Core Insights - Wix.com Ltd. (NASDAQ:WIX) is identified as one of the 10 most undervalued stocks to buy and hold for a decade, with an Overweight rating and a price target of $130 set by Cantor Fitzgerald following the company's fourth-quarter results [1][2] Financial Performance - In the fourth quarter, Wix reported revenues and bookings that were in line with consensus estimates, achieving an EPS of $1.81, which exceeded Wall Street's consensus estimate of $1.42 [1] Growth Strategy - Wix's growth strategy is significantly influenced by its two AI-led initiatives, Base44 and Wix Harmony, which are expected to reshape the company's long-term growth trajectory [2] - Base44 is projected to generate $100 million in annual recurring revenue, presenting a generational opportunity for Wix in the AI-native application building sector [2] - Base44 is already gross-margin positive and is expected to surpass the previous 2026 revenue estimate of $108 million due to rapid product development and effective marketing strategies, including high-profile initiatives like the Super Bowl [2] Company Overview - Wix.com Ltd. operates a web development platform for creators, offering a range of services through a Software-as-a-Service model, including website templates, builders, designs, an app market, web hosting, domain names, and an AI website builder [3]

Core Insights - The article discusses the 10 most undervalued stocks to buy and hold for a decade, highlighting the potential for significant returns as market conditions improve [5]. Market Context - Geopolitical events are influencing global markets, prompting investors to seek signs of market bottoms to buy equities at lower prices before a recovery [2]. - Tom Lee from Fundstrat Global Advisors suggests that while certainty about market bottoms is elusive, current trends indicate a potential bottom formation [2][3]. - The markets have shown resilience against global concerns, suggesting opportunities may arise post-market downturn [3]. Indicators of Market Bottom - Lee identifies the VIX index, particularly spikes over 40, as a key indicator of market bottoms, noting it reached 80 points last year but is not expected to do so again soon [4]. - Another indicator is the behavior of gold prices; if gold sells off while stocks rise after negative headlines, it may signal a market bottom [4]. Stock Selection Methodology - Stocks were identified based on expected earnings growth of at least 30% over the next five years and a forward price-to-earnings ratio between 6x and 18x [7]. - The selection focused on companies with recent noteworthy developments likely to impact investor sentiment and those favored by analysts and hedge funds [7][8]. Wix.com Ltd. (NASDAQ:WIX) - Wix.com is highlighted as one of the undervalued stocks, with Cantor Fitzgerald maintaining an Overweight rating and a price target of $130 following its fourth-quarter results [10]. - The company reported an EPS of $1.81, exceeding Wall Street's estimate of $1.42, with revenues and bookings aligning with consensus [10]. - Wix's AI-driven growth initiatives, Base44 and Wix Harmony, are expected to significantly contribute to long-term growth, with Base44 projected to generate $100 million in annual recurring revenue [11]. Primo Brands Corp. (NYSE:PRMB) - Primo Brands is also listed among the undervalued stocks, with Jefferies raising its price target to $24 from $20 after its fourth-quarter report [13]. - The company reported a 2.5% decline in net sales to $1.554 billion but saw an increase in premium brand sales and adjusted EBITDA due to strategic focus and operational improvements [13]. - Challenges are anticipated in the first half of 2026, but growth is expected to return in the second half with new capacity coming online [14].

Core Viewpoint - Wix.com Ltd has initiated a significant share repurchase program through a modified Dutch auction tender offer, aiming to buy back up to $1.75 billion of its shares, reflecting confidence in its long-term growth prospects and addressing the current depressed stock levels [2][3]. Group 1: Share Repurchase Details - The tender offer is set to buy back shares at a price range of $80 to $92 per share, compared to a prior closing price of $83.78 [2]. - The offer is scheduled to expire on April 1, unless extended or terminated, and is not subject to a minimum tender condition or financing contingency [2]. Group 2: Financial Performance - Wix reported a 14% year-over-year revenue growth in the fourth quarter, reaching $524.27 million, with adjusted earnings of $1.81 per share, surpassing analyst expectations [4]. - The company is also pursuing a broader $2 billion repurchase plan through 2026 and has announced a private placement of up to $250 million for general corporate purposes and investments in AI-driven products [4]. Group 3: Stock Performance and Analyst Consensus - Over the past year, Wix's stock has seen a significant decline from a high of $197.53 to a low of $62.80, indicating a bearish trend confirmed by trading below its moving averages [5]. - Despite the bearish trend, the stock maintains a Buy rating from analysts, with an average price target of $168.67, although some analysts have lowered their targets [6].

Core Insights - Base44 is being utilized for diverse projects, including CRM, project management, ERP systems, and financial reporting, with organic adoption noted as there is no sales team involved [1] - Base44 has achieved approximately $100 million in Annual Recurring Revenue (ARR) within a year of its founding and nine months post-acquisition by Wix, marking it as one of the fastest-growing software platforms [2] - The market opportunity for Wix has expanded significantly due to the capabilities of Base44, allowing users to create tailored software applications and websites [3] Product Development and Performance - Wix Harmony integrates visual editing with "vibe coding" through a unified AI layer, with early performance showing positive trends in conversion and monetization [4] - The company is transitioning from a DIY website builder to a comprehensive online creation platform for various user types, emphasizing the real-world value of AI [5] Financial Performance - In Q4 2025, total bookings reached $535 million, a 15% year-over-year increase, while revenue was $524 million, up 14% [7] - For the full year, bookings totaled $2.07 billion and revenue was $1.993 billion, both reflecting a 13% year-over-year growth [7] - Base44 contributed significantly to growth, finishing 2025 with approximately $59 million of ARR above initial expectations [8] User Cohorts and Retention - New user cohorts showed strong momentum, with double-digit growth in bookings for the core Wix business in Q4, driven by improved conversion rates and monetization [15] - Wix's net revenue retention was 105% in 2025, indicating resilient retention metrics despite external pressures [16] Future Outlook - The company anticipates mid-teens year-over-year growth in consolidated bookings and revenue for 2026, with a focus on optimizing Base44's growth trajectory [17] - Wix expects a low- to mid-20% free cash flow margin for 2026, with potential pressures from investments in Base44 [18] Capital Strategy - Wix plans to complete a $2 billion stock repurchase program aggressively during 2026, reflecting confidence in its business value [20] - A $250 million equity investment led by Durable Capital Partners is seen as an endorsement of Wix's long-term vision [21]

Core Insights - Wix.com Ltd (WIX) reported non-GAAP earnings per share (EPS) of $1.81 for Q4 2025, surpassing the Zacks Consensus Estimate of $1.36, although down from $1.93 in the same quarter last year [1][9] - Quarterly revenues increased by 14% year over year to $524.3 million, but fell short of the Zacks Consensus Estimate of $528 million. For the full year 2025, revenues reached $1.99 billion, reflecting a 13% increase [2][9] Revenue Breakdown - Creative Subscriptions, accounting for 70.6% of total revenues, saw a 12% year-over-year increase to $370.4 million. Business Solutions, making up 29.4% of total revenues, rose 18% to $153.8 million [5] - Total annualized recurring revenues (ARR) for the quarter were $1.84 billion, up 14% year over year, with bookings improving by 15% to $534.5 million [5] Strategic Developments - Wix's strategic investments in AI through Wix Harmony and Base44 are noteworthy, with Base44 achieving $100 million in ARR within one year of its founding, significantly expanding Wix's Total Addressable Market [3] - The company announced a $250 million private placement led by Durable Capital Partners, aimed at reinforcing market confidence and funding AI innovation [4] Operating Performance - Non-GAAP gross margin was reported at 68%, down from 70% a year ago, with Creative Subscriptions achieving a gross margin of 83% and Business Solutions at 34% [7] - Non-GAAP operating income for the quarter was $81.2 million, compared to $100.5 million in the previous year [7] Financial Position - As of December 31, 2025, Wix had cash and cash equivalents of $311.4 million, a decrease from $889.6 million as of September 30, 2025 [8] - Cash flow from operations amounted to $158.3 million, up from $133.7 million year over year, with free cash flow reported at $155.6 million [10] Shareholder Returns - During the quarter, Wix repurchased approximately 750,000 shares for $100 million and plans to aggressively execute its $2 billion share buyback program [11] Future Outlook - For 2026, Wix anticipates mid-teens revenue growth and similar growth in bookings, indicating strong demand momentum. Free cash flow margins are projected in the low-to-mid-20% range, with potential fluctuations based on investments in Base44 [12]

Core Insights - Wix.com Ltd. is a leading cloud-based web development platform known for its user-friendly interface and innovative products, competing with platforms like Squarespace and WordPress [1] Financial Performance - For Q4 2026, Wix reported earnings per share (EPS) of $1.81, exceeding expectations of $1.36, while revenue was $524.3 million, slightly below the forecast of $546.2 million [2][6] - The company achieved a 15% year-over-year increase in fourth-quarter bookings, reaching $535 million, driven by new cohort momentum and the success of Base44, which has an annual recurring revenue of $100 million [3] Growth Outlook - Wix anticipates mid-teens top-line growth in 2026, supported by product innovations such as Base44 and Wix Harmony, which are already showing strong early conversion and monetization [4][6] - The company expects its free cash flow margin to be in the low- to mid-20% range, indicating strategic investments in product development [4] Strategic Initiatives - Wix plans to complete most of its $2 billion share repurchase program in 2026, reflecting confidence in its long-term strategy [5] - A $250 million equity investment led by Durable Capital Partners underscores market confidence in Wix's future [5] Valuation Metrics - Wix has a P/E ratio of 29.79 and a price-to-sales ratio of 2.15, indicating positive market valuation of its earnings and sales [5] - The company's current ratio of 1.62 suggests strong liquidity, while a negative debt-to-equity ratio of -5.64 indicates more liabilities than equity [5]

Financial Data and Key Metrics Changes - Total bookings in Q4 2025 reached $535 million, up 15% year-over-year, while total revenue was $524 million, up 14% year-over-year [19] - For the full year 2025, total bookings grew to $2.07 billion, up 13% year-over-year, and total revenue was $1.993 billion, also an increase of 13% year-over-year [24] - Non-GAAP gross margin for Q4 was 68%, slightly down year-over-year, while non-GAAP operating income was 15% of revenue [22] - Free cash flow for Q4 was $156 million, representing 30% of revenue, and for the full year 2025, free cash flow was $605 million, also 30% of revenue [24][25] Business Line Data and Key Metrics Changes - New user cohorts in the core Wix business maintained double-digit growth in Q4, driven by higher conversion rates from free to paid subscriptions and increased monetization per user [11] - Base44 finished the year with approximately $59 million of ARR, exceeding expectations, and recently reached approximately $100 million of ARR, marking it as one of the fastest-growing software platforms [19][9] - Paid subscription volume in key markets, particularly the U.S., increased year-over-year in 2025, with business subscriptions making up a larger share of the total subscription mix [14] Market Data and Key Metrics Changes - Gross Payment Volume (GPV) grew 11% year-over-year to $3.7 billion in Q4 and 11% year-over-year to $14.3 billion for the full year [20] - Partners revenue grew 21% year-over-year to $203 million in Q4, driven by strong adoption of Google Workspace and marketing solutions [21] Company Strategy and Development Direction - The company aims to reshape online creation through AI, with Wix Harmony and Base44 as cornerstone offerings [4][8] - Wix Harmony is designed to simplify website creation and is expected to drive long-term impacts on conversion, engagement, retention, and monetization [7] - Base44 is expanding the company's reach into software creation, with a rapidly growing user base and significant adoption from businesses and enterprises [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and execution capabilities, anticipating that 2026 will be a pivotal year for growth driven by innovations in AI [10][18] - The company expects bookings and revenue growth to accelerate in 2026, with a guidance of mid-teens percentage growth year-over-year [26] - Management noted that the current stock performance undervalues the opportunities and fundamental strength of the business [16] Other Important Information - The company plans to complete a $2 billion stock repurchase program this year, reflecting confidence in its strategic plan [16] - The partnership with Durable Capital Partners, which led a $250 million equity investment, is seen as a strong endorsement of the company's long-term vision [16] Q&A Session Summary Question: Can you rank the contributors to organic growth in the full year bookings guide? - Management indicated no significant changes in pricing assumptions and that guidance reflects growth within the core business and Base44 [31] Question: What types of businesses are using Base44? - Management noted a wide variety of applications being built, from personal projects to enterprise solutions, indicating a diverse user base [33] Question: How far upmarket do you expect Base44 to go? - Management acknowledged the potential for Base44 to serve both personal and enterprise needs, with ongoing efforts to segment the market effectively [40] Question: Can you provide insights on the growth of Base44? - Management highlighted that the growth is driven by brand awareness and effective marketing, with a significant increase in user base and product improvements [78] Question: How do you estimate the LTV and payback period for Base44? - Management stated that they are currently seeing less than one year of ROI and plan to invest in growth, expecting acquisition costs to increase in 2026 [52]

Financial Data and Key Metrics Changes - Total bookings in Q4 2025 reached $535 million, up 15% year-over-year, while total revenue was $524 million, up 14% year-over-year [19] - For the full year 2025, total bookings grew to $2.07 billion, an increase of 13% year-over-year, and total revenue was $1.993 billion, also up 13% year-over-year [24] - Non-GAAP gross margin for Q4 was 68%, slightly down year-over-year, while non-GAAP operating income was 15% of revenue [22] - Free cash flow for Q4 was $156 million, representing 30% of revenue, and for the full year 2025, free cash flow was $605 million, also 30% of revenue [25] Business Line Data and Key Metrics Changes - New user cohorts in the core Wix business maintained double-digit growth in Q4, driven by higher conversion rates from free to paid subscriptions and increased monetization per user [11] - Base44 finished the year with approximately $59 million of ARR, exceeding expectations, and recently reached approximately $100 million of ARR, marking it as one of the fastest-growing software platforms [19][9] - Paid subscription volume in key markets, particularly the U.S., increased year-over-year in 2025, with business subscriptions making up a larger share of the total subscription mix [14] Market Data and Key Metrics Changes - Gross Payment Volume (GPV) grew 11% year-over-year to $3.7 billion in Q4 and 11% year-over-year to $14.3 billion for the full year [20] - Partners revenue grew 21% year-over-year to $203 million in Q4, driven by strong adoption of Google Workspace and marketing solutions [21] Company Strategy and Development Direction - The company aims to reshape online creation through AI, with Wix Harmony and Base44 as cornerstone offerings [7][8] - Wix Harmony is positioned as a unified AI layer for website creation, expected to drive long-term impacts on conversion, engagement, and monetization [8] - Base44 is expanding the company's reach into software creation, with a rapidly growing user base and significant adoption from various industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan and the potential for growth as the internet shifts towards AI [10] - The company anticipates bookings and revenue growth to accelerate in 2026, driven by new cohort momentum and the continued outperformance of Base44 [26] - Management noted that the current stock performance undervalues the company's opportunities and fundamental strength [16] Other Important Information - The company plans to complete a $2 billion stock repurchase program this year, demonstrating confidence in its strategic plan [16] - The partnership with Durable Capital Partners, which led a $250 million equity investment, is seen as a strong endorsement of the company's long-term vision [16] Q&A Session Summary Question: Can you rank the contributors to organic growth in the full year bookings guide? - Management indicated no significant changes in pricing or GPV payments, reflecting growth within the Wix core business and Base44 [32] Question: What types of businesses are using Base44? - Management noted a wide variety of applications being built, from personal projects to enterprise solutions, indicating a diverse user base [34] Question: How far upmarket do you expect Base44 to go? - Management acknowledged the potential for Base44 to serve both personal and enterprise needs, with ongoing efforts to segment the market [40] Question: What accelerated Base44's growth? - Management attributed the growth to increased brand awareness, effective marketing, and continuous product improvements [78] Question: How do you estimate the LTV or payback period for Base44? - Management stated that they are currently seeing less than one year of ROI and plan to increase acquisition costs in 2026 to capture market share [53]

Financial Data and Key Metrics Changes - Total bookings in Q4 2025 reached $535 million, up 15% year-over-year, while total revenue was $524 million, up 14% year-over-year [18] - For the full year 2025, total bookings grew to $2.07 billion, up 13% year-over-year, and total revenue was $1.993 billion, also an increase of 13% year-over-year [23] - Non-GAAP gross margin for Q4 was 68%, slightly down year-over-year, while non-GAAP operating income was 15% of revenue [20] - Free cash flow for Q4 was $156 million, representing 30% of revenue, and for the full year 2025, free cash flow was $605 million, also 30% of revenue [24] Business Line Data and Key Metrics Changes - New user cohorts in the core Wix business maintained double-digit growth in Q4, driven by higher conversion rates from free to paid subscriptions and increased monetization per user [10] - Base44 finished the year with approximately $59 million of ARR, exceeding expectations, and reached approximately $100 million of ARR shortly after acquisition [18][8] - Paid subscription volume in key markets, particularly the U.S., increased year-over-year in 2025, with business subscriptions making up a larger share of total subscriptions [12] Market Data and Key Metrics Changes - Gross Payment Volume (GPV) grew 11% year-over-year to $3.7 billion in Q4 and 11% year-over-year to $14.3 billion for the full year [19] - Partners revenue grew 21% year-over-year to $203 million in Q4, driven by strong adoption of Google Workspace and marketing solutions [19] Company Strategy and Development Direction - The company is focused on reshaping online creation through innovations like Wix Harmony and Base44, aiming to expand its total addressable market significantly [4][6] - Wix Harmony is positioned as a unified AI layer to enhance user experience and is expected to become the default experience for new and existing users [5][6] - The company plans to aggressively execute a $2 billion stock repurchase program, reflecting confidence in its strategic plan and business strength [15] Management's Comments on Operating Environment and Future Outlook - Management anticipates 2026 to be a pivotal year with accelerating growth driven by innovations and the expansion of AI capabilities [17] - The company expects bookings and revenue growth to accelerate in 2026, with guidance for mid-teens percentage growth year-over-year [25] - Management noted that the current stock performance undervalues the company's opportunities and fundamental strength [14] Other Important Information - The company is experiencing organic growth in Base44, with a significant portion of new users coming from enterprise-sized organizations [8] - Management highlighted the importance of maintaining a balance between user acquisition costs and growth investments, particularly in the context of Base44 [52] Q&A Session Summary Question: Can you rank the contributors to organic growth in bookings? - Management indicated no significant changes in pricing assumptions and that guidance reflects growth within the Wix core business and Base44 [30] Question: What types of businesses are using Base44? - A variety of applications are being built, from personal projects to enterprise solutions, indicating a broad user base [32] Question: How far upmarket do you expect Base44 to go? - Management noted that Base44 is seeing diverse usage, including personal and enterprise applications, and they aim to capture both segments [36][38] Question: What accelerated Base44's growth? - Growth is attributed to increased brand awareness, effective marketing, and continuous product improvements [78] Question: How do you estimate the LTV and payback period for Base44? - Management stated that they are currently seeing less than one year of ROI and expect acquisition costs to increase in 2026 due to market demand [52]

Company Overview Fourth Quarter & Full Year 2025 1 Safe Harbor Forward Looking Statements This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like "anticipate," "assume," "believe," ...