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Squarespace stock pops as 4Q revenue beats estimates and it offers positive guidance

Published 2023-03-07, 10:56 a/m
© Reuters.  Squarespace stock pops as 4Q revenue beats estimates and it offers positive guidance
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Proactive Investors - Squarespace Inc stock jumped after the all-in-one website building and e-commerce platform beat fourth-quarter revenue estimates and positively surprised investors with its guidance for its first quarter of the fiscal year 2023.

For the quarter that ended December 31, 2022, the New York-based website-building company reported revenue of $228.8 million, up 10% from $207.4 million in 4Q 2021, and 14% in constant currency terms. This topped the $222.1 million that was expected by analysts, according to FactSet.

Squarespace’s net loss increased to $234 million, or $1.72 a share, in the quarter, compared with a loss of $16.3 million, or $0.12 a share, a year earlier.

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The company explained that the wider loss was due to a non-cash goodwill impairment charge tied to market values weakening after Squarespace's purchase of online reservations company Tock in March 2021. Stripping out the one-time charge, adjusted loss came to $8.8 million.

Investors sent Squarespace shares up 9.06% to $26.24 on the New York Stock Exchange in morning trade.

"We had another strong quarter and full year of financial results," Squarespace founder CEO Anthony Casalena said in a statement.

"The enduring strength of our business speaks to the success our customers achieve online…Squarespace is uniquely positioned to help entrepreneurs unlock the power of the internet with the tools needed to build an empire."

For the full-year 2022, total revenue grew 11% year-over-year to $867 million in 2022, compared to $784 million in 2021.

Meanwhile, the firm’s net loss increased to $252.2 million for the full year 2022, compared with a net loss of $249.1 million in 2021.

Squarespace forecasted revenue of $232 million to $234 million for the first quarter, or year-over-year growth of 12% to 13%.

For the full fiscal year 2023, Squarespace currently expects revenue of $955 million to $970 million, or year-over-year growth of 10% to 12%.

Read more on Proactive Investors CA

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