Squarespace, a leading platform known for its comprehensive tools that assist entrepreneurs in establishing and expanding their online brands, has reported its financial results for the second quarter ending June 30, 2024. The company saw a 20% increase in total revenue, reaching $296.8 million, up from $247.5 million in the same period last year. This growth was consistent across all reported currencies.
A significant portion of this growth can be attributed to its Presence revenue, which surged 25% to \$215.4 million. Meanwhile, Commerce revenue saw a more moderate increase of 8%, amounting to $81.4 million. These figures indicate a robust expansion in Squarespace’s core offerings, particularly appealing to small business owners and solopreneurs looking to enhance their online visibility.
The company’s profitability also saw an uptick with net income rising to $6.1 million from $3.7 million in the second quarter of 2023. Both basic and diluted earnings per share for the quarter stood at $0.04 and $0.03, respectively.
Operating cash flow improved by 15%, totaling $60.6 million, which reflects Squarespace’s effective management and operational efficiency. The firm ended the quarter with $270.4 million in cash and cash equivalents, alongside investments in marketable securities totaling $52.0 million.
Bookings, a key indicator of future revenue potential, grew impressively by 25% to $319.8 million. The unlevered free cash flow also increased by 19% to $65.4 million, representing 22% of total revenue. However, Adjusted EBITDA saw a slight decline to $72.1 million from $73.4 million in the previous year, suggesting some shifts in operational costs or investment strategies.
The platform’s appeal continues to grow among entrepreneurs, as evidenced by a 21% year-over-year increase in total unique subscriptions, which now exceed 5.2 million. The average revenue per unique subscription (ARPUS) has also risen to $225.45, marking a 3% increase. This metric is particularly relevant for solopreneurs who rely on Squarespace for affordable yet powerful tools to run their businesses.
Squarespace’s annual run rate revenue (ARRR) reflected a strong growth trajectory, climbing 20% to $1,179.5 million. This performance underscores the company’s pivotal role in the online business ecosystem, providing solutions that range from website creation and domain registration to e-commerce and social media management through platforms like Acuity, Bio Sites, Unfold, and Tock.
For more detailed insights and to explore how Squarespace can support your business growth, visit their official website at www.squarespace.com. The company continues to innovate, offering a range of products that cater to the dynamic needs of global entrepreneurs and solopreneurs in over 200 countries.
