10-Q 1 sqsp-20210930.htm 10-Q sqsp-20210930
FALSE000149696312-312021Q33.500014969632021-01-012021-09-30xbrli:shares0001496963us-gaap:CommonClassAMember2021-09-300001496963us-gaap:CommonClassBMember2021-09-300001496963us-gaap:CommonClassCMember2021-09-30iso4217:USD00014969632021-09-3000014969632020-12-31iso4217:USDxbrli:shares0001496963us-gaap:CommonClassAMember2020-12-310001496963us-gaap:CommonClassBMember2020-12-310001496963sqsp:FormerCommonClassCMember2021-09-300001496963sqsp:FormerCommonClassCMember2020-12-310001496963us-gaap:CommonClassCMember2020-12-3100014969632021-07-012021-09-3000014969632020-07-012020-09-3000014969632020-01-012020-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-12-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-12-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-12-310001496963us-gaap:AdditionalPaidInCapitalMember2020-12-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001496963us-gaap:RetainedEarningsMember2020-12-310001496963us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100014969632021-01-012021-03-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-01-012021-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-01-012021-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-01-012021-03-310001496963us-gaap:RetainedEarningsMember2021-01-012021-03-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-3100014969632021-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-03-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-03-310001496963us-gaap:AdditionalPaidInCapitalMember2021-03-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001496963us-gaap:RetainedEarningsMember2021-03-310001496963us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000014969632021-04-012021-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-04-012021-06-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-04-012021-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-04-012021-06-300001496963us-gaap:RetainedEarningsMember2021-04-012021-06-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-3000014969632021-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-06-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-06-300001496963us-gaap:AdditionalPaidInCapitalMember2021-06-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001496963us-gaap:RetainedEarningsMember2021-06-300001496963us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-07-012021-09-300001496963us-gaap:RetainedEarningsMember2021-07-012021-09-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-09-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2021-09-300001496963us-gaap:AdditionalPaidInCapitalMember2021-09-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001496963us-gaap:RetainedEarningsMember2021-09-3000014969632019-12-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-12-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-12-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-12-310001496963us-gaap:AdditionalPaidInCapitalMember2019-12-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001496963us-gaap:RetainedEarningsMember2019-12-310001496963us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014969632020-01-012020-03-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-01-012020-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-01-012020-03-310001496963us-gaap:RetainedEarningsMember2020-01-012020-03-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-3100014969632020-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-03-310001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-03-310001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-03-310001496963us-gaap:AdditionalPaidInCapitalMember2020-03-310001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001496963us-gaap:RetainedEarningsMember2020-03-310001496963us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000014969632020-04-012020-06-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-04-012020-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-04-012020-06-300001496963us-gaap:RetainedEarningsMember2020-04-012020-06-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-3000014969632020-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-06-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-06-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-06-300001496963us-gaap:AdditionalPaidInCapitalMember2020-06-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001496963us-gaap:RetainedEarningsMember2020-06-300001496963us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-07-012020-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-07-012020-09-300001496963us-gaap:RetainedEarningsMember2020-07-012020-09-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-3000014969632020-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-09-300001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-09-300001496963us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-09-300001496963us-gaap:AdditionalPaidInCapitalMember2020-09-300001496963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001496963us-gaap:RetainedEarningsMember2020-09-300001496963sqsp:TockIncMember2021-03-312021-03-31sqsp:institutionsqsp:subsidiary0001496963sqsp:PresenceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:CommerceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:PresenceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:CommerceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-07-012021-09-300001496963sqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-07-012021-09-300001496963us-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-07-012021-09-300001496963sqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-01-012021-09-300001496963sqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-01-012021-09-300001496963us-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredAtPointInTimeMember2021-07-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-09-300001496963sqsp:PresenceMember2021-07-012021-09-300001496963sqsp:CommerceMember2021-07-012021-09-300001496963sqsp:PresenceMember2021-01-012021-09-300001496963sqsp:CommerceMember2021-01-012021-09-300001496963sqsp:PresenceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:CommerceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:PresenceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:CommerceMembersqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:SubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-07-012020-09-300001496963sqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-07-012020-09-300001496963us-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-07-012020-09-300001496963sqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-01-012020-09-300001496963sqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-01-012020-09-300001496963us-gaap:TransferredAtPointInTimeMembersqsp:SubscriptionRevenueMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredOverTimeMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredAtPointInTimeMember2020-07-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:PresenceMemberus-gaap:TransferredAtPointInTimeMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMembersqsp:CommerceMemberus-gaap:TransferredAtPointInTimeMember2020-01-012020-09-300001496963sqsp:NonSubscriptionRevenueMemberus-gaap:TransferredAtPointInTimeMember2020-01-012020-09-300001496963sqsp:PresenceMember2020-07-012020-09-300001496963sqsp:CommerceMember2020-07-012020-09-300001496963sqsp:PresenceMember2020-01-012020-09-300001496963sqsp:CommerceMember2020-01-012020-09-300001496963country:US2021-07-012021-09-300001496963country:US2020-07-012020-09-300001496963country:US2021-01-012021-09-300001496963country:US2020-01-012020-09-300001496963us-gaap:NonUsMember2021-07-012021-09-300001496963us-gaap:NonUsMember2020-07-012020-09-300001496963us-gaap:NonUsMember2021-01-012021-09-300001496963us-gaap:NonUsMember2020-01-012020-09-300001496963country:USsrt:RevisionOfPriorPeriodReclassificationAdjustmentMember2021-01-012021-03-310001496963us-gaap:NonUsMembersrt:RevisionOfPriorPeriodReclassificationAdjustmentMember2021-01-012021-03-310001496963us-gaap:NonUsMembersrt:RevisionOfPriorPeriodReclassificationAdjustmentMember2021-04-012021-06-300001496963country:USsrt:RevisionOfPriorPeriodReclassificationAdjustmentMember2021-04-012021-06-30xbrli:pure0001496963us-gaap:NonUsMember2021-01-012021-03-310001496963us-gaap:NonUsMember2021-04-012021-06-300001496963country:US2021-01-012021-03-310001496963country:US2021-04-012021-06-300001496963sqsp:PrepaidReferralFeesMember2021-09-300001496963sqsp:PrepaidReferralFeesMember2020-12-310001496963sqsp:PrepaidAppFeesMember2021-09-300001496963sqsp:PrepaidAppFeesMember2020-12-310001496963sqsp:SalesCommissionsMember2021-09-300001496963sqsp:SalesCommissionsMember2020-12-310001496963sqsp:PrepaidReferralFeesMember2021-07-012021-09-300001496963sqsp:PrepaidReferralFeesMember2021-01-012021-09-300001496963sqsp:PrepaidReferralFeesMember2020-07-012020-09-300001496963sqsp:PrepaidReferralFeesMember2020-01-012020-09-300001496963sqsp:PrepaidAppFeesMember2021-07-012021-09-300001496963sqsp:PrepaidAppFeesMember2021-01-012021-09-300001496963sqsp:PrepaidAppFeesMember2020-07-012020-09-300001496963sqsp:PrepaidAppFeesMember2020-01-012020-09-300001496963sqsp:SalesCommissionsMember2021-07-012021-09-300001496963sqsp:SalesCommissionsMember2021-01-012021-09-300001496963sqsp:AcuitySchedulingIncMember2019-04-192019-04-190001496963sqsp:AcuitySchedulingIncMember2020-04-192021-04-190001496963sqsp:AcuitySchedulingIncMember2020-04-192020-04-190001496963sqsp:AcuitySchedulingIncMember2021-04-192021-04-190001496963sqsp:AcuitySchedulingIncMember2020-01-012020-09-300001496963sqsp:TockIncMemberus-gaap:CommonClassCMember2021-03-312021-03-310001496963sqsp:TockIncMember2021-03-310001496963sqsp:TockIncMembersrt:MinimumMember2021-03-312021-03-310001496963sqsp:TockIncMembersrt:MaximumMember2021-03-312021-03-310001496963sqsp:TockIncMembersqsp:CustomerRelationshipsRestaurantsMember2021-03-310001496963sqsp:CustomerRelationshipsEnterpriseMembersqsp:TockIncMember2021-03-310001496963us-gaap:TradeNamesMembersqsp:TockIncMember2021-03-310001496963us-gaap:TechnologyBasedIntangibleAssetsMembersqsp:TockIncMember2021-03-310001496963us-gaap:CommonClassCMemberus-gaap:RestrictedStockUnitsRSUMember2021-03-312021-03-310001496963sqsp:CorporateDebtSecuritiesAndCommercialPaperMember2021-09-300001496963us-gaap:AssetBackedSecuritiesMember2021-09-300001496963us-gaap:USTreasurySecuritiesMember2021-09-300001496963sqsp:CorporateDebtSecuritiesAndCommercialPaperMember2020-12-310001496963us-gaap:AssetBackedSecuritiesMember2020-12-310001496963us-gaap:USTreasurySecuritiesMember2020-12-310001496963us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001496963us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-09-300001496963us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-09-300001496963us-gaap:MoneyMarketFundsMember2021-09-300001496963sqsp:CorporateDebtSecuritiesAndCommercialPaperMemberus-gaap:FairValueInputsLevel1Member2021-09-300001496963us-gaap:FairValueInputsLevel2Membersqsp:CorporateDebtSecuritiesAndCommercialPaperMember2021-09-300001496963us-gaap:FairValueInputsLevel3Membersqsp:CorporateDebtSecuritiesAndCommercialPaperMember2021-09-300001496963us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2021-09-300001496963us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2021-09-300001496963us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2021-09-300001496963us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001496963us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2021-09-300001496963us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2021-09-300001496963us-gaap:FairValueInputsLevel1Member2021-09-300001496963us-gaap:FairValueInputsLevel2Member2021-09-300001496963us-gaap:FairValueInputsLevel3Member2021-09-300001496963us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001496963us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2020-12-310001496963us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-310001496963us-gaap:MoneyMarketFundsMember2020-12-310001496963sqsp:CorporateDebtSecuritiesAndCommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-12-310001496963us-gaap:FairValueInputsLevel2Membersqsp:CorporateDebtSecuritiesAndCommercialPaperMember2020-12-310001496963us-gaap:FairValueInputsLevel3Membersqsp:CorporateDebtSecuritiesAndCommercialPaperMember2020-12-310001496963us-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2020-12-310001496963us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2020-12-310001496963us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2020-12-310001496963us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001496963us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2020-12-310001496963us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2020-12-310001496963us-gaap:FairValueInputsLevel1Member2020-12-310001496963us-gaap:FairValueInputsLevel2Member2020-12-310001496963us-gaap:FairValueInputsLevel3Member2020-12-310001496963us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MinimumMember2021-01-012021-09-300001496963us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MaximumMember2021-01-012021-09-300001496963us-gaap:TechnologyBasedIntangibleAssetsMember2021-09-300001496963us-gaap:CustomerRelationshipsMembersrt:MinimumMember2021-01-012021-09-300001496963us-gaap:CustomerRelationshipsMembersrt:MaximumMember2021-01-012021-09-300001496963us-gaap:CustomerRelationshipsMember2021-09-300001496963us-gaap:TradeNamesMembersrt:MinimumMember2021-01-012021-09-300001496963us-gaap:TradeNamesMembersrt:MaximumMember2021-01-012021-09-300001496963us-gaap:TradeNamesMember2021-09-300001496963us-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-12-310001496963us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001496963us-gaap:CustomerRelationshipsMembersrt:MinimumMember2020-01-012020-12-310001496963us-gaap:CustomerRelationshipsMembersrt:MaximumMember2020-01-012020-12-310001496963us-gaap:CustomerRelationshipsMember2020-12-310001496963us-gaap:TradeNamesMember2020-01-012020-12-310001496963us-gaap:TradeNamesMember2020-12-310001496963us-gaap:TechnologyBasedIntangibleAssetsMembersrt:WeightedAverageMember2021-01-012021-09-300001496963srt:WeightedAverageMemberus-gaap:CustomerRelationshipsMember2021-01-012021-09-300001496963srt:WeightedAverageMemberus-gaap:TradeNamesMember2021-01-012021-09-300001496963srt:WeightedAverageMember2021-01-012021-09-300001496963us-gaap:CostOfSalesMember2021-07-012021-09-300001496963us-gaap:CostOfSalesMember2020-07-012020-09-300001496963us-gaap:CostOfSalesMember2021-01-012021-09-300001496963us-gaap:CostOfSalesMember2020-01-012020-09-300001496963us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001496963us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001496963us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001496963us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001496963us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001496963us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001496963us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001496963us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001496963sqsp:VideoliciousIncMemberus-gaap:CustomerRelationshipsMember2021-01-012021-09-300001496963sqsp:VideoliciousIncMemberus-gaap:CustomerRelationshipsMember2020-01-012020-12-310001496963us-gaap:LineOfCreditMembersqsp:A2019CreditAgreementMember2019-12-120001496963sqsp:A2019CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-12-120001496963sqsp:A2019CreditAgreementMemberus-gaap:LetterOfCreditMember2019-12-120001496963sqsp:A2019CreditAgreementMember2019-12-120001496963us-gaap:LineOfCreditMembersqsp:A2020CreditAgreementMember2020-12-110001496963sqsp:A2020CreditAgreementMemberus-gaap:LetterOfCreditMember2021-09-300001496963sqsp:A2020CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-09-300001496963sqsp:A2020CreditAgreementMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2021-01-012021-09-300001496963sqsp:A2020CreditAgreementMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2021-01-012021-09-300001496963sqsp:A2020CreditAgreementMember2021-01-012021-09-300001496963sqsp:A2020CreditAgreementMembersrt:ScenarioForecastMember2022-01-012022-03-310001496963sqsp:A2020CreditAgreementMembersrt:ScenarioForecastMember2022-04-012022-06-300001496963sqsp:A2020CreditAgreementMembersrt:ScenarioForecastMember2022-07-012022-09-300001496963sqsp:A2020CreditAgreementMembersrt:ScenarioForecastMember2022-10-012022-12-310001496963sqsp:A2020CreditAgreementMembersrt:ScenarioForecastMember2023-01-012023-03-31sqsp:time0001496963sqsp:ChicagoIllinoisMembersqsp:TockIncMember2021-09-300001496963sqsp:ChicagoIllinoisMember2021-07-080001496963us-gaap:LetterOfCreditMember2021-07-082021-07-080001496963us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-05-192021-05-190001496963us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-05-192021-05-190001496963sqsp:SeriesA1PreferredStockMember2021-05-190001496963sqsp:SeriesA2PreferredStockMember2021-05-190001496963us-gaap:SeriesBPreferredStockMember2021-05-1900014969632021-05-1900014969632021-05-100001496963us-gaap:CommonClassAMember2021-05-19sqsp:vote0001496963us-gaap:CommonClassAMember2021-05-192021-05-190001496963us-gaap:CommonClassBMember2021-01-012021-09-300001496963us-gaap:CommonClassAMember2021-01-012021-09-300001496963us-gaap:CommonClassCMember2021-03-150001496963us-gaap:CommonClassCMember2021-03-152021-03-150001496963us-gaap:CommonClassCMember2021-05-1000014969632020-12-0700014969632020-12-292020-12-290001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-012021-09-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-03-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-01-012020-03-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-03-310001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-04-012020-06-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-04-012020-06-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-06-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-07-012020-09-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-07-012020-09-300001496963us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001496963us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-300001496963sqsp:A2008EquityIncentivePlanMember2017-11-182021-09-300001496963sqsp:A2008EquityIncentivePlanMember2021-07-012021-09-300001496963sqsp:A2008EquityIncentivePlanMember2021-01-012021-09-300001496963sqsp:A2008EquityIncentivePlanMember2020-07-012020-09-300001496963sqsp:A2008EquityIncentivePlanMember2020-01-012020-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001496963sqsp:A2017EquityIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2021-04-162021-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2020-12-310001496963us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001496963us-gaap:RestrictedStockUnitsRSUMember2021-03-310001496963us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-06-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963us-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMembersqsp:ExecutiveRestrictedStockGrantMemberus-gaap:RestrictedStockMember2017-08-222017-08-220001496963us-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMembersqsp:ExecutiveRestrictedStockGrantMemberus-gaap:RestrictedStockMember2017-08-220001496963us-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMembersqsp:ExecutiveRestrictedStockGrantMemberus-gaap:RestrictedStockMember2020-08-240001496963us-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMembersqsp:ExecutiveRestrictedStockGrantMemberus-gaap:RestrictedStockMember2021-05-192021-05-190001496963us-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMembersqsp:ExecutiveRestrictedStockGrantMemberus-gaap:RestrictedStockMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001496963sqsp:TockIncMemberus-gaap:CommonClassCMemberus-gaap:RestrictedStockUnitsRSUMember2021-03-312021-03-310001496963sqsp:TockIncMemberus-gaap:RestrictedStockUnitsRSUMember2021-03-312021-03-310001496963sqsp:TockIncMemberus-gaap:RestrictedStockUnitsRSUMember2021-03-310001496963sqsp:TockIncMemberus-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001496963sqsp:TockIncMemberus-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001496963srt:ChiefExecutiveOfficerMemberus-gaap:CommonClassAMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-04-152021-04-15sqsp:tranchesqsp:targetsqsp:daysqsp:installment0001496963srt:ChiefExecutiveOfficerMemberus-gaap:CommonClassAMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-04-150001496963srt:ChiefExecutiveOfficerMembersqsp:StockPriceTargetOneMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:StockPriceTargetTwoMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963sqsp:StockPriceTargetThreeMembersrt:ChiefExecutiveOfficerMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMembersqsp:StockPriceTargetFourMember2021-09-300001496963sqsp:StockPriceTargetFiveMembersrt:ChiefExecutiveOfficerMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963sqsp:StockPriceTargetSixMembersrt:ChiefExecutiveOfficerMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:StockPriceTargetSevenMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:StockPriceTargetEightMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:StockPriceTargetNineMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMember2021-09-300001496963srt:ChiefExecutiveOfficerMembersqsp:CasalenaPerformanceAwardMemberus-gaap:RestrictedStockUnitsRSUMembersqsp:StockPriceTargetTenMember2021-09-300001496963srt:ChiefExecutiveOfficerMemberus-gaap:GeneralAndAdministrativeExpenseMembersqsp:CasalenaPerformanceAwardMember2021-07-012021-09-300001496963srt:ChiefExecutiveOfficerMemberus-gaap:GeneralAndAdministrativeExpenseMembersqsp:CasalenaPerformanceAwardMember2021-01-012021-09-300001496963us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001496963us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300001496963us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001496963us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300001496963us-gaap:PropertyPlantAndEquipmentMember2021-07-012021-09-300001496963us-gaap:PropertyPlantAndEquipmentMember2021-01-012021-09-300001496963us-gaap:PropertyPlantAndEquipmentMember2020-07-012020-09-300001496963us-gaap:PropertyPlantAndEquipmentMember2020-01-012020-09-300001496963sqsp:A2008And2017EquityIncentivePlanMember2020-12-310001496963sqsp:A2008And2017EquityIncentivePlanMember2021-01-012021-03-310001496963sqsp:A2008And2017EquityIncentivePlanMember2021-03-310001496963srt:ChiefExecutiveOfficerMembersqsp:A2008And2017EquityIncentivePlanMember2021-04-012021-06-300001496963sqsp:A2008And2017EquityIncentivePlanMember2021-04-012021-06-300001496963sqsp:A2008And2017EquityIncentivePlanMember2021-06-300001496963sqsp:A2008And2017EquityIncentivePlanMember2021-07-012021-09-300001496963sqsp:A2008And2017EquityIncentivePlanMember2021-09-300001496963sqsp:A2021EquityIncentivePlanMember2021-05-092021-05-090001496963sqsp:A2021EquityIncentivePlanMember2020-12-310001496963sqsp:A2021EquityIncentivePlanMember2021-01-012021-09-300001496963sqsp:A2021EquityIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001496963sqsp:A2021EquityIncentivePlanMember2021-09-300001496963sqsp:SeniorManagementOfAcquiredCompanyMember2021-07-012021-09-300001496963sqsp:SeniorManagementOfAcquiredCompanyMember2021-01-012021-09-300001496963sqsp:SeniorManagementOfAcquiredCompanyMember2021-09-300001496963us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001496963us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001496963us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001496963us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001496963us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM 10-Q
_________________________________
[Mark One]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission File Number: 001-40393
SQUARESPACE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
20-0375811
(I.R.S. Employer
Identification No.)
225 Varick Street, 12th Floor
New York, New York
(Address of Principal Executive Offices)
10014
(Zip Code)
Registrant’s Telephone Number, Including Area Code: (646) 580-3456
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share
SQSPNew York Stock Exchange
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of September 30, 2021, the registrant had 90,489,438 shares of Class A Common Stock, 48,344,755 shares of Class B Common Stock, and no shares of Class C Common Stock, each with a par value of $0.0001 per share, outstanding.



TABLE OF CONTENTS
PAGE

1

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that reflect our current views with respect to, among other things, future events and our future business, financial condition and results of operations. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates and projections about our industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which you should consider and read carefully, including but not limited to:
• our ability to attract and retain customers and expand our customers’ use of our platform;
• our ability to anticipate market needs and develop new or enhanced solutions to meet those needs;
• our ability to compete successfully in our industry against current and future competitors;
• the impact of the COVID-19 pandemic and the associated economic uncertainty on us, our customers and their users;
• our ability to manage growth and maintain demand for our solutions;
• our ability to protect and promote our brand;
• our ability to successfully identify, manage and integrate any existing and potential acquisitions;
• our ability to hire, integrate and retain highly skilled personnel;
• our ability to adapt to and comply with existing and emerging regulatory developments, technological changes and cybersecurity needs;
• our ability to establish and maintain intellectual property rights;
• our ability to manage expansion into international markets; and
• the other risks and uncertainties described under “Risk Factors.”
This list of factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q, and our future levels of activity and performance, may not occur and actual results could differ materially and adversely from those described or implied in the forward-looking statements. As a result, you should not regard any of these forward-looking statements as a representation or warranty by us or any other person or place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
In addition, statements that contain “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that this information provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
You should read this Quarterly Report on Form 10-Q and the documents that we reference herein and have filed as exhibits to the Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by the cautionary statements contained in this section and elsewhere in this Quarterly Report on Form 10-Q.
2

PART 1. - FINANCIAL INFORMATION
Item 1.    Financial Statements (Unaudited)
SQUARESPACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
September 30, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$200,180 $57,891 
Restricted cash30,197  
Investment in marketable securities31,900 37,462 
Accounts receivable, net8,071 7,516 
Due from vendors2,475  
Prepaid expenses and other current assets57,161 37,384 
Total current assets329,984 140,253 
Property and equipment, net48,781 49,249 
Deferred income taxes827 7,773 
Goodwill420,800 83,171 
Intangible assets, net97,786 18,868 
Other assets7,626 7,452 
Total assets$905,804 $306,766 
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities:
Accounts payable$18,741 $16,758 
Accrued liabilities62,996 46,779 
Deferred revenue241,289 210,392 
Funds payable to customers32,672  
Debt, current portion13,586 13,586 
Deferred rent and lease incentives, current portion1,985 1,197 
Total current liabilities371,269 288,712 
Debt, non-current portion516,224 525,752 
Deferred rent and lease incentives, non-current portion32,557 24,856 
Deferred income taxes1,095  
Other liabilities549 262 
Total liabilities921,694 839,582 
Commitments and contingencies (see Note 12)
Redeemable convertible preferred stock, par value of $0.0001; zero and 118,117,738 shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero and 104,446,332 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
 131,390 
Preferred stock, par value of $0.0001; 100,000,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
  
Stockholders’ deficit:
Class A common stock, par value of $0.0001; 1,000,000,000 and 159,000,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively; 90,489,438 and 8,903,770 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
9 1 
Class B common stock, par value of $0.0001; 100,000,000 and 93,782,222 shares authorized as of September 30, 2021 and December 31, 2020, respectively; 48,344,755 and 14,368,532 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
5 1 
Class C common stock (authorized March 15, 2021), par value of $0.0001; zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
  
Class C common stock (authorized May 10, 2021), par value of $0.0001; 1,000,000,000 and zero shares authorized as of September 30, 2021 and December 31, 2020, respectively; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
  
Additional paid in capital891,667 9,043 
Accumulated other comprehensive income974 2,455 
Accumulated deficit(908,545)(675,706)
Total stockholders’ deficit(15,890)(664,206)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit$905,804 $306,766 
The accompanying notes are an integral part of these financial statements.
3

SQUARESPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue$200,962 $162,335 $576,618 $448,849 
Cost of revenue32,868 24,550 92,777 72,166 
Gross profit168,094 137,785 483,841 376,683 
Operating expenses:
Research and product development48,769 38,379 139,692 110,497 
Marketing and sales80,249 59,656 249,005 186,490 
General and administrative32,091 11,961 336,337 37,570 
Total operating expenses161,109 109,996 725,034 334,557 
Operating income/(loss)6,985 27,789 (241,193)42,126 
Interest expense(2,491)(2,460)(8,578)(8,046)
Other income/(loss), net2,101 (3,488)4,493 (3,602)
Income/(loss) before (provision for)/benefit from income taxes6,595 21,841 (245,278)30,478 
(Provision for)/benefit from income taxes(3,756)(3,917)12,439 (4,147)
Net income/(loss)$2,839 $17,924 $(232,839)$26,331 
Less: accretion of redeemable convertible preferred stock to redemption value (1,225)(969)(3,602)
Less: undistributed earnings to participating securities (13,736) (18,742)
Net income/(loss) attributable to Class A, Class B, and Class C common stockholders, basic$2,839 $2,963 $(233,808)$3,987 
Add: reallocation of net income attributable to participating securities 878  1,098 
Net income/(loss) attributable to Class A, Class B, and Class C common stockholders, dilutive$2,839 $3,841 $(233,808)$5,085 
Net income/(loss) per share attributable to Class A, Class B, and Class C common stockholders, basic$0.04 $0.13 $(2.90)$0.18 
Net income/(loss) per share attributable to Class A, Class B, and Class C common stockholders, dilutive$0.04 $0.12 $(2.90)$0.17 
Weighted-average shares used in computing net income/(loss) per share attributable to Class A, Class B, and Class C stockholders, basic75,580,940 22,535,791 80,746,637 22,221,531 
Weighted-average shares used in computing net income/(loss) per share attributable to Class A, Class B, and Class C stockholders, diluted80,207,078 31,201,743 80,746,637 30,103,154 
The accompanying notes are an integral part of these financial statements.
4

SQUARESPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(in thousands)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net income/(loss)$2,839 $17,924 $(232,839)$26,331 
Other comprehensive (loss)/income:
Foreign currency translation adjustment(861)1,145 (1,355)1,462 
Unrealized (loss)/gain on marketable securities, net of income taxes(35)(108)(126)117 
Total other comprehensive (loss)/income(896)1,037 (1,481)1,579 
Total comprehensive income/(loss)$1,943 $18,961 $(234,320)$27,910 
The accompanying notes are an integral part of these financial statements.
5

SQUARESPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
(in thousands, except share and per share data)
(unaudited)
Three and Nine Months Ended September 30, 2021
Redeemable
Convertible
Preferred Stock
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Additional
Paid in
Capital
Accumulated
Other
Comprehensive
Income/(Loss)
Accumulated
Deficit
Total
Stockholders’
Deficit
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 2020104,446,332 $131,390 8,903,770 $1 14,368,532 $1  $ $9,043 $2,455 $(675,706)$(664,206)
Stock based compensation— — — — — — — — 9,873 — — 9,873 
Stock option exercises— — — — 900,476 — — — 707 — — 707 
Vested RSUs converted to common shares
— — 525,920 — — — — — — — — — 
Repurchase of Class A common stock and retirement— — (270,089)— — — — — (13,416)— — (13,416)
Issuance of Class C common stock, net of issuance costs
— — — — — — 4,452,023 — 304,409 — — 304,409 
Issuance of Class C common stock for acquisition
— — — — — — 2,750,330 1 188,178 — — 188,179 
Accretion of redeemable convertible preferred stock
— 969 — — — — — — (969)— — (969)
Net loss
— — — — — — — — — — (1,146)(1,146)
Total other comprehensive loss, net of taxes
— — — — — — — — — (1,327)— (1,327)
Balance at March 31, 2021104,446,332 $132,359 9,159,601 $1 15,269,008 $1 7,202,353 $1 $497,825 $1,128 $(676,852)$(177,896)
Stock based compensation— — — — — — — — 250,534 — — 250,534 
Stock option exercises— — 1,201,066 — 874,695 — — — 2,962 — — 2,962 
Vested RSUs converted to common shares
— — 588,786 — — — — — — — — — 
Repurchase of Class A common stock and retirement— — (247,120)— — — — — (12,319)— — (12,319)
Conversion of convertible preferred stock to Class A and Class B common stock in connection with the direct listing(104,446,332)(132,359)54,862,435 6 49,583,897 5 — — 132,348 — — 132,359 
Conversion of Class B common stock to Class A common stock in connection with the direct listing— — 17,382,845 1 (17,382,845)(1)— — — — —  
Conversion of Class C common stock to Class A common stock in connection with the direct listing— — 7,202,353 1 — — (7,202,353)(1)— — —  
Net loss
— — — — — — — — — — (234,532)(234,532)
Total other comprehensive income, net of taxes
— — — — — — — — — 742 — 742 
Balance at June 30, 2021 $ 90,149,966 $9 48,344,755 $5  $ $871,350 $1,870 $(911,384)$(38,150)
Stock based compensation— — — — — — — — 23,932 — — 23,932 
Stock option exercises— — 194,360 — — — — — 527 — — 527 
Vested RSUs converted to common shares
— — 240,360 — — — — — — — — — 
Repurchase of Class A common stock and retirement— — (95,248)— — — — — (4,142)— — (4,142)
Net income
— — — — — — — — — — 2,839 2,839 
Total other comprehensive loss, net of taxes
— — — — — — — — — (896)— (896)
Balance at September 30, 2021 $ 90,489,438 $9 48,344,755 $5  $ $891,667 $974 $(908,545)$(15,890)
The accompanying notes are an integral part of these financial statements.








6

SQUARESPACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
(in thousands, except share and per share data)
(unaudited)
Three and Nine Months Ended September 30, 2020
Redeemable
Convertible
Preferred Stock
Class A
Common Stock
Class B
Common Stock
Class C
Common Stock
Additional
Paid in
Capital
Accumulated
Other
Comprehensive
Income/(Loss)
Accumulated
Deficit
Total
Stockholders’
Deficit
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at December 31, 2019104,446,332 $126,546 8,185,625 $1 13,470,755 $1  $ $1,196 $(108)$(378,182)$(377,092)
Stock based compensation— — — — — — — — 7,938 — — 7,938 
Stock option exercises— — — — 241,803 — — — 387 — — 387 
Vested RSUs converted to common shares
— — 414,011 — — — — — — — — — 
Repurchase of Class A common stock and retirement— — (221,408)— — — — — (5,544)— — (5,544)
Accretion of redeemable convertible preferred stock
— 1,181 — — — — — — (1,181)— — (1,181)
Net loss
— — — — — — — — — — (10,132)(10,132)
Total other comprehensive loss, net of taxes
— — — — — — — — — (534)— (534)
Balance at March 31, 2020104,446,332 $127,727 8,378,228 $1 13,712,558 $1  $ $2,796 $(642)$(388,314)$(386,158)
Stock based compensation— — — — — — — — 7,302 — — 7,302 
Stock option exercises— — — — 76,885 — — — 240 — — 240 
Vested RSUs converted to common shares
— — 535,875 — — — — — — — — — 
Repurchase of Class A common stock and retirement— — (230,478)— — — — — (5,276)— — (5,276)
Accretion of redeemable convertible preferred stock
— 1,196 — — — — — — (1,196)— — (1,196)
Net income
— — — — — — — — — — 18,539 18,539 
Total other comprehensive income, net of taxes
— — — — — — — — — 1,076 — 1,076 
Balance at June 30, 2020104,446,332 $128,923 8,683,625 $1 13,789,443 $1  $ $3,866 $434 $(369,775)$(365,473)
Stock based compensation— — — — — — — — 7,711 — — 7,711 
Stock option exercises— — — — 83,838 — — — 141 — — 141 
Vested RSUs converted to common shares
— — 144,605 — — — — — — — — 
Repurchase of Class A common stock and retirement— — (69,921)— — — — — (3,385)— — (3,385)
Accretion of redeemable convertible preferred stock
— 1,225 — — — — — — (1,225)— — (1,225)
Net income
— — — — — — — — — — 17,924 17,924 
Total other comprehensive income, net of taxes
— — — — — — — — — 1,037 — 1,037 
Balance at September 30, 2020104,446,332 $130,148 8,758,309 $1 13,873,281 $1  $ $7,108 $1,471 $(351,851)$(343,270)
The accompanying notes are an integral part of these financial statements.
7

SQUARESPACE, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30, 2020
20212020
OPERATING ACTIVITIES:
Net (loss)/income$(232,839)$26,331 
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation and amortization23,906 16,359 
Stock-based compensation284,099 22,823 
Deferred income taxes(13,755) 
Other871 2,194 
Changes in operating assets and liabilities:
Accounts receivable and due from vendors(35)(3,685)
Prepaid expenses and other current assets(18,930)16,944 
Accounts payable and accrued liabilities7,937 23,817 
Deferred revenue34,954 42,263 
Funds payable to customers13,261  
Deferred rent and lease incentives8,508 953 
Other operating assets and liabilities190 (4,232)
Net cash provided by operating activities108,167 143,767 
INVESTING ACTIVITIES:
Proceeds from the sale and maturities of marketable securities25,605 70,348 
Purchases of marketable securities(20,385)(90,860)
Purchase of property and equipment(6,744)(3,638)
Cash paid for acquisitions, net of acquired cash(202,170) 
Other 177 
Net cash used in investing activities(203,694)(23,973)
FINANCING ACTIVITIES:
Principal payments on debt(10,189)