Squarespace, Inc. (NYSE: SQSP): When will it be profitable?
Squarespace, Inc. (NYSE: SQSP) may be approaching a major achievement in his company, so we’d like to shed some light on the company. Squarespace, Inc. operates a platform for businesses and independent creators to build an online presence, grow their brands, and manage their internet businesses. The company’s loss has widened recently since it reported a full-year loss of $250 million, compared to the last year-over-year loss of $341 million, l further away from equilibrium. Many investors are wondering about the rate at which Squarespace will turn a profit, with the big question being “when will the company break even?” We’ve put together a brief overview of industry analysts’ expectations for the company, its year of profitability and its implied growth rate.
See our latest analysis for Squarespace
Squarespace is near balance, according to 14 US IT analysts. They expect the business to make a terminal loss in 2022, before making a profit of US$25 million in 2023. Thus, the business is expected to break even just over a year from of today. How fast will the business need to grow each year to break even by 2023? Working backwards from analysts’ estimates, it turns out that they expect the company to grow 60% year-over-year, on average, signaling high confidence from from analysts. If the business grows at a slower rate, it will become profitable later than expected.
Since this is a high-level preview, we won’t go into details about Squarespace’s upcoming projects, however, keep in mind that overall a high growth rate n It’s not unusual, particularly when a company is in a period of investment.
One thing we would like to highlight with Squarespace is that it currently has negative equity on its balance sheet. This can sometimes result from the accounting methods used to treat accumulated losses from previous years, which are considered deferred liabilities until they are canceled in the future. Often losses only exist on paper, but other times it can be a red flag.
This article isn’t meant to be a full analysis of Squarespace, so if you’re interested in understanding the company on a deeper level, take a look at Squarespace’s company page on Simply Wall St. We have also compiled a list of essential factors you need to look at:
- Evaluation: What is Squarespace worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Squarespace is currently undervalued by the market.
- Management team: An experienced management team at the helm bolsters our confidence in the company – take a look at who sits on Squarespace’s board and the CEO’s background.
- Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.