Squarespace
Market Cap
US$8.0b
Last Updated
2021/07/24 02:02 UTC
Data Sources
Company Financials +
Executive Summary
Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with imperfect balance sheet.
Similar Companies
Share Price & News
How has Squarespace's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SQSP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: Insufficient data to determine SQSP's volatility change over the past year.
Market Performance
7 Day Return
12.0%
SQSP
3.2%
US IT
2.0%
US Market
1 Year Return
n/a
SQSP
38.2%
US IT
39.1%
US Market
Return vs Industry: Insufficient data to determine how SQSP performed against the US IT industry.
Return vs Market: Insufficient data to determine how SQSP performed against the US Market.
Shareholder returns
| SQSP | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.0% | 3.2% | 2.0% |
| 30 Day | -7.2% | 5.0% | 2.3% |
| 90 Day | n/a | 6.5% | 3.5% |
| 1 Year | n/a | 39.3%38.2% | 41.3%39.1% |
| 3 Year | n/a | 103.9%97.2% | 64.0%53.8% |
| 5 Year | n/a | 233.8%210.4% | 123.8%99.0% |
Long-Term Price Volatility Vs. Market
How volatile is Squarespace's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Squarespace undervalued compared to its fair value and its price relative to the market?
Share Price vs. Fair Value
Below Fair Value: SQSP ($58.52) is trading above our estimate of fair value ($55.15)
Significantly Below Fair Value: SQSP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SQSP is unprofitable, so we can't compare its PE Ratio to the US IT industry average.
PE vs Market: SQSP is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SQSP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SQSP has negative assets, so we can't compare its PB Ratio to the US IT industry average.
Future Growth
How is Squarespace forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
97.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQSP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: SQSP is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: SQSP's is expected to become profitable in the next 3 years.
Revenue vs Market: SQSP's revenue (17% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: SQSP's revenue (17% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SQSP's Return on Equity is forecast to be very high in 3 years time (150.9%).
Past Performance
How has Squarespace performed over the past 5 years?
5.4%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: SQSP is currently unprofitable.
Growing Profit Margin: SQSP is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: Unable to establish if SQSP's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
Accelerating Growth: Unable to compare SQSP's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SQSP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (16.7%).
Return on Equity
High ROE: SQSP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is Squarespace's financial position?
Financial Position Analysis
Short Term Liabilities: SQSP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: SQSP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: SQSP has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: SQSP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable SQSP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: SQSP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33.6% per year.
Dividend
What is Squarespace current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SQSP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SQSP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SQSP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SQSP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SQSP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Anthony Casalena (39 yo)
no data
Tenure
US$1,125,336
Compensation
Mr. Anthony Casalena is Founder, President, Chief Executive Officer and Chairperson of the Board of Squarespace, Inc., which he started from his dorm room in 2003. During the Squarespace’s early years, he ...
CEO Compensation Analysis
Compensation vs Market: Anthony's total compensation ($USD1.13M) is below average for companies of similar size in the US market ($USD6.51M).
Compensation vs Earnings: Insufficient data to compare Anthony's compensation with company performance.
Leadership Team
Experienced Management: SQSP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
Experienced Board: SQSP's board of directors are considered experienced (7.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SQSP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: SQSP only recently listed within the past 12 months.
Top Shareholders
Company Information
Squarespace, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Squarespace, Inc.
- Ticker: SQSP
- Exchange: NYSE
- Founded: 2003
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: US$7.963b
- Shares outstanding: 136.08m
- Website: https://www.squarespace.com
Number of Employees
Location
- Squarespace, Inc.
- 225 Varick Street
- 12th Floor
- New York
- New York
- 10014
- United States
Listings
Biography
Squarespace, Inc. operates platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet. The company offers websites, domain...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/24 02:02 |
| End of Day Share Price | 2021/07/23 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.