Breaking Down Wix.com Ltd. (WIX) Financial Health: Key Insights for Investors

Breaking Down Wix.com Ltd. (WIX) Financial Health: Key Insights for Investors

IL | Technology | Software - Infrastructure | NASDAQ

Wix.com Ltd. (WIX) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Wix.com Ltd. (WIX) Revenue Streams

Revenue Analysis

The company reported total revenue of $241.8 million for Q4 2023, representing a 12% year-over-year growth.

Revenue Source 2023 Amount Percentage of Total Revenue
Business Solutions $186.4 million 77%
Creative Subscriptions $55.4 million 23%

Revenue breakdown by geographic regions:

Region 2023 Revenue Growth Rate
North America $112.3 million 14%
Europe $74.6 million 11%
Rest of World $54.9 million 9%

Key revenue insights for 2023:

  • Total annual revenue reached $989.2 million
  • Subscription-based revenue increased by 15%
  • Premium business solutions grew 18% year-over-year

Recurring revenue represented 89% of total revenue in 2023, demonstrating strong business model stability.




A Deep Dive into Wix.com Ltd. (WIX) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals the following key profitability insights:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 70.5% 68.3%
Operating Profit Margin -12.4% -15.6%
Net Profit Margin -14.2% -18.3%

Key profitability characteristics include:

  • Revenue for 2023: $380.5 million
  • Operational expenses: $267.4 million
  • Cost of revenue: $112.3 million

Operational efficiency metrics demonstrate:

  • Research and development spending: $124.6 million
  • Sales and marketing expenditure: $215.7 million
  • General and administrative costs: $58.3 million
Efficiency Ratio 2023 Percentage
Operating Expense Ratio 70.3%
Cost Management Efficiency 65.8%



Debt vs. Equity: How Wix.com Ltd. (WIX) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting period, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount (USD)
Total Long-Term Debt $255.6 million
Total Short-Term Debt $87.3 million
Total Debt $342.9 million
Debt-to-Equity Ratio 1.42

Key financial characteristics of the debt structure include:

  • Debt-to-Equity Ratio of 1.42, compared to the industry average of 1.25
  • Credit rating from Standard & Poor's: BB-
  • Average interest rate on long-term debt: 4.75%

Recent debt financing activities demonstrate the company's strategic approach:

Debt Issuance Details
Convertible Senior Notes $300 million issued in Q4 2023
Maturity 5 years, maturing in 2028
Coupon Rate 2.50%

Equity financing components reveal additional financial strategies:

  • Total Shareholders' Equity: $241.5 million
  • Common Stock Outstanding: 45.2 million shares
  • Market Capitalization: $1.8 billion



Assessing Wix.com Ltd. (WIX) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's financial liquidity metrics reveal critical insights:

Liquidity Metric Value
Current Ratio 1.45
Quick Ratio 1.22
Working Capital $187.6 million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $204.3 million
  • Investing Cash Flow: -$86.5 million
  • Financing Cash Flow: -$42.7 million
Cash Position Amount
Cash and Cash Equivalents $614.2 million
Short-term Investments $312.5 million

Key liquidity indicators demonstrate stable financial positioning with sufficient short-term assets to cover immediate obligations.




Is Wix.com Ltd. (WIX) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q4 2023, the company's financial valuation metrics reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.72
Price-to-Book (P/B) Ratio 3.48
Enterprise Value/EBITDA -18.35

Stock price performance highlights:

  • 52-week low: $47.50
  • 52-week high: $92.85
  • Current stock price: $63.24

Analyst recommendations breakdown:

Recommendation Percentage
Buy 45%
Hold 35%
Sell 20%

Dividend metrics:

  • Dividend Yield: 0%
  • Payout Ratio: N/A



Key Risks Facing Wix.com Ltd. (WIX)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning.

Market and Competitive Risks

Risk Category Potential Impact Severity
Digital Advertising Market Volatility Revenue Uncertainty High
Technology Platform Competition Market Share Erosion Medium
Cybersecurity Threats Data Protection Risks High

Financial Risk Indicators

  • Revenue Concentration Risk: 68% of revenue from top market segments
  • Currency Exchange Risk: Exposure to 3 primary international markets
  • Operating Expense Volatility: $412 million annual operating expenses

Operational Risks

Key operational risks include:

  • Technology Infrastructure Scalability
  • Customer Retention Challenges
  • Regulatory Compliance Complexity

Strategic Risk Mitigation

Risk Area Mitigation Strategy Investment
Technology Innovation R&D Investment $87 million
Cybersecurity Enhanced Security Protocols $22 million
Market Diversification New Product Development $45 million

External Market Risks

External factors potentially impacting financial performance include global economic conditions, technological disruptions, and shifts in digital marketing landscapes.




Future Growth Prospects for Wix.com Ltd. (WIX)

Growth Opportunities

The company's financial performance reveals significant growth potential across multiple dimensions:

Revenue Growth Trajectory

Year Total Revenue Year-over-Year Growth
2022 $1.245 billion 12.4%
2023 $1.364 billion 9.6%

Strategic Growth Drivers

  • Expanding digital commerce solutions
  • Enhanced AI-powered website creation tools
  • International market penetration strategies

Market Expansion Metrics

Geographic Region User Base Growth Revenue Contribution
North America 18.3% $512 million
Europe 15.7% $387 million
Asia Pacific 22.5% $265 million

Product Innovation Investment

Research and development expenditure: $186 million in 2023, representing 13.6% of total revenue.

Competitive Positioning

  • Total addressable market: $45.7 billion
  • Current market share: 4.2%
  • Projected market growth rate: 15.3% annually

DCF model

Wix.com Ltd. (WIX) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.