WIX earnings

Overall I liked the quarter, no slow down in revenue growth. They appear to be investing in their business which is hurting EPS. CFFO and FCF improving nicely.

Jimbo,

Thanks for the quick take. I wanted to do the same, but I was too busy with work this morning, as well as buying Wix.

I agree with your assessment and it’s even a bit better than you said. See, Wix doesn’t give EPS guidance, so as far as I’m concerned they didn’t “miss.” They came in at EPS of 0.01, and for some crazy reason analysts expected 13 cents or something. Why? Good question!

Sep16: -0.04
Dec16: 0.06
Mar17: -0.18
Jun17: 0.00

So they improved from -0.04 to +0.01 YoY. Not sure where the analysts came up with 13 cents, but that would have been a little crazy.

As you said, it was a near perfect quarter. Revenue grew 47% (woulda liked to see 50%+ but obviously 47% is incredible) and Wix generated 20M of FCF. More collections than ever. Even Average Collections per New Annual Subscription ticked up sequentially from $156 to $158 (it had been flat in Mar and Jun). They killed it.

I now own 21% more shares than I did yesterday, and am prepared to add more. Wish I’d just done it all this morning, but you obviously never know how Mr Market will react / panic. I bought just under $57 and was thrilled, but $60 is still an incredible price. PS is sitting at 7.0!

Bear

6 Likes