Squarespace Revenue Surges but Reports Net Loss

By Bobby Samwell • Wednesday, February 28 10:27 • Permanent Link

Squarespace, Inc., founded in 2003 and headquartered in New York, operates a platform for businesses and independent creators to build and manage their online presence, offering a suite of integrated products for website management, domains, e-commerce, marketing tools, scheduling, and hospitality services.

The company's revenue for the years ended December 31, 2023, 2022, and 2021 was $1,012.3 million, $867.0 million, and $784.0 million, respectively. Notably, the company reported a net loss of $7.1 million, $252.2 million, and $249.1 million during the same periods. Squarespace primarily derives revenue from annual and monthly subscriptions, which accounted for 92.0%, 91.5%, and 92.1% of its total revenue for the years 2023, 2022, and 2021, respectively.

The company's key factors affecting performance include the acquisition of new and retention of existing unique subscriptions, expansion of commerce offerings, investments in product innovation, and foreign currency fluctuations. Squarespace's commerce revenue saw a significant increase, reaching $308.0 million in 2023, compared to $269.7 million in 2022 and $229.5 million in 2021. Additionally, the company processed approximately $6,211.8 million, $6,058.8 million, and $5,781.7 million of Gross Merchandise Value (GMV) during the years ended December 31, 2023, 2022, and 2021, respectively.

In terms of operating expenses, research and product development expenses were $242.2 million, $227.3 million, and $190.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. Marketing and sales expenses, as well as general and administrative expenses, also contributed to the company's overall operating expenses.

The company also provided a breakdown of its revenue, which primarily consists of presence revenue and commerce revenue. Presence revenue includes fixed-fee subscriptions to plans offering core platform functionalities, while commerce revenue includes fixed-fee subscriptions for end-to-end commerce transactions and additional features supporting online businesses.

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