Wix Posts Three EPS Beats, But Forward Estimates Fall
Wix.com has beaten Wall Street's earnings estimates in three of its last four reported quarters — with surprises as wide as 23% — yet analysts continue to cut forward earnings estimates and nearly one
Wix Posts Three EPS Beats, But Forward Estimates Fall
NEW YORK, October 12 —
Three earnings beats in four quarters have done little to quiet the skeptics around Wix.com Ltd. (WIX): analysts continue cutting forward estimates, 18.9% of the float remains sold short, and six senior executives cashed out at $95.00 per share in September, $18.44 above where the stock now trades.
- EPS surprises of 23.1%, 14.9%, and 12.7% in three of the last four reported quarters; analysts cutting forward estimates.
- Trailing twelve-month revenue $2.13B, up 14.9%; $442M free cash flow; forward P/E 11.2×.
- Six executives sold at $95.00 per share on September 1; shares now $76.56, $18.44 below their exit price.
The Business Behind the Beat
Wix.com operates a cloud-based web platform whose products range from the visual Wix Editor to Wix Studio for professional developers, the full-stack Velo development environment, and a commerce layer including Wix Stores, Wix POS, and Payments by Wix. Trailing twelve-month revenue reached $2.13 billion, up 14.9%, on 66.6% gross margins, generating $442 million in free cash flow against a net debt position of $1.08 billion. The forward P/E of 11.2×, stress-testable via the DCF calculator, sits low enough to look like value if operating leverage holds, but the multiple rests entirely on analyst estimates of future non-GAAP profitability, and those estimates are currently moving in the wrong direction.
The Selling Pattern
On August 31, six senior Wix executives, including CEO Avishai Abrahami and CFO Lior Shemesh, purchased shares at $59.89, then sold identical quantities at $95.00 the following day, realizing a $35.11-per-share spread consistent with option exercises. Routine compensation mechanics, on paper. But President Nir Zohar had already sold 29,000 additional shares on August 25 at $85.22 to $85.92, realizing roughly $2.57 million in a transaction unconnected to any matching buy. Net 90-day insider activity totals $190,000 in purchases against $3.35 million in sales, an 18:1 ratio, with every insider exit priced well above the stock's current $76.56.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| WIX | $3.2B | 11.2x | -43.8% |
| FVRR | $313M | 6.7x | -61.5% |
| HUBS | $11.4B | 13.6x | -49.3% |
| APPN | $2.9B | 28.3x | +40.6% |
| OKTA | $40.6B | 53.0x | +157.5% |
| TEAM | $52.3B | 30.7x | +38.4% |
One Number Changes the Thesis
The market appears to have already absorbed the insider exits: Wix shares gained 1.6% over the past month, outpacing the S&P 500's 1.4% while the Zacks IT Services sector lost 5%. The 18.9% short float is the key sentiment gauge, and those positions need both sustained EPS beats and stable-to-rising forward estimates to unwind. Analysts are currently supplying neither. If forward estimates hold through the next earnings cycle, the short position faces real pressure. Another round of cuts would reinforce it. Run the free Wix.com Ltd. deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Wix.com has beaten Wall Street's earnings estimates in three of its last four reported quarters — with surprises as wide as 23% — yet analysts continue to cut forward earnings estimates and nearly one-fifth of the float remains sold short. That combination of demonstrated execution and professional skepticism sits at the heart of the bull-bear debate on the stock.
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