The global website builders market is expected to grow at 7% CAGR to reach $3.5 billion by 2032 from $1.8 billion in 2022. New York-based Squarespace (NYSE: SQSP) is helping small businesses leverage their web potential through improvements in commerce-focused tools.

Squarespace’s Financials

For the second quarter, Squarespace’s revenues grew 9% to $212.7 million. Adjusted EBITDA was $43.6 million compared with $42.6 million a year ago. EPS was $0.45 compared with the market’s forecast of $0.09.

Among key metrics, Commerce revenues grew 13% to $66.2 million. Annual run rate revenue increased 8% to $837.8 million. Unique subscriptions increased 6% to 4.2 million and average revenue per unique subscription increased 6% to $204.

For the third quarter, Squarespace expects revenues of $213-$218 million. It expects to end the year with revenues of $857-$867 million.

Squarespace’s Growth

Squarespace continued to launch several new products and enhancements during the quarter. It delivered a significant upgrade to the core part of Squarespace’s content management system. Known as Fluid Engine, the new website design enhancement helps push forward a platform that is both more usable and expressive than its previous system. This benefits both the users who are just getting started and are not familiar with web development, as well as its professional circle members who will find that the platform lets them do even more without the need for custom code or complex tools. Fluid Engine is currently available to all customers and has received positive reviews.

Squarespace is also making it easier for businesses to manage invoicing and payment. It recently launched new invoicing tools. The enhancement makes it easier for customers to manage the invoicing process and get paid for their time by allowing customers to create and send custom invoices, manage and track invoices, and accept payments securely, all in one place. It comes with features such as auto-filled appointment types, custom line items, and personalized messages and allows for an easy viewing of invoices for future uses.

To simplify the payment process, customers can also send invoices directly to clients using a unique shared link, and payments are processed safely and securely. Customers can track the status of their invoices through a single dashboard that displays all sent, outstanding, and paid invoices, in real-time. To enable the billions of transactions of all types that Squarespace envisions on its platform, it is also investing in an integrated payment solution called Squarespace Payments.

Squarespace went public in May last year when it listed at a valuation of $7.4 billion. It is currently trading at $21.57, with a market capitalization of $3 billion. The stock has fallen from the 52-week high of $48.89 that it was trading at in November last year. It hit a 52-week low of $14.43 in May this year.

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