Squarespace, Inc. ($SQSP) Earnings (Q4 FY21)

Squarespace, Inc. ($SQSP) Earnings and Opinion:


Squarespace, Inc. is a company that operates in the Technology sector and operates in the Software-Infrastructure industry. They operate platforms for creators and businesses to help expand their brand and manage business across the internet. The company was founded in 2003 and is currently headquartered in New York, New York. The company is fairly new on the stock market, as it just started trading publicly in May 2021.

Squarespace Inc. Revenue (Q4 and FY21):

  • Revenue for Q4 was $207.4M beating expectations of $205.23M
  • Revenue for FY21 was $784M beating expectations of $781.85M
Squarespace, Inc. Q4 Highlights:
  • Realized net loss of $16.3M
  • Increased commerce revenue to $64.2M, up 45% (YOY)
  • Adjusted EBITDA of $33M
Sqaurespace, Inc. FY21 Highlights:
  • Increased commercial revenue to $229.5M, up 60% (YOY)
  • Net loss per share of $2.60 
  • Realized net loss of $249.1M
Squarespace, Inc. Guidance FY22:
  • Revenue of $862-$878M
  • Unlevered Free Cash Flow of $149.3M-$165.5M
Opinion:
Squarespace, Inc is currently trading slightly down, after reporting earnings before the markets opened this morning. The company reported very strong Q4 earnings beating estimates in both revenue and EBITDA. They also reported earnings for the full 2021 fiscal year in which they also beat expectations. However, guidance for the next full year shows a little bit slower growth than previous years. On the bright side, net loss per share for the year decreased by 81.56%. It seems as if the company is slowing down revenue growth, but is able to gain more and more cash to pay off the debt it incurred while trying to grow the company. Personally, I have heard of this company a lot. I have seen a lot of advertising for it on my computer. However, I have never really looked into it as a stock. For my first time looking at this company, it doesn't seem to be too bad of a company. Squarespace, Inc. is getting closer to becoming profitable and is starting to level out its growth. If they can continue to retain customers and users, as well as slightly grow its customer base every year, then this company should be profitable within the next couple years. With this company being new to the stock market (becoming public last year), it saw a huge gain in its IPO. This was a common theme with a lot of stocks that IPOd last year. However, it seems as if Squarespace, Inc. has fallen back down to earth and is trading at a more reasonable price for its current valuations. 


*Information from Yahoo Finance, Squarespace, and Zacks

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