Squarespace Releases Financial Outlook for Second Quarter and Fiscal Year 2021
Squarespace, Inc. (the “Company”), the all-in-one website building and eCommerce platform that enables millions to build a brand and transact with their customers in an impactful and beautiful online presence, today issued guidance for its second-quarter ending June 30, 2021, and for the full year ending December 31, 2021.
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Squarespace Financial Outlook
For the second quarter of the fiscal year 2021, the Company currently expects:
- Revenue of $186 million to $189 million, representing year-over-year growth of 24% to 26%.
- Non-GAAP unlevered free cash flow (uFCF) of $10 million to $13 million. This is the result of:
- Cash flow from operating activities of $10.6 million to $14.0 million (which includes approximately $32 million of one-time expenses related to the Company’s direct listing) minus
- Capital expenditures, expected in the range of $2.6 million to $3.2 million; plus
- Cash paid for interest expense net of associated tax benefit, expected in the range of $2.0 million to $2.2 million.
For the full fiscal year 2021, the Company currently expects:
- Revenue of $764 million to $776 million, representing year-over-year growth of 23% to 25%.
- Non-GAAP unlevered free cash flow (uFCF) of $100 million to $115 million. This is the result of:
- Cash flow from operating activities of $111.0 million to $128.8 million (which includes approximately $35 million of one-time expenses related to the Company’s direct listing) minus
- Capital expenditures, expected in the range of $19.4 million to $23.7 million; plus
- Cash paid for interest expense net of associated tax benefit, expected in the range of $8.4 million to $9.9 million.
“After a strong first quarter 2021, we expect to see continued momentum in the business in the second quarter and for the remainder of the year. We believe that a beautiful and impactful online presence, and supporting entrepreneurs and creators with the ability to transact online, will help drive more unique subscriptions to our platform throughout 2021. Further, we believe the recent additions of new products will allow us to develop deeper relationships with our customers as they find more value in our all-in-one solution. Finally, we are excited about our recent acquisition of Tock, which provides us with the ability to better address the large hospitality opportunity by enabling restaurants to adapt and grow with new ways of transacting directly with their customers.”Marcela Martin, CFO of Squarespace.
Squarespace’s revenue in Q1 grew 31% versus the prior year. Squarespace derives revenue from monthly and annual subscriptions and non-subscription services.
Subscription revenue accounted for 94% of its total revenue in the three months ended March 31, 2021. Revenue is further categorized as either Presence or Commerce depending on the nature of the service provided to the customer.
Presence revenue primarily consists of fixed-fee subscriptions to the Company’s plans that offer core platform functionalities. Additionally, presence revenue consists of fixed-fee subscriptions to third-party software solutions, fixed-fee subscriptions to social media stories, and domain-managed services.
Presence revenue of approximately $133 million grew approximately 20% in three months ended March 31, 2021 versus the prior year.
Commerce revenue primarily consists of fixed-fee subscriptions to the Company’s commerce plans, non-subscription revenue derived from revenue share arrangements with commerce partners, and transaction fees earned on sales made through customers’ sites.
Commerce revenue of approximately $47 million grew approximately 78% in the three months ended March 31, 2021 versus the prior year.
You can see the full press release including clarifications of forward-looking statements here.
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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.