Squarespace (SQSP) 28 Feb 242023 Q4 Earnings call transcript

Good morning. My name is Tamia, and I will be your conference operator today. At this time, I would like to welcome everyone to Squarespace's Fourth Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the prepared remarks, there will be a question-and-answer session. will Squarespace, the Clare you.I your over Thank at host Perry. Instructions] now call hand to [Operator Clare, please go ahead.

shareholder of is Good today's morning, XXXX section Perry, by This call your quarter referencing and CFO. posted Squarespace's Nathan Founder their we Squarespace's joining I'm release and Head and Anthony Clare we CEO; of Casalena, be questions. a and Relations Investor thank earnings prepared website.On you conference today, remarks, for Investor will joined Relations. letter Gooden, Earlier to both and fourth the open non-GAAP After call, call. and the will financial our to operating press GAAP results metrics. we

of GAAP non-GAAP today's additional shareholder These our release or in find letter. to and on press for substitute can from should GAAP in calculate isolation information reporting. considered reconciliation not these a be measures we measures You a how metrics, including

of this otherwise.I all events, basis a a comparisons we filings to the Exchange Please of information Any by XX, will note this new financial make unless Securities will statements strategies statements the Act pursuant February that to Litigation limited to law. We on Harbor call and make forward-looking our that XXXX, these future include, our are not but the We turn year-over-year with future statements related or Reform to, call are over required on Private to performance, of which provisions Safe and on our risks ability uncertainties These undertake forward-looking statements where most recent to now Anthony. update core integrate of that as new Securities as platform. risks day, the our are result differ we state subject except could forward-looking defined technology no are our statements materially. XXXX. to in based assumptions our to into actual cause These further Commission. results and also are obligation

XXXX time, the the everyone. both We XX% for good was for Squarespace a financially. strong and $X strategically Clare, first morning, for and growing revenue you, Thank crossed in year year. billion

cash excellent top domains performance margin the customers of an for out free QX and and put establish year. to was bookings Rule with unlevered was the and rolled XXXX flow We initiatives XX rolling multiyear to for as full by space. our Our commerce foundation year began customers significantly the also revenue bottom important finish aspiration and over territory to ourselves XX%. us growth to customers this line Last expanded the fully in for welcome saw new faster also in Domains. coming invested year, an from year share the today of Payments in that supporting than our from we This accelerating addition Squarespace Google for I'm laying aided over key Google business Payments a out now States. delighted in in strategic growth.We QX, Domains is United further we our

needs e-mail. our is a industry.The which essential inclusive business, of moving our enabling first, namely forward that small services website and and main and We make than in stand capabilities for distinctive launch design out in ever to to launched new businesses easier by it of most entrepreneurs products their dozens also into domain, XXXX drivers are of entrepreneur the online the leveraging get business to features started, XXXX anywhere

We X brand in build-out key were and guide year existing to and our We'll integrations capabilities. comprehensive customers has to Tock and product presence, engage Tock week. an us solution presence commerce, this online closed transact the separate customers via small digital we ever, great hospitality create year to of out inject money getting expanding build an Blueprint's releasing we're interface be for in early is Payments as in site.Turning GMV markets as our cornerstone and driver to attention we important to the our Blueprint to we and as central that set and goods an our progress into have now highlights that.Finally, making in powerful their believe improved to Enabling markets. international, with to Squarespace best with finally, these third, offer enable year, new and on And QX Second, both our better showing diners We're tools content, great the in to excited of customers our and renewals from app are ability transact where to of efforts than select performance. growth be and is enhancements, enabling an uplift we're soon to platform key in forward quarter and and the tools XXX% as proven commerce GMV. are further retention. for larger we but the customers restaurants improvements the sellers, acts look collect international which seasonal available features into revenue leading as ones.With differentiation. our the year customers using rolled and and place through we broader where up product it you'll largest expected, of help the we to believe personalized in launching users' find as respect are are physical With native under will its want serves international banner will going our through record next growing our now feedback the alike.Our growth iOS natural base. Major U.S., distinct QX, new setup. to focus offering directly website now expanding Domains a as of our saw plan to out solution offer our services' AI services. fourth now the broader put a the capitalize ability of throughout our array be international customer their when grow funnel are the generative Squarespace customers home engage many our on Design Google underscores onboarding customer discount the wider experience and offerings at on largest selling meaningful design of driving registrar a and increasing also Acuity we're a launch will we adoption front our in we customer commerce. time the our move platforms' a and Blueprint. and poised power we we first world, enhancing building turning our merchants the updates to domains Payments offering interactive customers business GMV that of Intelligence, marking customers, Squarespace from to businesses, that guided for Squarespace throughout markets. website, by a key through current Payments rapidly enhances of offering enable Scheduling a Payments migrating have our do

pay most largest to currencies, added convenient international subscription continue XX for and markets. the growth ways XXXX, customers markets more key Our grow new across to in In we've enabling double-digit all them. we seen

Squarespace to of continue what release to We're as our York for be positioning, Today, support. dive to entrepreneurs is decade, your more empower enter Squarespace an product the were the all growth we'll will much to even a that May New Nathan releases in in leaders at turn and also Nathan. you forward market online. for refine Day offices now and go-to-market our into than XX, deeper over looking holding Investor we in in we and City more where we for strong our As better announcing drivers I'll able it opportunities to third And on XXXX. position ever I XXXX we're future.Thank

you, fueled revenue free of We improvement. a and everyone. of Anthony, year flow full and Thank our culminated ecosystem growth and guidance, top free our results. unlevered line financial margin, points Squarespace of XXX solid The basis XX% XXXX a flow products exceeded over which year. morning, strong cash XX% execution unlevered cash in and good tremendous was

growth, strong underscores top we flow sustainable strong repurchase share program. cash creation.We million top strong profitability meaningful a value announced Today, driving our and financial momentum growth. line our are a the flow, improving for cash authorization This We long-term $XXX continue with line our balance business. powerful formula incremental delivering to of

grew more allocation generation XX% strategy. cash balance a strategy, results us financial strong our May.Turning program $XXX our key part in the integral discuss an Investor to shares, business. bookings of flow repurchase reported sheet of now currency. to which XX% in QX Day I as at our will topic, the driving while view We and constant continuing provide capital million long-term upcoming and robust with repurchase our Our flexibility execute against as share to

purchase of domain acquisition, for domain of the base drove subscription have Our during part Google Domains from Google acquired the domain contributions to we both along followed September Google Google acquisition There minimum in for our the from originally from an their acquired growth asset in provider Related by a about which was Domains, customer are a acquired no the XXXX. include our is of of our this This commerce. years. renewal a with with consisting exclusive sold assets components Squarespace a acquired by partnership. customer the domain and assets, rates primary websites, purchasing domain subscriptions X X half surpassed quarter, and single reminder, presence expectations.As of of any deferred assets, revenue. as domain Workspace directly

Legacy our assets.Full our of from see was assets. were growth contributions website constant year driver in subscriptions Squarespace growing benefits XX% Additionally, acquired from unique direct year plans billion, increases strong growth include driver of traffic addition primary pages, several XXXX full not subscriptions. retention Unique were The domains. in and domain to our which XX% and Google referral another the acquired of of bookings the to across currency. and our do $X.X during ARPUs we bookings year growth price domain

We year.Revenue of momentum the growth quarter high bookings $XXX XX% end the achieved in are the fourth million constant quarter, delighted in accelerating million million quarter to $XXX of represents million the $XXX incremental currency. growth driving with our $XXX of XXXX through and exceeded and we after XX% guidance of growth by which in

foreign positive In stronger from we exchange, websites. from subscription addition saw acquisitions contributions to new

where Domains, a and mix to new Google Squarespace, acquisition subscriptions. we continue effect increases our premium see positive to see of plan in traffic We unique referral robust following halo

constant of base X.X representing subscriptions, unique included As increase presence retention and million legacy of from acquisition and of million, XXXX million over a unique constant Presence currency. net price revenue, and highlights the and revenue up the $XXX of year-end, XX% customer our revenue over XXX,XXX period.QX unique subscriptions represented growing XX% XX-month increases. in customer and commerce benefited grew XX% in of and subscriptions growing from XX% XX% $XX currency also revenue

a strength seasonal quarter reservations, finish uplift from saw GMV billion, We this Tock high great In leading XXXX Scheduling has were Anthony subscription customers. portfolio year built e-commerce our GMV revenue full a our positive year X%. Acuity in customers.As revenue needs, with record the growth across capabilities. goods Our QX, to and approximately in course is in solid GMV-related and as strong of where commerce in ratably contributions revenue assets sellers growth was see saw well contributed highlighted, websites, during the and up to strengthening, commerce $X.X and had $XXX QX. acquisition existing customer contributions revenue We are also Commerce to in our annual our year and year, from $X.XX and reached Revenue paid Tock acquired commerce website quarter. generally presence of of physical the to driver from and we recognized exited service new sharing subscriptions. rate subscriptions, saw and All domain of contributions billion, over domain $X.X up from approximately XXXX.Squarespace upfront revenue We the million. XX% assets, of revenue largest hospitality domain XX% base diverse currency. run of important support growth, acquired primary annual recognition including drivers the as revenue both months. billion, constant to greater of XX% presence with customers' this XX Therefore, retention we or our Scheduling subscriptions Acuity strength growing

line top unique an subscriptions our cash For increases the contributed had presence revenue year of XXXX, our contributed unique price strong basis our top across increases increases retention supporting full impact XXXX. growth renewal XXXX, XX% of with our million, to approximately subscription improvement XX% rates $XX growth.Price of the In subscriptions Price on XX%, $XX million, representing line points year. the legacy offerings XXX retention. representing of cash record growth during outsized and versus drove

accelerated full and XX% ARPUs XX% of our was $XXX Xx, which, support growth increases to languages, revenue our year-end, X% markets constant across of the across revenue target to revenue contributed of increase ability increased we in and our subscription our XXXX, million, the total revenue in to currency international price during $XXX, subscriptions As options in In with plans.International year several support growth. Strong primarily alongside websites our to period. currency result bolsters representing the unique XX% customers. associated growing and growing our our our the

Anthony markets. international growth look we mentioned, key our as new bring As our a for driver is to ecosystem business to

a through profitability growth. margin our resources deliver our while our we gross targeted market clear impact solid product We well shareholder product Circle, campaigns execution result powerful support margin fit business improve we is assets. improvement, to building the where model, profit acquired of our invest Through see users program to our from are intend profitability synergies long-term profile. features, marketing focusing to our and we markets drove with differentiated where operating continue are temporary to design and in return.Turning as growth to We domain offsetting partner on and investing Pro supported.We ties with and

non-GAAP of year, the profit domain full was domain acquired in fees XX% due year in decline primarily registration a margin our assets. to revenue basis of gross Cost points. Our with XXXX, associated increased XXX

customers course earlier. pay upfront, subscriptions, recognize months, legacy As fees registry I associated renewed XX Domains Google domain mentioned their ratably we over as revenue the of but

we incremental a driver an model as as AI percentage but our a an efficiency dollar that business efficient our we able with of in in scale. remained Our basis, costs on line revenue showing of increased are customer to XXXX, continued customer We as operations see operations. sustain for

AI customer part and We bolster enhance models of been better of our to decade. parts for our have the using support platform a

year, to or to capitalization increased XX% of a with points, technologies efficiency XXX revenue. as payroll efficient throughout in In leverage in of R&D to percentage cash-based to drive was our lowering continue spending efficiency million expenses. areas in expense will improved nearly the revenue, due We operating We primarily business.Moving $XXX operational improvement of non-GAAP non-GAAP basis an XXXX, year-over-year. expenses

sales and nearly $XXX or the During approximately of revenue, were basis improvement same of period, marketing non-GAAP expenses XX% XXX an million points.

ROI.During in the optimal directing channels, brand drive changes direct model the mix and spend of investment Our the prioritized has channels helping marketing efficiently advertising. attribution us been response marketing to to supported These better our year, we base. decreased increases growing subscription

today our the to operational basis G&A improved flow XX% and EBITDA of increases as I with cash X.Xx and This trailing strong areas. than XXXX, sheet discipline. both and be of We non-GAAP related Full expenses XXX balance to of and million, current. equivalents high of adjusted year-end. We points Total $XXX approximately our statement. EBITDA approximately efficiency, $XX of was XX-month at and were million with our dollar cash available percentage the million the debt can operating previous million flow net XXX end surpassing guidance. nearly each compared million assets which seen finished a expense primarily ratios offset more by year, comfortable adjusted is of expenses.Turning to Finally, across in approximately XXXX in a million QX with improvement on remain delivered year leverage acquired increased X% due than $XXX approximately or execution employee the driven total XX% taxes. to expenses, points, now our XXXX, revenue, $XX debt of of we more to revenue, performance G&A impacts basis on cash We revenue. domain of to the In of non-GAAP basis $XXX and or which borrowing. $XX as focus cash

average positive flow total cash guidance. the or XX bookings, XX% The to and levels XX% million seeds an free strong long-term see current had outperformance approximately offset free our more to to where $XXX million. we an afford approximately to and cash open and shares of generated of at driven remaining stock-based of the and growth had months Our to customers products X.X to was purchases our us guidance of surpassing year repurchase to operating our opportunities share and flow price plant website for for provide high This grants.Turning of activities current we million cash some impact trailing from per QX value develop rate $XXX In growth. The represents a consistent cash end XXXX returned full approximately We we XXXX, our of XX%, unlevered in due primarily the million our authorization. for opportunity strong market. $XX compensation of of of the anti-dilutive new million acquisition our revenue, unlevered $XX.XX business.Our year-end, on shareholders $XX under repurchased shares grew innovate renewals on to of by share At XXXX. flow authorization.

range strong for the revenue expanded XX% We are are growth This renewing midpoint. our customers year ecosystem, the expecting Domains XXXX, growth total targeting another we by Google and million. represents In business. QX $XXX continued at strong $XXX the website from driven of million performance to in of our contributions Squarespace, of

be which of of implies margin the cash unlevered in We $XX flow an the midpoint free expect to cash range. the $XX at flow free during unlevered million range XX% to quarter of the million,

the year of midpoint including XX% reflects QX million to cash we guide, of of acquisition.For year growth expect Domains $X.XX Unlevered $X.XX at revenue Google billion million. through flow bookings the expected Adjusted not in revenue the from as margin of million flow implies core revenue products unlevered full full of the benefit half full our free cash QX to the XXXX, Squarespace guidance. the Google XXXX.Finishing year out pricing expect offerings $XX as improved the we including improve the the our Our grow seasonal ultimately more to of or an billion, to I from Domains call range free Related $XXX material year bookings, be cash midpoint million the total to and second we expected efficiency XXXX. unlevered to to is Asset range of any margin we flow margin assets in in in XX% our from year range. couldn't strength to that to similar the be is our proud customers either showing leverage EBITDA unlevered of XXXX $XXX started, progresses, from free Domains want where cash the marketing representing and through performance of of contributions be benefit at flow of Google of free are I cross-selling the the in our range. $XX our to to range added contributions our I in

look Q&A and value teams portion the a clear is ecosystem first in call. customers, employees outlook Thank open you of at Our to by steady excitement new Squarespace who Squarespace, strong growing CFO maintain execute confidence drive please was and we to it line execution. steadfast to of the products. the I daily operator, to my our suite for deliver a and that, this forward year.With with our our that performance, and year as supported full for strong foundation us XXXX helped growth, enabling have

Certainly.

now begin comes [Operator the question-and-answer will session. with Pfau Matt the of question Blair. William line Instructions] The We first from

results. Nice

payments. ask X wanted First, that I had to actually, on related I

perspective, Squarespace advantages moving Squarespace payment over the existing And from the from about what what would customers the as perspective then system Squarespace's to plan to as well be third-party over migrating First, Payments? to a both is customer's go to Payments?

I can that. Sure. take

So, that point one and the our this the of about things we architecture. what to talked haven't release offering can to of do up is Payments plan

is talked on lot advantageous we rate currently have as go to the of out, better, we've take we don't past, higher spending time how get Obviously, been economics everything with relationship. integrated. being a right the about more one They about place. SaaS we can have this a it. experience, some customer in which give thinking tiers to via So they than than more now better we've But people roll Stripe

migration of And once, answer is is right?So, it. and so begins do kind second at of your both your that why of questions sort to your first about

been is plan and that. it built we're you that So, payments that our deploy so we in can don't see testing on now, going be something working it's architecture the actively to but infrastructure into and

you think my of the why on a very invoicing If cases, competitive in our Squarespace, people multiple probably like is not I opinion, the are not our use decreased would set, adopt in larger first plans. rate people why even sellers take look our might across selecting one reasons line various products in might And they be item or who certain ecosystem.

And a have lot coming a it's we So, us. just for there. huge unlock

XXX% now, working right the wouldn't to U.S. at so just we're integrating all focused otherwise, plan is our moving we're sure on international architecture. system and be our is, that rollout So well. of markets to that then far making -- we It

here that's just and frankly, all exciting, into spending So a time we're looking lot all it. of super

What have of customer uptake Payments advantageous follow-up that of customers that terms more into So, new meant has in coming that just been in terms by a ecosystem? to pricing Squarespace on the perhaps. your exposed

about not what is production something So, I'm you now. right see talking in

new have out. we as in this just ability do offerings we re-bundling shape to So, contemplating not something is the our to is But commerce it that and currently currently the continue product. and are

next line JMP question Securities. the from of Boone comes Andrew The with

products just you domains, consider into Squarespace help And on should number right are fact unpack X% is else where is doing the there? and anything the as domains of XXXX? Is high for think the understand guidance can us XXXX given in our Nathan, math? to about there what of we're we Anthony, other can given the then, strategy you've you that cross-sell Or revenue. us kind single-digit kind you

year of It year-over-year rate, against guidance, growth prices. driver certainly our of by strong. XX% acquisition and backdrop the raising ended existing legacy of core an top of incredible 'XX the we driven which 'XX was the very was our business, at retention So for new

So, for we as and of the a the But but Google coming combination through. lapping driven go pricing, at top has Domains, end are XXXX, we we what that range business growth the into XX% of really disclosed core you see the that migrating remarks, so the talk said as as, will the impact cross-sell Google focus Anthony I'll well the in guide opening built Domains. we've of my in XXXX let really for immaterial I as domains.

Yes. some reemphasize, we including in And strongest our quarters in to just business. XXXX, quarters saw big of ever, the core

still I'm sure at And than domains not to the other is like get really and pricing sort over right later, list that that question due -- a later.To some our any guidance cross-sell, process on because the is of pricing the in no we've material But but we now, so your it to and be more single-digit not list. who changes millions about pricing an we'll to customers currently strategy of will built release. a of answer in we're that's are can in at everyone 'XX thing. And talk update migrating changes nowhere

of that, after thinking everything make in year. a for that transition, about elevated upsell. out seeing results, being is domain we're of there's like the that doing website small kind products what We I new said, need new website rates have is they're is encouraging have a we more be mean do e-mail. working in are businesses world versus next seamless perfectly considering is we'll almost attaching. no domains of not an we And and cross-sell doing sure now making greatly cross-sell and will then And to really we'll stream literally upsell. into really of next more and We're week, for elevated And which for new focused coming be months. That the here just sure couple the thesis and interface be hard. Google last on interruptions. a a nothing, attach foundation the of and I early coming mean too all

year life just later the we're trifecta customers' get cycles the and to plenty throughout of we're these to opportunity of products. that going refining have into so there And throughout offering and them

The of next from Mizuho. Siti line with the Panigrahi comes question

a Anthony, pioneer website has I know been Squarespace in building.

You always crowded market. differentiate market, this competitive yourself from

of know you on So, positioning getting emergence I question now leveraging some the AI, right product how we're of investment the changed in competitors the yourself the and of did about pack? could doing? talk the you're side, now new are AI terms how what with go-to-market, you're offering also from you this wondering you now

and insights the into advancements and experience. mean AI last about experience product. we the for guide always Thanks ago, of incorporated sure. for onboarding we learning have the is some really has which question. months Yes, I which the had a Refresh used plan couple setup we've from machine At videos to Squarespace of had year, a just kind a almost on group demo here, how

a I'd So, say couple of things.

in, we is I jumping we're first which of kind all is believe, that I the quality leader your leader to which positioned design we're back So the do. things of original and believe Squarespace, positioning how in off, the of really we're and to,

to the way, months, over bang. updating more coming So, -- see you're an this things. not ongoing next the We're of We're releasing by couple ongoing things. always releases big the process. AI is It's going always stuff

it. here, to it's sort calling we're situation.But Design number of we're of releasing of the be a done of sort Now, Intelligence banner incremental under improvements we're going

just a that there. startups is can't of tool the all these which I an combination building that So, we're really, the site, AI a fact has no have with e-commerce level on you is domains, taste that mean all AI hosting, really, just management, it's capabilities smaller have have top Squarespace generate and your technology no no amazing have build stack us the AI, It's really And like no you stuff. this code to of. not incredible. really order for and to equal no access tool,

into So, Blueprint, AI improvements into editor, into our setup. releasing we're constantly

kind and your going understand services new prompts start your put into have site. build you that brand of you the automatically as online We of to that help context

I is of releases. That's for So, a one like stuff stay that I this front me is also or other with X/X take side. -- of a on mind exactly, that more the Refresh AI.The is interface, Americans to But see but X/X the directionally lot at or of the a tuned this how also a have thing on the whatever, then Intelligence appearing MidJourney integrated really, integrate keep people Design convenience ChatGPT look really I used or lot which just stuff going thing quote into are a we've to that continue think thing. and magical correct, lot ChatGPT. of in we don't

that's tool, whatever So, just with they're great not there, a commodity getting if at it's point. a this augmented

So, sure our isn't to is customers. make tricks for the same integration use we looking see of everyone AI our and something we're useful genuinely

quick just Nathan, housekeeping question. And

I and you QX? don't revenue gross about know margin So, if on Google the Domains impact talked in

happy Yes, to a unpack there. bit that little

We will months. that impact As over revenue. Google Domains, a reminder, you recognize see XX the for of

recognized is our an was in Domains, the margin, were There impact QX, XX% revenue predominantly you'll bookings, costs in upfront, by over degradation the time. over So, growth year-over-year that ] we driven point we surprised [ which in you the will we XXX time. because is not by impact see which that revenue which Google registry whereas initial see basis the saw recognized bookings in

year half we XXXX. of expect as the we in revenue as improve continue have lap And of of full this then the the the acquisition, see in that to you'll model. we first anniversary So, a

Citi. from The next question line the of Ygal with comes Arounian

bite on philosophy I'll question. Anthony, the pricing

ago. few some about a a less increases noticed ago, we think pricing month [ with ] weeks I price

you can talk about terms in It guidance and you're how or impact material at not forward of that, moving be? So, sounds thinking super the pricing like about least it's opportunity here? your then from and might what pricing

on X areas. touch I'll

first price off, around the years August-September X.X first one frame that -- just up was ago. So we test executed about our time going ever

years to we've market X So is this constantly. up prices test you August-September, picked tests in we do raised on it that will the And list of one be all since many prices.

pricing will and time. differences page things, screenshot our loading So, if just see of all you're the you

very -- new So, customer it's a now. price to what over that XX% a test X% have test, list we marginal is again,

that. about Sorry

it's and that on original price I'll top So, X since up a about about ago. in frame. we the referenced picked were was also month that test years September price some off, been will again.So the in time take increases question first list a -- from And it August doing on be our pricing people it

So we're price doing testing. first off, always

market. was of a We the observed is pretty one tests have slight price tons increase. in being The that

to of and remind time across hopefully in the I more would price people. was list, And have because a below another others. really retention to do 'XX we affects would just we this August-September new we everyone and like implications giant dynamics again and millions of opportunity So, then increase But ends marginal successful certain has that clients XX% a being list think than mean did like positive in something everyone, board, millions course, that and for when last prices 'XX again. time. X%, frame, move changing we and that If up really saw is this millions it it customers up can that

And the same like fees strategy. and platform this be change. pricing the I around being that, didn't what have a this we take the do in to of so, broader different tiers the Payments because going it to before is ways will increase.The contemplate this unlock different a think huge Us market. other as to rate couldn't mention on can we SaaS again, part and able I change is, being And very time or respect not that back to first it's with price would to thing better would transact

differentiate because of introduce are And that the based -- you'll platform take on pricing, things differentiated take will using that fees. find you're I'm biggest us and all sure on the everyone so one a platform and rate. plans that watching to rate basically on hopefully commerce and just is test allow And the probably based to

Squarespace, donations, SaaS So, take and self-physical book and all be you'll across courses, to a appointments lower with get able you products, rate a just invoices, fee. use classes self-services, higher

pricing. particularly to aggressive kind doesn't every in that's mind, for price. years my increase So with a we've X in what store feel I got of modest respect once in mean,

addressing that for are people how price. it. into of guidance of the not we're that's the currently of And cohort who yes, none So kind except Nathan, is previous at built list

to is it But immaterial Correct. guidance. the XXXX

Yes, [indiscernible].

of you're experience on work and [indiscernible] follow-up the some A doing there.

You to you talked could a are registrar more guys as the differentiating some about of now. registrar is to competitors? And being versus fourth business share around changed? that other experience how like, drive largest the business traffic And more any you what you it's color

sure is no are Right migration in on elsewhere, also have our that now, who or forwards domains a et cetera, domain people the making of a multiple our or website for improving domain most cetera. and efforts et interface successful or e-mail having and been interested

will I on the roll just -- again, next small everything the a new as over actual And the big We're but moved percentage out, going early really being customers on. now. may moving actually which a hasn't see is just starting careful. number that's right think have majority from as Google of experience to that The you of of there's started, over migration So a domains upgrade interface. it's week, interface that

in September, the And Ygal, continues expectations good closed had say, retention very we are we the deal. to that the business since the of we exceed that at the will I close transaction legacy on seeing

trending. transaction So, it's the with happy and where

Oppenheimer. Wong line next comes with from of Ken The the question

we wanted guidance I think revenue. just think the of of One is dive way kind that of kind lead revenue to fiscal typically revenue about again. growth on bookings the I 'XX in rate maybe

XX% number? closer really 'XX I or why with being rate versus of something wouldn't rate. bookings revenue in that bookings growth in we're be of the think to terms lag You the guess obviously exited there line? Is top missing a growth revenue we might high what

great Ken. a question, that's Yes,

Google through. XX% year-over-year QX the driver that in of top we saw, flowing bookings Domains the was that So,

The second business. our core driver being

through see months, don't Google the you half XX the last because As lap over we from recognize revenue year the we when XXXX that of flows the that pickup acquisition. until really

of the you And improvement year see side. this so an will on that part latter

price to increases. mention lapping you in quarter And also are the

And stuff a lead ups acquisition obviously, too like there stretch, of we granted much a of high revenue kind quarter. kind downs be booking may be through. that to and at work have of level, you've some But got some depending shouldn't on

That Correct. is the essence of our model.

for on then domain side. again, just Anthony, maybe And follow-up the you, on the -- a

ownership that harmonized a customer that you are lead the purchased of been gen really guys the of wondering but asset. you taken with consistent it guys Now in has expectations have kind been coming like from new funnel I realize I'm retention seeing when have similar in? good, you you kind the of terms of Google, of experience, has just kind the

gen our that from has elevated greatly elevation last lead over been new year The business remains and stand-alone sustained.

the think attach optimized new we those I monitoring customers on it even -- very rate though have and not do experience there. an closely, we're

cross-sell a migrated this, appear, you'll Just Google there to job over something we interface better and or have and currently It not much migrated upsell so. most week reemphasize a prioritize but have out an again, a that not over that. Domains. within at does We've see we minority does

need, in into trifecta positioned, is days.But how extremely we're of mind just all a fits e-mail So, early the my website, domain. businesses this of terms things that small it's and

we're better to will how the just packaging yes, going funnel been encouraging. domains as -- really continue offering on better of really, and only new iterate to And it's experience. refine offering, get get but it's it that we're But early so has days. the really it, really, SEO increase solidify we And optimization, customers

great, I the the the think think you're come. but is and I yet to revenue seeing So, are best bookings

focused guide, And customer, successful the layer the because millions into important experience on a Difficulty]. from I becoming these on about the included we've that customer Squarespace impact is why you would migration that that, customers think is the it [Technical a is not very as of coming we cross-sell are Squarespace

cross-sell guidance we it. need The because limited Yes. observe just to

line The question the comes Zhang of next Chris UBS. with from

ShiftX some on to providers wanted I website software and So, verticalization pretty BentoBox, industry. website example, And of Square and leading the introduced guess, Square builders, had with for offering market for by of in the builders the Clover course, to the particularly hear and Toast perspectives recently restaurant restaurant while. POS in has POS with notably having for and a their your going I builders website Online Weebly customers

out. offers, day their those business, those POS those to with but core So, their not restaurants are use are integrated type day run and of business in

And if the vertical types product? these of can in cross-sell us discuss share can competition Tock you seen you software maybe increase also, have website some hospitality verticals? and providers some between existing of with other and from maybe an So, you in your

their a other companies not large We have competition observed or e-mail when core want marketing offering. generally website to companies of companies, offer point-of-sale amount a with

driving flows the then what's it In their now the rest businesses kind hundreds. if It's is month, like these from website is tools. and of reverse first a lot GMV I right of choice And the to really fact, and of $XX is the is platform Squarespace. the mean of $XX, frankly, should economics $XX, the of subscription a are the inverted how Tock kind be true, important in tools, right? website certainly the

more further is integrate think of those as is, kind So I versus us, with we websites we of looking vertical interesting in having our be tools would for like, e-mail what's customers. for Tock, from certainly place, restaurant and tools that instance, marketing see a more upsell get that.I thousand can much to what of the that kind additional couple of do scalable

margin, of brand value looking Tock to a But their higher and we're overlap for that not thousand provider organically. cross-sell, don't Squarespace it's the of higher So, where always necessarily that's a shaves originally. ] from of the having I But Tock and Squarespace a really came of immaterial own so giant subscription. few more course, kind [ that products, SaaS us. It's websites, restaurants, there just if between lot being use said, -- is vertical kind off a was website

products this a guess such an be the follow-up maybe in top talk I is the And can the important far quarter? of strength about so year, would QX given just core funnel you website

some X/X multiple really our times last from and mentioned ever what of year, just Again, quarters created. QX, that through been strong. we We're it's best really I trials positive. Yes, kind it's new of had where,

So, we're on track there.

question Naved of comes line with Riley Securities. B. next the The from Khan

your on marketing One questions. X spend. So,

kind push elevated marketing you of relaunched leaning channel you're QX into the of Acuity products and percentage because some fact Or recently. opportunity? it is on. revenue, with what's of a it Or into more the a versus maybe As was you've that was wondering you see it Is of going 'XX. associated I that of just mix?

So that's one.

on The into new new going XXXX? other is international just maybe markets, like markets any thoughts in any on Anthony,

Yes.

additional into there. start the question, several Google marketing so and QX. rolling through historically are of I'll high on that on QX. we is sales acquisition There expense amortization specifically spend -- the -- with The do related a QX things So, through. the your rolled Seasonality, in demand, we to

annual an marked seasonality that's would marketing each I the a you'll sales not look the surprise. annual for on is So improvement within ratios encourage But quarter. both you to see because GAAP there But at EDR on non-GAAP. and basis,

XXXX. have about a did a enter international any plans market And Anthony. to new was I in it follow-up Yes, for

participants, Naved, Apologies, reconnect speaker we question. as our hold lines. your please And restate please Naved.

speakers rejoined have the line. Our

second have Anthony any new for if to deal you -- about new any plans question was XXXX? add The a market, in

Yes.

spend to comments overall. Nation's think, applied I So

presence inefficiencies the us. translation, it I'll where but should a kind It's And at when go one grow heavier of dynamics looking trying markets, us one into market U.S. comment of as XXXX. particular, an in as we exciting different terms on in have is we're of to our Generally, So, in and into be we an spend for in a Asian lift yes, couple the of see international quickly. bridge because and you just international spend, don't same

comes question from JPMorgan. The Alexei the with of Gogolev line next

net if was do quarter? business wondering was on And you fourth net on I the be expect for basis XXXX? in the of in what the payments contribution basis comment could you what payments a to possibly the business contribution

and and immaterial to the XXXX guide. is to it for results Both XXXX, the

markets 'XX to it exposing and customers, out to international which existing. first successfully go on new we focused have U.S. then up and done are in the we'll We open then

a you material see won't impact until beyond So, QX.

around will very any that comment allocation. whether I the of very I on high-level potential And of was cadence wondering thoughts front million loaded buyback it some of structures which another then free evenly capital of And if, thinking and time? making versus then you be on what in float, relatively have split the over space. or impact question lower first Anthony, certain had kind your sounds impressive. $XXX all, the Obviously, is is your around transit period a potential the of peers

years had from expiring. we ago, $XXX years, X million X.X authorized which the So, was

that. we with Nathan with So, moving and around our things not this else. emphasize Squarespace is It's of and we've Also, not If instead show terms us free which over been our something see I is ratio our over be about an returns it's nothing how much opportunistic. kind one there's certain viewed something. this being portion no refreshing stock the flow think we're earlier, years, we like specific up, that headcount.As low. other many really, as see in very, also us and of cash this net do buying expanding I the operates buy the more program. should just the been you this as will capital. really disciplined floating levels it of saw of And extremely very growing things years, it. instead leverage that debt successful for seen that probably instead of of of was into shouldn't quoted you've be I ongoing contemplated. It's that's cadence can I support program, X There's past into And that to able think

to So, how of operate we're it's a to because of and from not component anything expanding margins. just stopped going doing this, addition we're in

talk in the the capital program allocation I about philosophy more Day May, our of allocation. Yes. on layer share we that, capital strategy. And view will as integral an overall part repurchase would Investor around Alexei, overall our would we

you you your now disconnect call. will Thank This all today's conference you. conclude Thank for lines. may joining, and