1. Financial Health Check
- Revenue: $1.76B
- Net Income: $138.32M
- Net Margin: 7.86%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2024 | 1.76B | 138.32M | 1.20B | 497.42M |
| 2023 | 1.56B | 33.14M | 1.05B | 248.25M |
| 2022 | 1.39B | -424.86M | 861.44M | 37.15M |
| 2021 | 1.27B | -117.21M | 781.08M | 65.69M |
| 2020 | 984.37M | -166.87M | 671.35M | 148.05M |
4. Competitive Advantage (Moat)
- Type of Moat: Network Effect & Intangible Assets
- Strength: Narrow
- Description: Wix.com Ltd. has a first-mover advantage and expertise in democratizing emerging technologies, specifically with its AI-powered app building capabilities in Base 44. The established brand and marketing function, built over two decades, provides a competitive differentiator, allowing them to scale beyond early adopters.
5. Management Quality
- CEO: Avishai Abrahami
- Capital Allocation: Plans include potential M&A opportunities and continued share repurchases. They repurchased approximately 1,300,000 shares for approximately $175,000,000.
- Tone: Optimistic
- Key Quotes:
- "We intend to do for software what we did for websites, enabling everybody to build applications without any need for a developer." - Avishai Abrahami
- "I remain confident in our ability to drive long-term growth by delivering essential tools that help users, both new and old, adapt, operate, and succeed in any environment." - Nir Zohar
6. Growth Prospects
- Total Addressable Market (TAM): The global website builder market is expected to reach $2.7 billion by 2026, growing at a CAGR of 9.5%.
- Market Share: Wix is a leading player in the website builder market, with a market share of over 20%.
- New Products/Services: The company is investing in new products and services, such as its AI-powered app builder, to expand its addressable market.
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1]: Competition from other website builders (e.g., Squarespace, Shopify).
- [Risk 2]: A downturn in the global economy could reduce demand for website building services.
- [Risk 3]: The company's reliance on a freemium model makes it vulnerable to changes in conversion rates.
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?