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Squarespace (SQSP) To Report Earnings Tomorrow: Here Is What To Expect

StockStory - Tue Feb 27, 1:00AM CST

SQSP Cover Image

Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting earnings tomorrow before the bell. Here's what to expect.

Last quarter Squarespace reported revenues of $257.1 million, up 18.1% year on year, beating analyst revenue expectations by 2%. It was a solid quarter for the company, with strong sales guidance for the next quarter.

Is Squarespace buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Squarespace's revenue to grow 15% year on year to $263.2 million, improving on the 10.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Squarespace Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.5%.

Looking at Squarespace's peers in the e-commerce software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. GoDaddy delivered top-line growth of 5.8% year on year, missing analyst estimates by 0.1% and VeriSign reported revenues up 3% year on year, exceeding estimates by 0.7%. Both stocks (GoDaddy and VeriSign) traded flat on the results.

Read our full analysis of GoDaddy's results here and VeriSign's results here.

Investors in the e-commerce software segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Squarespace is up 3.4% during the same time, and is heading into the earnings with analyst price target of $35.2, compared to share price of $33.6.

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