Squarespace (SQSP) investor relations material

Executive summary

• Revenue for Q2 2024 was $296.8 million, up 20% year-over-year; net income was $6.1 million, up from $3.7 million in Q2 2023.

• Growth driven by a 21% increase in unique subscriptions and the impact of the Google Domains Asset Acquisition.

• Announced a definitive agreement to be acquired by Permira in an all-cash transaction valued at $6.9 billion, expected to close by Q4 2024; guidance for Q3 and FY24 is suspended.

• Entered into an agreement to sell hospitality platform Tock LLC to American Express for $400 million, with assets classified as held for sale as of June 30, 2024.

Financial highlights

• Gross profit for Q2 2024 was $213.8 million, up 4.6% year-over-year; gross margin declined to 72.1% from 82.6% due to domain registration costs.

• Adjusted EBITDA for Q2 2024 was $72.1 million, down 1.8% year-over-year; unlevered free cash flow rose 19% to $65.4 million.

• Cash and cash equivalents plus marketable securities totaled $322.4 million as of June 30, 2024.

• Total bookings rose 25% to $319.8 million; annual run rate revenue (ARRR) up 20% to $1.18 billion.

• Total debt outstanding was $546.9 million under the Term Loan and $7.3 million under the Revolving Credit Facility.

Outlook and guidance

• The Permira acquisition is expected to close by Q4 2024, subject to customary closing conditions.

• Management expects continued growth in unique subscriptions and bookings, supported by international expansion and product innovation.