Squarespace Analysts List Growth Drivers Like Price Optimization As Slower GMV Trends Weigh

KeyBanc analyst Josh Beck maintained Squarespace, Inc SQSP with an Overweight and cut the price target from $25 to $22.
Squarespace reported revenue relatively in line with the Street, with EBITDA a bit below, and lowered the FY revenue outlook impacted partly by slower GMV trends, negatively affected by discretionary spending macro-related headwinds.
Bookings trend rose in constant currency as churn related to price increases outperformed expectations, encouraging developments.
The company highlighted Squarespace Refresh, an annual campaign showcasing 100 new products, and Circle Day for professional designers.
He cut his revenue estimates primarily on lower GMV estimates leading to the price target cut.
He continues to see multiple growth levers, including pricing optimization, Tock and scheduling, international, and payments.
Credit Suisse analyst Timothy Chiodo reiterated Squarespace with a Neutral and lowered the price target from $25 to $24.
He highlighted cost discipline amidst macro challenges, with potential self-help from pricing increases.
He updated his longer-term revenue and gross profit forecast illustrating Squarespace Payments' potential impact on GMV, revenue, and gross margin.
RBC Capital analyst Brad Erickson reiterated Sector Perform and a $22 price target.
SQSP's Q3 report was mixed but generally demonstrated durable overall trends. He adjusted his estimates.
He sought more confidence in a better recovery in new business formation or some share gain story for a more constructive rating.
Price Action: SQSP shares traded higher by 7.08% at $20.935 on the last check Wednesday.

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