Nick Jones -- Citi -- Analyst

Great, thanks. Thanks for taking the questions. I guess just could you provide an update on your M&A strategy from here. You've acquired SpeedETab, Rise.ai for loyalty and rewards.

Are there any other holes you see, or solutions, or areas you think would be interesting to add on via M&A? Thanks.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Well, I think -- this is Avishai, and thanks for the question. I believe that as we have been demonstrating, our M&A strategy is mostly about enhancing the product offering and bringing a better solution for our customers, and less about customer acquisition. And obviously, both companies as such exact companies where we actually wanted to add functionality that we feel will continue to improve our product and make our customers enjoy Wix products even better. Going forward, we intend to maintain a similar strategy and continue to approach companies that can make our offering better.

We think that we're really good at marketing and we have a very strong and loyal customer base. As a reminder, more than half of our customers are actually coming from free social traffics or mostly somebody recommended like Wix to their friends. And that's more than our customer. That's why there's now 1.6 million every month, right, new users that are coming to Wix.

And -- no -- and -- so it's pretty -- so we believe that what makes sense to us is the ability to continue and just improve upon us. We have the customer, a lot do come for us, and we think that by doing better that will be serving them better.

Nick Jones -- Citi -- Analyst

Thanks. 

Operator

Your next question comes from Mark Mahaney with ISI.

Mark Mahaney -- Evercore ISI -- Analyst

Let me try two questions, please. First, the Latin American growth was relatively slow. I think we've seen this with a couple of companies. Any indication that things are steadying or turning around in that region? And secondly, the customer care growth goals that you added 700 last year.

You qualitatively talked about it that being -- that you grew that in the March quarter and that's putting pressure on gross margins. What are your goals in terms of the number of customer care, or how much you want to increase resources for customer care this year? Thanks. 

Avishai Abrahami -- Co-Founder and Chief Executive Officer

About the first part, I think that we're all aware that Latin America has been going for some harder periods, both from economy and then from corona. And we hoped that the recovery comes soon and that they will be able to keep safe. And we continue to do our investment there based on TROIs. We'll only invest when we know that we're going to get the return from that in marketing, right? But we will continue to support the product and do everything we need in order to provide our customer the best solutions and help they need because this is the time that we should be there for them.

And regard to the second question, Nir, you want to take it?

Nir Zohar -- President and Chief Operating Officer

Yeah, absolutely. Hey, Mark, good to hear from you. Customer care -- so, naturally, we're extremely happy with the investment we've done. More than anything, throughout 2020, it allowed us to support the massive growth that we've seen throughout the year.

And clearly, that -- it continues and even surges into 2021. So we're very happy that we managed to scale up the organization the way we did. As you -- if you can remember, when we set out to do it even before the surge that of 2020, we were also talking about a change in approach, about our need to go more proactively in the way that the we work with our customers to not only solve their issues but actually understand where they are on the journey for, you know, whether it's setting up their business or even furthermore to becoming -- making their business successful and being sure that we -- that our care is helping them move along that way, not only solve one specific problem at the time. And I think what's one of the great things that happened to us throughout the year is not only did we managed to scale, we also managed to work through that change in approach.

And we've started seeing that -- we started seeing that payoff. First of all, the P -- NPS in the places where we are exercising it went up over 50% and is still growing. And our goal is obviously to expand that to basically all of our geographies, all of our languages, all across the globe. That being said, I think, you know, specifically, if you look at the growth of the organization in 2021, we were very happy actually to overachieve a lot of our growth plan throughout the first half of the year.

So we expect to still be growing it through the second half but probably at a slower level and slower pace because we feel we are very well geared now to go after all of those goals that I mentioned, goals that will improve the conversion, will improve our user success, will strengthen our brand, and obviously will also positively influence us financially.

Mark Mahaney -- Evercore ISI -- Analyst

Thank you, Nir. Thank you, Avishai. 

Operator

Your next question comes from Sterling Auty with JPMorgan.

Sterling Auty -- JPMorgan Chase -- Analyst

Yeah, thanks. Hi, guys. I want to circle back to creative additions and kind of the push-out that you mentioned. Was this one partnership or with the group? And just separately, are you still getting the same -- I know you've managed the TROI, but are you getting the same [Audio gap] impact on your customer acquisition spend that you were let's say one or two quarters ago?

Lior Shemesh -- Chief Financial Officer

I missed the first one. [Inaudible]

Nir Zohar -- President and Chief Operating Officer

Yeah, can you repeat the first one, Sterling?

Sterling Auty -- JPMorgan Chase -- Analyst

Yeah, the first one, just looking at the creative additions, I think you talk a little bit about a push-out toward the second half. I want to make sure I better understand that. Was that, you know, a particular partnership, or was that, you know, a group? I wasn't clear what actually pushed out.

Lior Shemesh -- Chief Financial Officer

OK. Yeah, it was a particular partnership. If you remember, when we announced in the past a few of them, like, you know, NTT in Japan, or Turkish Telekom, or the Vodafone deal that we closed. So basically, something that is really similar that actually pushed to the second half of the year.

Sterling Auty -- JPMorgan Chase -- Analyst

Got it. And then the second part was just, you know, when you look at your spend per customer acquisition, you know, I know you managed to TROI, but is it still getting more expensive? Are you getting the same kind of impact dollar per dollar that you have been getting, you know, stating the net TROI kind of boundary that you set for yourselves?

Nir Zohar -- President and Chief Operating Officer

Hey, Sterling, Nir here. So I think dollar to dollar, we're getting similar returns as we had before. And it's still -- we still work underneath the TROI formula as we always have. That being said, and, you know, with an eye for growth, then going back to something I mentioned before, we are seeing two interesting phenomenons now that are driving basically the cohort value, and therefore, gets us to think about what should be the right TROI targets at least to some extent.

And those are the fact that as we see more commerce happening on our platform and we touched more of the GPV, then naturally, that spills over value into the cohorts. And because of the nature of businesses building GPV over time, it usually takes a bit longer to materialize. But as we're getting more and more of those, we can start to quantify that, and we have enough data to start to make -- to plan and experiment marketing according to it. And the second one is, again, is the adoption by partners who, again, are multipliers of value because they build -- they have multiple websites for multiple clients.

In many cases, also contributing GPV through those websites. So again, that's something that drive an uptake on the cohort value for those specific kinds of users and we want to try to understand, you know, what can we do there in terms of being more aggressive with our marketing dollars.

Sterling Auty -- JPMorgan Chase -- Analyst

Understood. That makes sense. Thank you.

Operator

Your next question comes from Ken Wong with Guggenheim Securities.

Ken Wong -- Guggenheim Securities -- Analyst

Great. Thanks for [Audio gap] and I hope you guys are going to stay safe. So first, I mean, we've been catching quite a few of your quirky WordPress videos over my social media stream for the last couple of months. So very creative there.

Avishai, clearly, you guys have struck a bit of a nerve there with the WordPress guy. I just wanted to know kind of how this marketing blitz is resonating with partners. Are you seeing more conversion of WordPress agencies? Any color there would be great, and then I have a follow-up.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Of course. So obviously, you know, [Inaudible] was our marketing guy just having a bit of fun and enjoying himself. And they were pointing out the obvious differences between the philosophy of WordPress and the philosophy of Wix. When you have full in -- yeah, when you have a lot of open-source, come on a server and somebody has to magically maintain it, and there's a ton of security and vulnerabilities, compared to a solution where everything is done for you, fully manage for you.

It's very easy to edit, easy to work with. And the reaction, of course, was that, you know, the truth can be painful. And we do see continuous and accelerated growth with partners and designers which that campaign was aimed for them. So I have to say that I'm very happy with the result of that campaign.

I think they are -- and it just shows that, you know, creating something with a good taste and sense of humor and is actually pointing out obvious truths. It's just probably the best way to do marketing. It simply works.

Ken Wong -- Guggenheim Securities -- Analyst

Got it. And then one for Lior. You guys mentioned that there's going to be this transition to bookings. I guess first, just wondering if bookings and collections are meaningfully different today.

And then, as we think about what's driving that, is it purely just the channel partner business or the other products again in your portfolio that's contributing that we should be aware of?

Lior Shemesh -- Chief Financial Officer

So this year, bookings are equal to collections, 100%. There is no difference because remember that collection is, you know, being calculated as revenue plus the change in deferred revenue. So obviously, let's assume that we close the B2B business, it was not collected but it was recognized as deferred revenue. So, therefore, it is part of the collection although it is not that significant today.

So we do believe that it was mostly around the meaning of the word. Meaning that it's not really changed the way of calculating things. It's mostly about the meaning of the word because sometimes when you sign a B2B business you are not necessarily collecting everything in the word so therefore we don't want to use the word collection. So it might be that, you know, B2B is about channel partnerships.

Part of it can be like, you know, deals that we are doing with the Wix Answers. Some of it with other partners that we might close in the future. The more you have B2B, obviously, you know, the bigger it's going to be. But I don't think that also next year is going to be that significant to our business or at least the portion of our top line. 

Ken Wong -- Guggenheim Securities -- Analyst

Great. Thanks for --

Lior Shemesh -- Chief Financial Officer

And again, I think that it's kind of -- you know, booking is more like a standard being used today. So I think that it also makes sense for us, you know, to start using kind of the standard pyramid.

Operator

Your next question comes from Josh Beck with KBCM. 

Josh Beck -- KeyBanc Capital Markets -- Analyst

Thank you for taking the question. And of course, we're all hoping for the best resolution for you there in Israel. I wanted to ask about the business solutions forecast. So many companies that have a GMV or GPV component are not really providing a full-year outlook.

I think part of that is because it's difficult to know what happens is as we really start to reopen. So I'm just curious maybe how you built out that forecast, what level of conservatism you baked in? Just would be curious to hear more on that topic.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Yeah, of course. I think that -- I'm going to let Lior answer all the details. This is Avishai. And I want to say before that that we assume that usually if somebody is not being spent online, it's being spent offline.

And the notion of content in our businesses, right, are so diversified and provide solutions on so many different fields and so many different verticals. In many ways, we believe that our prediction and what we're seeing now in terms of metrics will continue going forward even if money shift from one area to another. I think that because if somebody does not spend money doing the online shopping, you might spend that money doing or going to a restaurant because although going to a fitness center or going to see a consultant or -- and Wix serves all of those. We think that the same amount of money being spent will just go for different channels, and that is why the call that I believe that we can predict now, obviously, of course, we might be wrong, but we feel very strongly about that.

Lior Shemesh -- Chief Financial Officer

I would just want to add that, you know, when you talk up with talk about business solutions, obviously, it's not just payments. It has like, you know, other kinds of stuff or products over there like G Suite, Ascend, or other applications that this is like, you know, this is really easy to predict, it's the same as our subscription model. On payments, you are right. But I think that sensitive kind of, you know, the first standard we actually reporting it we want to provide more color around it, where we are going to do.

And this is why, by the way, we also provided our estimation with regard to that. What we took as part of the forecast is very close to the current run rate that we see right now. So we are pretty much confident about, you know, how we're going to end up the year. And you know, I want to believe that it's going to be higher than that based on the increasing online commerce transaction.

But this is what we took as part of the guidance and this is why I feel, you know, very comfortable about the number.

Josh Beck -- KeyBanc Capital Markets -- Analyst

Really helpful. I'll hop back in the queue. Thank you both.

Operator

Your next question comes from Lloyd Walmsley with Deutsche Bank.

Chris Kuntarich -- Deutsche Bank -- Analyst

Hi, thanks. This is Chris on for Lloyd. Me too on the data points on online and commerce share total collections. I guess first, just can you help clarify what is exactly included in that 33% of total collections from a vertical and subscription basis? And then second, could you just talk a bit more about the slope of this share through 2020 and really kind of how that compares to how you're thinking about the share of collections associated with these with online commerce in 2021?

Lior Shemesh -- Chief Financial Officer

OK. So with regard to the first one about the online commerce being 33%, basically it includes both subscription and Wix's payments. So that answers your question. And about the share of online commerce in 2021, yeah, I mean, it's part of our guidance.

And you know, we mentioned before about exactly how we calculate, how we focused it, but it's part of our guidance.

Chris Kuntarich -- Deutsche Bank -- Analyst

OK. So going from 25% in Q1 '21 to 33%, I think, you guys had flagged that you were at 30% for the full year of 2020. Does that sort of -- it seems to imply that there may be a bit of a slowdown there in the, I guess, the slope of that share. Is that -- am I interpreting that wrong? Yeah, just any clarity around that.

Lior Shemesh -- Chief Financial Officer

No, actually, there is no slowdown over there. Not at all. You know, I can provide you later with the exact percentage after the call. But no, there is absolutely no slowdown there.

Actually, in a way, it's actually the opposite.

Chris Kuntarich -- Deutsche Bank -- Analyst

OK. Great. And maybe just you called out that 40% of GPV for nonretail in the letter. Can you just talk about how that looked a year ago and last quarter?

Nir Zohar -- President and Chief Operating Officer

Let me -- hey, Chris, it's Nir. It was obviously lower last year and as well as a little bit last quarter simply because we've seen, you know, the adopt -- the massive adoption we've seen to our services in the business solutions on our platform. For specific and exact numbers, currently, we didn't disclose them. I can maybe look it up and share later but we definitely see that adoption going up.

So if you would have gone -- if you're going back in time a year or two years back, then the mass of the share of the GPV would have been only -- almost only the online stores. Whereas today, it is growing more and more toward that diversified baseline that Avishai mentioned before.

Chris Kuntarich -- Deutsche Bank -- Analyst

All right. Got it. Thanks for the color. Stay safe.

Operator

Your next question comes from Matt Pfau with William Blair.

Matt Pfau -- William Blair -- Analyst

Hey, guys. Thanks for taking my question. I wanted to ask about the strength that you're seeing in North America and some more details on what's driving that. How much did the stimulus in March impact that performance? And then as vaccinations have become more widespread and the U.S.

economy has opened up a bit more, how have you seen your customer base? Or have you seen any changes in terms of the types of customers you're adding in that region? Thanks.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Of course. This is Avishai. I think we all are aware, right, 2020 was an awful year for small businesses. Not for all of them but to the vast majority of them.

And today, we're seeing that with the vaccines, a lot of being -- a lot of stuff has been rebuilt or just founded from zero. And I think that's the highest contributor to our growth. And we can say that we did see some effects of this are similar. And I think that was really good and really helpful to the people behind it because it did allow people to start with something, which is above zero, and go forward.

I think that they appear to be rebuilt and finding new businesses probably for the next couple of years. There's a lot of things that were destroyed in 2020 and are now being rebuilt.

Nir Zohar -- President and Chief Operating Officer

Hey, Matt. This is Nir. For the second question, I think in terms of the impact of vaccines, I mean, we see that in North America, by the way, we've seen it a lot in Israel, which is a geography in which there's obviously a much more high -- already high distribution of vaccines and reopening. And so I think it's very interesting because, you know, you see some -- I would say on the online stores and the shift of people buying online, maybe there's a small Wix declined but lower than you might have expected.

I think you've seen that there is an actual change in consumer behavior of people who, you know, started buying online through the COVID lockups because they had to and are not willing really to go back to the way it was before. And then, you will actually see what is the kind of the obvious and as an expected reopening impact on, you know, businesses such as restaurants and hotels. Obviously, everything has to do with hospitality, large but everything it has to do with beauty and wellness, again, because these things can now reopen and accept a client. And in all of those areas, I think we're seeing a significant uptake, natural events, which were, again, in most cases, were prohibited or limited in their capacity.

And indoor spaces, we see obviously. significant uptake in terms of the businesses going back to transacting and basically growing their business again.

Matt Pfau -- William Blair -- Analyst

Great. Thanks, guys. Appreciate it.

Maggie O'Donnell -- Director of Investor Relations

Operator, I think we have time for just one last question.

Operator

Your next question comes from Trevor Young with Barclays.

Trevor Young -- Barclays -- Analyst

Hi. Thanks for squeezing me in. Just real quick on the Rise.ai acquisition. Can you talk about the revenue model there and your plans to monetize that digital gift card and loyalty program going forward? And then, just on the channel partnership, I think one of the earlier questions you said it was a few million-dollar impacts.

Is that a few million dollars per quarter or for the full year? Thanks.

Lior Shemesh -- Chief Financial Officer

So for the first -- for the second question, it's a few million dollars for the full year, not for one quarter. And with regard to Rise.ai, you know the revenue model is based on our subscription. It is not significant although they serve, you know, hundreds of customers. It's a really good product that already served hundreds of customers.

The way that we are thinking about how to monetize it is, obviously, you know, being part of our solution. And you know, of e-commerce solution and then, obviously, you know, with increase -- can increase GPV, increase our top line coming from our payment, for example, but also increasing conversion of our customers because they actually getting a much better native solution to what they are looking for.

Trevor Young -- Barclays -- Analyst

Great. Thank you. 

Operator

We have no further questions at this time.

Maggie O'Donnell -- Director of Investor Relations

Great. Thank you, Cindy, and thank you, everyone, for joining us today. Have a good day.

Avishai Abrahami -- Co-Founder and Chief Executive Officer

OK.

Lior Shemesh -- Chief Financial Officer

Thank you.

Operator

[Operator signoff]

Duration: 59 minutes

Call participants:

Maggie O'Donnell -- Director of Investor Relations

Avishai Abrahami -- Co-Founder and Chief Executive Officer

Ron Josey -- JMP Securities -- Analyst

Lior Shemesh -- Chief Financial Officer

Ygal Arounian -- Wedbush Securities -- Analyst

Bernie McTernan -- Needham & Company -- Analyst

Nir Zohar -- President and Chief Operating Officer

Deepak Mathivanan -- Wolfe Research -- Analyst

Jonathan Kees -- Summit Insights Group -- Analyst

Brent Thill -- Jefferies -- Analyst

Nick Jones -- Citi -- Analyst

Mark Mahaney -- Evercore ISI -- Analyst

Sterling Auty -- JPMorgan Chase -- Analyst

Ken Wong -- Guggenheim Securities -- Analyst

Josh Beck -- KeyBanc Capital Markets -- Analyst

Chris Kuntarich -- Deutsche Bank -- Analyst

Matt Pfau -- William Blair -- Analyst

Trevor Young -- Barclays -- Analyst

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