Have been thinking about adding wix.
Is wix saas?
Is the wix revenue recurring?
Is their growth rate hyper?
Some here are in wix yet others have stayed out. Just wondering what the skepticism is in wix.
Israeli based
Market cap too hi
Growth rate too low
Too much competition
Not singular
Just haven’t seen any compelling reasons to get in. This has to be the least talked about favorite on this board.
Inquiring minds…
I added half in May and the other half in June and I just looked and I am up 30%.
WIX provides do-it-yourself website tools and is popular in this group and NPI.
I have some notes I took from last c.c. and below is some numbers from easystocknumbers.com (Greg’s Finance Thingee)–I am not 100% sure of all the numbers, but 90% sure its mostly correct. Some difference between my notes and easystocknumbers most likely difference in GAAP vs. non GAAP.
YOY Growth rate 47% Deferred Rev. 38% Operating Margin -12% Gross Margin 84% EV/S 23
234 Million in cash, no debt. Market Cap of 5.1 billion.
P/S 10 Projected EPS next year 74% Institutional ownership of stock 86%
Wix Notes from c.c. below.
Revenues 41% yoy collection 37% yoy
FCF 24 mil Q2
205,000 net subscription Q2
TROI (total return on investment) 7-9 months
For every 100,000 new subscription ~future collections of 165m over 8 yrs
-this is based on current cohort behavior
Expect current cohort to generate 4.6b over next 8 yrs
Product development-development of Wix code
-mobile site builder
-Wix ADI
-additional languages
deceleration in premium growth from past period—need to research
ARPS (average revenue per subscriber?)-2 factors; vertical apps and higher priced subscription packages
adoption of vertical by new cohorts is 40% or 30% yoy, this increases ARPU (average revenue per user)
Wix code subscriber have higher ARPU
2/3 of new users outside of North America
SQ is POS service provider-plan on keeping them
Wix allows people to make free websites using their Wix Editor or Wix ADI
Q2 Registered users 131m; Premium Subscriptions 3.7m
Once a subscriber usually great retention rate for cohort
TROI (Time to Return on (Marketing) Investment. One time marketing, ongoing collections 7-9months
67% of subs 1yr or longer; 33% monthly
ARPS (Average Revenue per subscription is increasing.
Increasing geographic penetration.
Estimated future FCF margin of 30%
Wix Code expands addressable market by 10x 300B+
Our results of operations and future prospects will be harmed if we are unable to attract and retain new registered users and premium subscriptions at a sufficient rate.
I opened a small position in Wix in mid-May. I’m up about 34% on this company.
I don’t know a lot about this company just yet. I know it helps users develop their web sites. The CEO is Avishai Abrahami and he has a 98% approval rating on Glassdoor.
Fool on,
mazske
Long WIX
I bought a tiny starter position in WIX about a week ago. Also, I am running for school board in spring and when I needed to make my campaign web site, I made it on Wix. I am happy with the tools and found it useful for what I needed. I also paid a little money for the site to get a no ads site and a custom domain.
Karen
Rizz - I know it can be intimidating - but you’d learn much MUCH more if you’d attempt to research and answer those questions yourself - post your findings - and let’s others critique / add on.
It is your money. Know how to put it to work. Know why you are putting it to work. And understand what is happening to it.
Our future will only include more and more information and opinions and people creating uninformed opinions
Be a wolf, not a sheep