Thank you for standing by, and Welcome to the Wix Q1 2021 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. 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.
Thank you, Cindy. Good morning, everyone, and welcome to Wix's Q1 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 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 and operating metrics. You can find all reconciliation between our GAAP and non-GAAP results in the earnings materials and our interactive analyst center Investor Relations section of our website, investors.wix.com. With that, I will now turn the call over to Avishai.
Hi. Thank you for joining us today. I'm sure you all heard about the situation here in the last 24 hours, and I want to report that everybody in Wix is safe at this moment and nobody [inaudible] in this country. We are all very well aware and have the knowledge of how to keep ourselves safe. 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 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 a product. We think that this is the best way to create peace, by working together to do amazing things.
Going back to business, I want to mention something else. By the year ago, we were asked, how will Wix do after coronavirus has passed? We are starting to be at the end of that. Today, we can say that we've probably been correct, because even the numbers actually show that we're actually growing faster. 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 restaurant to events to fitness centers. 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 cramming together open source software, where you don't have the right to maintain it, you need to spend a lot of energy just to have it running. Of course, security risk and very hard to modify. This old model, I think, compared with our new model, I think the gaps are growing and the knowledge of how much more value you get with it is also spreading. I think all of that is contributing to our continuous growth. I'm very excited about 2021. Again, wishing everybody to keep safe. With that, let's go to your questions.
Great. Thank you, Avishai. Operator, I think we're ready for our first question.
As a reminder, to ask a question, you will need to press star one on your telephone. Your first question comes from Ron Josey from JMP.
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 as the offline world comes back, we grow faster. Can you talk about that specifically? Clearly, we have the point-of-sale product and others, but any insight that you're seeing that gives you confidence there would be great. One other question that we constantly get, I guess, is just you're seeing continued strength in global payment volume. I think you reiterated the $10 billion-plus goal this year, and net revenue retention's improving, I think. Can you just talk about potentially being more aggressive here on sales and marketing?
It's hard to say given how fast sales and marketing grew, 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.
Of course. As the offline world comes back into business, I think a lot of them had a chance to think about what they want to achieve, how they want to grow. A lot of new businesses have been founded as a lot of businesses were closed. 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. Because of Wix, again, if you look at some of our peers, you see that they are focused a lot about online transactions. But we also support a lot of the offline activities, right? Events, consultants, doctors. There's so many things that we serve that are based a lot on offline activity.
As that segment recovers, it's more than compensates for the online business, since that were 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.
Hey, Ron, it's Nir. About your second question, it's a great one and obviously we're not in the position to put numbers against it at this stage, 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. First and foremost, the big returns and the shift of people to do business online that we've seen already last year just continues. And that's clear. Above that, there are two interesting factors that we're looking into. One is the fact that now that we have more and more businesses that are commercing, and as Avishai said before, the Online Commerce for us is diversified.
It's not only about online retail stores, but it's also about services and restaurants and hotels, et cetera. We see significant growth there. It also means that as we start garnering that GPV, it starts accumulating into the cohort value, which makes us think about how and when do we want to be more aggressive towards that. The second factor, which is also very interesting and also has a big impact on the cohort value, are the partners, which are growing. They are multipliers, basically, because the one designer, the one partner, will build multiple websites, in many cases, websites with GPV. Generally, they're bringing much more value to the table than just a regular subscription. 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.
Great. Thank you.
Your next question comes from Ygal Arounian with Wedbush Securities.
Hey, good morning, guys. Thanks for taking the question. Glad to hear you're staying safe and hopefully things resolve safely and quickly there. Two questions. One, just maybe can you help us think through the guidance relative to the beat in 1Q? The collections, you're guiding above the beat, so you're carrying forward and adding to the collections guidance. On the revenue side, it's kind of the opposite. The raising guidance is lower than the revenue beat in 1Q. Can you just help us think through those dynamics there? I guess I want to ask on Wix 2 X and Editor X in general, can you talk about how that can help give more traction to Editor X?
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.
Yeah. Hey, Ygal, this is Lior. I will take the first question. In order to answer it, I will actually try to explain it for both our business solution and Creative Subscriptions. Let me start with Creative Subscriptions. I think that we had a really great quarter, 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 is, in a way, is already the growth that we've seen last year. I think that it's kind of amazing where we are setting a new baseline. Specifically about the Q1, actually, we saw everything that is happening on a positive way. Conversion moving up, ACPS is actually increasing. Net adds actually increased by 50% on a year-over-year basis.
That said, we were still a bit less than our expected numbers for the Q1 for creative subscription because of a certain channel partnership deal that actually pushed further to the second half of the year. This is the reason why we see creative subscription came actually a bit low than what we have expected last time. On the other end, business solution was more than what was expected, mainly because of two reasons. The first one is Payments, that was performing amazingly well. The second one, and I guess that it was a much higher seasonality effect with regard to G Suite sales. We actually sold more G Suite than more than ever.
When we think about the revenue, and this change of mix actually has a different impact on revenue, meaning that business solution is recognized immediately while creative subscription is recognized over time. This is why we actually are beat by a few, $1 million or $2 million on collection, but much more than that on revenue. When we look for the entire year, collection, there is no change. This certain deal actually pushed to the second half, but its revenue actually pushed to next year. This is why you see a lower effect or lower increase of guidance on revenue compared to the Q1 beat. This is in a way explanation. Just to summarize, it's a different mix of product. Still, the Q1 actually, as a full quarter, came much better than what we've expected.
In regards to color about Editor X. I think that we are very happy about the results for now. It's growing really fast, and it's, of course, obviously, it's small numbers because it's a new product, but we can see that the growth is probably the fastest that we had in any product before. Just to put it in perspective, it's 50% quarter-over-quarter. The thing about this product, there's something really new there, and I'm going to explain. Editing environment in which you can build, design your site. This is something that we should obviously be doing. This is why I expect that. The one thing that Editor X has that is not so expected is that it has such a strong back end. You can actually have databases, you can do scripts, you can connect between different applications.
This is something that is starting to resonate in the market. I think that's going to make people really surprised that this is not another web editor. It's actually a full solution for pretty much anything they want to achieve and build. We're seeing that this is resonating now, and I think we're going to enjoy that message and those abilities in the next year. 50% growth quarter-over-quarter, and I think bigger and bigger projects being built out. It's going pretty well.
Your next question comes from Bernie McTernan with Needham & Company.
Great. Good morning. Thanks for taking the question. Just two for me. Was wondering first if you could just comment on what's driving the higher take rate expectations on the thought to exceed the 1.25-1.3. 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? Can you remind us how builders find clients and what role you play in that? Also, if you have any insight into how their earnings have been trending, especially with so many more joining the platform. Thank you.
Hey, Bernie, it's Nir. I'm going to take the first question about payments and the take rate. 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 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. 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. Naturally, once we do that, we get deeper into the GPV running in those geographies. Lastly, I think it's worth mentioning the initiative we have around our POS. It's still early.
It's in a soft launch mode, we expect it to keep on increasing throughout the second half of the year and definitely into 2022. That's another great value that is naturally it expands our reach into the GPV again because it suddenly connects us to the offline component of it. 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. It's not only about the website, it's really an operating system for their business now because they have the website and the web and the mobile versions of it. They have the back office, they have the online payments, and now they can also connect offline payments. Everything is happening in one place in a very seamless manner.
They're very, very happy, and of course, that will increase our take rate on the GPV over time. [crosstalk] Sure. 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. 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. 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. We can be more successful with the more professional audience.
Great. Thanks for taking the questions.
Your next question comes from Deepak Mathivanan with Wolfe Research.
Hey, guys. Thanks for taking the question. Can you provide additional color on what specifically led to trends below forecast on the creative subscription side from the channel partnership that you noted? Along those lines, how should we think about the size of the subscription business currently between various buckets? Like individuals buying a product directly, coming from agencies, partnerships, and then other professionals doing it. Anything you can share there qualitatively or quantitatively would be great. Thanks so much.
With regard to the first question, Deepak, about the channel partnerships, this is something that is still not that significant at Wix. I think that I believe that next year it will be more significant. This is part of the thing that also Avishai mentioned before about Wix serving more and more people. Again, I think that essentially we are talking about B2B. B2B has its own kind of way of closing agreements. In a way we are learning that, obviously. This specific deal was actually pushed up to the second half of the year. I assume that it's going to be closed. Again, it's not something significant where it's a few millions of dollars, but obviously it has an impact. I think that we better understand how to forecast those kinds of deals.
We are going to see more and more of them in the future. Obviously, still the core of our business is growing and growing fast. We mentioned that. We saw that the net subscription has actually increased by 50% on a year-over-year basis. I do believe that this is kind of the core that it still continue to grow. In addition to that, we are going to see more and more B2B businesses using Wix because essentially, it's the best platform out there. Obviously, when someone has a different kind of customers and he want to serve Wix, he's actually contributing to his own success. Again, it's not something significant for our business this year. I'm not sure that also next year, but it's really interesting.
Got it. No, that's very helpful, Lior. Then if I can ask one quick follow-up, it's a little bit of a big-picture question. How much do you think is the $10 billion in GPV or $10 billion+ in GPV that you're kind of expecting this year account for the total potential of the platform? You talked about expanding it into more geographies, are there more verticals, more different types of businesses that you can roll this out, say, over the next two to three years, then potentially take this $10 billion to significantly higher levels on the platform?
Hey, Deepak, it's Nir. I would say yes, absolutely. I think that we already see that about 40% of our GPV is coming from the non-online stores segment. That will expand, okay? It will expand because we're still missing components of what's 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 yoga studio, you might do some of your transactions online, you definitely need something physical that can be deployed and used quickly when customers and when the trainees come in. I think you've seen that we're improving and expanding the product. We're going to expand the POS solution. Some of our acquisitions to date are aimed exactly at that.
If you look at both the Rise.ai and the SpeedETab acquisitions, they are aimed at expanding the Business Solutions for, in this case, restaurants and stores. By the way, Rise.ai, which is 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 and expand the loyalty and gift card solutions that it supplies to all of our verticals. Basically make it into a full horizontal offering across our platform. 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, meaning that the size of the GPV will continue to grow.
Okay. Thanks, Nir.
Your next question comes from Jonathan Kees with Summit Insights Group.
Great. Thanks for taking my questions, great to hear that everyone's safe and healthy there. Also sounds like Wix has taken a big step towards its ESG goals by being a model of inclusiveness and peaceful coexistence. 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. I expect that to trend down, like with seasonality. As we look past 2021, you've obviously given the guidance for 2021 in terms of where sales and marketing is as a percentage of collections. As we look past 2021, should we think that there's going to be continued elevated levels of sales and marketing? 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 at a maintenance level in 2022 and beyond? Is that going to remain pretty high for foreseeable future? Thanks.
Hi, Jonathan. This is Lior. Look, I think that in order to try to answer your question, let's look at 2020. 2020 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 TROI is based on collection. This year, we expect it to be about four points less than that, meaning that we started to see the leverage. 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. We talk about it a lot, the last few quarters. By the way, with the same TROI.
Obviously, we see that it's actually continue, meaning that we still expect this year to invest a lot about sales and marketing. We also invested a lot about creating the infrastructure for the account management guys to support agencies and so on, and Nir spoke about it. Also investing a lot about our branding, the Editor X, for our creators, for agencies, for partners. This is very important to mention because some of these investments in branding, is something that we are going to see the fruits of it, next year, when this line of business is actually going to be more and more significant. Then you start to see the leverage of this investment, meaning that in next year, I assume that we are going to continue investing in sales marketing, actually in dollars.
It's going to be higher than this year, continuing what actually we are doing today. As a percentage of collection, we are going to see more leverage. It's going to go down. This is kind of the way that we are looking at it. By the way, this is what happened in the last few years.
Do you see also just the shifts within the branding, or is branding is still going to stay pretty elevated?
It's going to stay pretty elevated, at least, 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 are going to see more leverage, even more than this year when you talk about the sales and marketing.
Got it. Thank you, Lior. Good luck, guys.
Your next question comes from Brent Thill with Jefferies.
Thank you. A lot of questions on the Q2 guide, and I'm just curious if you could just talk about anything else beyond the channel partnerships pushing out. I think you got it at the high end of 2.6% sequential. The last two years, you've been doing north of 6% sequential. It's a considerable slowdown, and I think everyone's just curious if there's anything else other than the channel push out to account for that.
No. Remember that the Q1, in term of its seasonality, is very strong. This quarter also, we had a much higher than expected payments, which I believe that it's going also to continue into the Q2, meaning that the payment portion actually in the Q2 is going to continue to increase, even compared to the Q1. On the other end, I mentioned G Suite revenue for the Q1, which 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 Q2. This kind of imply to you what is our expectations with regard to the overall business solution. It's going to be more or less flat. With regard to the creative subscription, beside of what I mentioned before, there's no changes.
Obviously, bear or take into consideration that we are providing the guidance for the Q2 and for the full year. There is also some of uncertainty. Due to the period, due to the epidemic, due to in different places. Also, obviously, it's less than what we had a previous time because we are providing guidance, right? I do believe that beside of that, there is nothing really significant 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.
I do believe that obviously there is an upside that you might expect to have 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. We are very happy and very excited about the full-year guidance, obviously.
Thanks, Lior.
Your next question comes from Nick Jones with Citi.
Great. Thanks, for taking the questions. I guess just could you provide an update on your M&A strategy from here? You 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.
Well, I think, this is Avishai, and thanks for the question. I believe that, as you can been demonstrating, the M&A strategy is mostly about enhancing the product offering and bringing a better solution for our customers and less about customer acquisition. Obviously both companies are such exact companies where we actually wanted to add functionality that we felt will continue to improve our product and make our customers enjoy Wix products even better. Going forward, we intend to maintain 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 traffic, so mostly somebody recommended Wix to their friends, and that's more than our customer.
That's what it is now, $1.6 million every month, right? New users that are coming to Wix. No, half. We believe that what makes sense to us is the ability to continue and just improve our products. We have the customers who are to come to us, and we think that by doing better at that, we'll be serving them better.
Thanks.
Your next question comes from Mark Mahaney with ISI.
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? Secondly, the customer care growth goals, 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? How much you want to increase resources for customer care this year? Thanks.
Well, the first part, I think that we're all aware that Latin America has been going through some harder periods, both from economy and then from Corona. We hope that the recovery comes soon, and that they will be able to keep safe. We continue to do our investment there based on ROI, so we only invest when we know that we're going to get the returns from that in marketing, right? 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. In regard to the second question, Nir, you want to take this?
Yeah, absolutely. Hey, Mark. Good to hear from you. In terms of the customer care, 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. Clearly, that growth continues and even surges into 2021. We're very happy that we managed to scale up the organization the way we did. If you can remember, when we set out to do it, even before the surge of 2020, we were also talking about a change in approach, about our need to go more proactively, in the way that we work with our customers. To not only solve their issues, but actually understand where they are on the journey for whether it's setting up their business or even further to making their business successful.
Being sure that our care is helping them move along that way, not only solve one specific problem at a time. I think one of the great things that happened to us throughout the year is not only did we manage to scale, we also managed to work through that change in approach. We've started to seeing that payoff. First of all, the NPS in the places where we are exercising it, went up over 50% and is still growing. 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 specifically if you look at the growth of the organization in 2021, we were very happy actually to overachieve a lot of our growth plans throughout the first half of the year.
We expect to still be growing it through the second half, but probably at a slower level and slower pace. 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.
Thank you, Nir. Thank you, Avishai.
Your next question comes from Sterling Auty with J.P. Morgan.
Yeah, thanks. Hi, guys. I wanted to circle back to the creative additions and the pushup that you mentioned. Was this one partnership or was it a group? Just separately, are you still getting the same I know you mentioned the TROI, but are you getting the same dollar-for-dollar impact on your customer acquisition spend that you were, let's say, one or two quarters ago?
I missed the first one. What was the first one?
Yeah. Can you repeat the first one, Sterling?
Yeah. The first one, just looking at the creative additions, I think you talked a little bit about a push-out towards the second half. I want to make sure I better understand that. Was that a particular partnership, or was that a group? I wasn't clear what actually pushed out.
Okay. Yeah. It was a particular partnership. If you remember, we announced in the past a few of them, like NTT in Japan or Türk Telekom or the Vodafone deal that we closed. Basically something that is really similar that actually pushed to the second half of the year.
Got it. The second part was just when you look at your spend for customer acquisition, I know you've managed the TROI, is it still getting more expensive? Are you getting the same kind of impact dollar-for-dollar that you have been getting to stay within that TROI kind of boundary that you set for yourselves?
Hey, Sterling. Nir here. I think dollar to dollar, we're getting similar returns as we had before. We still work underneath the TROI formula as we always have. That being said, with an eye for growth, 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. Those are the fact that as we see more commerce happening on our platform and we touch more of the GPV, then naturally that spills over value into the cohort.
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 plan and experiment marketing according to it. The second one is, again, is the adoption by partners who, again, are multipliers of value because they build multiple websites for multiple clients, in many cases also contributing GPV through those websites. Again, that's something that drives an uptake on the cohort value for those specific kind of users, and we want to try to understand what we can do there in terms of being more aggressive with our marketing dollars.
Understood. That makes sense. Thank you.
Your next question comes from Ken Wong with Guggenheim Securities.
Great. Thanks for taking the question, and I hope you guys are going to stay safe. First, we've been catching quite a few of your quirky WordPress videos over my social media stream for the last couple of months. Very creative there. Avishai, clearly, you guys have struck a bit of a nerve there with the WordPress guys. Just wanted to know 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.
Of course. Obviously, the whole campaign was our marketing guys just having a bit of fun and enjoying themselves. They were pointing out the obvious differences between the philosophy of WordPress and the philosophy of Wix, where you have a lot of open source common server, and somebody has to magically maintain it, and there's a ton of security vulnerabilities compared to a solution where everything is done for you and fully managed for you. It's very easy to edit, easy to work with. The reaction, of course, was, well, the truth can be painful. We do see continuous and accelerated growth from the partners and designers, which that campaign was aimed for them. I have to say that I'm very happy with the result of that campaign.
I think it just shows that creating something with a good taste and sense of humor and is actually pointing out obvious truths is just probably the best way to do marketing. It simply works.
Got it. 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. As we think about what's driving that, is it purely just the channel partner business or are there other products in your portfolio that's contributing that we should be aware of?
This year, bookings are equal to collections 100%. There is no difference. Because remember that collection is being calculated as revenue plus change in deferred revenue. Obviously, let's assume that we close a B2B business. It was not collected, but it was recognized as deferred revenue. Therefore, it is part of collection, although it is not that significant today. I do believe that it was mostly around the meaning of the word, meaning that it's not really a change 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 day one, so therefore we don't want to use the word collection.
It might be that B2B, part of it is channel partnerships, part of it can be deals that we are doing with Wix Answers, some of it with other partners that we might close in the future. The more you have B2B, obviously, the bigger it's going to be that significant to our business, or at least as a portion of our top line. [crosstalk] Again, I think that booking is more like a standard being used today. I think that it also makes sense for us to start using kind of the standard term.
Your next question comes from Josh Beck with KB.
Thank you for the question. Of course, we're all hoping the best resolution for you there in Israel. I wanted to ask about the Business Solutions forecast. 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 as we really start to reopen. 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.
Yeah, of course. I think that I'm going to let Lior answer all the details. This is Avishai. I want to say before that we assume that usually if somebody that has not been spent online, it's been spent offline and it's been also offline spent. Our businesses are so diversified and provide solutions on so many different fields, 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. If somebody does not spend money doing online shopping, they might spend that money going to a restaurant. Going to a fitness center, going to a consultant as Wix serves all of those, we think that the same amount of money being spent will just go for different channels.
That is why the core of our belief that we can predict it now, obviously, of course, we might be wrong, but we feel very strongly about that.
I would just want to add that when we talk about business solution, obviously it's not just payments. It has other kind of SaaS products over there, like G Suite, like Ascend, like other applications. That this is really easy to predict. It's the same as our subscription model. On payments, you are right. I think that, since it is kind of the first time that we're actually reporting it, we wanted 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. We are pretty much confident about how we're going to end up the year.
I want to believe that it's going to be higher than that based on the increasing Online Commerce transaction. This is what we took as part of the guidance, and this is why I feel very comfortable about the number.
Really helpful. I'll hop back in the queue. Thank you both.
Your next question comes from Lloyd Walmsley with Deutsche Bank.
Hi, thanks. This is Chris on for Lloyd. Maybe two on the data points on Online Commerce share of 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? Second, can you just talk a bit more about the slope of the share through 2020 and really kind of how that compares to how you're thinking about the share of collections associated with Online Commerce in 2021?
Okay. With regards to the first one about the Online Commerce being 33%, basically it includes both subscription and Wix Payments. I hope that answers your question. About the share of Online Commerce in 2021, yeah, it's part of our guidance. I mentioned before about exactly how we calculate, how we focus it, but it's part of our guidance.
Okay. Going from 25% in Q1 2021 to 33%, I think you guys had flagged that you were at 30% for full year 2020. It seems to imply that there may be a bit of a slowdown there in, I guess, the slope of that share. Am I interpreting that wrong? Yeah, just need clarity around that.
No, actually, there is no slowdown over there. Not at all. I can provide you later with the exact percentage after the call. No, there is absolutely no slowdown there. Actually, in a way, it's actually the opposite.
Okay, great. Maybe just, you called out that 40% of GPV from non-retail in the letter. Could you just talk about how that looked a year ago and last quarter?
Hey, Chris, it's Nir. It was obviously lower last year, and as well as a little bit last quarter, simply because the massive adoption we're seeing to our services and 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. If you're going back in time, a year or two years back, then the mass of the share of the GPV would've been almost only the online stores. Whereas today, it is going more and more towards that diversified baseline that Avishai mentioned before.
All right. Got it. Thanks for the color. Stay safe.
Your next question comes from Matt Pfau with William Blair.
Hey, guys. Thanks for taking my question. Wanted to ask on the strength that you're seeing in North America and just some more details on what's driving that. How much did the stimulus in March impact that performance? 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.
Of course. This is Avishai. I think as we all are aware, 2020 was an awful year for small businesses, not for all of them, but to the vast majority of them. Today, we're seeing that with the vaccines and a lot of stuff has been rebuilt or just founded from zero. I think that's the highest contributor to our growth. We can say that we did see some effect of the stimulation. I think that was really good and really high praises to the people behind it because it did allow people to start with something which is above zero and go forward. I think that we're going to see that period of rebuild and founding of new businesses, probably for the next couple of years, as there's a lot of things that were destroyed in 2020 and are now being rebuilt.
Hey, Matt, it's Nir. For the second question, I think in terms of impact of vaccines, we see that in North America. By the way, we've seen it a lot in Israel, by the way, which is a geography in which there's obviously already a high distribution of vaccines and reopening. I think it's very interesting because you see some, I would say, on the online stores and the shift of people buying online, maybe there's a small decline, but lower than you might have expected. I think you've seen that there's an actual change in consumer behavior of people who 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. Then you will actually see what is the obvious and as expected, reopening impact on businesses such as restaurants and hotels.
Obviously, everything that has to do with hospitality. A large part, everything that has to do with beauty and wellness, again, because these things can now reopen and accept clients. In all of those areas, I think we're seeing a significant uptake. Naturally, events, which were, again, in most cases, were prohibited or limited in their capacity. In those spaces, we see obviously a significant uptake in terms of the businesses going back to transacting and basically growing their business again.
Great. Thanks, guys. Appreciate it.
Operator, I think we have time for just one last question.
Thank you. Your last question comes from Trevor Young with Barclays.
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? Then just on the channel partnership, I think in one of the earlier questions, you said it was a few million dollar impact. Is that a few million per quarter or for the full year? Thanks.
For the second question, it's a few millions of dollars for the full year, not for one quarter. With regard to Rise.ai, the revenue model is based on a subscription. It is not significant, although they serve hundreds of customers. It's a really good product that already serves hundreds of customers. The way that we are thinking about how to monetize it is obviously, being part of our solution, and of our e-commerce solution, and then obviously, it can increase GPV, increase our top line coming from our payments, for example. Also increasing our conversion of our customers because they actually are getting a much better native solution to what they are looking for.
Great. Thank you.
We have no further questions at this time.
Great. Thank you, Cindy, and thank you everyone for joining us today. Have a good day.
Thank you.
Ladies and gentlemen, this does conclude today's conference call. Thank you for participating.