Benchmark has revised the price target for Wix.com (WIX, Financial), lowering it from $260 to $245 while maintaining a Buy rating on the stock. This adjustment comes in anticipation of Wix.com releasing its Q1 earnings on May 21. The uncertainty surrounding the impact of 2024 pricing on the average revenue per subscription (ARPS) represents a significant challenge, although new product developments could offset this. An analyst has expressed the need for management to clarify how they intend to meet the higher end of their financial forecasts for bookings and revenue by the end of fiscal year 2025. The firm has preemptively reduced its estimates as the earnings report nears.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Wix.com Ltd (WIX, Financial) is $240.67 with a high estimate of $300.00 and a low estimate of $169.11. The average target implies an upside of 31.69% from the current price of $182.75. More detailed estimate data can be found on the Wix.com Ltd (WIX) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Wix.com Ltd's (WIX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Wix.com Ltd (WIX, Financial) in one year is $123.19, suggesting a downside of 32.59% from the current price of $182.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Wix.com Ltd (WIX) Summary page.
WIX Key Business Developments
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wix.com Ltd (WIX, Financial) achieved the 'Rule of 40' milestone a year ahead of schedule, showcasing strong execution and commitment.
- Bookings growth was impressive at 18% year over year, driven by the self-creators business and strong partner momentum.
- Partners' revenue grew by 30% year over year, reflecting success in capturing the professional market.
- The AI website builder has been a significant driver of conversion and purchase behavior, with over 1 million sites created.
- The company reported its first year of positive GAAP operating income, marking a significant financial milestone.
Negative Points
- There was a modest negative FX impact in Q4 due to elevated FX volatility, affecting bookings and revenue.
- Transaction revenue was lower than expected in Q4 due to situational GPV headwinds and FX impacts.
- The company is not modeling double-digit growth for self-creators in 2025, indicating potential challenges in this segment.
- There is a significant FX headwind anticipated for 2025, impacting the financial outlook.
- Despite strong performance, the net subscriber growth has been deemphasized as a KPI, which may concern some investors.
