Citi Opens 30-Day Upside Catalyst Watch on Squarespace, Inc. (SQSP)
Citi Opens 30-Day Upside Catalyst Watch on Squarespace, Inc. (NYSE: SQSP).
The analyst comments "Squarespace delivered a strong beat and raise quarter as revenue and uFCF topped 1Q24 expectations while FY24 guidance was raised beyond the 1Q24 beat. We remain impressed as Squarespace’s core strengths continue to be the driver of its fundamental outperformance. Website subscriber growth of 12% propelled its total unique subscriber growth of 15% Y/Y as its website trial volume hit a record high again. The increased investment in domains is helping too with the Google Domains acquisition having a strong halo effect which in our view only strengthens its top of funnel. The improving top of funnel along with continued execution on uFCF margins, multiple growth drivers including payments, international, price increases, and new AI products should create positive momentum heading into its Investor Day on 3/15. Given these catalysts and its fundamental performance, we find shares attractive currently trading ~15.5x our ‘25E EV/uFCF."