Squarespace reports record revenue crossing $1 billion
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NEW YORK – Squarespace, Inc. (NYSE: SQSP), a leading online platform for building and branding businesses, revealed its financial results for the fourth quarter and the full year of 2023. The company registered an 18% increase in total revenue for the quarter, amounting to $270.7 million, and a 17% rise for the full year, surpassing the $1 billion mark for the first time in its 20-year history.
The growth was attributed to new customer acquisitions and strong retention rates, bolstered by the introduction of Squarespace Payments and advancements in AI capabilities. The fourth quarter saw a net income of $5.3 million, a significant turnaround from the net loss of $234.0 million in the same period last year, which included a substantial non-cash goodwill impairment charge.
Squarespace’s earnings per share for the quarter stood at $0.04, compared to a loss per share of $1.72 in the prior year. The company’s operating activities generated $61.1 million in cash flow, a 56% increase from the previous year. Total bookings for the quarter grew by 23% to $286.1 million.
For the full year, Squarespace reported a net loss of $7.1 million, with a loss per share of $0.05, reflecting a recovery from a net loss of $252.2 million in 2022. The company’s cash flow from operating activities rose by 41% to $231.1 million, and total bookings increased by 19% to $1,075.1 million.
The company’s board of directors has authorized a share repurchase program of up to $500 million of its Class A common stock. This decision underscores the company’s strong financial position and commitment to delivering value to shareholders.
Looking ahead, Squarespace anticipates revenue between $274 million to $277 million for the first quarter of fiscal year 2024, marking a 16% to 17% growth. For the full fiscal year 2024, revenue is projected to range from $1,170 million to $1,190 million, including contributions from the acquisition of Google (NASDAQ:GOOGL) Domains Assets.
Squarespace will host an Investor Day on May 15, 2024, in New York City, where further insights into the company’s strategies and operations will be shared. The information in this article is based on a press release statement from Squarespace.
