Intriguing Stock: Wix.com Ltd. (NASDAQ: WIX)

On 23 Jan 2020, Wix.com Ltd. (NASDAQ: WIX) changed 0.29% to recent value of $140.41. The stock transacted 264121 shares during most recent day however it has an average volume of 553.98K shares. It spotted trading -9.85% off 52-week high price. On the other end, the stock has been noted 38.35% away from the low price over the last 52-weeks.

Wix.com Ltd. (WIX) recently stated strong financial results for the third quarter ended September 30, 2019. In addition, the Company provided its outlook for the fourth quarter 2019 and updated its outlook for the full year.

“The investment in marketing to professionals we reported earlier this year is already showing positive returns as agencies continue to increase their engagement with Wix,” stated Avishai Abrahami, Co-founder and CEO of Wix. “We continue to build out the Wix platform to provide the ability to create any website or application online, and I am excited about our momentum as we head into 2020.”

Additional Q3 2019 Results and Highlights

Revenue in the third quarter was influenced by changes in foreign exchange (FX) rates since Q3 guidance was provided in July, as well as a change in revenue mix in the quarter

Collections in the third quarter were influenced by changes in FX rates since Q3 guidance was provided in July. Assuming constant FX rates since Q3 guidance was issued in July, Q3 collections were $207.0M, up 27% y/y

Gross margin on a GAAP basis in the third quarter of 2019 was 73%, contrast to 79% in the third quarter of 2018

Non-GAAP gross margin in the third quarter of 2019, calculated as non-GAAP gross profit as a percent of revenue, was 74%, contrast to 80% in the third quarter of 2018

GAAP operating loss in the third quarter of 2019 was $(20.6M), contrast to GAAP operating loss of $(3.5)M in the third quarter of 2018

Non-GAAP operating income in the third quarter of 2019 was $12.3M contrast to non-GAAP operating income of $16.3M in the third quarter of 2018.

GAAP net loss in the third quarter of 2019 was $(17.4M), or $(0.34) per share, contrast to a net loss of $(5.9)M, or $(0.12) per share, for the third quarter of 2018

Non-GAAP net income in the third quarter of 2019 was $20.8M, or $0.41 per share, contrast to non-GAAP net income of $18.8M, or $0.39 per share for the third quarter of 2018

Net cash provided by operating activities in the third quarter of 2019 was $36.1M, while capital expenditures totaled $6.8M, leading to free cash flow of $29.2M, contrast to $23.7M of free cash flow in the third quarter of 2018, a 23% year-over-year increase

Added 114,000 net premium subscriptions in the third quarter of 2019 to reach 4.4M as of September 30, 2019, a 15% increase over the total number of premium subscriptions at the end of the third quarter of 2018

Added 5.5M registered users in the third quarter of 2019. Registered users as of September 30, 2019 were 160M, representing a 17% increase contrast to the end of the third quarter of 2018

WIX has a gross margin of 75.80% and an operating margin of -9.00% while its profit margin remained -9.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 33.50% for this year while earning per share for the next 5-years is expected to reach at 14.09%.  The company has 50.9M of outstanding shares and 49.78M shares were floated in the market. According to the most recent quarter its current ratio was 2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 6.10% from the mean of 20 days, 10.97% from mean of 50 days SMA and performed 5.72% from mean of 200 days price. Company’s performance for the week was -1.10%, 19.71% for month and YTD performance remained 14.73%.

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