Squarespace Earnings: What To Look For From SQSP

Kayode Omotosho /
2022/03/07 5:56 am EST
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Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting results today before market hours. Here's what you need to know.

Last quarter Squarespace reported revenues of $200.9 million, up 23.7% year on year, beating analyst revenue expectations by 1.53%. It was a mixed quarter for the company, with a decent beat of analyst estimates but an underwhelming revenue guidance for the next quarter.

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 19.5% year on year to $205.9 million. Adjusted earnings are expected to come in at $0.15 per share.

Squarespace Total Revenue

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 2.7%.

Looking at Squarespace's peers in the e-commerce software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. BigCommerce delivered top-line growth of 50.4% year on year, beating analyst estimates by 4.96% and GoDaddy reported revenues up 16.6% year on year, exceeding estimates by 4.74%. BigCommerce traded down 19% on the results, GoDaddy was up 5.12%. Read our full analysis of BigCommerce's results here and GoDaddy's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 12% over the last month. Squarespace is down 25.9% during the same time, and is heading into the earnings with analyst price target of $59.2, compared to share price of $22.76.

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.