Squarespace (Squarespace) Interest Coverage : 0 (At Loss) (As of Mar. 2024)

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What is Squarespace Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Squarespace's Operating Income for the three months ended in Mar. 2024 was $-15 Mil. Squarespace's Interest Expense for the three months ended in Mar. 2024 was $-10 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Squarespace's Interest Coverage or its related term are showing as below:

SQSP' s Interest Coverage Range Over the Past 10 Years
Min: 0.73 Med: 3.14 Max: 56.8
Current: 1.73

SQSP's Interest Coverage is ranked worse than
90.77% of 1604 companies
in the Software industry
Industry Median: 28.885 vs SQSP: 1.73

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Squarespace Interest Coverage Historical Data

The historical data trend for Squarespace's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Squarespace Interest Coverage Chart

Squarespace Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

56.80

4.00

0.73

2.28

Squarespace Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial													0.18	4.25	2.97	1.67	-

Competitive Comparison of Squarespace's Interest Coverage

For the Software - Infrastructure subindustry, Squarespace's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Squarespace's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Squarespace's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Squarespace's Interest Coverage falls into.

Squarespace Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Squarespace's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Squarespace's Interest Expense was $-37 Mil. Its Operating Income was $84 Mil. And its Long-Term Debt & Capital Lease Obligation was $618 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	83.728	/	-36.768
	=	2.28

Squarespace's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Squarespace's Interest Expense was $-10 Mil. Its Operating Income was $-15 Mil. And its Long-Term Debt & Capital Lease Obligation was $598 Mil.

Squarespace did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Squarespace (NYSE:SQSP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Squarespace Interest Coverage Related Terms

Thank you for viewing the detailed overview of Squarespace's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Squarespace (Squarespace) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Squarespace Inc (NYSE:SQSP) » Definitions » Interest Coverage

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Traded in Other Exchanges

S2QS34:Brazil

Address

225 Varick Street, 12th Floor, New York, NY, USA, 10014

Website

https://www.squarespace.com

Squarespace is a provider of subscription-based website-building software and hosting services primarily servicing entrepreneurs and micro businesses. The company offers a range of add-on and standalone tools, including scheduling functionality, email marketing, member areas for paid content, and design tools for social media and video content. Following the 2021 acquisition of Tock, Squarespace has expanded into servicing hospitality customers with reservation, take-out, and event management software.

Executives

Anthony Casalena	director, 10 percent owner, officer: Chief Executive Officer	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Nathan Gooden	officer: Chief Financial Officer	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
O'connor Courtenay	officer: General Counsel and Secretary	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
General Atlantic (sqrs) Lp	director, 10 percent owner	55 EAST 52ND STREET, FLOOR 33, NEW YORK NY 10055
General Atlantic, L.p.	director, 10 percent owner	55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Paul Gubbay	officer: Chief Product Officer	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Jonathan D Klein	director	C/O GETTY IMAGES, INC., 601 N 34TH ST, SEATTLE WA 98103
Index Venture Growth Associates I Ltd	10 percent owner	5TH FLOOR, 44 ESPLANADE, ST HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Ventures Growth I Parallel Entrepreneur Fund (jersey) L.p.	10 percent owner	NO.1 SEATON PLACE, ST. HELIER, JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Neela Montgomery	director	C/O LOGITECH INTERNATIONAL S.A., LES CHATAGNIS, APPLES V8 1143
Liza Landsman	director	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Anton J Levy	director	55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Index Ventures Growth I (jersey) L.p.	10 percent owner	NO.1 SEATON PLACE, ST. HELIER, JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
(jersey) Slp Yucca	10 percent owner	NO. 1 SEATON PLACE, ST. HELIER Y9 Y9 JE48YJ
General Atlantic (spv) Gp, Llc	director, 10 percent owner	55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055