Morningstar

Squarespace Inc Class A SQSP

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Stock XNYS Rating as of
$46.38 −0.03 (0.06%)
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As of Delayed Price Closed

Company Report

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Squarespace: Private Equity Firm Permira Sweetens Go-Private Deal

Emma Williams

We raise our fair value estimate for no-moat Squarespace to $46.50 per share from $44.00 following an increased offer from Permira. The revised agreement represents Permira’s best and final offer for Squarespace shareholders and will be structured as a tender offer, valuing the firm at about $7.2 billion including outstanding debt. The amended agreement has been unanimously approved by Squarespace’s board of directors and a special committee of independent directors. The revised offer represents a modest premium to our standalone fair value estimate of $44.00 per share but an attractive 36% premium to Squarespace’s 90-day volume weighted average trading price as of May 2024 when the deal was initially announced.

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Price vs Fair Value

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SQSP is trading at a 435% premium.
Price
$46.38
Fair Value
$64.60
Uncertainty
High
1-Star Price
$19.23
5-Star Price
$67.40
Economic Moat
Bkjs
Capital Allocation
Wkfnywws

Bulls Say, Bears Say

Bulls

Squarespace boasts a leading position in the DIY website-building market.

Bears

We expect Squarespace’s key differentiators of ease-of-use and design-led templates can be replicated by competitors.

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News

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Trading Information

Previous Close Price
$46.41
Day Range
$46.38–46.41
52-Week Range
$26.70–46.48
Bid/Ask
$46.25 / $46.87
Market Cap
$6.44 Bil
Volume/Avg
1.1 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
73.14
Price/Sales
5.76
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
0.26%

Company Profile

Squarespace is a provider of subscription-based website-building software and hosting services primarily servicing entrepreneurs and micro businesses. The company offers a range of add-on and standalone tools, including scheduling functionality, email marketing, member areas for paid content, and design tools for social media and video content. Following the 2021 acquisition of Tock, Squarespace has expanded into servicing hospitality customers with reservation, take-out, and event management software.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Growth
Total Number of Employees
1,749
Website
https://www.squarespace.com

Competitors

Valuation

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Metric
SQSP
SHOP
GDDY
Price/Earnings (Normalized)
 73.1476.1636.51
Price/Book Value
 —11.14140.55
Price/Sales
 5.7613.275.18
Price/Cash Flow
 36.0073.5721.30
Price/Earnings
SQSP
SHOP
GDDY

Financial Strength

Metric
SQSP
SHOP
GDDY
Quick Ratio
 0.637.110.20
Current Ratio
 0.767.320.48
Interest Coverage
 1.17280.004.52
Quick Ratio
SQSP
SHOP
GDDY

Profitability

Metric
SQSP
SHOP
GDDY
Return on Assets (Normalized)
 9.60%12.59%28.30%
Return on Equity (Normalized)
 —15.84%—
Return on Invested Capital (Normalized)
 28.75%11.69%58.91%
Return on Assets
SQSP
SHOP
GDDY

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