Website building company Wix.com (NASDAQ:WIX) has grown tremendously over the past few years, but there could still be plenty of growth runway ahead. In this Motley Fool Live video clip, recorded on March 16, analyst Bill Mann talks with Wix's COO and President Nir Zohar about the biggest future-growth opportunities for the business.
Bill Mann: Because you are talking about small businesses and that's been an area where Wix has specialized in the past. Could we talk a little bit about where all the funnels are for Wix now?
Nir Zohar: What do you mean by where are the funnels?
Mann: Funnel, like the types of users that are coming in and using Wix in the businesses and the skill sets.
Zohar: We have about 3 million new registered users every month now. Number fluctuates a little bit, a little bit higher above, a little bit less, but with such an adoption, you literally get any kind of business vertical that you can think about and any kind of proficiency you can think about. By the way, one of the things that worked for us is that we manage on our side to obviously, the events part of our business really declined this year because there were no events, but we had so many others that went up to supplement it. But it's also if you think about the user who was doing events and now need a different solution, you can find it on our platform and switch to something else, with the thought that he'll go back to running events when he can or maybe make a change of career whatever, up to the person. I think that in that aspect, we really get any kind of business you can think about. We have the hotel owners and the restaurant owners, and the people who want to sell online and people want to sell service online, and the people that want to schedule or book a business service online, but serve offline because they want to meet later and give you a guitar lesson. We have the people who we're doing events, some of them switch to online, some of them are now switching back to offline or doing a mix. We have real estate agents and we have people putting their wedding website on it, but we also have the wedding planners business as well who are doing the website for the people who are getting married. Photographers, artists, musicians, we really have everyone on there. I think one of the key things that we're doing is, I think evolving that side which is not the self creators, the people who build the website for themselves, and spending much more effort now on also evolving the side of the business and the product, which is the people or the creators who build the websites for other people, because essentially that is still the majority in the world is websites being built by professionals or someone for someone else. It can be like a freelancer, one-person operation, and it can be a full agency, and we want to be able to support all of them. So Editor X, I think is an amazing piece of innovation. We moved it out of beta, we announced it in February of last year. I remember that was the last time I was able to properly travel. I was in New York for the product announcement and it released into beta through the summer and moved out of beta about two months ago. It's an interesting story because it's also, first of all, as I said before, it's coupled with Velo, which allows coding. The designer can have a really great tool, but it's coupled with something that the developer can complement with. It's actually also built for things to work on it. There is a whole suite of functionality for collaboration of design teams, for agencies, in-house, external, whatever, that can work together. When I think about the world two or three, four years from now, I want to be in a place where any piece of content that you want to create, whether it's something very simple, it's a one-pager, it's a full blown website, it's a full application, it's something that actually has custom coded, it has something more complex on it, you can come and do it on Wix. Through the pandemic, we had these two ex-baseball players that built a business in which they allow restaurants to move all of their menu into a digital form and couple it with a QR code. You can just go in, scan it, and quickly get the full menu on your phone, and they built the whole thing, the software, everything was built on Velo under a Wix website. That is not what you call a website. That's usually what you call an application.
Mann: That's an app, yeah.
Zohar: They did the whole thing on Velo. I believe that we're going to be really the best place on the internet to do all of it under one roof and get all of the Wix benefits in there because it's all preinstalled and integrated. It's all under our security. It's all under our CDN, it's redundant, it's delivered fast globally, you don't have to worry about it. You don't have to setup web servers and mess up with that. I think one of the benefits we have that we built all of it internally on the same stack of code. If I innovate for the Editor, that same innovation, that same new piece of business logic can then be utilized under Velo under Editor X, under ADI. We also opened up all the APIs for it so you can extend it. Eventually, you get something that is so powerful that would allow us to be, I would say one of the core engines of development for the internet in years to come. At least that's what we want to be and that's where we want to go.