Squarespace(SQSP) - 2024 Q1 - Quarterly Results

Financial Performance - Total revenue grew 19% year over year to $281.1 million in Q1 2024, compared to$ 237.0 million in Q1 2023[4] - Total bookings increased 23% year over year to $325.9 million in Q1 2024, up from$ 265.8 million in Q1 2023[4] - Unlevered free cash flow rose 33% to $89.3 million, representing 32% of total revenue for Q1 2024[4] - Cash flow from operating activities increased 33% to$ 85.2 million for Q1 2024, compared to $64.2 million in Q1 2023[4] - Revenue for the three months ended March 31, 2024, was$ 281,148,000, representing an 18.6% year-over-year growth compared to $237,028,000 in 2023[34] - Gross profit for the same period was$ 200,374,000, with total operating expenses amounting to $215,202,000, resulting in an operating loss of$ 14,828,000[34] - Net income for Q1 2024 was $144,000, down from$ 502,000 in Q1 2023, with net income per share remaining at $0.00[34] - Adjusted EBITDA for Q1 2024 was$ 32,011,000, slightly up from $30,863,000 in Q1 2023[32] - Free cash flow for the three months ended March 31, 2024, was$ 81,834,000, compared to $61,080,000 in the same period last year[32] - The presence revenue for Q1 2024 was$ 200,884,000, reflecting a 22.2% year-over-year growth from $164,391,000 in Q1 2023[34] Subscriptions and Revenue Metrics - Unique subscriptions increased 15% year over year to over 4.9 million in Q1 2024, compared to 4.3 million in Q1 2023[4] - Average revenue per unique subscription (ARPUS) increased 7% year over year to$ 226.63 in Q1 2024, compared to $212.76 in Q1 2023[4] - Unique subscriptions increased to 4,912 thousand in Q1 2024, up from 4,264 thousand in Q1 2023, representing a growth of 15%[39] - Total bookings reached$ 325,946 thousand in Q1 2024, compared to $265,789 thousand in Q1 2023, reflecting a year-over-year increase of 22.6%[39] - Annual run rate revenue (ARRR) grew 19% year over year to$ 1,117.7 million in 2024, compared to $941.9 million in 2023[5] - Annual run rate revenue (ARRR) for Q1 2024 was$ 1,117,659 thousand, up from $941,860 thousand in Q1 2023, indicating a growth of 18.7%[39][40] - Average revenue per unique subscription (ARPUS) rose to$ 226.63 in Q1 2024, compared to $212.76 in Q1 2023, marking an increase of 6.5%[39] Cash and Debt Management - Total current assets increased to$ 433,678,000 as of March 31, 2024, compared to $374,215,000 at the end of 2023[28] - Total liabilities rose to$ 1,231,742,000 as of March 31, 2024, up from $1,182,111,000 at the end of 2023[28] - Cash and cash equivalents at the end of the period were$ 241,905,000, compared to $257,702,000 at the end of 2023[28] - The company reported a total debt outstanding of$ 556,891,000 as of March 31, 2024, down from $568,793,000 at the end of 2023[32] Business Outlook and Strategy - The company raised its FY24 revenue guidance to 19% growth based on strong business performance[2] - The primary growth driver was the organic business, with strong demand for the ecosystem globally[2] - The company plans to leverage the migration of new Google Domains customers to broaden its customer funnel[2] Growth Indicators - Gross payment volume (GPV) for Q1 2024 was$ 1,649,457 thousand, up from $1,534,058 thousand in Q1 2023, reflecting a growth of 7.5%[39][41] - Unlevered free cash flow improved to$ 89,322 thousand in Q1 2024, compared to $67,096 thousand in Q1 2023, representing a significant increase of 33.1%[39]