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Wix.com Ltd (WIX)
NASDAQ:WIX
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Wix
(NASDAQ:WIX)67Neutral
Positive Factors
Financial Performance
Wix reported a strong 4Q with bookings and FCF ahead of expectations, and guidance implies continued top-line momentum and meaningful margin expansion in 2025.
Product Innovation
The introduction of new products in the latter half of the year could serve as a catalyst for average revenue per subscriber growth.
Negative Factors
Foreign Exchange Impact
The 2025 revenue and bookings guide missed expectations, largely due to FX headwinds driven by a strong dollar.
Wix (WIX) vs. S&P 500 (SPY)
Market Cap
$11.17B
Dividend YieldN/A
Average Volume (3M)844.15K
Price to Earnings (P/E)81.2
Beta (1Y)1.69
Revenue Growth12.63%
EPS GrowthN/A
CountryUS
Employees5,302
SectorTechnology
Sector Strength51
IndustrySoftware
Share Statistics
EPS (TTM)2.33
Shares Outstanding55,645,798
10 Day Avg. Volume1,183,295
30 Day Avg. Volume844,147
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)N/A
Price to Sales (P/S)7.35
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$253.69Price Target Upside34.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Wix Business Overview & Revenue Model
Company DescriptionWix.com Ltd. is a leading cloud-based development platform headquartered in Tel Aviv, Israel. The company primarily operates in the website development and hosting sector, offering a suite of tools that enable users to create and manage websites without requiring deep technical expertise. Wix provides a range of customizable web templates and drag-and-drop functionalities to support users in building websites for personal, business, or e-commerce purposes. It addresses a wide audience including individuals, small businesses, and enterprises, enhancing their online presence through various digital solutions.
How the Company Makes MoneyWix generates revenue through a freemium business model where basic services are offered for free, while premium subscriptions provide additional features and capabilities. The company's primary revenue streams include premium subscriptions, which offer domain hosting, increased bandwidth, and access to advanced functionalities and applications. Additionally, Wix earns money through ancillary services such as domain registration, professional email accounts, and third-party app sales through its App Market. Strategic partnerships with companies like Google and Facebook also contribute to its earnings by expanding its advertising and marketing services. Moreover, Wix's revenue is bolstered by its e-commerce solutions, which support online stores in managing sales and payments.
Wix Financial Statement Overview
Summary
Wix shows strong revenue and cash flow growth, with a positive trend in profitability. However, the balance sheet's negative equity and high liabilities pose significant financial risks. The overall financial health is mixed, with strengths in cash flow offset by balance sheet weaknesses.Income Statement
The company shows a positive trend in revenue growth with a TTM growth rate of 9.12% compared to the previous annual period. The gross profit margin is strong at 67.89% TTM, indicating effective cost management. Additionally, the net profit margin improved to 5.47% TTM, a significant turnaround from previous losses, highlighting enhanced profitability. However, EBIT and EBITDA margins, at 4.05% and 6.10% respectively, suggest room for improvement in operational efficiency.68
Positive
Balance Sheet
The company has a concerning balance sheet with negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, reflecting a high reliance on debt. The equity ratio is negative, further emphasizing financial risk. Although total assets have increased, the liabilities surpass them, highlighting a need for better leverage management.45
Neutral
Cash Flow
Wix has shown a strong improvement in free cash flow, with a TTM growth rate of 131.49%, signaling robust cash generation capabilities. The operating cash flow to net income ratio is 4.81, indicating excellent cash conversion efficiency. The free cash flow to net income ratio is also favorable at 4.52, showcasing solid cash flow generation relative to net income. This strong cash flow performance offsets some balance sheet concerns.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.70B | 1.56B | 1.39B | 1.27B | 988.76M | 761.09M | Gross Profit |
| 1.16B | 1.05B | 861.44M | 781.08M | 673.06M | 564.18M | EBIT |
| 69.00M | -24.38M | -285.35M | -325.53M | -197.34M | -80.25M | EBITDA |
| 103.99M | 69.11M | -439.05M | -28.07M | -104.20M | -45.63M | Net Income Common Stockholders |
| 93.25M | 33.14M | -424.86M | -117.21M | -216.52M | -86.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 962.89M | 962.89M | 1.06B | 1.32B | 1.04B | 726.50M | Total Assets |
| 1.80B | 1.80B | 1.76B | 2.06B | 1.83B | 1.10B | Total Debt |
| 996.32M | 996.32M | 1.13B | 1.03B | 930.96M | 443.13M | Net Debt |
| 386.70M | 386.70M | 885.75M | 582.58M | 762.11M | 175.02M | Total Liabilities |
| 1.86B | 1.86B | 2.02B | 1.91B | 1.58B | 891.92M | Stockholders Equity |
| -54.48M | -54.48M | -263.24M | 145.72M | 250.34M | 207.75M |
| Cash Flow | Free Cash Flow | ||||
| 421.72M | 182.20M | -33.51M | 27.98M | 129.20M | 127.50M | Operating Cash Flow |
| 448.41M | 248.25M | 37.15M | 65.69M | 148.05M | 149.56M | Investing Cash Flow |
| -51.06M | 566.71M | -54.66M | 376.87M | -800.23M | -244.01M | Financing Cash Flow |
| -467.79M | -450.02M | -189.16M | -160.06M | 552.94M | 31.50M |
Wix Technical Analysis
Negative
188.29
Price Trends
222.52
Negative
205.89
Negative
183.46
Positive
Market Momentum
-9.41
Positive
28.35
Positive
11.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Negative. The current price of 188.29 is below the 20-day moving average (MA) of 212.76, below the 50-day MA of 222.52, and above the 200-day MA of 183.46, indicating a neutral trend. The MACD of -9.41 indicates Positive momentum. The RSI at 28.35 is Positive, neither overbought nor oversold. The STOCH value of 11.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIX.
Wix Risk Analysis
Wix disclosed 59 risk factors in its most recent earnings report. Wix reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $209.82B | 71.60 | 17.47% | 27.85% | 1400.97% | ||
73 Outperform | $285.04B | 46.83 | 13.27% | 0.55% | 8.72% | 51.47% | |
68 Neutral | $25.37B | 27.53 | 135.37% | 7.82% | -32.24% | ||
67 Neutral | $11.17B | 81.15 | -46.79% | 12.63% | ― | ||
63 Neutral | $5.48B | 21.59 | -39.97% | 2.18% | 5.77% | ||
63 Neutral | $556.49M | ― | -81.00% | 7.61% | 59.62% | ||
59 Neutral | $23.24B | 11.09 | -18.49% | 2.28% | 5.18% | -26.85% |
* Technology Sector Average
Performance Comparison
WIX
Wix
188.29
51.76
37.91%
CRM
Salesforce
287.34
-9.75
-3.28%
GDDY
GoDaddy
176.42
67.46
61.91%
ETSY
Etsy
49.46
-19.09
-27.85%
TSE:SHOP
Shopify
147.24
47.37
47.43%
BIGC
BigCommerce Holdings
6.76
-0.49
-6.76%
Wix Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -17.34% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
Wix had a strong 2024, achieving its rule of forty milestone ahead of schedule with significant growth in bookings and revenue driven by successful product initiatives, particularly in AI and Studio. However, challenges such as FX volatility and slower-than-expected GPV growth due to situational factors were noted. Overall, the positive developments significantly outweigh the lowlights.Highlights
Rule of Forty Achieved
Wix exceeded its ambitious plan to achieve the rule of forty by 2025, reaching this milestone a year ahead of schedule. The company is now aiming for rule of forty-five in 2025.
Strong Bookings and Revenue Growth
Wix reported bookings growth of 18% year over year in Q4 2024, with partners' revenue growing 30% year over year. Total revenue in Q4 grew by 14% year over year to $460 million.
AI Product Suite Success
Wix's AI website builder drove significant conversion and purchase behavior improvements. Over one million sites have been created with the AI builder.
Positive Free Cash Flow and Profitability
Wix generated free cash flow of $488 million or 28% of revenue in 2024, nearly doubling from 2023. It achieved positive GAAP operating income for the first time.
Studio Platform Expansion
The Studio platform saw strong adoption with over two million studio accounts, 75% of which were created by partners.
Lowlights
FX Volatility Impact
FX volatility late in Q4 created a modest negative impact on bookings and revenue, with a $45 million headwind expected for 2025.
Challenges in GPV Growth
GPV growth was slightly lower than expected due to situational factors like the Christmas holiday timing and FX headwinds, impacting transaction revenue.
Company Guidance
During the Wix Fourth Quarter and Full Year 2024 Earnings Conference Call, leadership provided detailed guidance for 2025, emphasizing robust growth and innovation. Wix aims to achieve the "rule of forty-five" in 2025, surpassing its initial target ahead of schedule. The company anticipates total bookings to reach between $2,025 million and $2,060 million, representing an 11% to 13% year-over-year increase, despite an estimated $45 million FX headwind. They project total revenue to rise by 12% to 14% year-over-year. Wix also expects non-GAAP total gross margin improvement to 70% and anticipates a free cash flow of $590 to $610 million, translating to a 30% to 31% revenue margin. The guidance reflects strong product momentum, particularly from the Studio platform, AI enhancements, and commerce capabilities, with an emphasis on managing expenses to drive profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.