Wix.com (WIX), which provides an online platform for people to create websites, is set to report Q1 results tomorrow before the open (last quarter they released at 1:00 ET as co is based in Israel) with a conference call to follow at 8:30am ET. 

The CapitalIQ consensus estimate for Q1 non-GAAP EPS is $0.08.

The revenue consensus estimate is $173.0 mln. Note: WIX typically guides in the press release for revenue for both the next quarter and the full year. On February 20, WIX guided to Q1 revenue of $172-173 mln, so analysts are right in-line with the guidance. WIX also guided to 2019 revs of $755-761 mln, so we'll see if the company maintains that or provides an update. 

The thing to understand with WIX is that it uses a freemium model. It offers some free products (must become a registered user) with the hope they will upgrade to paid subscribers at some point. However, last quarter, WIX announced it was trying to evolve its business a bit by removing its lowest price plan in Q1. WIX has also been experimenting with some base price increases for some other products. It will be interesting to see if there has been pushback from customers to these price increases. 

In terms of recent product launches, in December, WIX launched Ascend by Wix, a suite of 20 products that allows businesses to easily connect with and manage their customer base, as well as promote and grow their brand. It's also launching Wix Turbo, which speeds up Wix websites and WIX began the rollout of Wix Payments. It'll be important to listen for how these product launches are doing. 

In terms of recent performance relative to consensus estimates, WIX has been doing quite well. It has reported double digit EPS beats in the $0.10-0.15 range in each of the past three quarters. The revenue upside has been there as well but has been more muted. 

TECHS:

The stock has been on quite a move lately, going from $80 in late December to above $140 currently. Clearly investors are pleased with WIX's recent results and the stock has been trading like another large beat is expected. That tells us investor expectations are running pretty higher heading into this Q1 report, so be careful. Any shortfall or modest beat could cause a pullback in the stock.


TRADE: MAY17 155C & 135P