Squarespace (SQSP) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/11/07 2:27 am EST

Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting earnings tomorrow before market open. Here's what investors should know.

Last quarter Squarespace reported revenues of $212.7 million, up 8.51% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance or both the next quarter andĀ full year guidance missing analysts' expectations.

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 7.37% year on year to $215.7 million, slowing down from the 23.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 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 over the past two years on average by 1.59%.

Looking at Squarespace's peers in the e-commerce software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. BigCommerce delivered top-line growth of 22.1% year on year, beating analyst estimates by 3.97% and GoDaddy reported revenues up 7.17% year on year, missing analyst estimates by 0.28%. BigCommerce traded down 9.05% on the results, GoDaddy was flat on the results. Read our full analysis of BigCommerce's results here and GoDaddy's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. Squarespace is down 1.33% during the same time, and is heading into the earnings with analyst price target of $24.40, compared to share price of $20.67.

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.