Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting earnings tomorrow before market open. Here's what you need to know.
Last quarter Squarespace reported revenues of $207.7 million, up 15.6% year on year, beating analyst revenue expectations by 1.48%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.
Is Squarespace buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Squarespace's revenue to grow 8.16% year on year to $212 million, slowing down from the 30.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 1.9%.
Looking at Squarespace's peers in the sales and marketing software segment, only Qualtrics has so far reported results, delivering top-line growth of 42.9% year on year, and beating analyst estimates by 3.34%. The stock was down 5.24% on the results. Read our full analysis of Qualtrics's earnings results here.
There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 2.74% over the last month. Squarespace is down 12.1% during the same time, and is heading into the earnings with analyst price target of $27.7, compared to share price of $19.8.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.