It means from our standpoint that eventually we will have better products offering, where they’re spending a lot of effort and we’re not. And they’ll have better — much better offering on the digital presence and the creation tools that we’re spending a lot and they’re not. And the combined upside will be a very healthy experience for the end user who will be willing to pay for more services. So our hope is we’re going to generate something here which is a win-win-win, Intuit, Wix, and obviously most importantly, the customers and the users. Lior, you want to take the B2B?
Lior Shemesh: Yeah, sure. So, Ken, to your question, there is no change in the type of the arrangements, meaning that if we have exclusivity, it will remain exclusive. I believe that the only change is about the fact that we will not recognize booking anything that is beyond one year. I believe that it’s first of all, more conservative. Second, there’s no need. I believe that we have the best product right now in the market to serve partners. They want to bring the power of Wix to their customers. And we are the best alternative in order to do that. I think that it’s also saving them R&D cash, R&D money, and provide them with the best solution. So this is something that will continue. The second reason, obviously, why it doesn’t make sense to recognize as booking, any commitment that is longer than one year is because of the lumpiness of this business.
You can have a huge agreement in one quarter, the other in the following quarter, there’s no other — no huge agreement. So it’s kind of making this business kind of lumpy between the quarter and it doesn’t make sense. And in any case, it doesn’t involve any impact on revenue. So I believe that that would be the best decision. And secondly, it’s opened more larger town for us because then you don’t negotiate on the commitment, you negotiate on the assets, on what is more important in order to make this partnership successful.
Ken Wong: Perfect. Thank you.
Operator: Standby for our final question. Our final question will come from Mark Zgutowicz with the Benchmark Company. Mark, please go ahead with your question.
Mark Zgutowicz: Thank you, and good afternoon. Just a follow up on the gross margin question. Just curious how much more runway you have over the next 12 months on customer care leverage there, and how meaningful that’s been in terms of driving gross margin levers versus other lever points like hosting efficiencies? And then the second question, just curious how meaningful was the B2B partnership contribution to re-queue partners revenue and any expectations as you look into ‘24 in that regard? Thanks.
Nir Zohar: So, I’ll start with the first question. I’m not going to provide details about how more efficient we can be with care. It’s always the case, by the way, we always look for more ways to be and more means to be more efficient. I did mention that we are going to see some contribution and some more efficiency around gross margin next year. But it can be also from the fact that we are more efficient in payments, we are more profitable in payments as we scale up this business. And obviously there will be more cases where we can drive efficiency. So of course, we are going to do that. But I’m not going to go into the details of it. With regard to the contribution of partners of the B2B partnership for this year, so of course, it was more significant than last year.
And it’s a SaaS business as any other SaaS business. So it will be more significant in the following years. This is like the nature of it. But I must say that most of the improvements that we see in our Partners business is actually coming from the fact that we are getting more and more agencies. I did mention many times in the past that we see that as like the most, the strongest growth driver that we have. It’s mostly coming from more and more agencies joining Wix and the compounding effect of it.
Mark Zgutowicz: Thanks much. It’s helpful.
Operator: This concludes the question-and-answer session. Thank you for participating in today’s conference. This does conclude the program. You may now disconnect.
