Squarespace Earnings: Resilient Retention and Strong Bookings Growth Even After Price Increases

Squarespace achieved a solid fiscal 2022 result largely in line with our expectations despite an uncertain macroeconomic environment. Revenue growth of 11% year over year (14% in constant currency) was driven by a continued mix shift to higher-value solutions, like-for-like price increases, and strong retention in the subscriber base. Excluding a one-time goodwill adjustment in the fourth quarter, fiscal 2022 operating margin improved as we expected to 1.5% on reduced sales and marketing spending, even with foreign exchange headwinds and softer gross merchandise volume, or GMV, growth.