Why Squarespace Stock Was Up Today
Shares of website-creation company Squarespace (NYSE: SQSP) were up on Tuesday after the company's financial performance in the fourth quarter of 2022 far surpassed expectations. As of 3 p.m. ET, Squarespace stock was up 15% -- very notable, considering the S&P 500 was down about 1.5%.
In Q4, Squarespace generated revenue of $229 million, which was up 10% year over year and ahead of the high end of management's Q4 guidance of $224 million.
On the bottom line, Squarespace had a massive Q4 net loss of $234 million, which exceeded revenue. But before you fall out of your seat, $225 million of this was due to goodwill impairment. The company acquired Tock in 2021, and the short story is that it overpaid for this acquisition. In Q4, it reassessed the value of Tock and found it needed to lower it, which is what a goodwill impairment is. But the good news is that this is a noncash charge.
Source Fool.com
