Squarespace, Inc.

Good morning, my name is Charlie and I'll be your conference operator today. At this time, I'd like to welcome everyone to Squarespace's second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the prepared remarks, there'll be a Q&A session. If you'd like to ask a question during this time, simply press star followed by one on your telephone keypad. And if you'd like to withdraw your question, please press star followed by two. Thank you. I'll now hand the call over to your host, Robert Sanders, Head of Investor Relations at Squarespace. Robert. Please go ahead.

Good morning. Thanks for joining us. Robert Sanders, head of investor relations, with me on the call today, Anthony Casalena, Squarespace founder and CEO, and Marcella Martin, our CFO. They will share some opening remarks and then open the call to your questions. Earlier today, we issued a press release and posted a shareholder letter in the investor relations section of our website with additional information related to our Q2 results. On today's call, we'll be referring to both GAAP and non-GAAP financial results and operating metrics. You can find additional information on how we calculate these metrics, including a reconciliation of GAAP to non-GAAP measures in today's press release. These measures should not be considered in isolation from or substitute for our GAAP results. We will make forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, but are not limited to, statements relating to our future financial performance. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are further defined in our most recent filings with the Securities and Exchange Commission. Any forward-looking statements that we make on this call are based on assumptions as of this day, July 25th, 2022. We undertake no obligation to update these statements as a result of new information or future events, except where required by law. I'll now turn the call over to Anthony.

Good morning. I hope everyone had the opportunity to read our shareholder letter issued this morning, which is available on our investor relations website. It brings to life the topics we will discuss on this call. Squarespace benefits from 4.2 million unique subscriptions on our platform. As we think about the massive market opportunity in front of us, it's imperative that we continue to invest in our platform to remain a leader in the areas we operate. We will continue to develop new tools and refine our existing platform to help the next generation of creators and entrepreneurs build a brand and transact with their customers online. This quarter, we delivered a fundamental upgrade to the core part of Squarespace's content management system. This new design system called Fluid Engine lets us push forward a platform that is both more usable and expressive than our previous system. This benefits both our users who are just getting started and not familiar with web development, as well as our professional Circle members who will find that the platform lets them do even more without resorting to custom code or complex tools. Fluid Engine is currently live to all customers using our 7.1 platform and anyone signing up for Squarespace today. We have some great demo videos and more up on our homepage for anyone interested. To enable the billions of transactions of all types we envision on our platform, we also are investing in an integrated payment solution, Squarespace Payments. We look forward to sharing more in future calls about the opportunities we see, enabling our customers to transact in more ways and in more places on our platform. Momentum Around Talk, our unique solution for hospitality and time-slotted businesses, continues to build, and we're making significant investments to support TOC's future growth. We launched a new global brand campaign, Delicious Starts Here, to showcase the range of businesses using TOC's platform. The campaign includes strategic advertising across digital, print, and partnership channels. TOC is also beginning to draw large enterprise hotel groups as clients and is expanding to hospitality groups with hundreds of locations because of the ROI it presents and the ability for those groups to own the relationship to their end customer. It's been a bit over a year since our direct listing. One reason we chose a direct listing versus traditional IPO was because we are cash generative and did not need to raise primary capital, but rather wanted our diverse stakeholders to have the ability to transact in the public markets. Our public listing also enables us to return the cash we generate to shareholders in the form of share buybacks. I'm delighted to report that under our $200 million repurchase program, We've bought over 1.5 million shares at an average price of $20.73 per share through the end of the second quarter. Our CFO search is underway, and we've met with a number of quality candidates. In the interim period, I'm confident in our finance leadership's team's ability to execute. Marcella was gracious enough to join us for one more call before our departure. Please join me again in thanking her for her work at Squarespace. Recently, economists' reports in the press have forewarned of an economic slowdown. While no two recessions are necessarily equivalent, Squarespace has historically fared well during times when individuals are seeking lower cost alternatives to custom web development. Squarespace will continue to operate by balancing revenue growth with strong cash flow as we move throughout this period. Finally, I'd like to thank all of our employees who work tirelessly to delight our customers and deliver innovations that underpin our future success. Now, I'd like to turn the call over to Marcella to take you through the financials.