Squarespace(US:SQSP)2024-05-07 13:27Revenue Performance - Total revenue for Q1 2024 was $281.1 million, a 18.6% increase from $237.0 million in Q1 2023[134] - Subscription revenue accounted for 92.9% of total revenue for Q1 2024, up from 91.9% in Q1 2023[133] - Unique subscriptions increased by 15.2% year-over-year, reaching 4.9 million as of March 31, 2024[136] - Commerce revenue for Q1 2024 was $80.3 million, representing a 10.5% increase from the same period in 2023[140] - Total bookings rose by $60.2 million, or 22.6%, totaling $325.9 million for Q1 2024, up from $265.8 million in Q1 2023[217] - Annual run rate revenue (ARRR) increased by $175.8 million, or 18.7%, reaching $1,117.7 million as of March 31, 2024, compared to $941.9 million in Q1 2023[219] Profitability and Expenses - Gross profit for Q1 2024 was $200.4 million, compared to $194.1 million in Q1 2023[159] - Gross profit margin decreased to 71.3% in Q1 2024 from 81.9% in Q1 2023[182] - Operating loss for Q1 2024 was $14.8 million, compared to an operating income of $17.9 million in Q4 2023[180] - Net income for Q1 2024 was $0.1 million, down from $0.5 million in Q1 2023[134] - Research and product development expenses rose to $66.8 million in Q1 2024, a 14.1% increase from $58.6 million in Q1 2023[142] - Marketing and sales expenses increased by $15.9 million, or 15.6%, totaling $101.7 million, largely due to amortization expenses related to the Google Domains Asset Acquisition[173] Cash Flow and Investments - Cash and cash equivalents as of March 31, 2024, totaled $288.9 million, with an additional $17.7 million available under the Revolving Credit Facility[186] - Net cash provided by operating activities increased to $85.2 million in Q1 2024 from $64.2 million in Q1 2023[188] - Net cash used in investing activities for Q1 2024 was $50.4 million, primarily for purchasing marketable securities[195] - Net cash used in financing activities for Q1 2024 was $47.9 million, a decrease of 0.6% from $48.2 million in Q1 2023[198] Growth Metrics - The company processed approximately $1,649.5 million in gross payment volume (GPV) during Q1 2024, a 7.5% increase from Q1 2023[141] - The company experienced a $45.7 million increase in deferred revenue, indicating growth in unique subscriptions[190] - Average revenue per unique subscription (ARPUS) grew by $13.87, or 6.5%, to $226.63 in Q1 2024 from $212.76 in Q1 2023[221] - Unlevered free cash flow increased by $22.2 million, or 33.1%, to $89.3 million in Q1 2024, compared to $67.1 million in Q1 2023[223] Tax and Interest - Interest expense increased by $2.3 million, or 28.3%, totaling $8.1 million, attributed to higher total debt outstanding[175] - The benefit from income taxes increased significantly, driven by a loss before benefit from income taxes of $20.6 million, compared to $7.4 million in the prior year[177] - Total interest expense related to indebtedness was $10.4 million for Q1 2024, up from $8.1 million in Q1 2023[207] Other Notable Events - The company closed an asset purchase agreement with Google for $180.7 million to acquire domain assets[135] - Historical cash retention rate for 2023 was 88.2%, up from 84.1% in 2022[137] - As of March 31, 2024, $559.2 million was outstanding under the Term Loan, with scheduled quarterly principal payments of 7.5% for 2023 and 2024[204] - Approximately $487.8 million remained available for stock repurchase under the new $500 million Stock Repurchase Plan authorized on February 26, 2024[208]