Squarespace, Inc.

Good morning, everyone. My name is Seb, and I'll be your conference operator today. At this time, I would like to welcome everyone to Squarespace's third quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, Press star followed by two. Thank you. I will now hand the call over to your host at Squarespace, Claire Perry. Claire, please go ahead.

Good morning, and thank you for joining Squarespace's third quarter 2023 earnings conference call. This is Claire Perry, head of investor relations. I'm joined by Anthony Casalena, Squarespace's founder and CEO, and Nathan Gooden, CFO. After their prepared remarks, we'll open the call to your questions. Earlier today, we posted a press release and shareholder letter to the investor relations section of our website. On today's call, we will be referencing 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 and shareholder letter. These measures should not be considered in isolation from nor a substitute for our gap reporting. 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 related to our future financial performance, our strategy, and our ability to integrate new technology into our core platforms. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. These results are further defined in our most recent filings with the Security and Exchange Commission. Any forward-looking statements that we make on this call are based on assumptions as of this day, November 7, 2023. We undertake no obligation to update these statements as a result of new information or future events except where required by law. Please also note that all comparisons are on a year-over-year basis unless specifically noted otherwise. I will now turn the call over to Anthony.

Good morning, everyone. I'm delighted to review Squarespace's third quarter 2023 results with you today. Our strong financials were driven by the strength of our core business and reflects our ongoing mission to build products that help entrepreneurs stand out and succeed. In the quarter, we delivered 18% revenue growth, expanded our unlevered free cash flow margin to 21%, and have crossed $1 billion in annual run rate revenue for the first time. In September, we closed our acquisition of Google Domains, which further contributed to our bookings growing 18% this quarter. On top of our financial performance, we delivered on multiple major releases, which we summarized at Squarespace Refresh in October. These include Squarespace Payments, which we are onboarding new customers to now, as well as improvements to our classes and courses products, more tools for service sellers, including invoicing, and continued major improvements to our domains offering as we prepare for the Google Domains migration. Our ultimate goal is to provide entrepreneurs with a single online hub for all their web-based needs. We are continuing to invest in our portfolio of brands, including Squarespace, Acuity, Talk, Unfold, and BioSites that help our customers publish and transact online no matter where they might start their journey. This quarter, Acuity scheduling's new branding and rollout of enhanced features is an example of our progress in this direction. Available on a standalone basis or attached to a website, Acuity exemplifies our efforts to create new entry points for customers, allowing them to adopt our products in line with their needs. Our commitment to online presence is further strengthened by the relaunch of Scorespace Domains, the next evolution of our domains offering. We have transformed Scorespace Domains into a product for domain-first customers now offering some of the most comprehensive domain registration tools in the industry, all embedded within our integrated platform. This investment follows our acquisition of Google domains, which we closed in September. Squarespace and Google remain focused on ensuring a seamless migration for our customers. It is still early in terms of the impact to our business, but we remain excited about this transformative deal. We will begin migrating domains from Google shortly, though we are already processing all new registrations from customers coming from that platform. On the product release front, we have also started introducing Squarespace payments to new customers in the U.S., and that rollout will continue throughout the end of the year and into 2024. We are thrilled to be able to offer a completely integrated payments platform with Squarespace, and we're looking forward to introducing this functionality across all of our product lines. Squarespace payments has been a significant investment for us, and it would be great to have our customers using it. Squarespace Refresh also previewed capabilities of Squarespace AI, a website building experience that is powered end-to-end by generative AI. We've been using machine learning models to support parts of our platform for the better part of a decade and are more than ready to integrate the evolution of these technologies. We are continuing to be thoughtful regarding what we work on and are first focusing on integrations that solve customer pain points and streamline the website building process. Additionally, we're working to add Squarespace AI to Squarespace Blueprint, focusing on visual elements in addition to text. Squarespace Blueprint is our template-free onboarding experience for websites where we guide customers through setup, helping them come online more quickly with a personalized website. We continue to push the boundaries of our platform by placing more powerful and dynamic tools in the hands of entrepreneurs worldwide. We now offer customers 22 currency options and are working to increase our supported languages as we prepare to onboard Google Domain's international customer base. International expansion remains a key growth opportunity for our business, and we saw positive gains in key markets this quarter. In summary, I'm thrilled with both our in-quarter performance and the opportunities we have in front of us, especially considering the product releases we have just recently put in the market. Thank you to our employees for making this possible and our customers for choosing us. We are looking forward to helping you with your entrepreneurial journey no matter how it may start. And with that, I'll turn it over to Nathan to review the financials.