Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting earnings tomorrow morning. Here's what to expect.
Last quarter Squarespace reported revenues of $217.7 million, up 8.33% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and 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 7.11% year on year to $222.2 million, slowing down from the 20.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 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 over the past two years on average by 1.47%.
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 11.6% year on year, missing analyst estimates by 1.24% and GoDaddy reported revenues up 2.02% year on year, missing analyst estimates by 0.31%. BigCommerce traded flat on on the results, GoDaddy was down 3.13%. Read our full analysis of BigCommerce's results here and GoDaddy's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 1.58% over the last month. Squarespace is down 1.65% during the same time, and is heading into the earnings with analyst price target of $23.8, compared to share price of $23.9.
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The author has no position in any of the stocks mentioned.