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Squarespace Announces Second Quarter 2024 Financial Results

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Squarespace (NYSE: SQSP) reported strong Q2 2024 financial results, with total revenue growing 20% year-over-year to $296.8 million. Presence revenue increased by 25% to $215.4 million, while Commerce revenue grew 8% to $81.4 million. The company's net income rose to $6.1 million, compared to $3.7 million in Q2 2023. Cash flow from operating activities increased by 15% to $60.6 million.

Key metrics showed positive trends, with total unique subscriptions increasing 21% to over 5.2 million and average revenue per unique subscription (ARPUS) growing 3% to $225.45. Squarespace also announced agreements to go private with Permira and to sell Tock to American Express for $400 million.

Squarespace (NYSE: SQSP) ha riportato solidi risultati finanziari per il secondo trimestre del 2024, con un aumento del fatturato totale del 20% rispetto all’anno precedente, raggiungendo i 296,8 milioni di dollari. I ricavi della presenza sono aumentati del 25%, arrivando a 215,4 milioni di dollari, mentre i ricavi del commercio sono cresciuti dell'8%, raggiungendo gli 81,4 milioni di dollari. L'utile netto dell'azienda è salito a 6,1 milioni di dollari, rispetto ai 3,7 milioni di dollari del secondo trimestre del 2023. I flussi di cassa dalle attività operative sono aumentati del 15%, raggiungendo i 60,6 milioni di dollari.

I principali indicatori hanno mostrato tendenze positive, con il totale delle iscrizioni uniche che è aumentato del 21%, superando i 5,2 milioni e il ricavo medio per iscrizione unica (ARPUS) in crescita del 3%, a 225,45 dollari. Squarespace ha anche annunciato accordi per diventare privata con Permira e per vendere Tock ad American Express per 400 milioni di dollari.

Squarespace (NYSE: SQSP) informó resultados financieros sólidos para el segundo trimestre de 2024, con un crecimiento del 20% en los ingresos totales año tras año, alcanzando los 296,8 millones de dólares. Los ingresos por presencia aumentaron un 25% a 215,4 millones de dólares, mientras que los ingresos por comercio crecieron un 8% a 81,4 millones de dólares. El ingreso neto de la compañía aumentó a 6,1 millones de dólares, en comparación con 3,7 millones de dólares en el segundo trimestre de 2023. El flujo de efectivo de las actividades operativas creció un 15% a 60,6 millones de dólares.

Las métricas clave mostraron tendencias positivas, con el total de suscripciones únicas aumentando un 21% a más de 5,2 millones y los ingresos promedio por suscripción única (ARPUS) creciendo un 3% a 225,45 dólares. Squarespace también anunció acuerdos para hacerse privada con Permira y vender Tock a American Express por 400 millones de dólares.

Squarespace (NYSE: SQSP)는 2024년 2분기 강력한 재무 실적을 보고했으며, 총 수익이 전년 대비 20% 증가하여 2억 9680만 달러에 이르렀습니다. 프레즌스 수익은 25% 증가하여 2억 1540만 달러에 달했고, 상거래 수익은 8% 증가하여 8140만 달러에 도달했습니다. 회사의 순이익은 610만 달러로 증가했습니다, 2023년 2분기 370만 달러와 비교됩니다. 운영 활동으로부터의 현금 흐름은 15% 증가하여 6060만 달러에 도달했습니다.

핵심 지표는 긍정적인 추세를 보였으며, 총 고유 구독이 21% 증가하여 520만 개 이상에 이르렀습니다 그리고 고유 구독당 평균 수익(ARPUS)은 3% 증가하여 225.45달러에 도달했습니다. Squarespace는 또한 Permira와의 사모 계약을 체결하고 Tock을 American Express에 4억 달러에 판매하기로 발표했습니다.

Squarespace (NYSE: SQSP) a rapporté des résultats financiers solides pour le deuxième trimestre de 2024, avec un chiffre d'affaires total en hausse de 20% d'une année sur l'autre, atteignant 296,8 millions de dollars. Les revenus de la présence ont augmenté de 25% pour atteindre 215,4 millions de dollars, tandis que les revenus du commerce ont crû de 8% pour atteindre 81,4 millions de dollars. Le résultat net de l'entreprise a augmenté à 6,1 millions de dollars, comparé à 3,7 millions de dollars au deuxième trimestre 2023. Le flux de trésorerie des activités opérationnelles a augmenté de 15% pour atteindre 60,6 millions de dollars.

Les indicateurs clés ont montré des tendances positives, avec le nombre total d'abonnements uniques en augmentation de 21% pour dépasser 5,2 millions et le revenu moyen par abonnement unique (ARPUS) en hausse de 3% à 225,45 dollars. Squarespace a également annoncé des accords pour devenir une entreprise privée avec Permira et pour vendre Tock à American Express pour 400 millions de dollars.

Squarespace (NYSE: SQSP) hat für das zweite Quartal 2024 starke Finanzzahlen gemeldet, mit einem Gesamtumsatz, der im Jahresvergleich um 20% auf 296,8 Millionen Dollar gewachsen ist. Der Umsatz aus Präsenzdiensten stieg um 25% auf 215,4 Millionen Dollar, während der Umsatz aus dem Handel um 8% auf 81,4 Millionen Dollar anwuchs. Der Nettoertrag des Unternehmens stieg auf 6,1 Millionen Dollar, verglichen mit 3,7 Millionen Dollar im zweiten Quartal 2023. Der Cashflow aus laufenden Aktivitäten erhöhte sich um 15% auf 60,6 Millionen Dollar.

Wichtige Kennzahlen zeigten positive Trends, mit der Gesamtzahl der einzigartigen Abonnements, die um 21% auf über 5,2 Millionen anstieg und dem durchschnittlichen Umsatz pro einzigartigem Abonnement (ARPUS), der um 3% auf 225,45 Dollar wuchs. Squarespace gab außerdem bekannt, Vereinbarungen zur Übernahme durch Permira sowie den Verkauf von Tock an American Express für 400 Millionen Dollar zu treffen.

Positive
  • Total revenue grew 20% year-over-year to $296.8 million
  • Presence revenue increased by 25% to $215.4 million
  • Net income rose to $6.1 million from $3.7 million in Q2 2023
  • Cash flow from operating activities increased by 15% to $60.6 million
  • Total unique subscriptions grew 21% to over 5.2 million
  • Average revenue per unique subscription (ARPUS) increased 3% to $225.45
  • Annual run rate revenue (ARRR) grew 20% to $1,179.5 million
  • Agreement to sell Tock to American Express for $400 million
Negative
  • Commerce revenue growth slowed to 8% year-over-year
  • Adjusted EBITDA decreased to $72.1 million from $73.4 million in Q2 2023
  • Suspension of financial guidance for Q3 and full fiscal year 2024 due to privatization agreement

Insights

Squarespace's Q2 2024 results demonstrate solid growth and financial stability. The 20% year-over-year revenue increase to $296.8 million is impressive, particularly in the current economic climate. The company's Presence revenue grew by 25%, outpacing the 8% growth in Commerce revenue, indicating stronger performance in their core website-building services.

The net income of $6.1 million, up from $3.7 million in Q2 2023, shows improved profitability. However, the decrease in Adjusted EBITDA from $73.4 million to $72.1 million suggests some pressure on margins, possibly due to increased investments or operational costs.

The 21% increase in total unique subscriptions to over 5.2 million is a strong indicator of customer acquisition and retention. The modest 3% growth in ARPUS to $225.45 suggests a balance between attracting new users and upselling existing ones.

The pending privatization by Permira and the sale of Tock to American Express for $400 million are significant strategic moves that could reshape Squarespace's future. These transactions may provide additional resources for growth and allow the company to focus on its core business.

Overall, Squarespace's financial performance appears robust, with strong top-line growth and improving profitability. However, investors should monitor the company's ability to maintain margin growth in the face of expansion and strategic changes.

Squarespace's Q2 2024 results reveal interesting market dynamics. The 25% growth in Presence revenue compared to 8% in Commerce revenue suggests a shift in customer preferences towards core website-building services. This could indicate a market trend where businesses are prioritizing online presence over e-commerce functionalities, possibly due to economic uncertainties.

The 21% increase in unique subscriptions to 5.2 million demonstrates Squarespace's ability to capture market share in a competitive landscape. However, the modest 3% growth in ARPUS indicates challenges in significantly increasing revenue per user, possibly due to market saturation or pricing pressures from competitors.

The 25% year-over-year growth in total bookings to $319.8 million is a positive indicator of future revenue potential. This outpaces the 20% revenue growth, suggesting a healthy pipeline and customer commitment.

The decision to go private through the Permira transaction could be a strategic move to navigate market challenges without the pressures of quarterly reporting. This might allow Squarespace to make longer-term investments and strategic shifts to address the evolving needs of its customer base.

The sale of Tock to American Express for $400 million indicates a strategic refocusing on core competencies. This move could help Squarespace streamline its offerings and allocate resources more effectively in a competitive market environment.

NEW YORK, Aug. 2, 2024 /PRNewswire/ -- Squarespace, Inc. (NYSE: SQSP), the design-driven platform helping entrepreneurs build brands and businesses online, today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Financial Highlights

  • Total revenue grew 20% year over year to $296.8 million in the second quarter, compared with $247.5 million in the second quarter of 2023, and 20% in constant currency.
    • Presence revenue grew 25% year over year to $215.4 million and 26% in constant currency.
    • Commerce revenue grew 8% year over year to $81.4 million and 8% in constant currency.
  • Net income totaled $6.1 million, compared with a net income of $3.7 million in the second quarter of 2023.
  • Basic and diluted earnings per share was $0.04 and $0.03 for the second quarter of 2024 and 2023, respectively. Basic earnings per share was based upon 137,760,693 and 135,302,409 weighted average shares outstanding in the second quarter of 2024 and 2023, respectively. Diluted earnings per share was based upon 142,143,018 and 138,771,613 fully diluted weighted average shares outstanding in the second quarter of 2024 and 2023, respectively.
  • Cash flow from operating activities increased 15% to $60.6 million for the three months ended June 30, 2024, compared with $52.5 million for the three months ended June 30, 2023.
  • Cash and cash equivalents of $270.4 million; investments in marketable securities of $52.0 million; total debt of $545.0 million, of which $57.1 million is current, debt net of cash and investments totaled $222.6 million.
  • Total bookings grew 25% year over year to $319.8 million in the second quarter, compared to $256.1 million in the second quarter of 2023.
  • Unlevered free cash flow increased 19% to $65.4 million representing 22% of total revenue for the three months ended June 30, 2024, compared with $54.8 million for the three months ended June 30, 2023.
  • Adjusted EBITDA decreased to $72.1 million in the second quarter, compared with $73.4 million in the second quarter of 2023.
  • Total unique subscriptions increased 21% year over year to over 5.2 million in 2024, compared to 4.3 million in 2023.
  • Average revenue per unique subscription ("ARPUS") increased 3% year over year to $225.45 in 2024, compared to $219.42 in 2023.
  • Annual run rate revenue ("ARRR") grew 20% year over year to $1,179.5 million in 2024, compared to $983.3 million in 2023.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Transaction with Permira

As announced on May 13, 2024, Squarespace entered into a definitive agreement to go private by Permira. In light of this transaction, Squarespace will not be hosting an earnings conference call or live webcast to discuss its second quarter 2024 financial results and Squarespace will not be providing guidance for the third quarter and is suspending its financial guidance for the full fiscal year 2024.

Transaction with American Express

As announced on June 21, 2024, Squarespace entered into an agreement to sell Tock, the reservation, table, and event management technology provider, to American Express (NYSE: AXP) for $400.0 million. The transaction is subject to customary closing conditions, including regulatory approval. Squarespace classified the assets and liabilities of the Tock business as held for sale, including certain cash, cash equivalents and restricted cash as of June 30, 2024.

Non-GAAP Financial Measures

Revenue growth in constant currency is being provided to increase transparency and align our disclosures with companies in our industry that receive material revenues from international sources. Revenue constant currency has been adjusted to exclude the effect of year-over-year changes in foreign currency exchange rate fluctuations. We believe providing this information better enables investors to understand our operating performance irrespective of currency fluctuations.

We calculate constant currency information by translating current period results from entities with foreign functional currencies using the comparable foreign currency exchange rates from the prior fiscal year. To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange rate as the comparative period. Our definition of constant currency may differ from other companies reporting similarly named measures, and these constant currency performance measures should be viewed in addition to, and not as a substitute for, our operating performance measures calculated in accordance with GAAP.

Adjusted EBITDA is a supplemental performance measure that our management uses to assess our operating performance. We calculate adjusted EBITDA as net income/(loss) excluding interest expense, other income/(loss), net (provision for)/benefit from income taxes, depreciation and amortization, stock-based compensation expense and other items that we do not consider indicative of our ongoing operating performance.

Unlevered free cash flow is a supplemental liquidity measure that Squarespace's management uses to evaluate its core operating business and its ability to meet its current and future financing and investing needs. Unlevered free cash flow is defined as cash flow from operating activities, including one-time expenses related to Squarespace's direct listing, less cash paid for capital expenditures increased by cash paid for interest expense net of the associated tax benefit.

Adjusted EBITDA, unlevered free cash flow and revenue constant currency are not prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and have important limitations as an analytical tool. Non-GAAP financial measures are supplemental, should only be used in conjunction with results presented in accordance with GAAP and should not be considered in isolation or as a substitute for such GAAP results.

Further information on these non-GAAP items and reconciliation to their closest GAAP measure is provided below under, "Reconciliation of Non-GAAP Financial Measures."

Definitions of Key Operating Metrics

On September 7, 2023, we closed an asset purchase agreement between us and Google LLC ("Google") to acquire, among other things, Google's domain assets (the "Google Domains Asset Acquisition"). Unique subscriptions and average revenue per unique subscription do not account for single domain subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition (the "Acquired Domain Assets").

Annual run rate revenue ("ARRR"). We calculate ARRR as the quarterly revenue from subscription fees and revenue generated in conjunction with associated fees (fees taken or assessed in conjunction with commerce transactions) in the last quarter of the period multiplied by 4. We believe that ARRR is a key indicator of our future revenue potential. However, ARRR should be viewed independently of revenue, and does not represent our GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by subscription start and end dates and renewal rates. ARRR is not intended to be a replacement or forecast of revenue. ARRR for the three months ended June 30, 2023 has been recast to conform to the current period definition. Previously, ARRR was calculated using monthly revenue from subscription fees and revenue generated in conjunction with associated fees in the last month of the period multiplied by 12. We have since revised our calculation to use quarterly revenue from subscription fees and revenue generated in conjunction with associated fees in the last quarter of the period multiplied by 4 to normalize results for the run rate each quarter.

Unique subscriptions represent the number of unique sites, standalone scheduling subscriptions, Unfold (social) and hospitality subscriptions, as of the end of a period. A unique site represents a single subscription and/or group of related subscriptions, including a website subscription and/or a domain subscription, and other subscriptions related to a single website or domain. Every unique site contains at least one domain subscription or one website subscription. For instance, an active website subscription, a custom domain subscription and a Google Workspace subscription that represent services for a single website would count as one unique site, as all of these subscriptions work together and are in service of a single entity's online presence. Unique subscriptions do not account for one-time purchases in Unfold or for hospitality services nor do they account for our Acquired Domain Assets. The total number of unique subscriptions is a key indicator of the scale of our business and is a critical factor in our ability to increase our revenue base.

Average revenue per unique subscription ("ARPUS"). We calculate ARPUS as the total revenue during the preceding 12-month period divided by the average of the number of total unique subscriptions at the beginning and end of the period. ARPUS does not account for Acquired Domain Assets or the revenue from Acquired Domain Assets. We believe ARPUS is a useful metric in evaluating our ability to sell higher-value plans and add-on subscriptions.

Total bookings represents cash receipts for all subscriptions purchased, as well as payments due under the terms of contractual agreements for obligations to be fulfilled. In the case of multi-year contracts, total bookings only includes one year of committed revenue.

Gross payment volume ("GPV") represents the value of physical goods and services, including content, time sold, hospitality and events, net of refunds, on our platform over a given period of time. "Gross payment volume" or "GPV" was previously presented as "Gross merchandise value" or "GMV" in prior period disclosures. There were no revisions to the calculation of GPV as a result of this nomenclature change.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management's expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to: Squarespace's ability to consummate the take private transaction; Squarespace's ability to attract and retain customers and expand their use of its platform; Squarespace's ability to anticipate market needs and develop new solutions to meet those needs; Squarespace's ability to improve and enhance the functionality, performance, reliability, design, security and scalability of its existing solutions; Squarespace's ability to compete successfully in its industry against current and future competitors; Squarespace's ability to manage growth and maintain demand for its solutions; Squarespace's ability to protect and promote its brand; Squarespace's ability to generate new customers through its marketing and selling activities; Squarespace's ability to successfully identify, manage and integrate any existing and potential acquisitions or achieve the expected benefits of such acquisitions; Squarespace's ability to hire, integrate and retain highly skilled personnel; Squarespace's ability to adapt to and comply with existing and emerging regulatory developments, technological changes and cybersecurity needs; Squarespace's compliance with privacy and data protection laws and regulations as well as contractual privacy and data protection obligations; Squarespace's ability to establish and maintain intellectual property rights; Squarespace's ability to manage expansion into international markets; and the expected timing, amount, and effect of Squarespace's share repurchases. It is not possible for Squarespace's management to predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Squarespace may make. In light of these risks, uncertainties, and assumptions, Squarespace's actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are included in Squarespace's filings with the Securities and Exchange Commission. Except as required by law, Squarespace assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

About Squarespace

Squarespace (NYSE: SQSP) is a design-driven platform helping entrepreneurs build brands and businesses online. We empower millions in more than 200 countries and territories with all the tools they need to create an online presence, build an audience, monetize, and scale their business. Our suite of products range from websites, domains, ecommerce, and marketing tools, as well as tools for scheduling with Acuity, creating and managing social media presence with Bio Sites and Unfold, and hospitality business management via Tock. For more information, visit www.squarespace.com.

Contacts

Investors
investors@squarespace.com 

Media
press@squarespace.com 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Revenue

$               296,769


$               247,529


$               577,917


$               484,557

Cost of revenue (1)

82,939


43,167


163,713


86,117

Gross profit

213,830


204,362


414,204


398,440

Operating expenses:








Research and product development (1)

69,805


61,412


136,651


119,982

Marketing and sales (1)

88,282


75,373


205,815


177,045

General and administrative (1)

38,873


30,909


69,696


63,249

Total operating expenses

196,960


167,694


412,162


360,276

Operating income

16,870


36,668


2,042


38,164

Interest expense

(10,157)


(8,635)


(20,538)


(16,729)

Other income, net

4,454


2,038


9,031


1,198

Income/(loss) before (provision for)/benefit from income taxes

11,167


30,071


(9,465)


22,633

(Provision for)/benefit from income taxes

(5,034)


(26,411)


15,742


(18,471)

Net income

$                   6,133


$                   3,660


$                   6,277


$                   4,162









Net income per share, basic

$                     0.04


$                     0.03


$                     0.05


$                     0.03

Net income per share, diluted

$                     0.04


$                     0.03


$                     0.04


$                     0.03

Weighted-average shares used in computing net income per share,
basic

137,760,693


135,302,409


137,348,777


135,111,072

Weighted-average shares used in computing net income per share,
     diluted

142,143,018


138,771,613


141,419,521


138,013,454


(1) Includes stock-based compensation as follows:



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Cost of revenue

$                   2,026


$                   1,549


$                   3,795


$                   2,601

Research and product development

19,025


15,650


34,675


26,337

Marketing and sales

3,590


3,045


6,801


4,916

General and administrative

8,157


9,235


15,694


17,751

Total stock-based compensation

$                 32,798


$                 29,479


$                 60,965


$                 51,605

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)



June 30, 2024


December 31, 2023

Assets




Current assets:




Cash and cash equivalents

$                270,363


$                257,702

Restricted cash


36,583

Investment in marketable securities

52,041


Accounts receivable

41,384


24,894

Due from vendors


6,089

Prepaid expenses and other current assets

83,016


48,947

Total current assets

446,804


374,215

Property and equipment, net

49,609


58,211

Operating lease right-of-use assets

61,016


77,764

Goodwill

196,522


210,438

Intangible assets, net

140,839


190,103

Other assets

11,560


11,028

Assets of business held for sale

94,529


Total assets

$             1,000,879


$                921,759

Liabilities and Stockholders' Deficit




Current liabilities:




Accounts payable

$                  21,933


$                  12,863

Accrued liabilities

98,933


99,435

Deferred revenue

397,923


333,191

Funds payable to customers


42,672

Debt, current portion

57,140


48,977

Operating lease liabilities, current portion

11,281


12,640

Total current liabilities

587,210


549,778

Deferred income taxes, non-current portion

1,164


1,039

Debt, non-current portion

487,846


519,816

Operating lease liabilities, non-current portion

71,843


97,714

Other liabilities

18,940


13,764

Liabilities of business held for sale

76,745


Total liabilities

1,243,748


1,182,111

Commitments and contingencies




Stockholders' deficit:




Class A common stock, par value of $0.0001; 1,000,000,000 shares authorized as of June 30, 2024
and December 31, 2023, respectively; 90,630,649 and 88,545,012 shares issued and outstanding as of June 30,
2024 and December 31, 2023, respectively

9


9

Class B common stock, par value of $0.0001; 100,000,000 shares authorized as of June 30, 2024 and
December 31, 2023, respectively; 47,844,755 shares issued and outstanding as of June 30, 2024 and
December 31, 2023, respectively

5


5

Class C common stock (authorized May 10, 2021), par value of $0.0001; 1,000,000,000 shares authorized
as of June 30, 2024 and December 31, 2023, respectively; zero shares issued and outstanding as of June 30,
2024 and December 31, 2023, respectively


Additional paid in capital

936,277


924,634

Accumulated other comprehensive loss

(1,280)


(843)

Accumulated deficit

(1,177,880)


(1,184,157)

Total stockholders' deficit

(242,869)


(260,352)

Total liabilities and stockholders' deficit

$             1,000,879


$                921,759

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)



Six Months Ended June 30,


2024


2023

OPERATING ACTIVITIES:




Net income

$                   6,277


$                   4,162

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

36,885


14,477

Stock-based compensation

60,965


51,605

Deferred income taxes

125


124

Non-cash lease income

(1,757)


(989)

Other

625


310

Changes in operating assets and liabilities:




Accounts receivable and due from vendors

(15,697)


2,364

Prepaid expenses and other current assets

(35,545)


(1,480)

Accounts payable and accrued liabilities

29,784


9,822

Deferred revenue

69,012


38,030

Funds payable to customers

(4,943)


(2,131)

Other operating assets and liabilities

117


408

Net cash provided by operating activities

145,848


116,702

INVESTING ACTIVITIES:




Proceeds from the sale and maturities of marketable securities

1,000


39,664

Purchases of marketable securities

(52,856)


(7,824)

Purchase of property and equipment

(6,074)


(7,167)

Net cash (used in)/provided by investing activities

(57,930)


24,673

FINANCING ACTIVITIES:




Principal payments on debt

(24,488)


(20,379)

Payments for repurchase and retirement of Class A common stock

(16,311)


(25,321)

Taxes paid related to net share settlement of equity awards

(37,640)


(20,318)

Proceeds from exercise of stock options

2,585


134

Net cash used in financing activities

(75,854)


(65,884)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(513)


165

Increase in cash, cash equivalents and restricted cash, including cash classified as assets of business held for
sale

11,551


75,656

Less: Increase in cash, cash equivalents and restricted cash classified as assets of business held for sale

(35,473)


Net (decrease)/increase in cash, cash equivalents and restricted cash

(23,922)


75,656

Cash, cash equivalents and restricted cash at the beginning of the period

294,285


232,620

Cash, cash equivalents and restricted cash at the end of the period

$                270,363


$                308,276





Reconciliation of cash, cash equivalents, and restricted cash:




Cash and cash equivalents

$                270,363


$                274,004

Restricted cash


34,272

Cash, cash equivalents, and restricted cash at the end of the period

$                270,363


$                308,276





SUPPLEMENTAL DISCLOSURE OF CASH FLOW




Cash paid during the year for interest

$                  19,883


$                  16,360

Cash paid during the year for income taxes, net of refunds

$                  31,231


$                  22,902

Cash paid for amounts included in the measurement of operating lease liabilities

$                    8,124


$                    7,861





SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCE ACTIVITIES




Purchases of property and equipment included in accounts payable and accrued liabilities

$                       295


$                       196

Capitalized stock-based compensation

$                    1,404


$                    1,638

 

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

(in thousands)

(unaudited)

 

The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure:



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Net income

$                  6,133


$                 3,660


$                  6,277


$                  4,162

Interest expense

10,157


8,635


20,538


16,729

Provision for/(benefit from) income taxes

5,034


26,411


(15,742)


18,471

Depreciation and amortization

18,213


7,236


36,885


14,477

Stock-based compensation expense

32,798


29,479


60,965


51,605

Other income, net

(4,454)


(2,038)


(9,031)


(1,198)

Proposed merger costs

4,198



4,198


Adjusted EBITDA

$                72,079


$               73,383


$              104,090


$              104,246




Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Cash flows from operating activities

$               60,629


$               52,547


$              145,848


$              116,702

Cash paid for capital expenditures

(2,689)


(4,092)


(6,074)


(7,167)

Free cash flow

$               57,940


$               48,455


$              139,774


$              109,535

Cash paid for interest, net of the associated tax
benefit

7,480


6,310


14,968


12,326

Unlevered free cash flow

$               65,420


$               54,765


$              154,742


$              121,861














June 30, 2024


December 31, 2023

Total debt outstanding





$              544,986


$              568,793

Less: total cash and cash equivalents and marketable securities





322,404


257,702

Total net debt





$              222,582


$              311,091




Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Revenue, as reported

$             296,769


$             247,529


$             577,917


$             484,557

Revenue year-over-year growth rate, as reported

19.9 %


16.4 %


19.3 %


15.2 %

Effect of foreign currency translation ($)(1)

$                   (686)


$                    685


$                   (218)


$                (2,118)

Effect of foreign currency translation (%)(1)

(0.3) %


0.3 %


— %


(0.5) %

Revenue constant currency growth rate

20.2 %


16.1 %


19.3 %


15.7 %




Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Commerce revenue, as reported

$               81,396


$               75,455


$             161,660


$             148,092

Revenue year-over-year growth rate, as reported

7.9 %


14.0 %


9.2 %


13.9 %

Effect of foreign currency translation ($)(1)

$                   (107)


$                    119


$                     (29)


$                   (369)

Effect of foreign currency translation (%)(1)

(0.1) %


0.2 %


— %


(0.3) %

Commerce revenue constant currency growth rate

8.0 %


13.8 %


9.2 %


14.2 %




Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Presence revenue, as reported

$             215,373


$             172,074


$             416,257


$             336,465

Revenue year-over-year growth rate, as reported

25.2 %


17.4 %


23.7 %


15.8 %

Effect of foreign currency translation ($)(1)

$                   (579)


$                    565


$                   (188)


$                (1,749)

Effect of foreign currency translation (%)(1)

(0.3) %


0.4 %


(0.1) %


(0.6) %

Presence revenue constant currency growth rate

25.5 %


17.0 %


23.8 %


16.4 %


(1) To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange rate as the comparative period.

Amounts may not sum due to rounding.

 

SUMMARY OF SHARES OUTSTANDING

(unaudited)



Six Months Ended June 30,


2024


2023

Shares outstanding:




Class A common stock

90,630,649


87,723,667

Class B common stock

47,844,755


47,844,755

Class C common stock

0


0

Total shares outstanding

138,475,404


135,568,422

 

KEY PERFORMANCE INDICATORS AND NON-GAAP FINANCIAL MEASURES

(unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Unique subscriptions (in thousands) (1)

5,195


4,305


5,195


4,305

Total bookings (in thousands)

$                319,774


$                256,137


$                645,720


$                521,926

ARRR (in thousands) (2)

$             1,179,456


$                983,265


$             1,179,456


$                983,265

ARPUS (1)

$                  225.45


$                  219.42


$                  225.45


$                  219.42

Adjusted EBITDA (in thousands)

$                  72,079


$                  73,383


$                104,090


$                104,246

Unlevered free cash flow (in thousands)

$                  65,420


$                  54,765


$                154,742


$                121,861

GPV (in thousands) (3)

$             1,589,076


$             1,525,476


$             3,238,533


$             3,059,534

______________

(1)

Unique subscriptions and average revenue per unique subscription ("ARPUS") do not account for single domain subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition.

(2)

Annual run rate revenue ("ARRR") for the three and six months ended June 30, 2023 has been recast to conform to the current period definition. Previously, ARRR was calculated using monthly revenue from subscription fees and revenue generated in conjunction with associated fees in the last month of the period multiplied by 12. We have since revised our calculation to use quarterly revenue from subscription fees and revenue generated in conjunction with associated fees in the last quarter of the period multiplied by 4 to normalize results for the run rate each quarter.

(3)

"Gross payment volume" or "GPV" was previously presented as "Gross merchandise value" or "GMV" in prior period disclosures. There were no revisions to the calculation of GPV as a result of this nomenclature change.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/squarespace-announces-second-quarter-2024-financial-results-302212968.html

SOURCE Squarespace, Inc.

FAQ

What was Squarespace's revenue growth in Q2 2024?

Squarespace's total revenue grew 20% year-over-year to $296.8 million in Q2 2024.

How much did Squarespace's net income increase in Q2 2024?

Squarespace's net income increased to $6.1 million in Q2 2024, compared to $3.7 million in Q2 2023.

What was the growth in Squarespace's unique subscriptions for Q2 2024?

Squarespace's total unique subscriptions increased 21% year-over-year to over 5.2 million in Q2 2024.

What is the status of Squarespace's agreement with Permira?

Squarespace announced on May 13, 2024, that it entered into a definitive agreement to go private with Permira.

What is the value of Squarespace's agreement to sell Tock to American Express?

Squarespace agreed to sell Tock to American Express for $400 million, subject to customary closing conditions and regulatory approval.

Squarespace, Inc.

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