Wix(WiX) will release its fourth quarter results before the U.S. market opens on February 16.
The company operates a cloud-based platform that allows businesses to quickly and easily build highly customizable websites and mobile apps, allowing them to expand their online presence.
Since it is a cloud-based web development platform, tracking user visits to the Wix website is key in determining the popularity of its solutions and products. Notably, Wix’s revenue comes primarily from subscriptions, and so more visitors could lead to more subscriptions, leading to more revenue for the business, and vice versa.
As a result, we looked at Wix’s monthly user data, using TipRanks’ new website tool, to better understand the current state of the business, ahead of Q4 printing.
What the user’s visit details showed us
We discovered through the tool that the total number of predicted visits to the Wix website increased in the fourth quarter. Notably, 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. Increased monthly visit numbers could mean more new users joining the Wix website and possibly higher conversions of those users into paying subscribers. This would undoubtedly improve the company’s turnovers and, consequently, its profit margins.
However, on a yearly basis, new website tool TipRanks revealed that website visits to wix.com were down 10.3% in Q4 2021 compared to Q4 2020.
The graph clearly illustrates that the number of subscribers has decreased over the past year. Wix, like other lockdown beneficiaries, has benefited from the tailwinds of the pandemic, but the business has plummeted amid the broader economic reopening. The stock is also down nearly 52% over the past year.
Nevertheless, Wix’s website builder is getting more and more user-friendly. Additionally, the pandemic has ushered in a new era in which most businesses must have an online presence. As a result, there could be significant upside potential in subscription numbers, even in the post-pandemic world.
The Taking of Wall Street
Wall Street analysts are cautiously bullish on Wix, with a Moderate Buy consensus rating based on 4 buys and 4 takes. The average Wix stock forecast of $200.13 implies approximately 72.1% upside potential from current levels for this stock.
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