Wix (WIX) will release its fourth-quarter earnings before the U.S. market opens on February 16.
The firm operates a cloud platform that enables businesses to rapidly and easily create highly customizable websites and mobile applications, allowing them to expand their online presence.
Being that it’s a cloud-based web development platform, tracking user visits to Wix’s website is critical for determining the popularity of its solutions and products. Notably, Wix’s revenues are mostly derived from subscriptions, and therefore more visitors might result in more subscriptions, resulting in more revenues for the firm, and vice versa.
As a result, we looked into Wix’s monthly user data, using TipRanks’ new website tool, to gain a better understanding of the company’s current state, ahead of the Q4 print.
What User Visit Details Showed Us
We found out from the tool that total projected visits to the Wix website increased in Q4. Notably, the total global visits to wix.com increased 1.2% sequentially to 127.7 in the fourth quarter.
The graph above indicates that Wix’s platform continues to grow in popularity as the business environment improves. The rising monthly visit figures could mean more new users joining Wix’s website and possibly higher conversions of these users to paid subscribers. This would undoubtedly enhance the company’s top-line numbers and, as a result, its profit margins.
However, on a year-over-year basis, TipRanks new website tool revealed that website visits to wix.com were down 10.3% in Q4 2021 compared to Q4 2020.
The graph plainly illustrates that the number of subscribers has decreased over the past year. Wix, like other lockdown beneficiaries, benefited from pandemic tailwinds, but the firm has been tumbling back amid the broader economic reopening. The stock has also decreased by nearly 52% in the last year.
Nevertheless, Wix’s website builder is becoming more user-friendly. Furthermore, the pandemic has ushered in a new era in which most businesses must have an online presence. As a result, there might be significant upside potential in subscription numbers, even in the post-pandemic world.
Wall Street’s Take
Wall Street analysts are cautiously optimistic on Wix, with a Moderate Buy consensus rating based on 4 Buys and 4 Holds. The average Wix stock prediction of $200.13 implies upside potential of approximately 72.1% to current levels for this stock.
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