Technology

Squarespace Announces Fourth Quarter and Full Year 2023 Financial Results and $500 Million Share Repurchase Authorization

Published

2 years ago

February 28, 2024

Revenue Increased 18% in the Fourth Quarter and 17% for the Full Year 2023, Topping $1 Billion
Squarespace to Host Investor Day on May 15, 2024

NEW YORK, Feb. 28, 2024 /PRNewswire/ — Squarespace, Inc. (NYSE: SQSP), the design-driven platform helping entrepreneurs build brands and businesses online, today announced results for the fourth quarter and year ended December 31, 2023.

“Squarespace surpassed $1 billion in revenue for the first time in its 20-year history in 2023, driven by new customer growth across markets and strong retention, which speaks to our robust product offering,” said Anthony Casalena, Founder & CEO of Squarespace. “During 2023 we also made important strides in enhancing the foundation of our long-term growth through our acquisition of Google Domains, the launch of Squarespace Payments, and key product and feature introductions including new AI capabilities that expand our ecosystem and broaden accessibility to entrepreneurs wherever they are on their journey. Entering our third decade, we are in a strong position to capitalize across our core verticals of enabling small business, commerce and international expansion.”

“Squarespace delivered a record fourth quarter that exceeded our expectations across the board,” said Nathan Gooden, CFO of Squarespace. “We are combining increased scale and profitability with consistent execution and a relentless focus on innovation for entrepreneurs to set a strong foundation for sustainable growth and value creation. We view share repurchases as an integral part of our capital allocation strategy and the $500 million authorization announced today underscores the strong financial momentum in our business.”

Fourth Quarter 2023 Financial Highlights

Total revenue grew 18% year over year to $270.7 million in the fourth quarter, compared with $228.8 million in the fourth quarter of 2022, and 16% in constant currency.Presence revenue grew 20% year over year to $188.4 million and 18% in constant currency.Commerce revenue grew 14% year over year to $82.3 million and 13% in constant currency.Net income totaled $5.3 million, compared with a net loss of $234.0 million in the fourth quarter 2022. The 2022 result included a $225.2 million non-cash goodwill impairment charge. Excluding the impairment charge, net loss for the fourth quarter of 2022 was $8.8 million.Earnings per share totaled $0.04 based on 136,153,002 basic and 139,387,350 dilutive weighted average shares in the fourth quarter, compared with a loss per share of $1.72 based on 136,340,283 basic and dilutive weighted average shares in the fourth quarter of 2022.Cash flow from operating activities increased 56% to $61.1 million for the three months ended December 31, 2023, compared with $39.1 million for the three months ended December 31, 2022.Total bookings grew 23% year over year to $286.1 million in the fourth quarter, compared to $232.1 million in the fourth quarter of 2022.Unlevered free cash flow increased 57% to $65.0 million representing 24% of total revenue for the three months ended December 31, 2023, compared with $41.5 million for the three months ended December 31, 2022.Adjusted EBITDA increased to $64.7 million in the fourth quarter, compared with $63.1 million in the fourth quarter of 2022.

Full Year 2023 Financial Highlights

Total revenue grew 17% year over year to $1,012.3 million in 2023, compared with $867.0 million in 2022, and 16% in constant currency.Presence revenue grew 18% year over year to $704.3 million and 17% in constant currency.Commerce revenue grew 14% year over year to $308.0 million and 14% in constant currency.Net loss was $7.1 million, compared with a net loss of $252.2 million in 2022. The 2022 result included a $225.2 million non-cash goodwill impairment charge. Excluding the impairment charge, net loss for the full year 2022 was $27.1 million.Loss per share of $0.05 based on 135,531,363 basic and dilutive weighted average shares in 2023, compared with a loss per share of $1.82 based on 138,409,491 basic and dilutive weighted average shares in 2022.Cash flow from operating activities increased 41% to $231.1 million in 2023, compared with $164.2 million in 2022.Total bookings grew 19% year over year to $1,075.1 million in 2023, compared to $906.1 million in 2022.Unlevered free cash flow increased 46% to $241.0 million representing 24% of total revenue in 2023, compared with $165.6 million in 2022.Adjusted EBITDA increased to $235.4 million in 2023, compared with $147.5 million in 2022.Cash and cash equivalents at year-end 2023 of $257.7 million; total debt was $568.8 million, of which $49.0 million is current, debt net of cash and investments totaled $311.1 million.Total unique subscriptions increased 10% year over year to over 4.6 million in 2023, compared to 4.2 million in 2022.Average revenue per unique subscription (“ARPUS”) increased 9% year over year to $228.02 in 2023, compared to $209.16 in 2022.Annual run rate revenue (“ARRR”) grew 19% year over year to $1,105.7 million in 2023, compared to $931.7 million in 2022.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

2023 Business Highlights

Product Innovation

Squarespace provides superior design and ease of use technology for entrepreneurs everywhere. Our passion for innovation drove all areas of our business. In 2023, the Company:

Relaunched Squarespace Domains with a more complete domain management experience for domain-first customers following our acquisition of Google Domains Assets.Launched Squarespace Payments, which fully integrates with our customers’ online stores to accept fast and secure payments and provides a seamless purchase experience for their customers all in one place.Unveiled Squarespace Blueprint, our guided website design system that provides professionally-curated layouts and styling options.Advanced Acuity Scheduling’s platform technologies and introduced new branding to help streamline the client booking experience with a centralized dashboard, mobile app tools, and payment features.Invested in Squarespace AI to make it easier than ever for users to generate custom content. Generative AI integrations help populate websites, email campaigns, and commerce store descriptions, enabling customers to efficiently publish and specialize content for their brand identity.Released our annual compilation of new products and features, Squarespace Refresh, where we showcased new tools spanning commerce, client invoicing, courses, email marketing, enterprise customer collaboration, and more.Enhanced Tock’s User System with a new iOS app and new reservation features, and integrated Reserve with Google to help Tock customers increase their visibility and drive diners to their businesses.Established a partnership with SoundCloud to bring SoundCloud Next Pro artists the opportunity to create a beautiful website with unique, music-themed domains.

Marketing & Brand

Our marketing investments, design-centric ethos, and go-to-market channels bolster our brand recognition and keep Squarespace top of mind for new audiences. This year, Squarespace:

Continued to globalize our product suite by increasing our currency options by 5x.Introduced the second edition of Squarespace Collection (formerly Squarespace Icons) with Magnum Photos, where we partnered with six world renowned photographers to create signature website designs inspired by each photographer’s creativity and built on our website editor, Fluid Engine™.Teamed up with Adam Driver for our 9th Big Game campaign, “The Singularity,” where we honored Squarespace’s founding history as a pioneer in website building.Hosted our second Circle Day where we engaged thousands of members of our Circle partner program from around the world. Members shared advice and strategies on how to leverage strengths, skills, and connections to expand every web designer’s professional toolkit.Received multiple Fast Company awards, including Fast Company’s Most Innovative Companies and Innovation by Design, won two Webby Awards and our Big Game commercial won top honors from ADC, AICP, Cannes Lions, Ciclope, D&AD and the One Show.

Corporate

Squarespace is focused on creating and delivering value to entrepreneurs, partners, and investors. In 2023, the Company:

Acquired Google’s Domains business, representing millions of domains, and established an exclusive reseller agreement for any customer purchasing a domain along with their Google Workspace subscription from Google directly.Won multiple awards recognizing the excellence of our organization including Comparably’s Best Places to Work in New York.Celebrated our 20th anniversary; across two decades the Squarespace platform has been used by millions to build beautiful brands and businesses online.Returned approximately $26.0 million to shareholders under our share repurchase program as of December 31, 2023, which represents approximately 1.3 million shares.

Share Repurchase Program

Squarespace’s board of directors authorized a general share repurchase program of the Company’s Class A common stock of up to $500 million with no fixed expiration. These Class A common stock repurchases may occur in the open market, through privately negotiated transactions, through block purchases, other purchase techniques including the establishment of one or more plans under Rule 10b5-1 of the Securities Exchange Act of 1934 or by any combination of such methods. The timing and actual amount of shares repurchased will depend on a variety of different factors and may be modified, suspended or terminated at any time at the discretion of the board of directors.

Outlook & Guidance

For the first quarter of fiscal year 2024, Squarespace currently expects:

Revenue of $274 million to $277 million, or year-over-year growth of 16% to 17%.Non-GAAP unlevered free cash flow of $83 million to $86 million. This is the result of:Cash flow from operating activities of $77 million to $81 million, minusCapital expenditures, expected to be approximately $2 million to $3 million; plusCash paid for interest expense net of associated tax benefit, expected to be approximately $8 million.

For the full fiscal year 2024, Squarespace currently expects:

Revenue of $1,170 million to $1,190 million, or year-over-year growth of 16% to 18%, which includes contributions in the range of $85 million to $88 million related to our acquisition of Google Domains Assets.Non-GAAP unlevered free cash flow of $290 million to $310 million. This is the result of:Cash flow from operating activities of $266 million to $288 million, minusCapital expenditures, expected in the range of $4 million to $6 million; plusCash paid for interest expense net of associated tax benefit, expected to be approximately $28 million.

Webcast Conference Call & Shareholder Letter Information

Squarespace will host a conference call on February 28, 2024 at 8:30 a.m. ET to discuss its financial results. A live webcast of the event will be available in the Events & Presentations section of the Squarespace Investor Relations website. An archived replay of the webcast will be available following the conclusion of the call. Additionally, we invite you to read our shareholder letter available on our Investor Relations website.

Squarespace to Host Investor Day

Squarespace will host an Investor Day on May 15, 2024 in New York City. A live webcast of the event will be available in the Events & Presentations section of the Squarespace Investor Relations website. Interested investors and analysts are encouraged to email investors@squarespace.com for an invitation.

Non-GAAP Financial Measures

Revenue growth in constant currency is being provided to increase transparency and align our disclosures with companies in our industry that receive material revenues from international sources. Revenue constant currency has been adjusted to exclude the effect of year-over-year changes in foreign currency exchange rate fluctuations. We believe providing this information better enables investors to understand our operating performance irrespective of currency fluctuations.

We calculate constant currency information by translating current period results from entities with foreign functional currencies using the comparable foreign currency exchange rates from the prior fiscal year. To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange rate as the comparative period. Our definition of constant currency may differ from other companies reporting similarly named measures, and these constant currency performance measures should be viewed in addition to, and not as a substitute for, our operating performance measures calculated in accordance with GAAP.

Adjusted EBITDA is a supplemental performance measure that our management uses to assess our operating performance. We calculate adjusted EBITDA as net income/(loss) excluding interest expense, other income/(loss), net (provision for)/benefit from income taxes, depreciation and amortization, stock-based compensation expense and other items that we do not consider indicative of our ongoing operating performance.

Unlevered free cash flow is a supplemental liquidity measure that Squarespace’s management uses to evaluate its core operating business and its ability to meet its current and future financing and investing needs. Unlevered free cash flow is defined as cash flow from operating activities, including one-time expenses related to Squarespace’s direct listing, less cash paid for capital expenditures increased by cash paid for interest expense net of the associated tax benefit.

Adjusted EBITDA, unlevered free cash flow and revenue constant currency are not prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and have important limitations as an analytical tool. Non-GAAP financial measures are supplemental, should only be used in conjunction with results presented in accordance with GAAP and should not be considered in isolation or as a substitute for such GAAP results.

Further information on these non-GAAP items and reconciliation to their closest GAAP measure is provided below under, “Reconciliation of Non-GAAP Financial Measures.”

Definitions of Key Operating Metrics

On September 7, 2023, we closed an asset purchase agreement between us and Google LLC (“Google”) to acquire, among other things, Google’s domain assets (the “Google Domains Asset Acquisition “). Unique subscriptions and average revenue per unique subscription do not account for single domain subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition (the “Acquired Domain Assets”).

Annual run rate revenue (“ARRR”). We calculate ARRR as the monthly revenue from subscription fees and revenue generated in conjunction with associated fees (fees taken or assessed in conjunction with commerce transactions) in the last month of the period multiplied by 12. We believe that ARRR is a key indicator of our future revenue potential. However, ARRR should be viewed independently of revenue, and does not represent our GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by subscription start and end dates and renewal rates. ARRR is not intended to be a replacement or forecast of revenue.

Unique subscriptions represent the number of unique sites, standalone scheduling subscriptions, Unfold (social) and hospitality subscriptions, as of the end of a period. A unique site represents a single subscription and/or group of related subscriptions, including a website subscription and/or a domain subscription, and other subscriptions related to a single website or domain. Every unique site contains at least one domain subscription or one website subscription. For instance, an active website subscription, a custom domain subscription and a Google Workspace subscription that represent services for a single website would count as one unique site, as all of these subscriptions work together and are in service of a single entity’s online presence. Unique subscriptions do not account for one-time purchases in Unfold or for hospitality services nor do they account for our Acquired Domain Assets. The total number of unique subscriptions is a key indicator of the scale of our business and is a critical factor in our ability to increase our revenue base.

Average revenue per unique subscription (“ARPUS”). We calculate ARPUS as the total revenue during the preceding 12-month period divided by the average of the number of total unique subscriptions at the beginning and end of the period. ARPUS does not account for Acquired Domain Assets or the revenue from Acquired Domain Assets. We believe ARPUS is a useful metric in evaluating our ability to sell higher-value plans and add-on subscriptions.

Total bookings represents cash receipts for all subscriptions purchased, as well as payments due under the terms of contractual agreements for obligations to be fulfilled.

Gross merchandise value (“GMV”) represents the value of physical goods, content and time sold, including hospitality services, net of refunds, on our platform over a given period of time.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding Squarespace’s future operating results and financial position, including for its first fiscal quarter ending March 31, 2024 and its fiscal year ending December 31, 2024. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to: Squarespace’s ability to attract and retain customers and expand their use of its platform; Squarespace’s ability to anticipate market needs and develop new solutions to meet those needs; Squarespace’s ability to improve and enhance the functionality, performance, reliability, design, security and scalability of its existing solutions; Squarespace’s ability to compete successfully in its industry against current and future competitors; Squarespace’s ability to manage growth and maintain demand for its solutions; Squarespace’s ability to protect and promote its brand; Squarespace’s ability to generate new customers through its marketing and selling activities; Squarespace’s ability to successfully identify, manage and integrate any existing and potential acquisitions or achieve the expected benefits of such acquisitions; Squarespace’s ability to hire, integrate and retain highly skilled personnel; Squarespace’s ability to adapt to and comply with existing and emerging regulatory developments, technological changes and cybersecurity needs; Squarespace’s compliance with privacy and data protection laws and regulations as well as contractual privacy and data protection obligations; Squarespace’s ability to establish and maintain intellectual property rights; Squarespace’s ability to manage expansion into international markets; and the expected timing, amount, and effect of Squarespace’s share repurchases. It is not possible for Squarespace’s management to predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Squarespace may make. In light of these risks, uncertainties, and assumptions, Squarespace’s actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are included in Squarespace’s filings with the Securities and Exchange Commission. Except as required by law, Squarespace assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

About Squarespace

Squarespace (NYSE: SQSP) is a design-driven platform helping entrepreneurs build brands and businesses online. We empower millions in more than 200 countries and territories with all the tools they need to create an online presence, build an audience, monetize, and scale their business. Our suite of products range from websites, domains, ecommerce, and marketing tools, as well as tools for scheduling with Acuity, creating and managing social media presence with Bio Sites and Unfold, and hospitality business management via Tock. For more information, visit www.squarespace.com.

Contacts

Investors
investors@squarespace.com

Media
press@squarespace.com

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Revenue

$ 270,718

$ 228,812

$ 1,012,336

$ 866,972

Cost of revenue(1)

69,650

40,106

207,520

152,655

Gross profit

201,068

188,706

804,816

714,317

Operating expenses:

Research and product development(1)

61,715

56,828

242,188

227,297

Marketing and sales(1)

91,513

66,154

349,574

322,051

General and administrative(1)

29,922

37,942

129,326

151,620

Impairment charge

—

225,163

—

225,163

Total operating expenses

183,150

386,087

721,088

926,131

Operating income/(loss)

17,918

(197,381)

83,728

(211,814)

Interest expense

(10,718)

(7,230)

(36,768)

(18,207)

Other (loss)/income, net

(4,163)

(9,567)

3,362

5,030

Income/(loss) before benefit from/(provision for) income
taxes

3,037

(214,178)

50,322

(224,991)

Benefit from/(provision for) income taxes

2,219

(19,784)

(57,403)

(27,230)

Net income/(loss)

$ 5,256

$ (233,962)

$ (7,081)

$ (252,221)

Net income/(loss) per share, basic and dilutive

$ 0.04

$ (1.72)

$ (0.05)

$ (1.82)

Weighted-average shares used in computing net income/
(loss) per share, basic

136,153,002

136,340,283

135,531,363

138,409,491

Weighted-average shares used in computing net income/
(loss) per share, dilutive

139,387,350

136,340,283

135,531,363

138,409,491

(1) Includes stock-based compensation as follows:

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Cost of revenue

$ 1,451

$ 944

$ 5,536

$ 3,414

Research and product development

13,868

11,099

54,806

42,237

Marketing and sales

2,921

2,450

10,856

8,696

General and administrative

9,587

12,989

36,551

48,186

Total stock-based compensation

$ 27,827

$ 27,482

$ 107,749

$ 102,533

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)

December 31, 2023

December 31, 2022

Assets

Current assets:

Cash and cash equivalents

$ 257,702

$ 197,037

Restricted cash

36,583

35,583

Investment in marketable securities

—

31,757

Accounts receivable

24,894

10,748

Due from vendors

6,089

4,442

Prepaid expenses and other current assets

48,947

48,326

Total current assets

374,215

327,893

Property and equipment, net

58,211

51,633

Operating lease right-of-use assets

77,764

86,824

Goodwill

210,438

Intangible assets, net

190,103

42,808

Other assets

11,028

10,921

Total assets

$ 921,759

$ 730,517

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit

Current liabilities:

Accounts payable

$ 12,863

$ 12,987

Accrued liabilities

99,435

64,360

Deferred revenue

333,191

269,689

Funds payable to customers

42,672

38,845

Debt, current portion

48,977

40,758

Operating lease liabilities, current portion

12,640

11,514

Total current liabilities

549,778

438,153

Deferred income taxes, non-current portion

1,039

788

Debt, non-current portion

519,816

473,167

Operating lease liabilities, non-current portion

97,714

110,169

Other liabilities

13,764

11,231

Total liabilities

1,182,111

1,033,508

Commitments and contingencies

Redeemable convertible preferred stock, par value of $0.0001; zero shares authorized as of December 31,
2023 and 2022, respectively; zero shares issued and outstanding as of December 31, 2023 and 2022,
respectively

—

Preferred stock, par value of $0.0001; 100,000,000 shares authorized as of December 31, 2023 and 2022,
respectively; zero shares issued and outstanding as of December 31, 2023 and 2022, respectively

—

Stockholders’ deficit:

Class A common stock, par value of $0.0001; 1,000,000,000 shares authorized as of December 31, 2023
and 2022, respectively; 88,545,012 and 87,754,534 shares issued and outstanding as of December 31, 2023
and 2022, respectively

Class B common stock, par value of $0.0001; 100,000,000 shares authorized as of December 31, 2023 and
2022, respectively; 47,844,755 shares issued and outstanding as of December 31, 2023 and 2022,
respectively

Class C common stock (authorized March 15, 2021), par value of $0.0001; zero shares authorized as of
December 31, 2023 and 2022, respectively; zero shares issued and outstanding as of December 31, 2023
and 2022, respectively

—

Class C common stock (authorized May 10, 2021), par value of $0.0001; 1,000,000,000 shares authorized
as of December 31, 2023 and 2022, respectively; zero shares issued and outstanding as of December 31,
2023 and 2022, respectively

—

Additional paid in capital

924,634

875,737

Accumulated other comprehensive loss

(843)

(1,665)

Accumulated deficit

(1,184,157)

(1,177,076)

Total stockholders’ deficit

(260,352)

(302,991)

Total liabilities, redeemable convertible preferred stock and stockholders’ deficit

$ 921,759

$ 730,517

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Years Ended December 31,

2023

2022

OPERATING ACTIVITIES:

Net loss

$ (7,081)

$ (252,221)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

43,927

31,617

Stock-based compensation

107,749

102,533

Impairment charge

—

225,163

Deferred income taxes

251

788

Non-cash lease (income)/expense

(2,286)

2,227

Other

831

832

Changes in operating assets and liabilities:

Accounts receivable and due from vendors

(15,678)

(5,461)

Prepaid expenses and other current assets

(458)

3,699

Accounts payable and accrued liabilities

33,519

(2,215)

Deferred revenue

61,364

39,464

Funds payable to customers

3,827

8,707

Other operating assets and liabilities

5,152

9,086

Net cash provided by operating activities

231,117

164,219

INVESTING ACTIVITIES:

Proceeds from the sale and maturities of marketable securities

39,664

27,193

Purchases of marketable securities

(7,824)

(27,681)

Cash paid for acquisitions, net of acquired cash

(176,721)

—

Purchase of property and equipment

(16,998)

(11,543)

Net cash used in operating activities

(161,879)

(12,031)

FINANCING ACTIVITIES:

Borrowings on Term Loan

99,444

—

Payments of debt issuance costs

(637)

—

Principal payments on debt

(44,867)

(13,586)

Payments for repurchase and retirement of Class A common stock

(25,989)

(120,193)

Taxes paid related to net share settlement of equity awards

(36,366)

(21,268)

Proceeds from exercise of stock options

228

2,211

Net cash used in financing activities

(8,187)

(152,836)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

614

(412)

Net increase/(decrease) in cash, cash equivalents and restricted cash

61,665

(1,060)

Cash, cash equivalents and restricted cash at the beginning of the period

232,620

233,680

Cash, cash equivalents and restricted cash at the end of the period

$ 294,285

$ 232,620

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

$ 257,702

$ 197,037

Restricted cash

36,583

35,583

Cash, cash equivalents and restricted cash at the end of the period

$ 294,285

$ 232,620

SUPPLEMENTAL DISCLOSURE OF CASH FLOW

Cash paid during the year for interest

$ 35,668

$ 17,088

Cash paid during the year for income taxes, net of refunds

$ 41,747

$ 10,664

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Purchases of property and equipment included in accounts payable and accrued liabilities

$ 129

$ 1,784

Accrued taxes related to net share settlement of equity awards

$ 377

$ 176

Non-cash leasehold improvements

$ —

$ (5,864)

Capitalized stock-based compensation

$ 3,940

$ 980

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(unaudited)

The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial
measure:

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Net income/(loss)

$ 5,256

$ (233,962)

$ (7,081)

$ (252,221)

Interest expense

10,718

7,230

36,768

18,207

(Benefit from)/provision for income taxes

(2,219)

19,784

57,403

27,230

Depreciation and amortization

18,952

7,844

43,927

31,617

Stock-based compensation expense

27,827

27,482

107,749

102,533

Other loss/(income), net

4,163

9,567

(3,362)

(5,030)

Impairment charge

—

225,163

—

225,163

Adjusted EBITDA

$ 64,697

$ 63,108

$ 235,404

$ 147,499

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Cash flows from operating activities

$ 61,090

$ 39,102

$ 231,117

$ 164,219

Cash paid for capital expenditures

(3,857)

(2,691)

(16,998)

(11,543)

Free cash flow

$ 57,233

$ 36,411

$ 214,119

$ 152,676

Cash paid for interest, net of the associated tax
benefit

7,788

5,105

26,894

12,874

Unlevered free cash flow

$ 65,021

$ 41,516

$ 241,013

$ 165,550

December 31, 2023

December 31, 2022

Total debt outstanding

$ 568,793

$ 513,925

Less: total cash and cash equivalents and marketable securities

257,702

228,794

Total net debt

$ 311,091

$ 285,131

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Revenue, as reported

$ 270,718

$ 228,812

$ 1,012,336

$ 866,972

Revenue year-over-year growth rate, as reported

18.3 %

10.3 %

16.8 %

10.6 %

Effect of foreign currency translation ($)(1)

$ 4,664

$ (8,252)

$ 7,010

$ (28,318)

Effect of foreign currency translation (%)(1)

2.0 %

(4.0) %

0.8 %

(3.6) %

Revenue constant currency growth rate

16.3 %

14.3 %

16.0 %

14.2 %

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Commerce revenue, as reported

$ 82,285

$ 71,983

$ 307,987

$ 269,672

Revenue year-over-year growth rate, as reported

14.3 %

12.1 %

14.2 %

17.5 %

Effect of foreign currency translation ($)(1)

$ 796

$ (1,451)

$ 1,204

$ (4,960)

Effect of foreign currency translation (%)(1)

1.1 %

(2.3) %

0.4 %

(2.2) %

Commerce constant currency growth rate

13.2 %

14.4 %

13.8 %

19.7 %

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Presence revenue, as reported

$ 188,433

$ 156,829

$ 704,349

$ 597,300

Revenue year-over-year growth rate, as reported

20.2 %

9.5 %

17.9 %

7.7 %

Effect of foreign currency translation ($)(1)

$ 3,867

$ (6,801)

$ 5,806

$ (23,358)

Effect of foreign currency translation (%)(1)

2.5 %

(4.7) %

1.0 %

(4.2) %

Presence constant currency growth rate

17.7 %

14.2 %

16.9 %

11.9 %

(1) To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange
rate as the comparative period.

Amounts may not sum due to rounding.

SUMMARY OF SHARES OUTSTANDING
(unaudited)

Years Ended December 31,

2023

2022

Shares outstanding:

Class A common stock

88,545,012

87,754,534

Class B common stock

47,844,755

Class C common stock

Total shares outstanding

136,389,767

135,599,289

KEY PERFORMANCE INDICATORS AND NON-GAAP FINANCIAL MEASURES
(unaudited)

Three Months Ended December 31,

Years Ended December 31,

2023

2022

2023

2022

Unique subscriptions (in thousands)

4,631

4,204

4,631

4,204

Total bookings (in thousands)

$ 286,123

$ 232,145

$ 1,075,096

$ 906,056

ARRR (in thousands)

$ 1,105,743

$ 931,708

$ 1,105,743

$ 931,708

ARPUS

$ 228.02

$ 209.16

$ 228.02

$ 209.16

Adjusted EBITDA (in thousands)

$ 64,697

$ 63,108

$ 235,404

$ 147,499

Unlevered free cash flow (in thousands)

$ 65,021

$ 41,516

$ 241,013

$ 165,550

GMV (in thousands)

$ 1,654,126

$ 1,556,004

$ 6,211,823

$ 6,058,832

Unique subscriptions and average revenue per unique subscription (“ARPUS”) do not account for single domain
subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition.

View original content to download multimedia:https://www.prnewswire.com/news-releases/squarespace-announces-fourth-quarter-and-full-year-2023-financial-results-and-500-million-share-repurchase-authorization-302073481.html

SOURCE Squarespace, Inc.

Technology

AI-Powered Connectivity: APAC Charts a Path to a Smarter Digital Future

Published

4 hours ago

July 18, 2026

Asia-Pacific’s first Broadband Development Summit brings regulators and operators to Bangkok to set the agenda

BANGKOK, July 19, 2026 /PRNewswire/ — Government officials, standards bodies and telecom operators gathered in Bangkok on 14 July for the inaugural Broadband Development Summit APAC 2026, convened by the World Broadband Association (WBBA) to build consensus on AI-era networks.

Participants included the ITU, Thailand’s National Board of the Digital Economy and Society, WBBA, IAB, FNCAP, WAA, NIDA and the IPv6 Council, alongside operators Telkomsel, XLSmart, Surge, Globe, AIS, CMI and HKT and Huawei.

Denny Deng, President of Huawei Asia Pacific Carrier Business, envisions a “faster, smarter, greener” Asia-Pacific.

VOICES FROM THE SUMMIT

“To seize the opportunities of the AI era, we call on the industry to accelerate broadband evolution, advance computing-network synergy, and strengthen the cross-border connectivity. Together, let us build faster, smarter, and greener digital infrastructure for Asia-Pacific.”
— Denny Deng, President of Asia Pacific Carrier Business, Huawei

“High-speed broadband is no longer just about ‘getting online’ — it is the vital infrastructure upon which the entire AI revolution is being built. We view AI not merely as a tool, but as a primary engine for national competitiveness and a catalyst for improving the quality of life for all.”
— Wetang Phuangsup, Ph.D., Secretary-General, the National Board of the Digital Economy and Society, Thailand

“Three initiatives define the road to 2030. We must close the quality divide so the value of broadband reaches everyone. We must build AI-ready networks — 10G access, 800GE cores, intelligence end to end. And we must do it together, through shared standards.”
— Martin Creaner, Director General of WBBA

“Moving towards next-generation networks, network architectures must continue to evolve to deliver broader connectivity, superior quality, enhanced security, and greater intelligence. This evolution is essential for Net5.5G, positioning the network not simply as infrastructure, but as the foundation that enables AI, strengthens resilience and efficiency, and supports digital transformation across industries.”
— Dhruv Dhody, Industry Standardization Expert at Huawei, Chair of the IAB, IETF

“Across Asia-Pacific, fibre is extending beyond homes and offices into rooms, devices, and machines. By working together, we can accelerate fibre innovation and adoption to build truly AI-ready infrastructure.”
— Ilham Nandana, Chair of the Market Intelligence Committee, Fiber Network Council APAC (FNCAP)

“We fixed it before you feel it! AIS is redefining premium home broadband by combining ultra-fast connectivity with AI-driven network intelligence and smart home ecosystem — delivering proactive, invisible service excellence that transforms connectivity into differentiated customer value and sustainable ARPU growth.”
— Thanit Chaiyaboonthanit, Head of Technology Department, Broadband Business, AIS

“Connecting the Unconnected: Affordable Broadband at Scale. Create equal access to global information and empower Indonesia’s digital society.”
— Shannedy Ong, CTO of Surge Indonesia

“Beyond Connectivity: Telkomsel is transforming into a true value creator. By leveraging our FBB market-leading footprint, we power growth through service excellence, customer loyalty, and a next-generation home ecosystem.”
— Stanislaus Susatyo, Director of Sales, Telkomsel Indonesia

“We stopped treating AI as an add-on feature. Instead, our approach at Globe starts with architecture, embedding intelligence into the very core of how we build, how we sell, and how we operate.
AI continuously monitors network health, customer behavior and service quality. Rather than waiting for failures, the system predicts degradation and initiates corrective actions. By maintaining minute-level awareness of network health, our systems automatically resolve 30% of all Wi-Fi issues without any human intervention.”
— Danny Theseira, Head of Broadband Business Group at Globe Telecom

“Huawei is driving the Optics-AI Synergy to foster their collaborative growth. Through AI-ON, operators could build an AI-centric all-optical target network and establish 1-5-20ms latency circles across the Asia Pacific region. AI-ON also supports efficient computing access and usage while delivering an ultimate network experience through gigabit/ultra-gigabit home broadband, accelerating the widespread adoption of AI services.”
— Kim Jin, Vice President & Chief Marketing Officer Optical Business Product Line, Huawei

“Connectivity is not just about technology. It is a lifeline, a platform for opportunity, and a driver of sustainable development. I believe the intersection of connectivity and artificial intelligence will shape the future of smarter, more resilient networks.”
— Dr. Cosmas Zavazava, Director of the Telecommunication Development Bureau, ITU

“Performance and user experience are the essential path to the next-generation WLAN. Based on standards and AI-driven innovation, let’s jointly explore the path to the future autonomous WLAN with all the stakeholders.”
— Dr. Crane H. Yang, Secretary-General, World WLAN Application Alliance (WAA)

“At the summit, NIDA and WBBA signed an MOU to accelerate next-generation network evolution and establish pioneering smart city benchmarks through the co-development of industry standards, the harmonization of global regulations, and the sharing of vertical industry insights.
NIDA focuses on advancing network architecture standards, while WBBA drives global consensus on broadband evolution. This natural strategic complementarity creates vast opportunities for future collaboration.”
— Joey Deng, Secretary-General of NIDA

“ION-2030 develops the global standard for next generation optical networks in the AI era. It provides exceptional AI application and service experience. The WBBA and ITU will jointly accelerate its development, and this is a unique opportunity for Asia-Pacific stakeholders to actively influence the future of optical broadband networks.”
— Dr. Marcus Brunner, Chief Expert Standardization, WBBA WG1 Chair and Vice-Chair of ETSI ISG F5G

“The transition into the AI era demands a high-quality, deterministic digital foundation. By releasing Net5.5G policy guidelines, Malaysia is accelerating the evolution of next-generation network standards based on IPv6, establishing an innovative infrastructure to unleash AI’s value and drive a prosperous digital economy for 2030.”
— Prof. Sureswaran Ramadass, Chair of APAC at IPv6 Council, Industry Partner of WBBA

“The digital economy is thriving across the Asia-Pacific region, with AI emerging as a core catalyst for intelligent transformation. China Mobile International (CMI) is driving regional growth by integrating China’s advanced AI capabilities with comprehensive communications, computing, and AI services. Moving forward, CMI will collaborate closely with industry partners to foster a shared, AI-driven future for the region.”
— Paul Lin, Managing Director of Commercial and Technology, Asia Pacific, China Mobile International

“Next-generation network infrastructure is the oxygen of the intelligent economy. By integrating cutting-edge 800G connectivity with quantum-safe security, HKT is laying the essential foundations to keep Hong Kong’s enterprises highly competitive, secure, and ready for the computing paradigm shifts of tomorrow.”
— Wilson Cheung, Vice President, Broadband Design & Cyber Security, HKT

“The evolution toward Net5.5G AI WAN is an important step in strengthening XLSMART’s transport network for the future. By progressively adopting AI-assisted operations, SRv6, SDN, service differentiation, and higher-capacity transport infrastructure, we are enhancing network intelligence, operational efficiency, and service resilience while supporting long-term sustainability. This transformation is a continuous journey that aligns with the industry’s vision of AI-native broadband networks. Through collaboration with our technology partners and the broader ecosystem, we will continue to develop capabilities that deliver better network performance and support Indonesia’s growing digital connectivity needs.”
— Regie Ginanjar, Head of Transport Autonomy & Orchestration, Transport Network Transformation, XLSMART

“For the AI era, Huawei upgrades the IP bearer network via security resilience, multi-dimensional awareness, and network autonomy. This empowers carriers to guarantee service experience, accelerate monetization, and enhance efficiency, ushering in a new chapter of intelligent connectivity.”
— Arthur Wang, Vice President of Data Communication Product Line, Huawei

A CONVERGING VIEW

Speakers agreed AI is shifting networks from connectivity to intelligent connectivity, as broadband, IP, computing and cross-border infrastructure converge to support innovation and coordination.

WBBA launched the AI-Net Certification, a global benchmark for national policy, industrial ecosystems and network intelligence. XLSmart was named first AI-Net Champion, and Indonesia was among the first with a certified operator, backed by its Net5.5G roadmap.

In another high-profile segment, WBBA Director General Martin Creaner presented the Gigacity Certification to KOMDIGI, SURGE, Telkomsel, AIS, TRUE, HKT and Globe, recognizing regional broadband pioneers.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/ai-powered-connectivity-apac-charts-a-path-to-a-smarter-digital-future-302829032.html

SOURCE HUAWEI

Technology

Laifen Expands U.S. Retail Footprint with Costco Launch of Best-Selling SE Hair Dryer

Published

5 hours ago

July 18, 2026

Starting July 18, Costco Members Can Shop Laifen’s Award-Winning Hair Dryer in Select Warehouse Locations Across the U.S.

NEW YORK, July 18, 2026 /PRNewswire/ — Laifen, ranked the world’s No.1 high-speed hair dryer brand, today announced the launch of its best-selling SE High-Speed Hair Dryer at select Costco warehouse locations, marking the brand’s largest U.S. retail expansion to date and bringing its award-winning haircare technology to Costco members across select U.S. markets.

The launch brings Laifen’s award-winning haircare technology to Costco, making it easier for consumers to experience the brand through one of the nation’s leading membership retailers. Laifen joins Costco’s growing portfolio of premium beauty and personal care brands. The initial rollout includes select Costco warehouse locations across the United States, with a strong presence across the Western U.S., including California, the Pacific Northwest and the Southwest.

Costco’s reputation for quality and its highly selective merchandising approach make this partnership especially meaningful. The Costco launch reflects Laifen’s continued expansion beyond direct-to-consumer channels as the brand accelerates its U.S. omnichannel retail strategy. “Costco represents an important milestone in our U.S. retail strategy,” said Romeo, General Manager of International Business of Laifen. “As more consumers seek salon-quality performance at an accessible price, we’re excited to make Laifen available through one of America’s most trusted retailers.”

Engineered to deliver professional-level performance in a sleek, lightweight design, the Laifen SE is powered by the brand’s proprietary high-speed brushless motor, delivering fast drying, reduced heat damage and smoother styling. An intelligent temperature control system continuously monitors airflow to help minimize frizz while protecting hair from excessive heat.

The Costco launch represents the next phase of Laifen’s U.S. retail expansion as the brand continues to grow beyond its direct-to-consumer and online channels. By expanding into one of the nation’s most trusted retailers, Laifen aims to broaden access to its category-disrupting haircare solutions while advancing its mission to bring more thoughtful design and everyday excellence into more homes.

The Laifen SE High-Speed Hair Dryer in White will be available at select Costco locations, while Costco.com shoppers will have access to additional color options including Purple and Pink, alongside the White model.

For more information on Laifen, please visit LaifenTech.com.

About Laifen:

Founded in 2019, Laifen is a global personal care technology brand combining high-performance engineering with modern design across hair care, oral care, and grooming categories. Ranked the world’s No. 1 high-speed hair dryer brand by Euromonitor International, Laifen first gained recognition for its self-developed 110,000 RPM high-speed brushless motor, the proprietary technology behind its award-winning hair dryers.

Building on this innovation, Laifen has expanded its portfolio to include electric toothbrushes and shavers, delivering premium technology and elevated everyday experiences to consumers worldwide. Today, Laifen products and accessories are used by over 22 million households across more than 60 countries, supported by more than 600 patents and recognized with over 50 international design and innovation awards. Driven by continuous technological breakthroughs, Laifen is committed to making cutting-edge personal care technology more accessible to consumers around the world.

View original content to download multimedia:https://www.prnewswire.com/news-releases/laifen-expands-us-retail-footprint-with-costco-launch-of-best-selling-se-hair-dryer-302828573.html

SOURCE Laifen

Technology

Pillsbury Notice of Data Breach

Published

8 hours ago

July 18, 2026

NEW YORK, July 18, 2026 /PRNewswire/ — Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”) was among many law firms targeted by sophisticated social engineering attempts in an incident last year. While the firm quickly detected and blocked the activity, an unauthorized actor was able to access some of the firm’s documents during a short window of time. Pillsbury notified any impacted clients last year and undertook a detailed process to review the accessed documents for personal information. Pillsbury then began notifying individuals whose personal information was affected. That process is now complete, and today, Pillsbury is publishing substitute notice as a final step.

For more information, please visit the substitute notice on our website at https://www.pillsburylaw.com/en/breach-notice.html.

View original content to download multimedia:https://www.prnewswire.com/news-releases/pillsbury-notice-of-data-breach-302828892.html

SOURCE Pillsbury Winthrop Shaw Pittman LLP