Wix.com reported 4th quarter earnings this morning that bested estimates, while also raising revenue guidance for 2017. This is the 6th straight quarter that the company has beat their own estimates and raised guidance - a trend that is likely to continue. What was more impressive, was Free Cash Flow, which came in at $18.69 million, a 122% increase from the year-ago period and a $9 million increase from quarter 3. A quick snapshot:
Wix.com now expects to grow another 41-42% in 2017, after growing 43% in 2016. To put this in perspective, at the start of last year the company guided for 35% - 37% growth in 2016. I fully expect further raises to revenue guidance as the year progresses. Wix.com also announced they had surpassed the 100 million registered user milestone.
The scary part about this company is not only are they a growth monster, but they are on the path of becoming a cash generating machine. This earnings report adds more conviction to my bull case on the name, and think $80+ is a foregone conclusion in 2017, and think $60+ is possible this week. Will have a more detailed drill-down on the company, fundamentals, and prospects in the coming weeks.