Squarespace, Inc. (NYSE:SQSP) shares surged more than 14% on Tuesday after the company reported its Q4 results, with revenue of $228.8 million coming in better than the Street estimate of $222.07 million. EPS was ($1.72), significantly worse than the Street estimate of $0.25.
The combination of price increases and stabilizing churn drove meaningful upside to bookings, revenue and free cash flow, which enabled the company to guide 2023 revenue ahead of expectations. Further, the company returned to quarter-over-quarter positive sub adds with the Unfold headwinds starting to abate.
For Q1/23, management expects revenue to be in the range of $232-234 million, compared to the Street estimate of $227.29 million. For the full year, the company expects revenue in the range of $955-970 million, compared to the Street estimate of $949.4 million.