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Squarespace (SQSP) investor relations material

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Squarespace Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary2 Aug, 2024

Executive summary

  • Revenue for Q2 2024 was $296.8 million, up 20% year-over-year; net income was $6.1 million, up from $3.7 million in Q2 2023.

  • Growth driven by a 21% increase in unique subscriptions and the impact of the Google Domains Asset Acquisition.

  • Announced a definitive agreement to be acquired by Permira in an all-cash transaction valued at $6.9 billion, expected to close by Q4 2024; guidance for Q3 and FY24 is suspended.

  • Entered into an agreement to sell hospitality platform Tock LLC to American Express for $400 million, with assets classified as held for sale as of June 30, 2024.

Financial highlights

  • Gross profit for Q2 2024 was $213.8 million, up 4.6% year-over-year; gross margin declined to 72.1% from 82.6% due to domain registration costs.

  • Adjusted EBITDA for Q2 2024 was $72.1 million, down 1.8% year-over-year; unlevered free cash flow rose 19% to $65.4 million.

  • Cash and cash equivalents plus marketable securities totaled $322.4 million as of June 30, 2024.

  • Total bookings rose 25% to $319.8 million; annual run rate revenue (ARRR) up 20% to $1.18 billion.

  • Total debt outstanding was $546.9 million under the Term Loan and $7.3 million under the Revolving Credit Facility.

Outlook and guidance

  • The Permira acquisition is expected to close by Q4 2024, subject to customary closing conditions.

  • Management expects continued growth in unique subscriptions and bookings, supported by international expansion and product innovation.

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