Oppenheimer analysts provided their takeaways on Squarespace, Inc. (NYSE:SQSP) following their meeting with the company to discuss key investor debates, company initiatives, and industry trends.
According to the analysts, the company is beginning to roll out price hikes to existing subscribers. Due to grandfathered pricing, the analysts believe the ARPU tailwind could last several years. The company should also increase customer wallet by bundling offerings. Payments should also be a tailwind in the medium-term. Squarespace is still evaluating Payment partner, which the analysts expect to maintain, and improve on favorable economics.
While Squarespace has arguably delivered the most consistent results year-to-date, management naturally remains conservative with macro uncertainty still elevated, and a CFO search underway.