RBC Capital Reiterates Bullish Stance on Wix.com (WIX) Amid Strong Q3 Results and Outlook

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and $26 price target on Wix.com (NASDAQ: WIX) following a strong beat on the top- and bottom-line and raised Q4 guidance.

The keys in the quarter, according to the analyst: – 1) Collections grew 70% Y/Y – slightly below prior quarter trends but still intrinsically high; 2) Deferred Revenue grew $7MM Q/Q – 2nd biggest increase we have tracked, increases confidence in growth outlook; 3) Net New Subscribers – 3rd consecutive quarter of +100k adds to 1,125K in total & 54.1M Registered Users; 4) ARPU up 9% Y/Y to $35 – less than 11%Y/Y gain in the four prior qrtrs but still strong and shows purchase of bigger packages and Wix App Market traction; 5) Cohort disclosure shows consistently rising Subscriber penetration – especially in newer cohorts (’13 & ’14) with improved product offerings; & 6) WIX continuing to expand vertical markets – with acquisition of OpenRest, build-out of WixHotels and new e-commerce platform WixStores.

The firm's '15 Revenue estimate goes up 9% to $211MM (50% Y/Y growth), and Wix Adj. EBITDA decreases to $7.1MM.

For an analyst ratings summary and ratings history on Wix.com click here. For more ratings news on Wix.com click here.

Shares of Wix.com closed at $16.94 yesterday.

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