No surprise as Squarespace points to slower growth.
The problem for public companies that have a great year is that they have higher benchmarks to clear the following year. For website building companies, that means the Covid-induced boom has set a high bar that will inevitably be tough for comps.
Squarespace’s (NYSE: SQSP) Q4 2021 earnings and 2022 guidance is a case in point. The company posted $207.4 million revenue in Q4. That’s up 20% compared to Q4 2021, but that’s a slower pace than its full-year 2021 growth of 26% with $784.0 million revenue.
And for 2022, the company expects annual revenue growth of just 10%-12%.
Unique subscriptions were up 12% during 2021 to reach 4.1 million at the end of the year. Unique subscriptions include a website package or standalone scheduling, or social package.
The market has expected this drop ever since Wix reported earnings last month. Since then, Squarespace shares have fallen from about $35 to $23, so shares are fairly flat on the news today.