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Squarespace (SQSP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

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For the quarter ended June 2023, Squarespace reported revenue of $247.53 million, up 16.4% over the same period last year. EPS came in at $0.03, compared to $0.45 in the year-ago quarter.

The reported revenue represents a surprise of +1.81% over the Zacks Consensus Estimate of $243.14 million. With the consensus EPS estimate being $0.13, the EPS surprise was -76.92%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Squarespace performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total bookings: $256.14 million versus the three-analyst average estimate of $262.80 million.
  • Average revenue per unique subscription (ARPUS): $219.42 versus $220.79 estimated by three analysts on average.
  • Unique subscriptions: 4.31 versus the three-analyst average estimate of 4.3.
  • Gross Merchandise Value (GMV): $1.53 billion compared to the $1.56 billion average estimate based on three analysts.
  • Annual run-rate revenue (ARRR): $980.84 million versus the two-analyst average estimate of $1 billion.
  • Revenue- Commerce: $75.46 million compared to the $75.82 million average estimate based on five analysts.
  • Revenue- Presence: $172.07 million compared to the $167.42 million average estimate based on five analysts.
View all Key Company Metrics for Squarespace here>>>

Shares of Squarespace have returned +2.3% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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