Andrew Boone: Thanks so much for taking my question. Can you help us understand the impact of the price and changes for 4Q? And then how does that relate to 2023 guidance? Thanks so much.
Lior Shemesh: So we still see the effect of the price increase that we did last year and this one is going to continue, I believe, until May, where we complete everything. And this is part of the guidance that we have provided, meaning that it’s already embedded there. I think that’s very important to mention that we see also increase in ARPU, obviously, not just a result of the price increase, but also for the change in mix in our customers. And I think that also Nir spoke about it and provide some explanation about it, but we see a major change in mix, which also drives the ARPU €“ continue to drive the ARPU up. And I believe that this is something that will continue also later even after the effect of the price increase that we’ve made.
Operator: Thank you. Bringing forth the next question. This question comes from John Byun of Jefferies. Your line is open.
John Byun: Hi. Thank you. This is John Byun on behalf of Brent Thill at Jefferies. Two questions. One on the 2023 guidance, I’m wondering what you’re assuming on the macro. I mean, in the comments you mentioned that the assumption for Q1 is the macro does not deteriorate. So I just want to see what it will be if we do enter into a tough U.S. recession? And then a quick second one, just what you’re seeing so far quarter-to-date, we’re already two months in? And any change in trends since the Q4? Thank you.
Lior Shemesh: So with regard to the macro, I think that Avishai mentioned that before, we assume that macro as it is right now, meaning that we didn’t even try to focus what will be the effect, what will be the changes in the macro. Obviously, if we see that macro is improving, that will be an upside, especially around the GPV in the Wix payments. With regard to the overall guidance that we have provided, what we did assume is that, obviously, fundamentals are still very strong. We didn’t assume any change in our KPIs. We didn’t see any change in those fundamentals, and they are very stable also throughout the first quarter, at least so far. We continue to see strong growth in partners. And this is something that is really important to mention. We keep talking about the growth, but the partners, we are still taking market share. And this is kind of a more of a hyper growth. And I believe that this is something that will continue also in 2023 and also beyond that.
Nir Zohar: Hey John. In terms of what we’re seeing in January, February and kind of relates to what Avishai commented earlier. So to this point, I’m sure that you would €“ we would have loved to be the first management team to talk about the recovery, but sadly, that’s not the case. We don’t see any decline, but also no major improvements at this point. So it’s basically kind of stability at where we are now.
Operator: Thank you. Promoting our next question. This question comes from Ken Wong of Oppenheimer & Company. Your line is open.
Ken Wong: Thanks a lot. I just wanted to dig into NRR, that took a bit of a step down. I’m just wondering if you could maybe kind of give us a little context in terms of some of the moving pieces and how you think that number should settle in once the kind of demand environment stabilizes?
Nir Zohar: Sure. It’s Nir here. So in terms of the NRR, you have to remember, first of all that when you think about the kind of the step down as you put it, it is compared to 2021, which still had a big component of COVID that benefited it in terms of the size of it. Obviously, we still have a positive NRR, so we are happy with the result. When you look at kind of what made the impact, so I would say that €“ generally speaking, we’ve seen and I mentioned this before, the macro slowness also affects a little bit the existing cohorts, again, because these are small tiny businesses that are trying to keep on working and maintaining the business in a harsher environment, and obviously that has an effect on them. And take even a bit kind of a more deeper dive in what is €“ where is most of the slowdown, I would say it is around commerce.
And by that, obviously also the affected GPV that comes with it. But we think these are the main things, and we expect it to remain pretty much at the same level.
Operator: Thank you. Moving up our next question. This question comes from Trevor Young of Barclays. Your line is open.
Trevor Young: Great. Thanks. Can you just help us understand what’s informing the revenue acceleration throughout the year in 2023? Is it FX headwinds abating? Because it would seem to me, based on your prior comments that the lift from pricing starts lapping out in May, but then you are kind of contemplating a little bit of an acceleration through year-end. Is that maybe coming from the partner side, some of the Vistaprint finally kicking in? Just any color there would be appreciated.
Lior Shemesh: So actually, it’s very simple. I think that Q1, when you compare Q1 on a year-over-year basis, you compare it to Q1 of 2022, which was very strong. So the comps are different. Remember that the overall slowdown more or less started during the spring. So obviously, the next three quarters with totally different comps. So that’s obviously, explains the differences. Nothing beyond that.
Operator: Thank you. Promoting our next question. This question comes from Deepak Mathivanan of Wolfe Research. Your line is open.
Deepak Mathivanan: Hey guys. Thanks for taking the question. So first, I wanted to ask about the product focus areas in 2023. I know you rolled out ChatGPT integration; but what are the main priorities from a product standpoint for this year? And when do you kind of expect to see meaningful progress and then also potentially incremental contribution to top line growth? And then Avishai, with the cost reduction you’ve done so far, I wanted to ask your views on the efficiency levels. Do you feel like the staffing levels and then the ag productivity is at a healthy level kind of right now after these actions as we head into 2023? Thank you so much.
Avishai Abrahami: Of course. So I think the product focus is €“ well, the core bit is pretty much the same, meaning that we think that we have two heads going forward. One is of course, self creators business. Where we have some very cool things coming and you’re going to see some additional announcements. A lot of them are in the area of AI, but not only that. So, you’re going to see, I think, some very exciting things coming this year. On the other hand, we spent a lot on the partners and we have a lot of things that we need to do there. So that is very exciting because it’s the creation or there is a big gap in what we should be doing and where we’re, so we’re going to close a lot of that gap this year. I mean, which is going to have, by far, the best offering for partners as we head into the latter part of the year.
And so, that’s where most of our product focus is. I want to mention for a minute. We just released new packages for enhancing your utilization of Velo, okay? We’ve released a product called CodeX. All of those are products aimed only at partners, right, for people that actually build professional websites that are very deep to new functionality, and I think we’re going to continue to do that. You’re going to see some additional very exciting things that we do for marketing, allowing our customers to do better marketing. So we have some nice project in there, and I think that we see really good traction. And with that, Nir, do you want to take the next part?
Nir Zohar: Yes, absolutely. So in terms of the organizational productivity, I think it’s actually at a high level and increasing. I think the changes we’ve done throughout the second half of 2022, we received extremely well within the company and have helped us become even better in what we do. You also have to remember that late October, we moved €“ we started moving into our new headquarters in Tel Aviv. That on its own had a fantastic impact on morale and on productivity because people can be work closer at a much, much better environment. And it also allowed us to call back the employees to the office which we believe is a better way for us to operate and a better way for us to manage. Before we did the move to the new headquarters, we just did not have enough office space.
So obviously, now that is a change and is also a great contributor. So when we are heading into 2023, especially from that kind of a standpoint of the productivity and the connection within the organization of the company, we’re actually feeling very, very confident that we are kind of shedding some of the, I would say, the bad behaviors that we adopted during COVID because we had to, but still did. And going back to where we are excelling in executing.
