Monday, January 30, 2023
  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Disclaimer
  • Term & Condition
SEO Tools
Get leads. Get sales. Get growing.
  • Home
  • Free SEO Tools
  • Search Engine Optimization
  • Digital Marketing
  • Marketing Strategy
  • Affiliate Marketing
  • SEO Tools
No Result
View All Result
SEO Tools
  • Home
  • Free SEO Tools
  • Search Engine Optimization
  • Digital Marketing
  • Marketing Strategy
  • Affiliate Marketing
  • SEO Tools
No Result
View All Result
SEO Tools
No Result
View All Result
Home SEO Tools

Squarespace Stock in Spotlight After Earnings

Admin by Admin
July 30, 2022
in SEO Tools
0
Squarespace Stock in Spotlight After Earnings
585
SHARES
3.2k
VIEWS
Share on FacebookShare on Twitter

[ad_1]

Squarespace (NYSE: SQSP) is hitting the headlines on Monday after cutting its revenue outlook in its latest earnings update.

The company’s second-quarter earnings said it expected to achieve full year revenue of $857m to $867m, or year-over-year growth of 9% to 11%. This is below the previous guidance of revenue of between $867m to $879m. 

The cut to revenue outlook came as the business said that without the impact of FX headwinds it would have topped guidance. Even so, revenue of $212.07m and earnings per share of $0.45 were still ahead of consensus expectations.

Additionally, unique subscriptions increased by 6% to 4.2 million and revenue per unique subscription also increased by 6% to $204.

What is Squarespace?

New York-based Squarespace operates platform for businesses and independent creators to build online presence, grow their brands and manage their businesses across the internet.

Its suite of integrated products enables users to manage their projects and businesses through websites, domains, e-commerce, marketing tools and scheduling, as well as tools for managing a social media presence.

The company, which was founded back in 2003, serves small and medium-sized businesses, and independent creators, such as restaurants, photographers, wedding planners, artists, musicians and bloggers.

How Does Squarespace Make Money?

The company makes the majority of its money from customer subscriptions, which are annual or monthly recurring revenue. Its wide product portfolio includes a range of tools to help different individuals and businesses create different kinds of websites, such as blogs or online shops.

Further functionality comes from brand building tools like email marketing, SEO tools and video creation applications.

At the moment, the company’s revenue is split into ‘Presence’ and ‘Commerce’ categories.

Presence revenues stem from subscriptions to Squarespace plans that offer core platform functionalities, while Commerce revenues are from the business’ plans which also offer additional marketing and ecommerce functionality. 

In the second quarter of 2022, Presence revenue amounted to $147m and Commerce revenue sat at $66m, with both segments having grown over the prior 12-month period.   

SQSP Stock Financials

The company’s price to sales ratio is 3.10, just above the average of 2.9 for the technology industry according to CSIMarket. This indicates that the stock might be slightly overvalued.

Since it debuted on the stock market in May 2021, the company’s share price has been on a mainly downward trajectory, falling by 61% to $19.33 at the time of writing. However, this has been exacerbated by the general decline in tech stock share prices since November 2021, pushing the stock down further from its price at IPO.

SQSP Growth Potential

Website creation and web hosting is a crowded marketplace. The company’s top competition includes major players like Wix, WordPress, Shopify, GoDaddy, Weebly and Webflow. 

According to data from BuiltWith.com, Squarespace has a 17.4% share of all websites using a hosted solution, compared with Wix’s 40.9% share and Shopify’s 19.8% share.

What differentiates Squarespace from these competitors is the complexity of its offering. The tools on offer to Squarespace subscriber offer far more extensive hands-on website creation and management than competitors like GoDaddy and Wix, which have instead appeared to prioritize ease of use. 

For users who are looking to build complex sites without the assistance of professionals, Squarespace looks like it might have something of an edge. 

SQSP Investment Risks

As already mentioned, the company faces a significant amount of competition and has seen its share price fall significantly over the past 12 months. This drop has not been as severe as the fall seen by some of its peers, but Godaddy in particular has fared far better.

Additionally, revenue growth has slowed significantly over the past 12 months. While the recently reported second quarter earnings showed 9% year-on-year growth, the same period last year saw the company record 31% growth. 

This deceleration could be due to a slowdown in demand for digitisation after the COVID-19 pandemic and the associated restrictions on public interaction, but it could present a challenge for the business. This slowdown, coupled with slashed full-year guidance, has clearly made some investors nervous.

Is Squarespace a Good Investment?

Investors in Squarespace are getting behind the company because of its future potential. They see a major player in the website building and hosting space, which is attempting to carve a niche for itself as the most robust business in the game.

However, that does mean the business’ growth prospects could be limited, especially as it doesn’t have an equivalent to the free plans offered by some competitors. The impressive growth that the company racked up in its early days on the public markets may have just been a side effect of the COVID-19 pandemic, as revenue growth is now slowing significantly.

You might choose to back Squarespace stock if you think its business plan of a wide and varied offering can conquer its many competitors over the long term, but its difficult to recommend the stock given the downgrade to outlook and challenging environment.

[ad_2]

Source link

You might also like

Best Digital Marketing Courses: A Review of 5 Top Online Courses

7 Ways Ecommerce Businesses Use Alternative Data in 2022

What Is It & How To Do It

Previous Post

Affiliate Marketing Reimagined

Next Post

SEO webinar on getting quality backlinks

Admin

Admin

Blogger & Youtuber

Related Posts

Best Digital Marketing Courses: A Review of 5 Top Online Courses
SEO Tools

Best Digital Marketing Courses: A Review of 5 Top Online Courses

by Admin
December 3, 2022
7 Ways Ecommerce Businesses Use Alternative Data in 2022
SEO Tools

7 Ways Ecommerce Businesses Use Alternative Data in 2022

by Admin
November 28, 2022
What Is It & How To Do It
SEO Tools

What Is It & How To Do It

by Admin
November 23, 2022
New study: leading SaaS SEO companies in the World
SEO Tools

New study: leading SaaS SEO companies in the World

by Admin
November 18, 2022
How To Increase Traffic To Your Website
SEO Tools

How To Increase Traffic To Your Website

by Admin
November 13, 2022
Next Post
SEO webinar on getting quality backlinks

SEO webinar on getting quality backlinks

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

SCS Expands Strategic Talent Investment With New Hires Across Creative, Strategy, Media, and HR | News

New Study Underscores Local Radio’s Impact for Political Candidates | News

September 6, 2022
Eskimoz, the leading SEO agency in Europe!

Eskimoz, the leading SEO agency in Europe!

September 10, 2022
► Lets Getting Rich blog

► Free SEO & Digital Marketing Tools

► SEO Tools blog

► Latest RVH News

► Find a domain and launch your site today!

Categories

  • Affiliate Marketing
  • Digital Marketing
  • E-Commerce Marketing
  • Email Marketing
  • Marketing Strategy
  • Search Engine Optimization
  • SEO Tools

Don't miss it

From Rags To Riches During The Pandemic, Teamology PR Inspires Startups To Thrive
Digital Marketing

From Rags To Riches During The Pandemic, Teamology PR Inspires Startups To Thrive

December 4, 2022
Here’s how to stop the cost of Christmas from burning a big hole in your wallet
Affiliate Marketing

Here’s how to stop the cost of Christmas from burning a big hole in your wallet

December 3, 2022
Best Digital Marketing Courses: A Review of 5 Top Online Courses
SEO Tools

Best Digital Marketing Courses: A Review of 5 Top Online Courses

December 3, 2022
10 Stars that fans want to see on “The Manager”
Search Engine Optimization

10 Stars that fans want to see on “The Manager”

December 3, 2022
Irish privacy regulator fines Facebook 265 million euros, Marketing & Advertising News, ET BrandEquity
Digital Marketing

Irish privacy regulator fines Facebook 265 million euros, Marketing & Advertising News, ET BrandEquity

November 29, 2022
7 Ways Ecommerce Businesses Use Alternative Data in 2022
SEO Tools

7 Ways Ecommerce Businesses Use Alternative Data in 2022

November 28, 2022
  • About Us
  • Contact Us
  • Disclaimer
  • Home
  • Latest Post
  • Privacy Policy
  • Term & Condition
SEO & Digital Marketing Tools

© 2022 Blog.TopSEOsuperTools.com All Rights Reserved.

No Result
View All Result
  • Landing Page
  • Shop
  • Contact
  • Buy JNews

© 2022 Blog.TopSEOsuperTools.com All Rights Reserved.

What are cookies
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT