Squarespace notes Q3 earnings with slower growth

Unique Subscriptions up 4% year over year.

Picture of stock chart with the words earnings note

Website, scheduling and online marketing firm Squarespace (NYSE: SQSP) noted third quarter earnings this morning.

The firm noted $217.7 million in revenue for the quarter, which represents 8% year-over-year growth. But exchange rates zapped the momentum; revenue grew 13% on a constant currency basis.

Subscription growth declined compared to Q2. It ended the quarter with 4.2 million subscriptions, up just 4% compared to a year ago. (It was up 6% year over year in Q2). This is not surprising; many firms that provide website tools and domains have noted slowing growth as the outsized demand during the pandemic recedes.

Unique subscriptions include traditional website accounts or those with a standalone scheduling subscription, social service, or hospitality account.

Squarespace expects $219 million to $224 million revenue in Q4, which would be 6%-8% growth. The firm lowered the high end of its annual revenue guidance by $5 million and now expects $857 million to $862 million for the year.

Shares opened sharply lower but regained some of the losses. They are traded down regarding 3% as of 12:20 PM EDT.

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