company background image
WIX

Wix.com NasdaqGS:WIX Stock Report

Last Price

US$77.33

Market Cap

US$4.4b

7D

-4.5%

1Y

-60.1%

Updated

28 Sep, 2022

Data

Company Financials +
WIX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance0/6
Financial Health1/6
Dividends0/6

WIX Stock Overview

Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally.

Wix.com Ltd. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wix.com
Historical stock prices
Current Share PriceUS$77.33
52 Week HighUS$207.00
52 Week LowUS$53.12
Beta1.29
1 Month Change19.47%
3 Month Change17.97%
1 Year Change-60.11%
3 Year Change-32.21%
5 Year Change11.83%
Change since IPO374.13%

Recent News & Updates

Sep 16

Wix.com jumps after report activist Starboard took stake

Wix.com (NASDAQ:WIX) rose 5.9% in after hours trading after a report that activist investor Starboard Value has taken a 9% stake. Starboard is said to have talked to the Web development company about how it can improve its operations, according to a Reuters report, which cited people familiar. Starboard is not seeking board seats at this time and supports the company's plans to improve margins. Developing story ...

Sep 06

Wix.com: It's A Tough Road Moving Forward

Summary Wix.com hasn't shown explosive gains from its Editor X offerings even with the help of COVID. Open-sourced software will have more product offerings and selections than Wix.com. Wix.com's capabilities to attract Israel talent are in question. Emerging and innovative startups may give Wix.com problems moving forward. Wix.com Ltd. (WIX) has been a well-known web builder for a long time. As I covered in my last article, its sticky business model and cash-rich balance sheet should offer investors good returns. However, the overall market has dropped so much recently that lots of other SaaS (software as a service) bargains have emerged. I don't know if WIX is still an attractive investment that can outperform its peers and deliver long-term growth given the product challenges and complexities of the new dynamics in the web builder market. Editor X has come a long way to get here WIX has been promoting its partner business using its premium web-building tool Editor X for a while. The management expects it as the main growth engine of the future, with a 31% YOY revenue increase last quarter. However, it's been a long way for WIX to get here. From Code, and Corvid to now Editor X, WIX has rebranded this tool multiple times. When WIX first launched Editor X in the early times, they were not fully ready yet. I personally think WIX made a branding and reputation mistake as Steve Jobs has said, "good brands never ship junk." Designers and developers found its limitations and led to a damaging reputation of being not responsive and esthetic. Some people claim that they would never want to work with it. Although WIX has improved its Editor X product offerings and designs (maybe equal to Squarespace (SQSP)) recently, I don't see the explosive and game-changing impact on the industry that it was supposed to be. Closed garden vs. Open source To be a true platform tool, development support is crucial. And this is what WIX Velo is doing, which offers so-called a full-stack, low code, and rapid development environment. However, WordPress still goes neck to neck with WIX regarding popularity and the number of websites built. As an open-source platform, WordPress is loved by a huge body of developers who build flexible and high-value websites. It definitely has more functionalities than WIX. When market opportunities emerge, WordPress always offers new plugins faster than WIX. This could be a concern for WIX (as a closed garden) who may have a difficult time keeping up with the various demands of future websites. The good news is that WIX wins by better integrations and faster speed. It is also easier to maintain a website through WIX than through WordPress. Especially for an SMB who has no technical skills, Wix offers better tools. WIX's culture and edge on people are weakening In the last ten years, WIX has grown from 300 employees to now 4700+. It is not a start-up anymore. CEO Avishai is awesome, but he cannot directly manage all of the vertical units, marketing, design, BI, and operations. It is inevitable that the company will be divided into teams like eCommerce, restaurants, development, content, etc. Each team will have to appoint a manager or head person in charge. Once you have more and more administrative layers, no decisions will be made fast. It is also gonna be harder to push initiatives which is a natural thing for bigger companies. Historically, WIX has invested around 15% of revenue in Stock-Based Compensation while Shopify (SHOP) only had 7%. WIX's employee amount doubled during 2020 and 2021 when the stock traded at around 300+. As the stock prices dropped from 340 to 60, people were losing money, which led to huge pressures on talent retention and company culture. The other issue is the different landscape of Israel's tech industry. WIX may still attract top-notch talent. However, it is not considered the sole big name for tech jobs anymore. You have global companies like Apple (AAPL), Google (GOOG, GOOGL), etc., and new emerging startups such as Elementor, Aspire, or Similarweb (SMWB), etc. It will be much tougher for WIX since Israel has a very start-up-friendly environment where a strong developer has lots of options to grow and get paid better. The Agency business may not be as meaningful as expected WIX's agency business has a very promising start as agencies can have faster and more secure tools to manage their own clients and create sites. Especially for freelancing and SMBs who try to increase the volume of WIX websites, WIX would be a perfect fit. However, the real market space for WIX is still unclear. Bigger agencies that have development capabilities may not super interested in working with WIX. These agencies are different from DIY users; they are smarter and more sophisticated. Unless WIX's products are ten times better than alternatives, WIX won't have any pricing power. More Competitive markets The other concern is the competitive landscape. WIX is not just facing threats from Squarespace; Elementor, GoDaddy (GDDY), Webflow, Weebly and many others all have capabilities to catch up with WIX. I especially believe Elementor can make a change as a drag-and-drop page builder for WordPress. It has exponential growth and could be a great combination of both WIX and WordPress. Moreover, WIX completed missed the eCommerce opportunity. Now, WIX has to compete with Shopify, BigCommerce (BIGC), WooCommerce, Magento, etc. It is an extremely tough space for it to win customers and market shares. As the chart below, WIX is having similar growth to SQSP but significantly behind BIGC and SHOP.

Aug 25

What To Expect From Wix Stock After Mixed Earnings: A Big 3 Years Ahead

Summary Wix has crashed 80% from all-time highs. Revenue growth has decelerated rapidly in 2022 which in turn led to extreme multiple compression. Management has guided for a robust recovery in growth rates over the next several years. The company has a net cash balance sheet and is operating around free cash flow break even. I can see the stock tripling over the next 3 years. Wix.com (WIX) is a casualty of the tech crash though the stock has bounced materially off its lows. This company arguably has a clear-cut thesis, being the backbones of web development, but the steep deceleration in growth rates has not provided support to the stock price. Management issued aggressive guidance at its 2022 Investor Day which called for an eventual recovery in growth rates. Assuming the company can hit those targets, the stock is highly compelling here considering the net cash balance sheet, cash flow breakeven profile, and low valuation. WIX Stock Price WIX was an unsurprising beneficiary of the pandemic, but the stock has since fallen 80%, leading it to trade at the same levels it did five years ago. WIX data by YCharts I last covered WIX in March of 2020 during the pandemic crash which at one point was a home run call. The broader tech crash has led to a steep valuation reset and an attractive buying opportunity in the stock. What Were Wix's Expected Earnings? WIX had already telegraphed slowing growth for this year with plans to reduce operating expenses. Did Wix Beat Earnings? WIX ended up slightly beating on revenue estimates and non-GAAP earnings. Seeking Alpha WIX Stock Key Metrics WIX reported 9% year over year revenue growth though it noted that it represents a 21% 2-year compounded annual growth rate. 2022 Q2 Slides The non-GAAP net loss was $7.8 million, very close to breakeven. WIX ended the quarter with $1.5 billion of cash and equivalents versus $926 million in debt, for a net cash position of around $0.6 billion. As of recent prices, that represents around 13% of the market cap. What To Expect After Earnings Looking forward, WIX guided for revenue growth to decelerate further to up to 8% in the third quarter. WIX expects full-year revenue growth of up to 10%, implying the fourth quarter might not see much of a recovery. 2022 Q2 Slides Is WIX A Good Investment Long-Term? Based on the current growth rates, WIX might not appear so attractive. But one must take into account the fact that the pandemic pulled forward a lot of digital transformation growth, which obviously includes web development. It stands to reason that once WIX moves beyond the tough comparables, growth should re-accelerate meaningfully. WIX has two principal business lines, the first being for Self Creators. This is where businesses or individuals use WIX to create websites for themselves. 2022 Investor Day Self Creator growth is expected to decline to only 8% at the high end this year, but WIX estimates that it can accelerate to up to 19% over the next three years and stabilize in the 15% range over the long term. 2022 Investor Day WIX also has a Partners business line in which web developers use WIX to develop websites for their customers - essentially making them re-sellers of WIX’s products. 2022 Investor Day Partners growth is expected to remain strong at 31% in 2022 and even accelerate to as much as 37% over the next three years before settling at 20% over the long term. 2022 Investor Day In aggregate, WIX expects to show 23% annual growth over the next three years before settling at a 17% long term growth rate.

Shareholder Returns

WIXUS ITUS Market
7D-4.5%-3.1%-2.0%
1Y-60.1%-36.5%-20.3%

Return vs Industry: WIX underperformed the US IT industry which returned -38% over the past year.

Return vs Market: WIX underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is WIX's price volatile compared to industry and market?
WIX volatility
WIX Average Weekly Movement9.9%
IT Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: WIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: WIX's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20064,923Avishai Abrahamihttps://www.wix.com

Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications. It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website.

Wix.com Ltd. Fundamentals Summary

How do Wix.com's earnings and revenue compare to its market cap?
WIX fundamental statistics
Market CapUS$4.40b
Earnings (TTM)-US$431.25m
Revenue (TTM)US$1.34b

3.3x

P/S Ratio

-10.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WIX income statement (TTM)
RevenueUS$1.34b
Cost of RevenueUS$523.61m
Gross ProfitUS$816.51m
Other ExpensesUS$1.25b
Earnings-US$431.25m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-7.58
Gross Margin60.93%
Net Profit Margin-32.18%
Debt/Equity Ratio-1,033.4%

How did WIX perform over the long term?

See historical performance and comparison