Squarespace Stock Surges as Fourth-Quarter Revenue Tops Estimates
The stock is up after the company announced strong earnings.
E-commerce platform Squarespace was rising early on Tuesday after reporting revenue that beat analyst expectations.
Shares climbed 13.4% to $27.26 in premarket trading. As of Monday's close the stock is more than 6% lower than a year ago, but has risen 20% in the past three months.
Squarespace (ticker: SQSP) said revenue increased to $228.8 million in the fourth quarter, more than the $222.1 million expected by analysts.
It posted a loss for the quarter of $234 million, or $1.72 a share, which was mainly related to a non-cash goodwill impairment charge after Squarespace bought online reservations company Tock in 2021.
Without the charge, the loss was $8.8 million, compared with a loss of $16.3 million in the fourth quarter of 2021.
The company's first quarter and 2023 guidance also beat expectations. Squarespace said it expects first-quarter revenue of $232 million to $234 million, and fiscal 2023 full year revenue of $955 million to $970 million.
FactSet polled analysts and found that they expect first-quarter revenues of $227.6 millions and full-year revenues of $948.2million.