On November 7, 2023, Squarespace Inc (SQSP, Financial) released its Q3 2023 earnings report. The company reported total revenue of $257.1 million, marking an 18% increase compared to the same period in 2022. Despite the revenue growth, the company reported a net loss of $16.5 million, compared to a net income of $10.1 million in Q3 2022. This loss was primarily due to a larger income tax provision.
Financial Highlights
Key financial highlights from Squarespace Inc (SQSP, Financial)'s Q3 2023 earnings report include:
- Presence revenue grew 20% YoY to $179.5 million
- Commerce revenue grew 15% YoY to $77.6 million
- Loss per share of $(0.12) based on 135,736,599 basic and dilutive weighted average shares
- Cash flow from operating activities increased 29% to $53.3 million
- Total bookings grew 18% YoY to $267.0 million
- Adjusted EBITDA increased to $66.5 million, compared with $43.7 million in Q3 2022
Company Performance and Future Outlook
Despite the net loss, Squarespace Inc (SQSP, Financial) demonstrated strong performance in Q3 2023, exceeding its revenue and unlevered free cash flow expectations. The company's CEO, Anthony Casalena, stated,
We are on track to exceed $1 billion in total revenue by the end of 2023, a significant milestone for Squarespace as we continue to expand our offerings and footprint globally."The company's CFO, Nathan Gooden, also expressed optimism about the company's future, highlighting strong customer demand and retention as key drivers of the company's financial performance.
For the fourth quarter of fiscal year 2023, Squarespace expects revenue of $261 million to $264 million, representing a YoY growth of 14% to 16%. For the full fiscal year 2023, the company anticipates revenue of $1,002 million to $1,006 million, marking a YoY growth of 15% to 16%.
Financial Tables Summary
The company's balance sheet as of September 30, 2023, shows cash and cash equivalents of $216.5 million and total debt of $580.7 million. The total unique subscriptions increased 5% YoY to over 4.4 million in 2023, compared to 4.2 million in 2022. The average revenue per unique subscription increased 10% YoY to $226.05 in 2023, compared to $206.38 in 2022.
The company's condensed consolidated statement of operations shows a net loss of $16.5 million for the three months ended September 30, 2023, compared to a net income of $10.1 million for the same period in 2022. The net loss per share was $(0.12) based on 135,736,599 basic and dilutive weighted average shares in Q3 2023, compared to earnings per share of $0.07 based on 137,832,634 basic and 139,667,719 dilutive weighted average shares in Q3 2022.
Explore the complete 8-K earnings release (here) from Squarespace Inc for further details.
