Squarespace (SQSP) 12 May 222022 Q1 Earnings call transcript

Good morning. My name is Harry, and I'll be your conference operator today. At this time, I would like to welcome everyone to Squarespace's First Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you. Robert Sanders, you may now begin your conference.

morning. Good joining for us. you Thank name Sanders, of Relations. Robert My Head Investor is Casalena, today and me are Squarespace CFO. With Anthony Martin, Founder Marcela CEO; and call some then They remarks to the share your will questions. opening open and to related issued we our and shareholder section press Earlier QX the additional results. today, Relations information a Investor with our posted release a letter to website of On and operating results and non-GAAP today's financial call, we'll be referencing both GAAP metrics.

how measures You of we today's additional can on calculate reconciliation can non-GAAP for information including of our which the GAAP metrics, release, should website. to in These isolation in our a Investor in from considered section these press substitute a results. found GAAP measures find be be or not Relations

call recent make Form are required as this the provisions law. XXXX, Securities XX-Q We XXXX. on Reform statements risks related These actual materially. We These Commission. to that will make where most by and obligations May are risks include result forward-looking update our over which to to performance. could undertake to differ the a based new cause statements limited Anthony. harbor I'll the Act further day, our Litigation of in of pursuant to defined XX, of on forward-looking assumptions are this call future are of except subject that safe to not events, but statements financial statements results uncertainties no filings Any forward-looking statements future now Private or Exchange to with and our we Securities these turn the information

for everyone, thank and morning, joining us you, today. Good

entrepreneurs to across we campaign, exceeded headed unique is tools our understand in the first provide We currently value Squarespace last ways. product traction to fantastic audience is representing guidance are where our Late customers. Everything significant subscriptions categories, support of the multiple and X.X amongst which quite quarter way results, our a we Sell our provide we and We for. year, with which introduced Anything to creators million our pleased

morning talking Sell about coming expressability Tock, to summer for I'd core international platform. the building One Our the our highlight growth. you around to and the to elevating Everything unique believe users. global our revenue letter encouraged teams enhancements wide concept hope product brand We'll are us our marketing and read time-slotted rollout has our help help campaign goals our powering delivered customer delivering, Anything you language will realize weeks. added for features to within and has that to to in content enablement Thank take the creative marketing their quarter. the our we some some this of momentum few Squarespace's over by long-term marketing of hospitality system, solution the a to for had range we impressions and Related our the fundamental sellers this of team be in business. up website commerce management campaign CMS, usability our opportunity and grow efforts and enhance are to on tease or core are I which will and expand like by We which offering, this the new our base supported translation businesses. of centered record issued our to shareholder Squarespace next enhancements our our first been

both Marcela more flow Squarespace we always, of balancing sustainable As to in growth, cover continue with detail. by will strong which our operate cash

we which million have opportunities growth. the Given approved and for confidence underscores share repurchase business how we're to our are future has we our situated, that in delighted our $XXX Board program, announce a

helping execute public July, She's and Squarespace. Lastly, taxable through pleased her to listing me, us aligning for goals with the next with we Marcela and been her long-term I'm great thank on she'll our I'd at priorities. our leadership wish to partner best like endeavor. her our a in

pass highlights. financial share Now, I'll to some to it Marcela

and morning, everyone, thank Anthony. you, Good

share our quarter guidance exceeded with We to the you this are XXXX. morning results of delighted that first for

at strong We of subscriptions to our GMV. deliver we growing this fueled features the line Our our our was million. which and contribution actions flow by approximately A X.X revenue delivery base investments. loyal Unlevered commerce, unique portion our and the of guidance new a outperformance continue adoption accelerated revenue of of shareholders customer transactional of higher-than-anticipated customer customer top drivers, our from commitment retention, Increased the further as $X.X including empower high of result exceeded a to Tock new results. demonstrates cash validates million to free subscriptions. value end higher-value outperformance nonrecurring our signals

them We expect later solutions to payment white-label in these deliver transactional our when revenues increase further we XXXX.

anticipate notes analyzed about to we everything we headcount incorporated related expenses marketing and and an of expenses to public year. the year-over-year. company QX last G&A added to additional our with sales $X shareholder into our insurance, expenses, Non-GAAP seasonality half headcount the We of level on the at to the annualization financials lean compared of significantly increasing will represents D&O Some second kick Research extension of million in Super the are mostly quarterly year as the spend the decrease XXXX. QX sell as letter. and macro in anything development that stock expenses and campaign high have that a in presented in we year. consolidation increased the QX Bowl. was off

quarter second the for guidance to of XXXX. turning Now

in be to year-over-year. revenue million growth expect X% $XXX to the representing to X% million $XXX range of We

year-over-year growth our we we XXXX. quarter growth marked accelerating trough on our fourth the year-over-year call, in revenue second the and anticipate quarter for noted of we balance comparison believe As the revenue

the free mainly margin due of For reduced the of unlevered to of $XX flow flow we at midpoint an in the payments. project range. cash cash flow million timing QX, XX.X% QX, implies Unlevered to to million, of in our free is $XX range be free the which unlevered margin cash

now With our We quarter for expenses or or Today, gross as year have free of We $XXX for the our the for our XXXX. we margin XX% remainder revenue, representing rest full these well look million, to to XXXX. regards and of to of remainder to year-over-year both executing the for non-GAAP plan to we million remain expenses of $XXX and flow. our to to QX are level increasing our in we close the call, XXXX first guidance growth. expect non-GAAP outlined against range we be are XX% for year that the updates cash expectations the some to XXXX. On revenue unlevered operating at anticipate further we

of is However, revenue, our our represents if which will total transactional lower revenue, margin slightly. a gross our higher gross percentage decline margin the

of For versus marketing the guidance sales the of previous XX% total expenses to and XXXX, XX% between we in revenue to XX%. a anticipate ratio XX% of

we XX% research working expense and is efficiencies XX% XX% to in the have to For to guidance of savings and versus to caused of previous to revenue. that expense revenue development, This this expect the of in ratio the line. decrease to ways XX% due changes further

that For XX% represent revenue. will G&A, still approximately expect we of

XX.X% at will flow an be unlevered free representing midpoint. expect the $XXX cash between million margin We million, to $XXX

benefit cash much spend first expenses marketing the of having as guidance significant from the the and reduced year. assumes half in preloaded second free leverage half our annual in Our flow sales we of of XXXX

during As of year is earnings we call, XXXX environment the our to referenced due QX demand difficult XXXX in a COVID-related XXXX. comparisons and

large market on the are confident our ability about very opportunity. excited and capitalize to we However,

As revenue have customer and We and summary, expectations strong them business, a help through reminder, in the fundamentals during XX% XXXX regards mid- the our we serve the the In revenues years, pandemic. pandemic teens, and us billion high retain our customers have significantly, on our continue XXXX and into grown top execute. line crossing the our with tailwinds business last XXXX. made in we tailwind has annual that a expanded basis. to continue a to compound with had tools our base of as and mark to reiterate stay the in we stronger X $X growth remain growth to even related to for Those

gross growth, a forward combined in customer with the accelerate your and strong year our into the history large growing half products, new offerings now profitable look of we look future. optimization growth a of the and to this We believe introduction consistently of the of long with have operating We will We questions. base. a back margin existing as

line. So operator, open the can you

from first our today And William Blair. Instructions] question comes Pfau Matt for [Operator from

Yes.

Just progressed. in quarter ask how terms the wanted to of

the March on Did you you went out think January. softness bit you in February, a called call, as any April? and change see of through quarter I fourth

call. your for you Thank

the quarter in had We coming of saw guided. into according to we what have news what little originally a had expected bit delivered we better and March. We

in have overall, pleased far, we so And had has funnel new we with subscriptions growth are and how the worked. the that

Yes, -- that's great sorry.

-- that. ahead top sorry. -- on And Go of

is top in Squarespace pandemic revenue Just events. which of different of on now phases each of kind world comprised to reacting differently different are streams, of that, of the multiple different macro

coming we're like Tock now. starting while normal stuff something is the lot return really where business in so Tock to tailwinds more And are concentrated in pleased really -- geographies see to the the we quarter, things a as like with revenues the right

positive a seeing you're So effect there.

for follow the Tock. I reservation Got up you it. just And to that, fee introduced wanted on on

Just details what on more some maybe that? with seeing you're

of What up the other we're are end certain covering reception. for backs is the on amount exchange booking doing to businesses Positive that fee, a charge there for the that. in

So, so far, so good.

that Tock quarter. pleased with and very the we we results in actually Yes, have are seen this

remember -- expected. the able may what we the in about were ahead of team talked deliver that enhancement You this Tock been had last and has the doing we have that we to originally may investments quarter you

they we we because investments paying there with So, off. very happy are are are the doing that

And Trevor our Barclays. next question Young is of from

of think And about XQ range end that a the indicative a a $X for year-on-year prior that of accelerating how million and thinking greater about First, the uncertainty in quarters FX quarter little working it? Is the One two, looks that think here. I like on bit guide, spread wider to you're is headwinds it than from would there. organic I a at steady growth here? an X% high bit basis, imply growth FX on

yes. our and is the what what anticipated, look, had coming played we answer macro I yes, impact favor. seen has And Thank is your mean, question, we far for from we question. that a in you, for the had so headwinds not what question, Trevor, have anticipated some second the first versus On FX

So of execution-wise, -- We what because we conservatism in half environment we putting a to are expected. we macro been the bit bit have second year the according unstable. little just is the little more had a executing

FX unfortunately, we prudent has negatively But So in want that. take first quite to moved we regard. are put that and that with -- the us happy with quarter, a position

Great. really one. helpful. And That's last then just

share expect that public you in private On of the And stock your light we a M&A near stands million now then to repurchases on touch in repurchase given accelerated some term is should be $XXX coming right for can where appear appetite trading? authorization, the and market bit? maybe

is there, the and that's and We're the and the Yes. repurchase, use business We're intend that it, repurchase. long-term about we it. situated of exact to but excited are get strategy not it's into share driver going where the to behind we probably believers in

well-situated not I -- impacts can three there's at M&A, We Squarespace ways I cash, you do is think right? Regarding can look dividend, a right now. don't on which to think

sort been mentioned, feel of our is repurchase. in move M&A way. which doesn't exception. constrained Most As sub-$XXX of perspective, ideas from million of -- pursue that of table. us MA a from with the on continue we tuck-ins, you don't of and constrain $XXX obviously, the We and kind sub-$XX M&A But authorization number an million still the being to have smaller million Tock, definitely this the any targets there's potential,

we it issue thought we -- So excited to were to it. was be able

buyback share on delivery for the see the to of full our have And and with through the on year. really Squarespace great profile is guidance you regards increased Yes, of can program confidence cash. we that fact that the also the business

And our of Ron Josey next from Citi. question is

visibility the Marcela, Anthony, just growth what about. talked to wanted follow on we and I up the subscriber from

XQ in of think still I certainly you of think I were additions. out was Marcela, growth. sub about that you macro better, coming said modest just more better talked terms And but unstable. XQ, results

think then beyond, understand us fair about And as given better, campaign. would visibility help a revenue quick follow-up. the and can following Marcela? subscriber about and be have the subscriber So it the a you bit outlined, trajectory think better more growth, maybe was you we I XQ Super XQ little marketing And that to in about maybe Bowl then growth growth

the I been that business. sell related to behind I people strategy what and be would subscriber think to involved how the to we've ways growth, their customers' to revenue transactions key growth mean our -- more more and is to related give doing they grow in

So see areas, into perspective, outpaced a from get that we to long-term GMV, a things different ways macro as the think like subscriber should different subscriptions. I more perspective, growth revenue member the you sell growth

And diverge would so, would a I think those bit?

Right.

Yes.

of trough adding not Definitely. headwinds we we better. but in of are denominated second the to related impact to little a QX. was QX, some additions. in I And the the euro. I euro. to Hopefully going for revenues with to are anticipated It's we mean, just regards And as the regards and performed subscriptions that half the have be see is the euro, XX% year, -- our that we had that said, conservatism of bit

So of is growth the the underlying international still strong. business

quarter quite marketing happy been we campaigns been we Australia, countries this Canada, the the This we have have in delivered like are Germany XX% progress quarter also with making France. in has local And and year-over-year. U.K. that

we significant. opportunity us. so believers And international huge as quite But are is is revenue the firm size a that for

just are first have the the of on We quarter. seen in of headwinds because FX headwinds we that mindful the

about year very maybe thoughts update question macro? we last Got We new this what it. later talked bundling there, out. pricing on pricing, helpful. unstable any just coming That's given about my the is any just or talked on And

absolutely. Yes,

a right sort now. quarter, on of in we So series and tests another of we the completed first price users, of couple new running have

products the still like leverage of were Some in half business be in gives to test go I up still us pricing we what as a of a to much have full update courses. that there, to get new that are keep list site. can that point suite in enables expect those And more of to your customers more see increases to going sign price comes us -- to over lot than starter our kit. getting modest a it's a of still then on they'll basically, view, happen to a things more line you it, for the years, subscription, a subscription when referring the there you somebody that much more us on you're second our for successful, accessible which wants Squarespace up bundles, which started that, the enter more the this the a or already these question, up it release Squarespace have as at actually also our a price and gives grow we subscription, sell for whereas Big more suite. quite because of took below perspective customer. imagine it would who of them use is we longer-term year. believer from products, frankly, and and lot to pricing when in you in that I'm access another a time difficult That Frankly, in-market of behind put bit if in of a project legacy that you reflected is and via for you made were big complexity little due which believer the -- that confidence and you're another that are in latter that signing subscription, and a successful customers. pricing just updates, that there more have single that half price we a signing them now effect, so built, be another made are just are stuff really more bundling just just we full lot of to new the us a

both the of of in either appear the them you but So QX those, about half far; in will second of thus don't but year. see QX the still impact they excited or of

been Yes. are quite we And good. net actually the growth unique subscriptions new had member actual areas the that sometimes on with we But tools as again. been scheduling very the the really They in success the can't growth mean, been for look, marketing strong not products growing scheduling as driven are unique. the products well campaigns as because unit has these -- have and example, growth GMV, truly have nicely I and by has reflecting main

in to believe time-slotted providing well-positioned customers services We that continue customers lead and very businesses. manage are -- to I are we for for

Marcela is very that product, important ways well, around up, got that as which transactions But again is over part a highlighting big What in breakdown important we are product I Squarespace. investment on is very, a depending different. The appointments in continue. marketing opportunity We've onto which there's there flowing think, said hospitality. on really GMV to yes, product, appointments our The other And of the that doing picked Yes. that see businesses very campaign time-slotted are platform is, transact. very, we've through over in point our many that -- of sales calls that platform. the these physical for to so will big a you happening Tock competitor are as kind the getting that and is and

to related invoicing, a were that this into to tap a different if targeting than be So services that going physical all little just we is GMV product we're that we're basically, to it's commerce. pure-play able

the line Wedbush. of Ygal from is question Our next from Arounian

services on in seeing products? one been layer and in deeper you're Like, there scheduling traditional versus way sales? to about what e-com in with you up area any been under last growth that's of just Is comment. are pressure. a that's the think still seeing an growth go and I of product kind Obviously, more follow the lot

any takes So a to those kind way sides puts and bit of little is help between two there the understand better?

really out, a was and Squarespace as strong in-person, appointments makes it make cases that to while some you is bit a it's huge of some earnings obviously that doesn't like interest the that. what but get leading I next many which e-commerce, of well, the even our and it's returning over through transaction some like is flowing can is what part of Squarespace, other -- be going a the a When that in can and So right though the we don't But in more commerce releases strong business softening now, thing you're break -- other in -- return will we -- of it to there appointment to and be comments. insofar so business which stuff well-positioned saw related countercyclical is Tock trend. time-slotted recently, and still decade; various you're macro incredibly there's sort into in that to as mean to I e-commerce and so stuff

that And the these transaction the of at you online these with where to play of I areas, the over of of operate, And ones sort years, appointments, sources being just think things of them Because I and scheduling, by couple that day, I ebb and broad bigger that years. ourselves -- that over out topic so, well flowing next online one the invoicing believe even that, as services. next operate of see needs all take array e-commerce set any more of flow. we've the very to a continue area to any still more and will up we tried will and just positioning serving businesses end couple if

how happy really situated I'm So, there. we're with

Certainly, to could platform. the functionality is features you a bit days. proving be the talk new these beneficial little in about maybe well-roundedness the And just more and

functionality areas the a it guys color around in speaking, would are within in you know letter. that overall more And enhancements. the then But I product? features and how you to of add don't if any what called maybe new the have just I you the the think in the be out excited to willing CMS most terms lot broadly contributes

Sure.

say. and of for the of see a are do these begin? during things. lot a to So we important people what our there's might quarter, of a lot calls don't all the tackling that A Where releases on just not because of frankly lot features customers lot time let's highlight that we happened blocking immediately,

it's that that beginners, really of for is the fewer booking continue was on not want sites Unfold advanced feel right to level Circle international, it page hits expressibility. one see I those hits platform. get professional about we is fully in on the us. building new core experience. right being SEPA experience. site usability in Sites, usability of making core get and And kind editing that here as insurance users they functionality out, website with And trial asked core most Bio building related you'll kinds rolled fee we're some difficult you management a the get products, that to platform have purchasing time large for to So on that for to strategy that have languages we a people functionality a as it's the And number working user Tock; for coverage we going like to available, that great more what of -- in but was introduce members as it translation the content launching, that kind I of when the system we important with every and the the the the innovate the of It's through been the of editing experiences created. the people right, of customer new and page In every really thing alluding most so functionality important because because think we've the transcript, product comfortable increase, right. again, fragmenting expressibility some win engines also we for our product. thing of of and And using We the you

beta the hesitate important I to kind just and is really So on suits us and it functionality because of staying show because in the I But a that just with right about too stuff that better. call world-class in space. some being it kind now. it on I'd visuals in of rather performer think is of to go our

And so Again, that. to Squarespace forward long developments time. looking for I'm really it's to describe tough at a

disclose I I mean, add would I don't members. it. too much Circle about our on But want because to the EBITDA, have we

Circle We this great community seen developers been we have our far feedback members, us our reception which the their has reviews. give of that beloved is and product have in of so what

received great feedback. We have

that So And changes we are excited can these quite soon. hope that announce we are them coming. very we about

of the Goldman Our Gabriela from Borges question is of next Sachs. line

I'm in grow your Marcela, cohorts, to cohorts relative on in those Squarespace Any relative observations to during COVID. cohorts with in curious of around and those Anthony you're folks what of the can to history that platform? your older the XXXX hoping seeing willingness specifically. Squarespace and either share joined terms you observations Just XXXX expand worst churn and the

for the to Anthony off, add going to want you I'm later. Thanks, kick if and Gabriela, question.

actually big better. really I are what the in imagine, XXXX course, was seen first XXXX. cohorts. is what about subscription, you let mean, stronger and it retention of was can And was constant XXXX basis, the XXXX So versus XXXX for a at cash we as me in cash even Because retention. talk retention have it FX that

that cohorts, we we actually basis, a are is to So have they at a performed at X-year how little the What X have been also to looked attention years has slightly but and better paying bit XXXX performed cohort retention less hasn't cash how behave. all because in have And performed compared for it XXXX. those they that of than XXXX. how than the fully even

of this we to I our way quite a retention is of far, And have that base behaving this a of And as been so represent I seen changes that stickiness pleased number have more piece testament more I overall. But where platform that in to we large these have saw think we cohorts a people in With coming more not of from directly commerce we -- customer and we are what have. said, have seen at customers. people the adoption with is we past So in we regards the moving think versus XXXX, regards one the which, to personal churn loyal versus churn, seen year first perhaps larger sorry, that with to there what the commerce of more upgrades. saw information was commerce.

color. helpful very That's

No. Marcela better, -- cohorts. weird they're to not what is -- I saying, it's it mean, summarize last Yes, right?

Marcela, Right. and in can Understood. And early the on about stream payments how we that? guidance model I how think know it's days, any but revenue to XXXX

mean, are of the I Look, we at stages later choosing our partners.

-- companies to we companies. good really reason are going amazing are been really, have the the partners, that is talking We And really that potential on have due and diligence while. partners a for because we

have we decision So to tough there. a make

have so October. a sometime been been progress we last lot started in developing I However, payments we of And year, teams have believe from far. showing the us

payments processing is what's XXXX, most -- in going that piece there the it's going you launch to fees will and the of a year. be our out yet that is we be some different to have the market, half that in because policy the to figure of know as confirming charge. wide processes it sorry, range are see in we second we commercial likely But So payments you

look year plan. have going about and a We've to because so go at we working too the decisions talk on to plans made can't scenes, be been continue but to I how so, that's And and those to are have behind the much we still market on. conditions to yet

question line the from is KeyBanc. Beck And our Josh of of next

question, put had be maybe Tock, to level, little a we'll there's period a large of revenue between just about in there. commerce some on lapping bit been into obviously trying I gap XX%. commerce going a Obviously, guardrails. presence outgrowing some revenue. high there's where and And we're Obviously, and changes a revenue presence XX%

but degree, two some just any businesses to of on the give for you just remainder these how converge us we'll build can imagine the I So out year. to guidance

in So there's I maybe influence various business of And macro attracting attraction all in going the those are -- a piecing be obviously without transaction. of getting about right, interested of that people's is are questions models sort very customers those that can we -- part we've to together of some take then, answered think platform. what performance to the in other and that some and think you wouldn't And -- -- the various Squarespace of of models trends some the other transacting. within different business in

like know any don't I on how guidance I So, very to... specific if have

Yes. that we into have to the growth in -- are expect our commerce and happy plan. I much customer tell have a that going to I I -- transact there are are you in we significant and we excited mean look, provided deliver on that we from to in XXXX to that one in the between sorry, I as on our between be are customer we different that If platform, we and year, Investor are what move goal. we don't dramatic. we that Day track mean, Look, mean, can very anybody is it's going changes -- move very, and once XXXX as have -- can But last presence that in perspective, I quite commerce, into goal because that with presence decides

Okay.

you Okay. to early I And get offering. will arrangements. curious the up think new just the can place on a to get candidates likely the likely question customers it's it's working there. go go-to-market. But the That's the back prior offering you adopt? them have and as are adopt Squarespace in bit do existing live, it? a still on branded fairly be platform to on the realize to thinking Question about coming and most preliminary, little just -- so probably the most that it commercial Just more that early arrangement that go-to-market you Do you may different base maybe it's I about appreciate helpful. you're that once payments following on the then but

Sure.

us the all default for make it to the to customers new platform. no-brainer for So coming

to incentivize going the existing to payment over I stack. to we're customers aggressively think switch

we our one most I trust a our kind things. have is Yes, vendors, don't them of think of all beneficial product have for they so would They that using can experience, kind of stack. be prefer insofar mean, that from and relationship; want want customers of want XXX% heard switch goal part, Squarespace, people I one to feedback it we've our as a think of eventually they over for I they in from the make to side from it commercial payment the to everything place. different they

And of is our next question from the Erickson RBC. Brad line of

Just on of follow-ups a the subscription business. couple

on, there's recent doing same overall of of right What lately there. about a the headwinds SMB getting secondarily, from SMB given think in what think are your have are or market lot business? from worse, macro that And qualitatively the out potentially into think part guys sort do just subscription, on then staying you SMB the factors levels? guidance the do call one. you of share-wise it, in worry going terms I That's And guys just seeing built health the how now pipeline? your even you maybe improving you of you core, of

Sure.

part a like and and incorporation going that So going their but are up kind SMB is one economy correlation are all because is to like to a lag keep to get formation people not Squarespace that of of that. Squarespace really their that regarding going there there, some in be in either creator there of lot using business thing who number are and of picked they're mind formation to is

Sites either regular a of things Bio and they're but kind unfolded areas like website, testing member like just getting or started Squarespace with So that.

formation think So second we of them are in then Marcela? picked large what number these up on service a the Squarespace. models to thing, of And all and get I not going numbers, again, like and business -- SMB was

during had with guidance. we to additional to to headwinds yes, the is related subscription the to with that reason part customers. I we that versus the and in second new we previous regards provided saw call, The the reiterate QX. question plan regards your we want subscriptions of same conservative the But remain -- guidance that of FX that with

in we've of... year, baked all the Yes. Again, for full

previous Yes. It hasn't to provided have changed compared the guidance earlier. we that

comment market you've then a how And maybe quick on been doing it. just share-wise? Got

that I reports which interesting. there's of by platforms track of All about that. -- just all A right, to very CMS mean, kind how and that talk number are ways from a out there powered many URLs

been we've think I doing.

top the $X what more And may I we're valuable are X value the that sites or in million versus powering million in necessarily sites world, think next those X you URLs transacting. like process right? sites versus which most be valuable thinking there of presence or and about I sites, happening the the mean, is like good. million that very, each would I be X very million behind not doing be websites could XX,XXX billion GMV. keep

quality over think kind So, level what into people in entry appreciation about customers that of to grow we attract, high those kind I think customer and have that time. about I for of a bigger getting an aptitude

that's how regards And been so, kind mindset with has that. to of my

it's think in CMS creative and think I the sort important. I how really, on the push expressability a -- -- really releasing do, the really of and I'm also just we -- in over product an to standpoint that earlier into that this be from the the what remains of and that packages I market. verbally really the is biased, with And and visual call what me we we're it but questions, the of unification one and the and market think bundle to time the usability answer referenced script forward best going all one confident of together commerce I as that

confidence And map a in product that's I and invested we're what's about have our So excited more main and core ever that that. at we I'm why the in the out. tool. than in invest road coming And have always and company,

the question Truist is Securities. of Khan next line of from Naved Our

questions. couple of A

discount of the be a the in the not getting new color the mentioned increase them then as customers, in some And were take, are? more meaning can -- these not you that are the did subscription for earlier you of an kind of tests new continue give well you of the just as ones Anthony, do ones? in of pricing what for past? on So just there. big to price just do tests may generally existing kind some work But have of us these kind and as kind might you then some Or it sign customers ups, is there

Sure.

I'm of that is year this are some color basis The counts, adjustments intra The customers tests referring between kinds [indiscernible]. the just between going on new basis. the international changing latter to only. any happen to for changing monthly, it, plan difference give So and -- we we're making subscriptions any the the plans, of price, tests do, to existing changing in you the changing prices dollar to the annual U.S. changing on a difference that an versus remerchandising, half between

looking currencies testing there. elasticity the multiple through and So

an if be attraction we're We going have other that ideas around have to seeing to. people prior support offerings tech

out doing. us. right, color And kind optimal try of do and we've time, for is so what in sort And this the yes, the hope what all some the to I point on been we market figure I gave of

And the back that pay of big little also be? a a bit will it half. in the might more sounds like Is But hike it. to Got a existing that start how customers fair statement?

was -- was last you What thing the you said? Can second? the What

of big increase might this an in there thing? they see How

Yes.

second in customers. we'll So targeting the be existing correct, half,

with it, to still things grandfathered to "Hey, we going higher end." in say, that of think hope -- not necessarily even on we're I inch little we of And prices, cases, somewhat you that we'll many proven new what bit." people that price, were think top willingness but an prove good coming you've -- got be we've a price. those to version able the because "Look, of But infer, is pay everyone a can kind I people would I were in some -- look, say, was some out can a up to increase

line the Raymond Kessler And Aaron of question is our next of from James.

have of All of highlight? about can little about bit e-commerce. continues been performance especially you maybe other questions restaurant and think I to little would of any about some the a mean, well, as verticals a you I as the the this just But verticals? economy talk performance reopen talk asked. just talk

we've of that space. hospitality within the as which a seen to bit Yes. highlight, Actually, performance within returned more touching the that on you're normal environment Tock one is has as I would late a tailwinds of

definitely So strength we're we're what And -- say I'd there. there's really encouraged Yes, seeing there. by

this headwinds by other has offset call just I and on terms in then e-commerce, and in revenue of Squarespace happening appointments physical commerce think out pointed that what's people streams. but services-based

bit So of we're for a that's a kind feel of what seeing.

we afraid for further have And more time any today. I'm no questions

your for So, earnings I would This conference, joining phone now Squarespace like everyone first quarter to call. and disconnect XXXX the you lines. may thank concludes the