Squarespace has announced its financial results for the third quarter, showcasing growth in bookings and revenue.
The company, known for its design-driven platform that helps entrepreneurs build brands and businesses online, reported total bookings of $267 million, representing an 18% increase compared to the same period in 2022.
The company said this growth can be attributed to Squarespace’s ability to attract and retain customers, as well as the continued demand for its platform. Squarespace offers entrepreneurs the tools they need to create an online presence, build an audience, monetize, and scale their business.
In addition to the growth in bookings, Squarespace also reported an 18% increase in total revenue to $257.1 million in the third quarter of 2023, compared to $217.7 million in the same period last year. This growth was driven by a 20% increase in presence revenue and a 15% increase in commerce revenue, according to the company.
Squarespace’s financial performance in the third quarter of 2023 exceeded expectations, with the company delivering 18% topline growth and solid execution across all aspects of its business.
Looking ahead, Squarespace expects continued growth in the fourth quarter of fiscal year 2023, with revenue projected to be in the range of $261 million to $264 million, representing a year-over-year growth rate of 14% to 16%.
In addition to its financial performance, Squarespace’s recent product releases and improvements have contributed to its growth. The company introduced Squarespace Payments, a completely integrated payments platform, during the third quarter. While the initial rollout was limited to a small percentage of customers in the U.S., Squarespace plans to introduce this functionality across all of its product lines in the future, potentially generating additional revenue, the company said on its earnings call Tuesday.
Furthermore, Squarespace’s acquisition of Google Domains has expanded its offerings and attracted new customers. Although the revenue contribution from acquired domain assets was immaterial in the third quarter, Squarespace expects it to have a more significant impact in the future as customers renew their subscriptions.
Squarespace’s international expansion has also shown positive gains, with international revenue growing by 21% in the third quarter of 2023. The company offers customers 22 currency options and is working to increase its supported languages as it onboards Google Domains’ international customer base.
Looking ahead, Squarespace also aims to integrate AI into its platform, focusing on improving the website-building process and providing more powerful and dynamic tools for entrepreneurs worldwide.