Squarespace Surges After Raising Q1 Guidance
2022.05.12 22:35
By Sam Boughedda
Investing.com — Squarespace Inc (NYSE:SQSP) announced its first-quarter financial results on Thursday, sending its share price 42.17% higher.
Total revenue grew 16% year-over-year to a record $207.76 million and beat analysts’ estimates of $204.71 million. Squarespace stated it achieved record revenue as its global customer base continued to grow and new use cases evolved.
Furthermore, the company reported a loss per share of $0.67, falling below forecasts of $0.03. The company’s loss was primarily due to marketing expenses, headcount in research & product development, and investments in Tock. Meanwhile, unique subscriptions grew 10% year-over-year to 4.2 million.
“Our Q1 results mark another strong quarter of growth,” said Anthony Casalena, Founder & CEO of Squarespace. “We remain committed to maintaining our unique combination of growth alongside profitability as we continue through 2022.”
The website building host also authorized a share repurchase program of up to $200 million.
However, the company’s share price was boosted by its guidance increase. Squarespace sees 2022 revenue between $867 million and $879 million, up from its previous $862 million to $878 million outlook. Second-quarter revenue is expected to be between $208 million to $213 million.
“Revenue and unlevered free cash flow exceeded our guidance in the first quarter as we attracted new subscriptions and delivered additional capabilities to our customer base,” said Marcela Martin, CFO of Squarespace. “We are pleased to be raising our full-year guidance for both revenue and unlevered free cash flow.”
