RBC Capital analyst Mark Mahaney is raising his price target on Outperform-rated Wix.com (NASDAQ: WIX) to $30.00 (from $26.00) Q2 results that were in-line with the Street on the top-line but beat on EBITDA. Meanwhile, the outlook largely brackets Consensus.

Keys to the quarter, according to Mahaney: 1) Collections Grew 55% Y/Y ex-FX – a 4 pt decel vs. Q1, on a 12pt easier comp – translation: WIX is beginning to see some slowdown in its key top-line metric, tho growth rates remain intrinsically robust. 2) Strong Net New Users & Subs – 5.0MM Net New Registered Users (a new high) and 132K Net New Subscribers (close to the high), with record high conversion levels an add’l positive – translation: continued marketing success is growing Users and converting them into paying subs – a double positive. 3) ARPU Down 4% Y/Y To $34 on FX – the first Y/Y decline we have seen, but explained by materially negative FX trends and increasing adoption of Annual subscription plans. 4) EBITDA+! – Wix reported positive EBITDA of $3.5MM for the first time, and we expect WIX to stay in the black. 5) Positive Cohort Disclosure – shows consistently rising Sub penetration with improved product offerings.

The analyst commented, "With Q2 marking the beginning of what should be consistent and growing EBITDA profitability, WIX is becoming a fundamentally less risky asset. The WIX thesis is also getting stronger as the User & Subscriber bases build, and WIX maintains intrinsically high – tho admittedly decel’ing – Revenue & Collections growth. We continue to view the outlook for substantial R&D and Sales & Marketing spending (though these are leveraging) as the right strategic move at this point, and the continuation of very high gross margins shows the potential for long-term leverage. More broadly, we continue to think that Wix is well-positioned to address the clear and present need for small businesses to create an Online presence that looks professional and functions well across multiple devices…on an SMB budget."

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Shares of Wix.com closed at $27.40 yesterday.