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1. Company Snapshot

1.a. Company Description

Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally.The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications.It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website.


In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online.Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems.As of December 31, 2021, the company had approximately 222 million registered users and 6 million premium subscriptions.


The company was formerly known as Wixpress Ltd.Wix.com Ltd.was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on WIX

Breaking News: Wix.com Ltd. has been upgraded to Hold from Sell due to a sharp stock decline despite ongoing business growth. In Q3, the company showed 14% revenue and bookings growth. However, margin pressure persists due to AI investments. The balance sheet raises concerns with negative tangible equity. Capital Fund Management S.A. recently increased its position in Wix.com by 63.0%. The company presented at the UBS Global Technology and AI Conference 2025. The upgrade to Hold comes as an analyst adjusts their stance following recent developments.

1.c. Company Highlights

2. Wix.com's Strong Q3 Earnings Driven by Base 44 Growth

Wix.com Ltd.'s Q3 2025 earnings report showcased a robust performance, with total bookings reaching $515 million, up 14% year over year, and total revenue growing to $505 million, also up 14%. The company's transaction revenue increased by 20% year over year, driven by a 13% growth in Gross Payment Volume (GPV) and an elevated take rate. However, the company's EPS came out at -$0.01058, missing estimates of $1.45. The non-GAAP gross margin was impacted by the costs associated with Base 44 users, resulting in a short-term headwind to free cash flow, as noted by CFO Lior Shemesh.

Publication Date: Nov -20

📋 Highlights
  • Base 44 Growth Momentum: Base 44 surpassed 2 million users, adding 1,000+ daily paying subscribers, with ARR guidance raised to at least $50M by year-end.
  • Financial Performance: Q3 bookings and revenue both rose 14% YoY to $515M and $505M, driven by 20% growth in transaction revenue linked to 13% GPV increase.
  • Capital Allocation: $1.15B in 0% convertible notes issued, alongside $175M share buybacks, reflecting strategic capital deployment and confidence in growth.
  • Margin Dynamics: Non-GAAP gross margin guided to 68-69% in 2025, with short-term FCF pressure from Base 44 AI costs, but long-term margin expansion expected by late 2026.
  • Product Roadmap: Self-Creator tool delayed to 2026 due to technical complexities, while Base 44 focuses on reducing churn (better than expected cohort retention) and annual subscription conversion.

Base 44's Exceptional Growth

Base 44, Wix.com's AI-powered app building platform, continues to drive growth, with over 2 million users and more than 1,000 new paying subscribers joining daily. The platform's growth has been driven by its organic reach and the company's expertise and investments. The company expects Base 44 to achieve at least $50 million of Annual Recurring Revenue (ARR) by year-end.

Guidance and Outlook

Wix.com Ltd. has increased its full-year bookings growth guidance to 13-14%, up from 11-13% previously expected. Revenue is expected to grow 13-14% year over year, with a non-GAAP gross margin of 68-69% and non-GAAP operating expenses of approximately 50% of revenue. Free cash flow is expected to be around $600 million in 2025. Analysts estimate next year's revenue growth at 14.2%.

Valuation and Metrics

With a P/S Ratio of 2.94 and an EV/EBITDA of 29.5, the market seems to have priced in a significant growth premium. The company's ROE is -86.3%, and the ROIC is 9.37%, indicating a challenging profitability landscape. However, the Free Cash Flow Yield is 10.01%, which may be attractive to investors seeking value.

Margin Expansion and Challenges

The pathway to improving margins involves reducing AI costs, improving retention, and optimizing marketing spend. While the company expects margins to improve over time, it anticipates a possible drag in the short term due to hypergrowth dynamics. Base 44's cohort retention trends are similar to or better than Wix.com Ltd.'s monthly customer plans, and the company expects to improve retention and conversion to annual plans as it builds more brand visibility and improves the platform.

3. NewsRoom

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Why I Am Upgrading Wix.com

Dec -03

Source: seekingalpha.com

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Capital Fund Management S.A. Purchases 8,612 Shares of Wix.com Ltd. $WIX

Dec -03

Source: defenseworld.net

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Wix.com Ltd. (WIX) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Wix.com: AI Vibe Coding Tailwinds, Despite Cheap Price

Dec -02

Source: seekingalpha.com

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Creative Planning Sells 2,737 Shares of Wix.com Ltd. $WIX

Nov -29

Source: defenseworld.net

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Wix.com Ltd. (NASDAQ:WIX) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Nov -29

Source: defenseworld.net

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Wix.com Analysts Cut Their Forecasts After Q3 Earnings

Nov -20

Source: benzinga.com

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Why Wix.com Stock Crumbled 22% Today

Nov -19

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.48%)

6. Segments

Creative Subscription

Expected Growth: 12%

Wix.com's Creative Subscription growth is driven by increasing demand for website creation and design, rising adoption of e-commerce platforms, and growing need for digital marketing solutions. Additionally, Wix's user-friendly interface, affordable pricing, and continuous innovation in AI-powered design tools contribute to its growth.

Business Solutions

Expected Growth: 10%

Wix.com Ltd.'s 10% growth in Business Solutions is driven by increasing adoption of website creation and digital presence among small businesses, rising demand for e-commerce enablement, and expanding partnerships with leading companies. Additionally, Wix's AI-powered design capabilities, user-friendly interface, and competitive pricing strategy contribute to its growing market share.

7. Detailed Products

Wix Website Builder

A drag-and-drop website builder that allows users to create professional-looking websites without coding

Wix ADI (Artificial Design Intelligence)

An AI-powered website builder that creates a website in minutes based on user input

Wix eCommerce

An online store builder that allows users to create an online store and sell products online

Wix Restaurants

A website builder and online ordering system for restaurants

Wix Hotels

A website builder and booking system for hotels and vacation rentals

Wix Bookings

An online scheduling and booking system for service-based businesses

Wix SEO Wiz

A search engine optimization (SEO) tool that helps improve website visibility

Wix Ascend

A marketing and automation platform that helps businesses grow online

8. Wix.com Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wix.com Ltd. faces moderate threat from substitutes, as users can opt for alternative website builders like WordPress, Squarespace, or Weebly. However, Wix's user-friendly interface and affordable pricing help maintain customer loyalty.

Bargaining Power Of Customers

Wix.com Ltd. has a large customer base, which reduces the bargaining power of individual customers. The company's subscription-based model and affordable pricing also limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Wix.com Ltd. is not heavily dependent on a single supplier, and its technology infrastructure is largely in-house. This reduces the bargaining power of suppliers, giving Wix more control over its operations.

Threat Of New Entrants

The website building and design industry is highly competitive, and new entrants can easily disrupt the market. Wix.com Ltd. must continuously innovate and improve its services to stay ahead of potential competitors.

Intensity Of Rivalry

The website building and design industry is highly competitive, with many established players like WordPress, Squarespace, and Weebly. Wix.com Ltd. must focus on differentiating its services and maintaining a strong brand presence to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 110.09%
Debt Cost 3.95%
Equity Weight -10.09%
Equity Cost 10.59%
WACC 3.28%
Leverage -1091.48%

11. Quality Control: Wix.com Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexi

A-Score: 5.2/10

Value: 7.2

Growth: 7.9

Quality: 5.2

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
IONOS

A-Score: 4.9/10

Value: 3.5

Growth: 7.8

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Wix

A-Score: 4.0/10

Value: 3.6

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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CyberArk

A-Score: 4.0/10

Value: 2.0

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Cellebrite DI

A-Score: 3.5/10

Value: 2.2

Growth: 5.2

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Darktrace

A-Score: 2.7/10

Value: 0.0

Growth: 3.8

Quality: 7.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

100.22$

Current Price

100.22$

Potential

-0.00%

Expected Cash-Flows