Stock Story -
Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be announcing earnings results tomorrow before market hours. Here's what to look for.
Squarespace beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $281.1 million, up 18.6% year on year. It was a decent quarter for the company, with an impressive beat of analysts' billings estimates but a decline in its gross margin.
Is Squarespace a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Squarespace's revenue to grow 18.4% year on year to $293.1 million, improving from the 16.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Squarespace has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.8% on average.
Looking at Squarespace's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. VeriSign (NASDAQ:VRSN) delivered year-on-year revenue growth of 4.1%, meeting analysts' expectations, and Zeta reported revenues up 32.6%, topping estimates by 7.2%. VeriSign traded up 4.3% following the results.
Read the full analysis of VeriSign's and Zeta's results on StockStory.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 3.6% on average over the last month. Squarespace's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $44.5 (compared to the current share price of $44.19).
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