Squarespace, Inc. (NYSE: SQSP) offers an all-in-one e-commerce platform, which gives its customers the ability to sell digital & physical products in over 200 countries. Shares of the e-commerce platform operator are rallying 43% through early trading on Thursday, May 12, 2022. Over the past three months, Squarespace has seen average daily volume of 607,210 shares. However, volume of 1.3 million shares or dollar volume of around $26.98 million, has already exchanged hands through early trading.
Shares of Squarespace are gaining after the company reported strong first quarter 2022 financial results. The company reported total revenue of $207.8 million, which represents year-over-year growth of 16%. Commerce revenue grew 36% to $63.8 million and the company’s annual run rate revenue increased by 15% to $869 million. Average revenue per unique subscription increased to $204, up 7% year-over-year. Overall the company reported a net loss of $92.9 million compared to a net loss of $1.1 million during Q1 2021. Adjusted EBITDA came in at a loss of $2.9 million, compared to a gain of $11.1 million a year ago. The loss came from increases in marketing expenses, research headcount, product development and Tock investments.
Squarespace did announce the authorization of a $200 million share repurchase program with no set expiration. The buybacks are slated to occur through open-market purchases, privately negotiated transactions, block purchases and more.
Management issued guidance for the second quarter and the fiscal full year 2022. During Q2 2022, Squarespace estimates revenue between $208 million and $213 million, which represents year-over-year growth between 6% and 9%. On the fiscal full year 2022 basis, the company estimates a revenue range between $867 million and $879 million, which represents year-over-year growth between 11% and 12%.
“Our Q1 results mark another strong quarter of growth,” said Anthony Casalena, Founder & CEO of Squarespace. “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. 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.”
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