Wix: strong attach on a base that is not growing

Attach on the new modules is genuinely strong. Underlying seats are flat, and seats are the denominator the entire model runs on.

Elena Petrova@elena_petrova

The constraint is the seat count. Consumption pricing sits on top of seats, so a flat denominator caps the expansion motion regardless of how well the new product attaches. Seats are the number management stopped emphasising. The metric moved from the release to the supplemental this year, and the growth rate in the supplemental is roughly flat. The position: no call. This is a name I want to own and not at this level, so there is nothing locked here and nothing for the record to grade. If the entry improves I will say so in a piece that does carry a call. Multiple compression across the sector is the risk that is not company-specific and not hedged here. It would overwhelm the operating argument in either direction.

Discussion · 3

Pauline VidalAUG 19

Good piece. The utilisation assumption is where I disagree. What would you need to see to add rather than hold?

Noa BergmanAUG 19

Agree with the direction, less with the magnitude. The destocking signature is textbook and nobody is naming it. Does the same logic apply to the closest comparable?

Omri ShakedAUG 18

Thanks for showing the workings. The utilisation assumption is where I disagree. Curious whether you would still size it the same at a higher entry.

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