Putting WIX in the mix

Recently, I posted on some metrics on comparing these fast growing, adjusted EPS negative tech companies. WIX falls into that category. Here’s WIX’s revenue growth (full year comparisons):


        Rev($M) Growth
2012	$43.7	
2013	$80.5	84%
2014	$141.8	76%
2015	$203.5	44%
2016	$290.1	43%
2017	$418(E)	44%

Other metrics:
Market Cap: $3.4B
Rev (TTM): $321M
Net Cash: $162.4M
EV to Sales Ratio: 10.1
Premium Users: 2.673 million
Registered Users: 103.2 million (includes non-paying users)
Premium User Growth (1 yr): 38%
CFFO (TTM): $57.9M
CFFO (last Q): $16.4M
Share dilution (TTM as a % of market cap): 0.9%

Summary: Shares on EV to Sales basis are less expensive than SHOP and MULE and a little more expensive than the other companies. Dilution is not an issue. Growth seems to be steady (last 3 years). Sequential growth in premium users in the last 8 quarters has been steady:

9.6%, 9.3%, 7.5%, 9.7%, 9.4%, 8.2%, 7.5%, 8.4%

I think it’s likely that this steady growth will continue into the future. My opinion is that WIX should provide steady growth at perhaps lower risk and less potential upside than companies like SHOP, MULE, TLND, NEWR, TWLO, and HUBS.

We will find out how they did in Q2 tomorrow afternoon when they report results.

Chris

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