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

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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

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

9

8

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

5

5

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

47,844,755

Class C common stock

0

0

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.

 

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SOURCE Squarespace, Inc.

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ATTACK SHARK Announces Strategic Partnership with Cloud9 Esports’ League of Legends Team

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September 6, 2026

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NEW YORK, Sept. 6, 2026 /PRNewswire/ — High-performance gaming peripheral brand ATTACK SHARK today announced a partnership with leading esports organization Cloud9 Esports. Focused on Cloud9’s League of Legends team, the collaboration will showcase professional gaming insights, esports culture, and competitive gear content across digital, social media, and e-commerce channels.

A Championship Legacy in North American Esports

Founded in 2013, Cloud9 Kia has grown into one of North America’s most iconic esports organizations. Originally established through League of Legends, it has built a global reputation through competitive success, including 6 League Championship Series (LCS) titles, 10 World Championship appearances, the 2018 ELEAGUE Major Boston title, the inaugural Overwatch League championship, and a Rocket League World Championship. Cloud9 Kia remains one of North America’s most influential League of Legends teams.

Deep Collaboration: From Pro Scenes to Player Communities

The partnership will center on professional player training, competitive performance, and player-focused content. ATTACK SHARK will equip the Cloud9 League of Legends team with its latest gaming peripherals to support daily training and competitive preparation.

By combining Cloud9’s professional competitive expertise with ATTACK SHARK’s focus on hardware innovation, the partnership aims to explore the increasing demands placed on gaming equipment in high-level esports environments. Trusted by over 10 million players worldwide, ATTACK SHARK translates professional esports insights into accessible, high-performance gaming peripherals for competitive gamers. 

“At Cloud9 Kia, we believe gaming can unlock the best in everyone. ATTACK SHARK is on a mission to make high-performance mice and keyboards accessible to all gamers, and that’s the same idea from two directions. I’m proud to have them alongside Cloud9 Kia, and excited for all of the amazing peripherals this partnership will put into our fan’s hands,” said Jonathan Tran, President of Cloud9.

“Partnering with Cloud9 Kia is a significant milestone for ATTACK SHARK,” said Gavin Cheng, CEO and Co-Founder of ATTACK SHARK. “Their competitive spirit, professionalism, and relentless pursuit of excellence closely align with the values that have guided ATTACK SHARK from the beginning. This collaboration creates an opportunity to learn from professional competition and share those insights with players around the world.”

The partnership represents a deeper investment by ATTACK SHARK in the global esports ecosystem. Together, ATTACK SHARK and Cloud9 Kia will continue creating new experiences for competitive players and gaming communities worldwide.

For more information, visit https://attackshark.com/ or connect with the brand on social media and Discord.

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DREO Unveils New Air Purifier, Heating Innovations and Air Intelligence at IFA 2026, Shaping the Future of Home Wellness

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2 hours ago

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September 6, 2026

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DREO introduces its new Air Purifier lineup, led by the flagship Air Purifier 530S, combining TurboPure™ technology with AI-powered RGBIC lighting to deliver high-performance purification with a more intuitive user experience.DREO Air Intelligence debuts as an AI-powered system that enables air products to better understand, adapt to and coordinate around changing home environments.DREO showcases its next-generation heating technologies, featuring new airflow innovations designed to deliver more adaptive, personalized and whole-room warmth.DREO hosts an IFA Dream Stage panel with leaders from the Connectivity Standards Alliance and Polar to discuss how AI, connectivity and intelligent air management can shape the future of home wellness.

BERLIN, Sept. 6, 2026 /PRNewswire/ — DREO, a global smart home brand, today unveiled its latest innovations at IFA 2026, including a new Air Purifier lineup led by the flagship DREO Air Purifier 530S, DREO Air Intelligence, an AI-powered system for home air management, and its latest heating technologies. Under the theme “AIR, Mastered,” DREO is showcasing its vision for making home air more intelligent, with products and technologies designed to better sense indoor environments, adapt to changing conditions and deliver more personalized comfort experiences.

“For years, DREO has focused on advancing air comfort through stronger performance, thoughtful product design and seamless connectivity,” said Olivia Xu, Chief Marketing Officer at DREO. “Today marks the next step in that journey. We believe the future of home comfort will not be defined by smarter individual products alone, but by continuously rethinking how people experience air in everyday life. From purification and heating to intelligent home air management, every innovation we introduce is designed to make home comfort more intuitive, adaptive and personal.”

New Flagship DREO Air Purifier 530S with TurboPure™ Technology Delivers a More Intuitive Purification Experience

Leading DREO’s new air purification lineup, the flagship DREO Air Purifier 530S is built around the Ultimate TurboPure™ Purification System. Combining an all-new airflow system, 3-in-1 HEPA Pro filtration, intelligent sensing and AI-powered RGBIC lighting, the DREO Air Purifier 530S delivers powerful purification while creating a more intuitive way for users to understand and interact with indoor air quality.

All-new airflow system. The Air Purifier 530S features an elevated design that creates true 360° air intake, helping capture dust and pet hair closer to the floor. A newly developed spiral intake guides incoming air in the same rotational direction as the impeller, reducing turbulence before it reaches the fan. Clean air is then released evenly through a 360° outlet to improve circulation throughout the room.3-in-1 HEPA Pro filtration. A True HEPA filter captures 99.97% of airborne particles down to 0.3 μm under the IEST standard, while the replaceable FiberCatch™ layer traps larger debris including dust and hair for easier maintenance. The filtration system also incorporates 130 g of modified activated carbon, four times the capacity of the previous generation, to improve odor removal from pets, cooking and everyday indoor living.Intelligent sensing and visibility. The Air Purifier 530S integrates a real-time PM2.5 sensor with Auto Mode to continuously monitor indoor air quality and automatically adjust purification performance. An AI-powered RGBIC light ring visualizes changes in air quality from anywhere in the room while also supporting personalized lighting effects, combining functional feedback with ambient home aesthetics.

Independently verified by AHAM, the DREO Air Purifier 530S delivers a Clean Air Delivery Rate of 221 m³/h, covering approximately 19 m² at 4.8 air changes per hour or spaces up to 90 m² at one air change per hour. With HyperSilent™ Technology, noise levels are reduced to as low as 18 dB in Sleep Mode, enabling quiet operation in bedrooms and during overnight use.

The DREO Air Purifier 530S also supports smart control through the DREO App, Amazon Alexa and Google Home, enabling users to remotely manage purification, create schedules with minute-level precision and review up to 30 days of air quality history. An intelligent filter life algorithm estimates replacement timing based on actual air quality, fan speed and usage, helping simplify everyday maintenance.

Alongside the DREO Air Purifier 530S, DREO is also showcasing the DREO Air Purifier 539S, DREO Air Purifier 539AS, DREO Air Purifier 338S and DREO Air Purifier Macro Max AS, offering solutions for different room sizes and home environments across the European market.

DREO Air Intelligence Advances Home Wellness Through AI and Connected Air Comfort

Beyond its latest product innovations, DREO is introducing DREO Air Intelligence, an AI-powered air system designed to make home wellness more adaptive through AI and connected air comfort. Rather than relying solely on preset routines, DREO Air Intelligence combines physical comfort models with internationally recognized PMV/PPD thermal comfort science to understand changing home environments, interpret multiple environmental signals and intelligently coordinate compatible DREO air comfort products. By connecting environmental sensing, intelligent decision-making and device coordination, DREO Air Intelligence enables air products to respond more naturally to people’s changing needs at home.

DREO Air Intelligence is built around three core experiences:

Home Wellness Score: Combines thermal comfort, air quality, rest environment and water-related wellness signals into a single score from 0 to 100, giving users an at-a-glance understanding of their home environment and clear visibility into areas that may need attention. Thermal comfort is evaluated using internationally recognized PMV/PPD models, going beyond raw temperature to estimate how a room actually feels by accounting for humidity, airflow, activity level and clothing factors.Energy Saving Status: Uses AI optimization to intelligently adjust device operation and compare energy consumption with and without AI optimization. Results are presented in terms of electricity saved, estimated cost savings and reduced carbon emissions, making energy efficiency more visible, measurable and easier to understand.Home Air Pilot: Continuously monitors changes in the home environment, analyzes surrounding conditions and intelligently coordinates compatible DREO air comfort products to optimize comfort, air quality and energy efficiency. When the system can make reliable decisions, Home Air Pilot proactively adjusts device operation. When personal preferences are involved, users remain fully in control.

Designed with an open ecosystem in mind, DREO Air Intelligence supports Matter-enabled devices, allowing compatible products to work together more seamlessly across the connected home. As DREO continues to expand its connected ecosystem, DREO Air Intelligence represents the company’s vision for making home wellness more adaptive through AI and connected air comfort.

Next-Generation Heating Technologies Introduce Adaptive Airflow for Home Heating

DREO showcased its latest heating technologies, led by AutoShift™ Technology, a new airflow innovation built around an adaptive lifting structure that automatically raises and lowers the upper air guide to transition between Focused Heating and 360° Whole-Room Heating. By physically changing how warm air is delivered, AutoShift™ enables a single heating system to adapt to different heating scenarios, providing concentrated warmth for personal comfort or balanced heat distribution throughout the room without requiring users to manually switch between different heating modes.

The adaptive lifting structure works together with a newly developed airflow architecture to continuously reshape airflow as it moves, creating two distinct heating experiences within a single system. The result is a more responsive approach to home heating that adapts naturally to different spaces, activities and everyday routines, while maintaining consistent heating performance throughout each transition.

DREO also showcased its latest fanless convection heating technology, extending its heating innovation with a quieter solution designed to deliver more even and longer-lasting warmth through natural heat circulation. Together, these latest heating technologies reflect DREO’s continued focus on advancing airflow innovation to create more adaptive home comfort experiences.

DREO Brings Industry Leaders Together to Explore the Future of Home Wellness

As part of its “AIR, Mastered” showcase at IFA 2026, DREO hosted the IFA Dream Stage panel, “How Air, Connectivity and Intelligence Bridge the Last Mile of Home Wellness,” bringing together leaders from the connectivity, smart home and digital health industries to explore how AI, open ecosystems and intelligent air management can create more adaptive and human-centered home wellness experiences.

Moderated by Anna Heim, Freelance Journalist and Moderator at TechCrunch, the discussion featured Tobin Richardson, President and CEO of the Connectivity Standards Alliance (CSA), Martin Müller, Sales Director and General Manager, Europe at DREO, and Spiros Andreou, Head of Global Industry & Technology Partnerships at Polar. Together, the panel explored how the industry can move beyond basic device connectivity toward intelligent systems that better understand home environments, coordinate across devices and respond to people’s everyday needs.

Highlighting DREO’s vision for the future of home wellness, Martin Müller said, “People rarely think about the air around them until something feels wrong. Yet it influences how we sleep, work, recover and live every day. The future of home wellness begins with making air more intelligent.”

The panel also highlighted the importance of open interoperability and cross-industry collaboration in enabling the next generation of connected home experiences. Richardson emphasized that Matter provides a foundation for devices to work together seamlessly, allowing the industry to focus on creating better user experiences rather than simply connecting products. Andreou added that bringing together environmental intelligence and physiological insights creates new opportunities to better understand people’s everyday wellbeing and deliver more personalized home wellness experiences.

The discussion reflects DREO’s continued commitment to working with industry partners to advance a more open, intelligent and connected future for home wellness.

DREO Continues to Expand Its Presence Across Europe

Europe has become one of DREO’s fastest-growing markets, with sales volume increasing 142% year over year in the first half of 2026 and revenue growing 156%, further strengthening the company’s momentum across key markets including Germany, the United Kingdom and France.

The United Kingdom has become one of DREO’s strongest-performing markets, where the company has ranked No. 1 on Amazon UK in both the Tower Fan and Space Heater categories for two consecutive years, accounting for 22% of the Amazon UK tower fan market and 15% of the space heater market. Building on its online success, DREO expanded into offline retail through Argos in 2025 and has since built a retail and online network spanning 71 channels across 16 European countries. Key retail partners across major European markets include Argos, Costco UK, Currys and Boots in the UK; Expert, Euronics and MediaMarkt in Germany; Fnac Darty and Leroy Merlin in France; Fnac, Leroy Merlin, MediaMarkt and Bauhaus in Spain; and Euronics, MediaWorld and Unieuro in Italy.

“Europe continues to be one of DREO’s most important growth markets,” said Martin Müller, Sales Director and General Manager, Europe at DREO. “We remain committed to investing in product innovation, local partnerships and long-term market development to deliver intelligent air comfort experiences that better serve European consumers.”

Building on this momentum, DREO will continue expanding its European business through product innovation, broader retail availability and a growing connected ecosystem, further advancing its vision of intelligent home wellness powered by DREO Air Intelligence.

DREO’s latest innovations are showcased throughout IFA 2026 at Hall 9, Stand 130, where visitors can experience the new DREO Air Purifier lineup, explore DREO Air Intelligence, preview next-generation heating technologies, and discover DREO’s latest air comfort portfolio designed for the European market.

For more information, please visit DREO.

About DREO

DREO is a leading global smart home and lifestyle appliance brand. Founded in 2021 by a team of engineers, the company develops intelligent solutions for indoor air management (ventilation, air conditioning, heating) and smart kitchen environments. By pairing precision engineering, featuring proprietary technology like ECO energy-saving algorithms and HyperSilent™ ultra-quiet operation, with contemporary design, DREO transforms home comfort into a seamless, accessible experience.

With a global retail footprint of over 34,000 partner stores and a top-rated smart app (4.9/5 stars across 500,000+ monthly active users), DREO is redefining home comfort. Ranked #1 in both the tower fan and space heater categories, with over 250,000 units sold in the UK in H1 2026, DREO has established itself as one of the fastest-growing challengers in the connected appliance sector. DREO has successfully expanded its retail presence in the UK through key partnerships with leading consumer electronics giants Argos and Currys, bringing its innovative home comfort solutions to even more consumers nationwide.

For more information, visit https://uk.dreo.com/

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TCL Inspires Her Greatness at the FIBA Women’s Basketball World Cup 2026

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2 hours ago

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September 6, 2026

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As a FIBA Global Partner, TCL brings TCLforHer to life through technology-enabled fan experiences that celebrate women athletes, connect fans, and extend the energy of the game beyond the court.

BERLIN, Sept. 6, 2026 /PRNewswire/ — The FIBA Women’s Basketball World Cup 2026 takes place in Berlin this September, with the world’s top women’s basketball teams competing on the sport’s biggest stage. As a FIBA Global Partner, TCL is bringing its TCLforHer initiative to life at the tournament with a series of technology-enabled fan experiences that let standout performances by women athletes be seen, shared and celebrated by audiences worldwide.

With the FIBA Women’s Basketball World Cup 2026 taking place in Berlin alongside IFA 2026, TCL is using this rare meeting of global sport and consumer technology to connect the energy of the court with the future of smart living.

“The FIBA Women’s Basketball World Cup is a powerful platform for celebrating the confidence, resilience and teamwork that define women’s basketball,” said Wei Xue, Vice President and ESG Director of TCL Technology and Chairman of the TCL Charity Foundation. “Through TCLforHer and our partnership with FIBA, TCL is using technology not only to enhance the fan experience, but also to help the stories and achievements of women athletes inspire more women around the world.”

TCLforHer Champions Women’s Sport On and Off the Court

During the tournament, the TCL Player of the Game award will honor standout performances across 36 games, recognizing the skill, strength, leadership and resilience shown on the court.

Beyond the court, TCL’s commitment to celebrating women’s achievements extends through TCLforHer, a global initiative launched in 2021 that brings together technology, sport, and education to support women’s personal development. Through FIBA’s “Her World, Her Rules,” TCL encourages girls and women to build confidence, challenge limitations and pursue their potential through sport.

From the Court to the Living Room, TCL Brings Elite Sport Closer to Fans

TCL’s support is visible throughout the tournament through courtside advertising boards, on-court decals, media backdrops and a dedicated fan interactive booth at Berlin Arena, while fan activations—including TCL Lucky Frame, giant TIFO display and TV giveaways—turn live game highlights into memorable fan moments.

 

Outside the arena, TCL is extending the passion of the game to home entertainment and mobile through TVs, RayNeo glasses, and mobile devices. Whether watching the game on a large living-room screen, exploring more personal viewing through wearable displays, or following and sharing moments on mobile devices, TCL is bringing the game’s energy into more everyday settings through a richer range of on-screen experiences.

Inspiring Greatness Through Global Sports Engagement

Sport is a key pillar of TCL’s global brand strategy and a shared language through which it creates emotional connections with audiences across cultures. Spanning football, basketball, American football, esports, and more, TCL is building a global partnership network that connects fans with world-class sport.

As an Official Worldwide Olympic and Paralympic Partner and FIBA Global Partner, TCL brings international sporting moments into everyday life through its display technologies, smart home appliances, and smart living experiences. Beyond these global sports platforms, TCL is also connecting with fans locally through football partnerships with major European national teams and clubs, creating more everyday touchpoints for fans to experience their favorite sports and teams. Together, these partnerships help TCL bring fans closer to their favorite athletes and teams, igniting more moments that Inspire Greatness every day.

About TCL

Founded in 1981, TCL—short for “The Creative Life”—is dedicated to empowering smarter, healthier lifestyles through next-generation experiences. Operating through two independent entities, TCL Industries and TCL Technology, TCL delivers innovative solutions spanning TVs, smartphones, audio products, smart home devices, display technologies, and clean energy.

Today, with 50 R&D centers and 47 manufacturing bases globally, TCL operates in over 160 countries and regions, reinforcing its position as a globally competitive smart technology brand. To further inspire greatness, TCL has become an official Worldwide Olympic and Paralympic Partner in the Home Audiovisual Equipment and Home Appliances category. 

https://www.tcl.com/global/en 

 

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