NYSE:SQSP

Stock Analysis Report

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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


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

SQSPIndustryMarket
7 Day12.0%3.2%2.0%
30 Day-7.2%5.0%2.3%
90 Dayn/a6.5%3.5%
1 Yearn/a39.3%38.2%41.3%39.1%
3 Yearn/a103.9%97.2%64.0%53.8%
5 Yearn/a233.8%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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 02:02
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.