Initiating Coverage of Wix.com With a Narrow Moat Rating and $148 Fair Value Estimate

Wix.com offers a software-as-a-service, or SaaS, content management system, or CMS, for building websites. The company primarily earns revenue by selling subscriptions to its platform where users can easily build, host, and maintain a website. Wix’s core value proposition is the ease of use of its main platform, Wix Editor, which appeals to do-it-yourself individuals and small and midsize businesses with less demanding website requirements (“self-creators”). However, Wix is now moving upmarket by targeting agencies and freelancers (“partners”) who build websites on behalf of others, mainly midsize businesses. Furthermore, Wix has widened its product offering to include a variety of add-ons to a user’s website such as payment services, email marketing, paid ad campaigns, Google Workspace, and a collection of apps created by Wix and third parties.