WIX

Wix.com Ltd

TMT


Presented:11/24/2020
Price:$247.43
Cap:$13.77B
Current Price:$166.63
Cap:$9.27B

Presented

Date11/24/2020
Price$247.43
Market Cap$13.77B
Ent Value$14.02B
P/E RatioN/A
Book Value$3.98
Div Yield0%
Shares O/S55.64M
Ave Daily Vol619,502
Short Int2.89%

Current

Price$166.63
Market Cap$9.27B
Wix.com Ltd. operates a cloud-based website design and development platform. It offers web templates, web editor, web builder, search engine optimization tools, logo maker, web hosting, and electronic mail marketing services. The company was founded by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan on October 5, 2006 and is headquartered in Tel Aviv, Israel.

Publicly traded companies mentioned herein: Anaplan Inc (PLAN), HubSpot Inc (HUBS), Facebook Inc (FB), Wix.com Ltd (WIX), Xero Limited (XRO AU)

Highlights

The presenter is long shares of Wix.com Ltd (WIX), an Israeli-based software company, providing cloud-based web development services. He is bullish on the company’s prospects as it moves upmarket into professional agency development channels, with higher unit economics, lower churn, and a TAM 10x the size of DIY channels. The stock is currently trading at ~$255 per share (9x revenue). He sees revenue upside (growing at 20% CAGR) over the next 10 years, owing to WIX’s recurring subscriber-based revenue model. As a result, the presenter believes that over time; the stock should trade closer to a fast-growing SaaS multiple. He applies a 13x EV/sales multiple, a slight discount to peers, to reach a price target of ~$338/share by 2022 or ~32% upside from the current price of ~$255/share.

WIX is a market leader in DIY website creation and operates two primary segments: creative subscriptions and business solutions. Its DIY website vertical offers best in class in the website building industry and continues to take share through product development and enhancement. It operates a freemium model, offering free quality websites to its users, easily converted to paid subscriptions once users are plugged into the ecosystem. Upgrading freemium users to premium subscription packages, translates to recurring multi-year subscription revenue.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.