Squarespace, the all-in-one website building and ecommerce platform, announced results for the first quarter ended March 31, 2022.
“Our Q1 results mark another strong quarter of growth. We achieved record revenue of $207.8 million as our global customer base continued to grow and new use cases evolved within our all-in-one platform.”Anthony Casalena, Founder & CEO of Squarespace
“We remain committed to maintaining our unique combination of growth alongside profitability as we continue through 2022. Further building on the confidence we have in our business, our board of directors has authorized a $200 million share repurchase program. We strongly believe in the opportunity Squarespace has open to us over the coming years,” added Casalena.
“Revenue and unlevered free cash flow exceeded our guidance in the first quarter as we attracted new subscriptions and delivered additional capabilities to our customer base. We are pleased to be raising our full-year guidance for both revenue and unlevered free cash flow.”Marcela Martin, CFO of Squarespace
Squarespace First Quarter 2022 Financial Highlights
- Total revenue of $207.8 million grew 16% year-over-year as reported on a GAAP basis and 18% in constant currency.
- Commerce revenue of $63.8 million grew 36% year-over-year.
- Annual run rate revenue (“ARRR”) increased 15% year-over-year to $869.0 million.
- Unique subscriptions reached 4.2 million in the quarter, up 10% year-over-year.
- Average revenue per unique subscription (“ARPUS”) grew to $204, up 7% year-over-year.
- Net loss of $92.9 million vs. net loss of $1.1 million a year ago.
- Net loss per share of $0.67 based on 139,423,228 basic and dilutive weighted average shares.
- Adjusted EBITDA was a loss of $2.9 million vs. a gain of $11.1 million a year ago, primarily driven by marketing expenses, headcount in research & product development, and investments in Tock.
- Cash flow from operating activities was $47.3 million vs. $50.1 million a year ago.
- Non-GAAP unlevered free cash flow was $45.5 million vs. $51.8 million a year ago driven primarily by increased marketing and research & product development spend.
- Cash and cash equivalents of $230.5 million, investments in marketable securities of $27.9 million; total debt of $523.5 million.
Squarespace Outlook & Guidance
For the second quarter of fiscal year 2022, Squarespace currently expects:
- Revenue of $208 million to $213 million, or year-over-year growth of 6% to 9%.
- Non-GAAP unlevered free cash flow of $33.0 million to $37.0 million. This is the result of:
- Cash flow from operating activities of $32.6 million to $36.5 million, minus
- Capital expenditures are expected in the range of $1.4 million to $1.6 million; plus
- Cash paid for interest expense net of associated tax benefit, expected in the range of $1.8 million to $2.0 million.
For the full fiscal year 2022, Squarespace currently expects:
- Revenue of $867 million to $879 million, or year-over-year growth of 11% to 12%.
- Non-GAAP unlevered free cash flow of $156.0 million to $169.0 million. This is the result of:
- Cash flow from operating activities of $154.4 million to $167.4 million, minus
- Capital expenditures, expected in the range of $6.7 million to $7.3 million; plus
- Cash paid for interest expense net of associated tax benefit, expected in the range of $8.3 million to $8.9 million.
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