Fri, Aug 2, 1:26 PM (88 days ago)
Squarespace, Inc. reported a strong financial performance for the quarter ended June 30, 2024, with total revenue of $296.8 million, a 19.9% increase from the same period in 2023. The growth was driven by a 25.2% increase in presence revenue and a 7.9% increase in commerce revenue. The company also saw a significant rise in unique subscriptions, up 20.7% year-over-year. However, cost of revenue surged by 92.1%, primarily due to increased domain name registration fees linked to the Google Domains Asset Acquisition. Despite this, gross profit rose by 4.6%. Operating expenses increased, notably in marketing and sales due to higher amortization expenses related to acquisitions. Net income for the quarter was $6.1 million, up from $3.7 million in the prior year. The company also announced a proposed merger with Permira, valued at approximately $6.9 billion, expected to close by Q4 2024. The merger aims to take Squarespace private, with stockholders receiving $44.00 per share.