Squarespace, the American website building and hosting company, has reported a YoY revenue increase of 18.1% to $257.1 million for Q3 FY2023, surpassing analyst estimates. The firm also provided a positive Q4 guidance of $262.5 million, indicating a potential 14.7% YoY increase for the next quarter.
Despite the promising revenue figures, Squarespace posted a GAAP loss of $0.12 per share in Q3 FY2023, compared to a profit of $0.07 per share in the same quarter of the previous year. The company's GAAP gross margin also saw a decrease, falling from 82.1% YoY to 79.9%.
CEO Anthony Casalena has expressed confidence in the company's future performance, stating their objective to exceed $1 billion in total revenue by end-2023. This goal is underpinned by Squarespace's high-growth business strategy and stable stock price at $30.09 per share.
The company's financial strength is further evidenced by its market capitalization of $4.1 billion, a cash balance of $257.1 million, and free cash flow of $47.4 million.
Currently, ecommerce accounts for only 20% of retail purchases, suggesting an 80% potential for online disruption and increasing demand for ecommerce solutions like Squarespace. The company has shown consistent revenue growth from $201 million in Q3 FY2021 to $257.1 million in Q3 FY2023.
Squarespace's performance and future prospects highlight the increasing relevance and potential of ecommerce solutions in the current retail landscape.
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