New York City-based Elwood Capital Partners disclosed a purchase of 17,710 shares of Wix.com Ltd. (WIX 2.10%) in a November 13 SEC filing, increasing the position by approximately $3.57 million.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 13, Elwood Capital Partners LP increased its holding in Wix.com Ltd. (WIX 2.10%) by acquiring 17,710 additional shares in the third quarter. The post-transaction position stands at 40,033 shares valued at $7.11 million as of September 30.
What Else to Know
The added Wix.com position brings it to 4.34% of Elwood Capital's 13F assets under management after the filing.
Top holdings after the filing:
- NASDAQ:AMZN: $13.80 million (12.6% of AUM)
- NASDAQ:MSFT: $13.07 million (12.0% of AUM)
- NYSE:TSM: $12.57 million (11.5% of AUM)
- NYSE:UNH: $12.10 million (11.1% of AUM)
- NYSE:PLNT: $7.27 million (6.6% of AUM)
As of Wednesday, WIX shares were priced at $105.43, down a staggering 53% over the past year and well underperforming the S&P 500, which is up 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $105.43 |
| Market Capitalization | $5.87 billion |
| Revenue (TTM) | $1.93 billion |
| Net Income (TTM) | $138.90 million |
Company Snapshot
- Wix.com offers a cloud-based platform for website creation, web applications, e-commerce tools, and business management solutions, including products such as Wix Editor, Wix ADI, Corvid by Wix, Ascend by Wix, and Wix Payments.
- The company generates revenue primarily through premium subscriptions, value-added services, and payment processing fees, leveraging a freemium model to convert registered users to paying customers.
- It serves individuals, small businesses, and enterprises globally, targeting users seeking accessible website development and digital business solutions.
Wix.com Ltd. is a leading provider of cloud-based website development and business management solutions supporting hundreds of millions of registered users worldwide. The company leverages a scalable, subscription-driven business model and a comprehensive suite of tools to empower users to build, manage, and grow their online presence.
Foolish Take
It’s certainly interesting when a fund decides to lean into a business where the fundamentals and the stock price are telling two very different stories.
Wix’s third quarter is a prime example. Revenue climbed 14% year over year to $505 million, bookings grew at the same pace, and free cash flow reached $127 million, or roughly 25% of revenue. Excluding acquisition and HQ-related costs, free cash flow would have topped $159 million. That’s not exactly the profile of a company in decline. Creative Subscriptions ARR rose to $1.46 billion, while Business Solutions revenue jumped 18%, showing strength beyond basic site-building tools. The standout, though, is Base44. Management now expects the AI-driven product to generate at least $50 million in ARR by year's end, with a credible path toward $100 million driven by strong early adoption and rising market share.
Nevertheless, the stock remains down more than 50% over the past year and roughly 70% from its 2021 highs. In Elwood’s portfolio, Wix sits alongside mega-cap compounders like Amazon and Microsoft, signaling patience and a bias toward durable cash generators rather than quick rebounds. For long-term investors, this is a reminder that sentiment can lag fundamentals for a long time, but cash flow rarely do.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Quarter over quarter: A comparison of financial or operational results from one fiscal quarter to the next.
Freemium model: A business strategy offering basic services for free while charging for advanced features or functionality.
Premium subscriptions: Paid plans that provide users with enhanced features or services beyond a basic free offering.
Value-added services: Additional services that go beyond core offerings to provide extra benefits to customers.
Payment processing fees: Charges collected by a company for handling electronic transactions between buyers and sellers.
Stake: The ownership interest or share that an investor holds in a company or fund.
Top holdings: The largest individual investments within a fund’s portfolio, typically ranked by value.
TTM: The 12-month period ending with the most recent quarterly report.
