Wix (WIX 125.75, +4.35, +3.58%) will report fourth quarter results tomorrow morning; management will host a call at 8:30 AM.
Through free and premium subscriptions, Wix lets people build websites, empowering mlns of businesses, organizations, artists, and individuals to take their businesses, brands and workflow online.
Fourth quarter adjusted EPS is expected to double to with revenue up 37%. Wix guided for fourth quarter revenue up 36-37% to $161-162 mln with collections up 33-35% to $176-178 mln.
First quarter revenue is expected to grow 28%. The Street expects FY19 EPS up 63%, free cash flow up to $150 mln and revenue up 27%.
Wix has beaten estimates on the top line twelve quarters in a row and bottom-line estimates four quarters in a row. Revenue growth has exceeded 40% for ten straight quarters. The company has guided quarterly revenue in-line with estimates three quarters in a row.
Wix added 177K net premium subscriptions in the third quarter to reach 3.8 mln, a 26% increase yr/yr. Registered users grew 20% to 137 mln.
Chief Executive Avishai Abrahami said: "Wix is in the midst of another substantial product release cycle to deliver even more value to our users -- we recently introduced Wix Payments, as well as enhancements to Wix Code and the all new Wix Video Maker, and we have begun releasing the new DeviantArt platform to its community." In December, the company launched Ascend by Wix, a suite of 20 products that lets entrepreneurs start, manage and promote a business directly from the Wix web development platform.
With a $6 bln market cap, the stock trades at ~85x EPS and 7.5x revenue growing twice the rate of web-domain peer GoDaddy (GDDY), which trades at 24x EPS and less than 5x sales. Less than 6% of Wix's 44 mln share float was recently sold short.
- OUR VIEW
- LEARNING CENTER