The only concern I have is the new registered users per quarter isn’t growing.
I think it’s anybody’s guess as to whether they’ll be able to keep adding 200k premium subscribers each quarter. If they can, wow…even though it might mean the growth rate would slow down from 50% to 40% and then 30%, I’ll take 200k subscribers per quarter all day long. When they go from 3.5M to 4.5M and then 5.5M, multiplying by $14/ea per month (or more) makes things look pretty solid.
However, even though I’m perfectly fine with that, I will note that new subs ticked up to 231,000 in Q1 (from 170,000 the quarter before). And I think this could tick up further – which I see as alpha opportunity. Wix Code and other value-add offerings seem to be attracting subscribers. I’m not counting on this but I believe it’s quite possible, and would be nice.
Lastly, one point I left out on my Q1 summary: They do a big superbowl add every year in Q1. Last year the S&M spend was over 54m in Q1 and down to 48m in Q2. This year it was 67m in Q1. If that comes down substantially, as is the pattern, EPS could be a record high in Q2. I suspect wall street would like that, though you never know.
Bear