Website and ecommerce tools provider Squarespace (NYSE:SQSP) will be reporting results tomorrow before market open. Here’s what to expect.
Last quarter Squarespace reported revenues of $247.5 million, up 16.4% year on year, beating analyst revenue expectations by 1.7%. It was a solid quarter for the company, with strong sales guidance for the next quarter and a decent beat of analysts’ revenue estimates.
This quarter analysts are expecting Squarespace’s revenue to grow 15.7% year on year to $251.9 million, improving on the 8.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.
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 1.4%.
Looking at Squarespace’s peers in the e-commerce software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Shopify (NYSE:SHOP) delivered top-line growth of 25.5% year on year, beating analyst estimates by 2.6% and VeriSign (NASDAQ:VRSN) reported revenues up 5.4% year on year, missing analyst estimates by 0.8%. Shopify traded up 16.9% on the results, VeriSign traded flat on the result.
The whole tech sector has been facing a sell-off and while some of the e-commerce software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Squarespace is up 0.5% during the same time, and is heading into the earnings with analyst price target of $35, compared to share price of $29.9.
