It’s been an unusually busy yr to date for Squarespace Inc., an online technology and services provider to entrepreneurs.
Squarespace will enable entrepreneurs to construct higher online brands.
Following a record 2023, when it surpassed $1 billion in revenue for the primary time, the general public company agreed in May to go private in a pending all-cash transaction valued at roughly $6.9 billion with private equity firm Permira.
Meanwhile, Latest York-based Squarespace’s financial numbers have continued to grow.
Squarespace bookings grow 25%
For the second quarter ended June 30, Squarespace said the overall bookings for its subscription-based products grew 25% yr over yr to $319.8 million, as net income surged 64.9% to $6.1 million and total revenue increased 20% to $296.8 million.
Due to the plan to go private, Squarespace said it canceled its Q2 earnings call and is not going to provide revenue guidance for the remaining of the yr.
Anthony Casalena, CEO, Squarespace Inc.
“We’re thrilled to be partnering with Permira on this latest leg of our journey, alongside our existing long-term investors General Atlantic and Accel,” Squarespace founder and CEO Anthony Casalena said when the deal was announced in May. He added that Squarespace looks forward with its latest equity partners to constructing on its two-decade history of helping client business “establish themselves online.”
Under terms of the deal, Casalena and his existing Squarespace leadership team will proceed of their positions after the transaction closes as expected within the fourth quarter.
“Squarespace will grow to be a privately held company with the flexibleness and resources to speculate in enabling entrepreneurs to construct higher online brands and more easily transact with their customers,” the corporate said. It added that long-term investors General Atlantic and Accel will “re-invest as a part of the go-private agreement.”
Squarespace sells Tock to American Express
In June, Squarespace said it agreed to sell Tock, its online reservation and event management technology provider to American Express for $400 million.
Andrew Young, a partner at Permira, said “the Squarespace ecosystem provides SMBs with a broad offering — from demand generation to powerful payment solutions, all seamlessly interwoven with intuitive GenAI. We share Anthony and the team’s vision to further put money into these tools to assist customers grow.”
Squarespace provides web technology and services for helping businesses plan, design and construct web sites under two categories:
⦁ Ecommerce operations, with Squarespace revenue reported under commerce-focused subscription plans.
⦁ Personal and general business operations, including communications and team collaboration, with Squarespace revenue reported under its “presence” subscription plans.
For the second quarter ended June 30, Squarespace reported:
⦁ Unique subscriptions increased 21% yr over yr to “over 5.2 million.”
⦁ Commerce category revenue increased 8% to $81.4 million.
⦁ Presence category revenue increased 25% to $215.4 million.
⦁ Adjusted EBITDA dipped 1.8% to $72.1 million.
For the six months ended June 30, Squarespace reported:
⦁ Revenue increased 19.3% yr over yr to $577.9 million.
⦁ Commerce category revenue increased 9.2% to $161.7 million.
⦁ Presence category revenue increased 23.7% to $416.3 million
⦁ Net income increased 50.8% to $6.3 million.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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