WIX - Embedded Expectations Analysis - 2021 10 06
Wix.com Ltd. (WIX:USA) currently trades at a significant premium to UAFRS-based (Uniform) assets, with a 9.8x Uniform P/B. At these levels, the market is pricing in expectations for profitability to inflect positively, but management may have concerns about their ARPU, pull forward conversion rates, and Vistaprint partnership.Specifically, management may lack confidence in their ability to sustain record average revenue per user (ARPU), achieve Wix Payment targets, and continue strong Editor X growth performance. In addition, they may be overstating the quality of their product development and the potential of B2B deals such as the Vistaprint partnership. Finally, they may lack confidence in their ability to maintain pull forward conversion in users and they may have concerns about the future trajectory of the Delta variant and its impact on their business.
Wix.com develops and markets an internet service that allows users to create web content. Co. is a global web development platform enabling businesses and organizations to take their businesses, brands and workflow online. Co.'s core product is the Wix Editor, a drag-and-drop visual development and website editing environment complete with high quality templates, graphics, image galleries and fonts. With Co.'s platform, Wix registered users can create and manage a professional quality digital presence tailored to their business and brands' specific look and feel that is accessible across all major browsers and the most widely used desktop, tablet and mobile devices.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.