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    Insight
    published
    2025-12-30

    WIX report

    Stock Analysis Template

    Company Information

    • Name: WIX
    • Ticker: WIX
    • Sector: Technology
    • Market Cap: [Market Cap]

    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

    YearRevenueNet IncomeGross ProfitOp. Cash Flow
    20241.76B138.32M1.20B497.42M
    20231.56B33.14M1.05B248.25M
    20221.39B-424.86M861.44M37.15M
    20211.27B-117.21M781.08M65.69M
    2020984.37M-166.87M671.35M148.05M

    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?