Executive Summary

Revenue rose 20% YoY to $296.8M with strength in Presence (+25% YoY) while Commerce grew 8% YoY; net income was $6.1M and adjusted EBITDA was $72.1M, modestly below prior-year despite top-line acceleration .
Company suspended guidance and did not host a Q2 call due to the pending Permira take-private; earlier FY24 guidance issued with Q1 was withdrawn, increasing near-term modeling uncertainty .
Q2 results exceeded the company’s prior Q2 guidance: revenue above the high end ($296.8M vs $294M) and unlevered FCF above range ($65.4M vs $61–64M) — a positive surprise against internal targets .
Strategic catalysts dominated the narrative: definitive agreement to go private with Permira (May 13) and agreement to sell Tock to American Express for $400M (June 21), with Tock classified as held for sale in Q2 .

What Went Well and What Went Wrong

Beat internal guidance: revenue came in above the Q2 guide ($296.8M vs $291–294M) and unlevered FCF beat ($65.4M vs $61–64M), signaling strong execution against management’s near-term targets .
Presence outperformed: Presence revenue grew 25% YoY to $215.4M, outpacing Commerce and highlighting continued traction in the core website/domains stack .
Strong bookings and subscriber scale: total bookings +25% YoY to $319.8M and unique subscriptions +21% YoY to >5.2M, supporting durable revenue visibility and scale benefits .

Margin compression vs prior year despite growth: operating income fell to $16.9M from $36.7M YoY as cost of revenue and opex increased sharply; adjusted EBITDA declined to $72.1M from $73.4M YoY (includes $4.2M proposed merger costs add-back) .
No call and guidance suspension tied to go-private: company did not host a Q2 earnings call and suspended full-year guidance, reducing visibility for investors and limiting qualitative color .
Commerce growth lagged Presence: Commerce revenue grew 8% YoY (vs Presence +25%), a continued deceleration relative to Q4 2023 (+14% YoY) and Q1 2024 (+10.5% YoY), pointing to mix and macro/vertical dynamics within transactional components .

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue	$270.7	$281.1	$296.8
Gross Profit	$201.1	$200.4	$213.8
Gross Profit Margin %	74.3% (calc from $201.1/$270.7)	71.3% (calc from $200.4/$281.1)	72.0% (calc from $213.8/$296.8)
Operating Income	$17.9	$(14.8)	$16.9
Net Income	$5.3	$0.1	$6.1
Diluted EPS ($)	$0.04	$0.00	$0.04
Adjusted EBITDA	$64.7	$32.0	$72.1
Adjusted EBITDA Margin %	23.9% (calc from $64.7/$270.7)	11.4% (calc from $32.0/$281.1)	24.3% (calc from $72.1/$296.8)
Cash from Operations	$61.1	$85.2	$60.6
Unlevered Free Cash Flow	$65.0	$89.3	$65.4

Notes: Adjusted EBITDA in Q2 includes add-back of $4.2M proposed merger costs .

Segment	Q4 2023	Q1 2024	Q2 2024
Presence Revenue	$188.4; +20.2% YoY	$200.9; +22.2% YoY	$215.4; +25.2% YoY
Commerce Revenue	$82.3; +14.3% YoY	$80.3; +10.5% YoY	$81.4; +7.9% YoY

KPI	Q4 2023	Q1 2024	Q2 2024
Unique Subscriptions (M)	4.631	4.912	5.195
ARPUS ($)	228.02	226.63	225.45
Annual Run-Rate Revenue (ARRR, $M)	1,105.7	1,117.7	1,179.5
Total Bookings ($M)	286.1	325.9	319.8
GPV ($M)	1,654.1	1,649.5	1,589.1
Total Net Debt ($M)	311.1	268.0	222.6

Metric	Period	Previous Guidance	Current/Actual	Change
Revenue	Q2 2024	$291–$294M (issued 5/7)	$296.8M	Raised vs guide (beat company guidance)
Unlevered Free Cash Flow	Q2 2024	$61–$64M (issued 5/7)	$65.4M	Raised vs guide (beat company guidance)
Revenue	Q3 2024	Not provided	Not provided	Suspended
Revenue	FY 2024	$1,193–$1,208M (raised 5/7)	Suspended	Suspended
Unlevered Free Cash Flow	FY 2024	$298–$318M (5/7)	Suspended	Suspended

Company stated it will not host an earnings call or provide guidance due to the Permira transaction .

Topic	Q4 2023 (prior)	Q1 2024 (prior)	Q2 2024 (current)	Trend
AI/Technology initiatives	Introduced Squarespace AI to generate content; expanded generative AI integrations across products	Not specifically emphasized in press release; focus on growth execution	No call; no new AI disclosures in 8-K	Stable background priority
Product performance & ecosystem	Surpassed $1B revenue; strong retention; launched Squarespace Payments; product refresh, Acuity upgrades	“Strong start,” organic growth the primary driver; bookings +23%	Presence +25% YoY; adjusted EBITDA down YoY; bookings +25% YoY	Growth sustained; margin mixed
Google Domains migration	Acquisition closed 9/7/23; domains platform relaunch	“Broaden our customer funnel through migration of new Google Domains customers” — CEO	Continued scale in unique subs; ARPUS slightly down QoQ	Funnel expansion ongoing
Corporate actions (M&A/strategic)	N/A	N/A	Pending take-private with Permira; Tock sale to AmEx for $400M announced 6/21	Event-driven focus
International expansion	Increased currency options 5x; global brand investments	Strength “globally” highlighted by CFO	No call; continued scale implied by bookings/ARRR	Ongoing
Payments	Launched Squarespace Payments	N/A	No incremental disclosures	Integration continues

“We had a strong start to 2024, with Q1 revenue growing 19% and bookings growing 23%.” — Anthony Casalena, Founder & CEO .
“We delivered revenue and unlevered free cash flow at the high end or above our guidance range… The primary growth driver in the quarter was our organic business.” — Nathan Gooden, CFO .
Q2 note: The company will not host a Q2 earnings call or provide guidance due to the pending Permira transaction; Tock was classified as held for sale in Q2 following a $400M sale agreement with American Express .

No Q2 2024 earnings call was held and no Q&A took place due to the pending take-private transaction; the company also suspended guidance .

S&P Global Wall Street consensus for SQSP Q2 2024 was unavailable via our SPGI tool mapping at the time of this review; therefore, we cannot provide a vs-consensus beat/miss comparison. We benchmarked results against company-issued Q2 guidance instead .

Execution beat internal targets: Q2 revenue and unlevered FCF exceeded company guidance, aided by strong Presence monetization and robust bookings .
Mixed margin picture: Despite top-line acceleration, adjusted EBITDA declined YoY and operating income contracted, reflecting higher cost of revenue and opex; merger-related costs were added back in non-GAAP metrics .
Scale-building KPIs: Unique subscriptions (+21% YoY) and ARRR (+20% YoY) underscore durable growth drivers despite ARPUS softening modestly QoQ .
Event-driven setup: Near-term equity narrative is dominated by the Permira take-private process and Tock sale closing; the company suspended guidance and did not host a call .
Segment mix: Presence continues to lead growth (+25% YoY) while Commerce decelerated to +7.9% YoY, a consideration for revenue mix and margin trajectory .
Balance sheet de-risking: Net debt improved sequentially ($268.0M in Q1 to $222.6M in Q2), supported by strong cash generation .

Additional detail from primary sources:

Q2 2024 headline metrics, financial statements, non-GAAP reconciliations, definitions (ARRR, ARPUS, GPV) and guidance suspension .
Q1 2024 performance, raised FY24 guidance (now suspended), and qualitative commentary .
Q4 2023 baseline, segment trends, and product/AI initiatives .