Squarespace Inc (SQSP) 2023 Q1 法說會逐字稿

Good morning. My name is Emily, and I'll be your conference operator today. At this time, I would like to welcome everyone to Squarespace's First Quarter 2023 Earnings Conference Call. (Operator Instructions)

早上好。我叫艾米麗，今天我將擔任你們的會議接線員。在這個時候，我想歡迎大家參加 Squarespace 的 2023 年第一季度收益電話會議。 （操作員說明）

I will now turn the call over to your host, at Squarespace, Clare Perry. Clare, please go ahead.

我現在將把電話轉給您在 Squarespace 的主持人克萊爾·佩里 (Clare Perry)。克萊爾，請繼續。

Good morning, and thank you for joining Squarespace's First Quarter 2023 Earnings Conference Call. I'm Clare Perry, Head of Investor Relations. And with me today are Anthony Casalena, Squarespace's Founder and CEO; and Nathan Gooden, CFO. After their prepared remarks, we will 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'll be referencing both GAAP and non-GAAP financial results and operating metrics.

早上好，感謝您參加 Squarespace 的 2023 年第一季度收益電話會議。我是投資者關係主管 Clare Perry。今天和我在一起的是 Squarespace 的創始人兼首席執行官 Anthony Casalena；和首席財務官 Nathan Gooden。在他們準備好的發言之後，我們將開始回答您的問題。今天早些時候，我們向我們網站的投資者關係部分發布了新聞稿和股東信。在今天的電話會議上，我們將參考 GAAP 和非 GAAP 財務結果和運營指標。

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, which can be found in the Investor Relations section of our website. These measures should not be considered in isolation from nor a substitute for our GAAP 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 strategies and our ability to integrate new technology into our core platform.

您可以在今天的新聞稿和股東信中找到有關我們如何計算這些指標的更多信息，包括 GAAP 與非 GAAP 措施的對賬，這些信息可以在我們網站的投資者關係部分找到。這些措施不應與我們的 GAAP 報告隔離開來，也不能替代它們。我們將根據 1995 年《私人證券訴訟改革法案》的安全港條款做出前瞻性陳述，其中包括但不限於與我們未來的財務業績、我們的戰略以及我們將新技術整合到我們的核心平台。

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, May 9, 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.

這些前瞻性陳述受風險和不確定因素的影響，可能導致我們的實際結果出現重大差異。我們最近向美國證券交易委員會提交的文件進一步定義了這些風險。我們在本次電話會議上所做的任何前瞻性陳述均基於截至 2023 年 5 月 9 日這一天的假設。我們不承擔因新信息或未來事件而更新這些陳述的義務，除非法律要求。另請注意，除非另有特別說明，否則所有比較均基於同比。我現在將把電話轉給安東尼。

Thank you, Clare. Good morning, everyone, and thank you for joining us today. Last month, we celebrated a major milestone, our 20th anniversary. Across the past 2 decades, the Squarespace platform has been used by millions to build beautiful brands and businesses online. This quarter, we delivered exceptionally strong performance with over 14% top line growth and an unlevered free cash flow margin exceeding 28% of revenue. The powerful combination of growth and profitability underscores Squarespace's solid business model.

謝謝你，克萊爾。大家早上好，感謝您今天加入我們。上個月，我們慶祝了一個重要的里程碑，即我們成立 20 週年。在過去的 2 年裡，Squarespace 平台已被數以百萬計的人用來在線打造美麗的品牌和業務。本季度，我們的業績異常強勁，營收增長超過 14%，無槓桿自由現金流利潤率超過收入的 28%。增長和盈利能力的強大結合凸顯了 Squarespace 穩固的商業模式。

The majority of our business remain subscription-based with over 92% of revenue coming from recurring revenue streams from our 4.3 million unique subscriptions. Q1 2023 had the most trial starts in our core product and Squarespace's history, surpassing any pandemic quarter. In March, we saw a strong customer acquisition, which continued into April. This continued strength gives us the ability to raise our full year guidance today. Squarespace's core website business outperformed our expectations in the first quarter of 2023, with outperformance driven by both new customer additions and higher adoption of our premium plans.

我們的大部分業務仍然以訂閱為基礎，超過 92% 的收入來自我們 430 萬獨立訂閱的經常性收入流。 2023 年第一季度在我們的核心產品和 Squarespace 的歷史上進行了最多的試用，超過了任何大流行季度。 3 月份，我們看到了強勁的客戶獲取，這種情況一直持續到 4 月份。這種持續的力量使我們有能力提高我們今天的全年指導。 Squarespace 的核心網站業務在 2023 年第一季度的表現超出了我們的預期，新客戶的增加和我們保費計劃的更多采用都推動了這一表現。

Last year, we delivered over 100 new features and updates to our customers across our product lines, which included the release of Fluid Engine, a transformation of our primary page builder experience. We believe Fluid Engine is the simplest and most expressive way to publish to the web and our focus on democratizing access to great design remains a key competitive advantage. Adoption of our higher-value plans, along with our ability to responsibly increase pricing is beginning to be reflected in our revenue, driving average revenue per unique subscription higher to $213 each.

去年，我們跨產品線向客戶提供了 100 多項新功能和更新，其中包括 Fluid Engine 的發布，這是我們主要頁面構建器體驗的轉變。我們相信 Fluid Engine 是發佈到網絡的最簡單和最具表現力的方式，我們專注於使偉大設計的民主化訪問仍然是一個關鍵的競爭優勢。採用我們更高價值的計劃，以及我們負責任地提高定價的能力開始反映在我們的收入中，將每個獨特訂閱的平均收入推高至每個 213 美元。

Average revenue per unique subscription grew faster than unique subscriptions this quarter, and we expect that dynamic to continue as higher intent to sell customers join our platform and adopt additional products. Our investments in international markets over the past year is showing early signs of success as well with positive growth across all target markets. Many of our international markets are seeing both CAC improvements and growth rates that exceed our growth rates domestically.

本季度每個獨特訂閱的平均收入增長速度快於獨特訂閱，我們預計隨著銷售客戶加入我們平台並採用其他產品的更高意願，這種動態將繼續下去。過去一年，我們在國際市場的投資顯示出成功的早期跡象，所有目標市場都實現了積極增長。我們的許多國際市場都看到了 CAC 的改善和超過我們國內增長率的增長率。

Our commerce products also saw double-digit growth across the board. One notable outlier was in the quarter with increased adoption of our e-mail campaigns products, which benefited from macro changes in the competitive environment.

我們的商業產品也全面實現了兩位數的增長。一個值得注意的異常值是本季度我們電子郵件營銷產品的採用率增加，這得益於競爭環境的宏觀變化。

Free products are increasingly becoming more restrictive and pay only, which further drives customers to consider alternatives to incumbent players. Our portfolio of products for entrepreneurs has never been stronger, and we continue to invest in our brands that are adjacent to our core score-based brand, Acuity for Scheduling, Tock's for hospitality and time-slotted businesses and Unfold and Bio Sites for social media creators. To remain relevant in an ever-changing technological landscape, it's essential to have tools to continuously integrate and adapt to evolving customer needs.

免費產品的限制越來越多，而且只能付費，這進一步促使客戶考慮現有玩家的替代品。我們為企業家提供的產品組合從未如此強大，我們繼續投資與我們基於分數的核心品牌相鄰的品牌，Acuity for Scheduling，Tock's for hotelsity and time-slotted businesses 和 Unfold and Bio Sites for social media創作者。為了在不斷變化的技術環境中保持相關性，必須擁有能夠持續集成和適應不斷變化的客戶需求的工具。

Squarespace has evolved from being a publishing platform to becoming a holistic commerce forward content management system. Our products allow entrepreneurs to transact in a variety of ways as they monetize physical goods, services and content. Squarespace has always offered hundreds of curated templates for customers to choose from when they're building a site. In the first quarter of 2023, we introduced Squarespace Blueprint, a new onboarding experience that lets users custom build a starting point without having to select from our template store.

Squarespace 已經從一個發布平台發展成為一個全面的商業轉發內容管理系統。我們的產品允許企業家在通過實物商品、服務和內容獲利時以多種方式進行交易。 Squarespace 一直提供數百種精選模板供客戶在構建網站時選擇。在 2023 年第一季度，我們推出了 Squarespace Blueprint，這是一種全新的入門體驗，讓用戶無需從我們的模板商店中進行選擇即可自定義構建起點。

We've seen record levels of demand in Q1 as customers onboard the Squarespace Blueprint and adopt a myriad of updates on our core platform, which is both easier to use and more expressive than ever. The mainstream accessibility of artificial intelligence, large language models is something we are paying close attention to and efforts are underway to build this functionality into our core platform. In our shareholder letter, we discussed in depth how this technology fits into Squarespace's core onboarding and editing experiences, including the newly launched Squarespace Blueprint.

隨著客戶加入 Squarespace Blueprint 並在我們的核心平台上進行了大量更新，我們在第一季度看到了創紀錄的需求水平，該平台比以往任何時候都更易於使用且更具表現力。人工智能的主流可訪問性，大型語言模型是我們密切關注的問題，並且正在努力將此功能構建到我們的核心平台中。在我們的股東信中，我們深入討論了這項技術如何融入 Squarespace 的核心入職和編輯體驗，包括新推出的 Squarespace Blueprint。

This technology helps us solve one of the core reasons customers find themselves in a difficult spot while onboarding. They do not have their content ready. The availability of AI models augments our tools perfectly helping customers with set up in writing while also preserving the power that Squarespace provides an editing tool, hosting platform, commerce platform and more. Yesterday, our circle community received a beta release of new text generation features powered by open AI in our production environment.

這項技術幫助我們解決了客戶在入職時發現自己陷入困境的核心原因之一。他們沒有準備好內容。人工智能模型的可用性增強了我們的工具，可以完美地幫助客戶進行書面設置，同時還保留了 Squarespace 提供的編輯工具、託管平台、商務平台等功能。昨天，我們的圈子社區在我們的生產環境中收到了由開放 AI 提供支持的新文本生成功能的測試版。

These enhancements will be made available to all customers in the coming weeks. Squarespace Payments remains on track to launch in the back half of 2023. Our engineering and product teams are building towards an integrated solution to deepen our relationship with customers and provide a seamless experience in every step within our platform.

這些增強功能將在未來幾週內提供給所有客戶。 Squarespace Payments 仍有望在 2023 年下半年推出。我們的工程和產品團隊正在構建一個集成解決方案，以加深我們與客戶的關係，並在我們平台的每一步中提供無縫體驗。

Finally, we recently published our first environmental, social and governance report. We're proud to showcase how our mission and ways of operating our business support our ESG goals. The report can be found in the ESG section of our Investor Relations website, and we invite you to read about our positioning and progress. We continue the year with immense gratitude to our customers and remain focused on delivering innovative products to enable entrepreneurs everywhere. Thank you to all of our customers and employees who have been part of this journey with us over the past 2 decades.

最後，我們最近發布了第一份環境、社會和治理報告。我們很自豪地展示我們的使命和業務運營方式如何支持我們的 ESG 目標。該報告可在我們投資者關係網站的 ESG 部分找到，我們邀請您閱讀我們的定位和進展。我們懷著對客戶的無限感激繼續這一年，並繼續專注於提供創新產品，以幫助各地的企業家。感謝在過去 2 年中與我們一起參與這一旅程的所有客戶和員工。

We remain an incredibly modern company and are delivering better products and more functionality than we have in any previous year of our existence. We look forward to serving you for the decades to come.

我們仍然是一家令人難以置信的現代化公司，並且正在提供比我們存在的前一年更好的產品和更多的功能。我們期待著在未來的幾十年里為您服務。

And now I'll turn the call over to Nathan.

現在我會把電話轉給內森。

Thank you, Anthony. And good morning, everyone. The first quarter demonstrated the strength of our business as we delivered robust growth during the quarter and beat our financial guidance across all key metrics. Revenue and unlevered free cash flow in Q1 2023 exceeded the high end of our guidance. This was driven by strong performance of our core business, which was bolstered by healthy demand from new customers and stable retention of our largest customer cohorts receiving price increases. We believe our strong customer retention rate relative to the increased subscription prices speaks to the enduring value of our product. As we continue to invest and deliver more value to our customers.

謝謝你，安東尼。大家早上好。第一季度展示了我們業務的實力，因為我們在本季度實現了強勁增長，並且在所有關鍵指標上都超過了我們的財務指導。 2023 年第一季度的收入和無槓桿自由現金流超過了我們指導的上限。這是由我們核心業務的強勁表現推動的，而核心業務的強勁表現得益於新客戶的健康需求以及我們最大客戶群的穩定保留接受價格上漲。我們相信，相對於訂閱價格的上漲，我們強大的客戶保留率說明了我們產品的持久價值。隨著我們繼續投資並為我們的客戶提供更多價值。

As Anthony mentioned, last year was transformative for our platform with the release of more than 100 new features and updates including a new page editor, Fluid Engine. Our platform today includes best-in-class tools, which makes it easier for entrepreneurs to run and grow their businesses. Products across our offering, campaigns, member areas and Acuity Scheduling are seeing growth as more customers integrate them into their work streams.

正如 Anthony 提到的那樣，去年我們的平台發生了變革，發布了 100 多項新功能和更新，包括新的頁面編輯器 Fluid Engine。我們今天的平台包括一流的工具，使企業家能夠更輕鬆地經營和發展他們的業務。隨著越來越多的客戶將它們整合到他們的工作流中，我們的產品、活動、會員區和 Acuity Scheduling 中的產品正在增長。

Q1 2023 bookings of $266 million grew by 16% as reported and 17% in constant currency. This acceleration was driven by growth in unique subscriptions and the continued success of our price increases which launched in Q3 2022.

據報告，2023 年第一季度的預訂量為 2.66 億美元，增長了 16%，按固定匯率計算增長了 17%。這種加速是由獨特訂閱的增長和我們在 2022 年第三季度推出的價格上漲的持續成功推動的。

In August 2022, we announced a price increase for our legacy customers, which we began rolling out in September. This was the first increase to legacy customers in our history. Now as we conclude our second full quarter of realizing these updated prices in our base, customer cohorts demonstrate strong cash retention and lower customer churn than our projections. Our largest cohorts of legacy customers renewed in the first quarter, and renewal rates were in line with historic levels. The increased mix of higher value plans had a positive impact on our bookings during the quarter.

2022 年 8 月，我們宣布對老客戶提價，並於 9 月開始推出。這是我們歷史上對老客戶的首次增長。現在，當我們結束第二個完整季度在我們的基礎上實現這些更新價格時，客戶群體表現出強大的現金保留率和比我們預期更低的客戶流失率。我們最大的老客戶群在第一季度續約，續約率與歷史水平一致。更高價值計劃組合的增加對我們本季度的預訂產生了積極影響。

It is important to note that bookings is a forward-looking indicator as the majority of our subscription customers adopt annual plans. First quarter total revenue was $237 million and grew 14% and 15% on a constant currency basis. This exceeded the high end of our guidance range of $232 million to $234 million and accelerated for the second consecutive quarter. Our strong results were driven by robust customer retention through the pricing increases and new website acquisition. When compared to the first quarter of 2022, foreign currency fluctuations acted as a slight headwind to our top line growth by approximately $2.8 million or 130 basis points as rates remained relatively low. We saw a favorable website plan mix to higher value plans in the quarter, which shows more customers shifting to business and commerce plan.

重要的是要注意預訂是一個前瞻性指標，因為我們的大多數訂閱客戶都採用年度計劃。第一季度總收入為 2.37 億美元，按固定匯率計算分別增長 14% 和 15%。這超出了我們 2.32 億美元至 2.34 億美元的指導範圍的上限，並且連續第二個季度加速增長。我們強勁的業績是由通過價格上漲和新網站收購實現的強勁客戶保留推動的。與 2022 年第一季度相比，由於利率仍然相對較低，外匯波動對我們的收入增長造成了約 280 萬美元或 130 個基點的輕微阻力。我們在本季度看到一個有利的網站計劃組合到更高價值的計劃，這表明更多的客戶轉向商業和商業計劃。

March 2023 was a particular strong month in the quarter as new website acquisitions surpassed our expectations. We believe our marketing efforts are effectively targeting high-intent customers Squarespace continues to deliver an essential service to entrepreneurs looking to bring a business online. International revenue was $67 million in Q1 2023, representing 10% growth and comprised 28% of total revenue. Excluding the FX impact, international revenue would have comprised 29% of total revenue and grown at 15%.

2023 年 3 月是本季度特別強勁的一個月，因為新網站收購超出了我們的預期。我們相信我們的營銷工作有效地瞄準了高意向客戶 Squarespace 繼續為希望在線開展業務的企業家提供基本服務。 2023 年第一季度國際收入為 6700 萬美元，增長 10%，佔總收入的 28%。排除外匯影響，國際收入將佔總收入的 29%，並以 15% 的速度增長。

Our platform continues to evolve toward an international audience as we localize key product features and focus our go-to-market efforts in key geographies worldwide through partnerships. We have been targeting design-minded entrepreneurs internationally with expanded engagement through our Circle professional community. New website acquisition from international markets grew more than total website acquisition. We believe international markets remain an important growth opportunity, and we are still in the early innings of what we believe will be an exciting channel for new customer growth. Our product localization and targeted marketing efforts position us to succeed internationally.

隨著我們將關鍵產品功能本地化並通過合作夥伴關係將我們的上市努力集中在全球主要地區，我們的平台將繼續向國際受眾發展。我們一直在通過我們的 Circle 專業社區擴大參與範圍，以國際上具有設計意識的企業家為目標。來自國際市場的新網站收購增長超過網站收購總量。我們相信國際市場仍然是一個重要的增長機會，我們仍處於我們認為將成為新客戶增長的令人興奮的渠道的早期階段。我們的產品本地化和有針對性的營銷努力使我們能夠在國際上取得成功。

As Anthony mentioned, ARPUS grew 4% to $213 in the quarter. ARPUS is calculated from our total revenue during the preceding 12-month period divided by the average of the total number of unique subscriptions at the beginning and end of the period. This metric includes revenue from all subscription types ranging from Unfold at the low end to Tock, our highest-priced subscription. Seeing this metric increase over time demonstrates our ability to sell more products and higher-value subscriptions to our customers. We continue to innovate and deliver additional functionality and tools to help entrepreneurs grow their business.

正如 Anthony 提到的那樣，本季度 ARPUS 增長了 4% 至 213 美元。 ARPUS 的計算方法是我們在前 12 個月期間的總收入除以該期間開始和結束時獨立訂閱總數的平均值。該指標包括所有訂閱類型的收入，從低端的 Unfold 到我們價格最高的訂閱 Tock。看到這個指標隨著時間的推移而增加，表明我們有能力向客戶銷售更多產品和更高價值的訂閱。我們不斷創新並提供更多功能和工具來幫助企業家發展業務。

Growing ARPUS reflects our ability to raise prices alongside the value we provide as well as increased mix to our higher value plans. Our continuous innovation strengthens our platform's functionality, better serving our entrepreneurs as they build their brands and transact with customers. Our strong Q1 results were broad-based across the majority of our product offerings with higher value website subscriptions growing year-over-year, Commerce revenue was $73 million, growing 14% and 15% in constant currency. As Anthony mentioned, our commerce products saw year-over-year growth with notable strength in commerce websites, Acuity Scheduling and Tock.

不斷增長的 ARPUS 反映了我們在提供價值的同時提高價格的能力，以及我們更高價值計劃的組合增加。我們的持續創新增強了我們平台的功能，更好地服務於我們的企業家，因為他們建立了自己的品牌並與客戶進行了交易。我們強勁的第一季度業績廣泛涵蓋了我們的大部分產品，價值更高的網站訂閱量同比增長，商業收入為 7300 萬美元，按固定匯率計算分別增長 14% 和 15%。正如 Anthony 所提到的，我們的商業產品實現了同比增長，在商業網站、Acuity Scheduling 和 Tock 方面具有顯著優勢。

GMV processed across our platform declined 2.6% year-over-year to $1.5 billion. Despite double-digit GMV growth from Tock, our Acuity Scheduling contributions were soft in the first 2 months of the year. We saw this trend stabilize in March. In addition, outsized performance from Acuity Scheduling in Q1 2022 created a difficult comparison for the product, but we are encouraged by the progress that the team has made to the product to drive more transactions on platform and refresh user experience on mobile. Acuity Scheduling attach rates were higher in the quarter than we expected, and we are delighted to see sustained interest from service sellers with our tools. Additionally, we believe improvements that we are making to our member areas product will offer additional value to service-based commerce as we continue to improve the product. We are still early in the stages of monetization with the majority of our revenue, 92% being subscription-based. Tock is also in an area where we continue to have high expectations and we have increased the size of the sales team to support its growth.

我們平台處理的 GMV 同比下降 2.6% 至 15 億美元。儘管 Tock 實現了兩位數的 GMV 增長，但我們的 Acuity Scheduling 貢獻在今年前兩個月表現疲軟。我們看到這種趨勢在 3 月份趨於穩定。此外，Acuity Scheduling 在 2022 年第 1 季度的出色表現為該產品創造了一個艱難的比較，但我們對團隊在該產品上取得的進展感到鼓舞，以推動平台上的更多交易並刷新移動用戶體驗。本季度的 Acuity Scheduling 附加率高於我們的預期，我們很高興看到服務銷售商對我們的工具持續感興趣。此外，我們相信，隨著我們繼續改進產品，我們對會員區產品所做的改進將為基於服務的商務提供額外的價值。我們仍處於貨幣化的早期階段，我們的大部分收入（92% 是基於訂閱的）。 Tock 也在我們繼續寄予厚望的領域，我們增加了銷售團隊的規模以支持其增長。

This quarter, Tock saw year-over-year strength in GMV, some of the highest months in its history. Tock also saw growth in unique subscriptions and reservations on explore Tock. We expect continued growth in these areas with the additional GTM support and overall improvements that the team has made to its solution deployment and customer onboarding process. We remain optimistic about the potential of our diverse product portfolio. We delivered a non-GAAP gross margin of 83%, down slightly by approximately 50 basis points year-over-year due to investments in customer operations and an increased share of Tock hospitality business, which has a different margin profile on account of its payments business.

本季度，Tock 的 GMV 同比增長，是其歷史上最高的月份。 Tock 在 explore Tock 上的獨特訂閱和預訂也有所增長。我們預計，隨著額外的 GTM 支持以及團隊對其解決方案部署和客戶入職流程的全面改進，這些領域將繼續增長。我們對我們多元化產品組合的潛力保持樂觀。我們的非美國通用會計準則毛利率為 83%，同比略微下降約 50 個基點，原因是對客戶運營的投資以及 Tock 酒店業務的份額增加，後者因其付款而具有不同的利潤率商業。

This decline is in line with our expectations as Tock processes increasing amounts of GMV on its platform. We improved non-GAAP operating efficiency and delivered a non-GAAP operating margin of 13%. We reduced marketing and sales expenses by optimizing our channel mix to unlock opportunities to scale our marketing efforts in key geographies. This ultimately resulted in operating leverage for the business. As a percentage of revenue, non-GAAP marketing and sales expenses represented approximately 41% of revenue, an improvement of more than 1,000 basis points as it represented 52% of revenue during the same period last year.

這種下降符合我們的預期，因為 Tock 在其平台上處理的 GMV 數量不斷增加。我們提高了非 GAAP 運營效率，實現了 13% 的非 GAAP 運營利潤率。我們通過優化我們的渠道組合來釋放機會來擴大我們在關鍵地區的營銷工作，從而減少了營銷和銷售費用。這最終為企業帶來了經營槓桿。就佔收入的百分比而言，非美國通用會計準則營銷和銷售費用約佔收入的 41%，比去年同期佔收入的 52% 提高了 1,000 多個基點。

Brand spend decreased year-over-year as we leaned into efficiently converting the large funnel we have built over the past several quarters. Additionally, we drove efficiency and G&A expenses by approximately 130 basis points as compared to the previous year. As a percentage of revenue, non-GAAP G&A expense represented 10% in the quarter. Non-GAAP R&D expense as a percentage of revenue represented 20%. The -- in the first 3 months of 2023, our adjusted EBITDA was $31 million, growing at significant rates compared to the same period last year as we increased our revenue and reduced marketing and sales spend, though the amount was partially offset by an increase in headcount year-over-year.

隨著我們傾向於有效地轉換我們在過去幾個季度建立的大型漏斗，品牌支出同比下降。此外，與上一年相比，我們將效率和 G&A 費用提高了約 130 個基點。作為收入的百分比，本季度非 GAAP G&A 費用佔 10%。非 GAAP 研發費用佔收入的百分比為 20%。 - 在 2023 年前 3 個月，我們調整後的 EBITDA 為 3100 萬美元，與去年同期相比增長顯著，因為我們增加了收入並減少了營銷和銷售支出，儘管這一數額被增長部分抵消了員工人數同比增長。

Squarespace has the advantage of generating substantial amounts of cash. Our balance sheet has a healthy cash and cash equivalents position of $239 million. Our total debt was $504 million, of which $41 million is current. Our cash flow from operating activities grew 36% to $64 million due to momentum in bookings and a reduction in our marketing and sales spend. In Q1, we generated robust unlevered free cash flow of $67 million for the trailing 3 months, 47% higher than Q1 2022, representing a margin of 28% and surpassing the high end of our guidance range of $63 million to $65 million.

Squarespace 具有產生大量現金的優勢。我們的資產負債表擁有健康的現金和現金等價物 2.39 億美元。我們的總債務為 5.04 億美元，其中 4100 萬美元是流動債務。由於預訂勢頭強勁以及營銷和銷售支出減少，我們來自經營活動的現金流增長了 36% 至 6400 萬美元。在第一季度，我們在過去三個月產生了 6700 萬美元的強勁無槓桿自由現金流，比 2022 年第一季度高出 47%，利潤率為 28%，超過了我們 6300 萬至 6500 萬美元指導範圍的上限。

As a reminder, historically, Q1 is our strongest quarter of free cash flow generation. A result of outsized customer cohorts renewal, larger annual mix versus monthly subscription plans and the seasonality of our marketing spend. We continued our share repurchase program during the quarter.

提醒一下，從歷史上看，第一季度是我們產生自由現金流最強勁的季度。由於大量客戶群更新、年度組合與月度訂閱計劃相比更大以及我們營銷支出的季節性。我們在本季度繼續我們的股票回購計劃。

As of March 31, 2023, we returned approximately $146 million to shareholders under the current repurchase program since it was authorized by our Board of Directors in May 2022. $25 million of which was purchased during the first quarter of 2023, which represents approximately 1.3 million shares at an average weighted price per share of $22.04 on the open market. At quarter end, approximately [$54] million remained available for repurchase.

自 2022 年 5 月董事會授權以來，截至 2023 年 3 月 31 日，我們根據當前回購計劃向股東返還了約 1.46 億美元。其中 2500 萬美元是在 2023 年第一季度購買的，相當於約 130 萬美元公開市場上的平均加權每股價格為 22.04 美元。在季度末，仍有約 [54] 億美元可供回購。

Turning to our guidance for Q2 and the full year 2023. In the second quarter of 2023, we are targeting total revenue in the range of $241 million to $245 million, this represents 14% growth at the midpoint. We expect unlevered free cash flow during Q2 to be in the range of $49 million to $53 million which implies an unlevered free cash flow margin of 21% at the midpoint of the range.

轉向我們對第二季度和 2023 年全年的指導。在 2023 年第二季度，我們的目標是總收入在 2.41 億美元至 2.45 億美元之間，這意味著中點增長 14%。我們預計第二季度的無槓桿自由現金流量將在 4900 萬美元至 5300 萬美元之間，這意味著該範圍中點的無槓桿自由現金流量利潤率為 21%。

For the full year, we are raising our revenue and unlevered free cash flow guidance. We expect total revenue to be in the range of $969 million to $981 million, representing growth of 12% at the midpoint of the range, up from $955 million to $970 million. Unlevered free cash flow is expected to grow throughout the year to the range of $192 million to $207 million and implies a margin of 20% at the midpoint of the range. This is up from $183 million to $198 million.

對於全年，我們正在提高收入和無槓桿自由現金流指導。我們預計總收入將在 9.69 億美元至 9.81 億美元之間，在該範圍的中點增長 12%，高於 9.55 億美元至 9.7 億美元。預計全年無槓桿自由現金流量將增長至 1.92 億美元至 2.07 億美元，意味著該範圍中點的利潤率為 20%。這從 1.83 億美元增加到 1.98 億美元。

The core website strength we saw in March and continuing in April gives us confidence to raise our guidance for the full year. This strength speaks to the resilience of our platform and the essential service it provides to million. We continue our trajectory towards sustaining profitable growth and expect our 2023 non-GAAP gross margin to be similar to the margin we delivered in 2022. Our marketing and sales efficiencies are slightly offset by higher R&D as a percentage of revenue as we prioritize key growth initiatives in 2023. Additionally, we expect to see improvements in G&A this year. We have started the year outperforming against our expectations.

我們在 3 月份看到並在 4 月份繼續保持的核心網站實力讓我們有信心提高全年的業績指引。這種優勢體現了我們平台的彈性以及它為百萬用戶提供的基本服務。我們繼續保持盈利增長的軌跡，並預計我們 2023 年的非 GAAP 毛利率將與我們在 2022 年實現的利潤率相似。我們的營銷和銷售效率被更高的研發佔收入的百分比略微抵消，因為我們優先考慮關鍵增長計劃2023 年。此外，我們預計今年 G&A 會有所改善。今年年初，我們的表現超出了我們的預期。

We have a strong forecast, diversified business model and a high level of recurring revenue with solid cash flow generation, all of which contribute to our confidence in the outlook and underlying momentum in our business. We are well positioned to deliver on our guidance. We believe our strategic investments align us perfectly to provide more value to our customers worldwide. Our results are a testament to the amazing work by our employees to deliver for our customers. Thank you for the work you do each day to help entrepreneurs everywhere stand out and succeed. Now we will open the line for your questions.

我們擁有強大的預測、多元化的商業模式和高水平的經常性收入以及穩健的現金流產生，所有這些都有助於我們對前景和業務的潛在動力充滿信心。我們完全有能力實現我們的指導。我們相信我們的戰略投資使我們能夠完美地為全球客戶提供更多價值。我們的結果證明了我們的員工為客戶提供的出色工作。感謝您每天為幫助世界各地的企業家脫穎而出並取得成功所做的工作。現在我們將打開您的問題熱線。

Thank you. (Operator Instructions) Our first today comes from Ygal Arounian with Citi Group.

謝謝。 （操作員說明）我們今天的第一篇來自花旗集團的 Ygal Arounian。

Anthony. Probably you did a good job in the investor letter talking about AI and impacts there. But maybe if you could just spend a little bit more time on your thoughts on the evolution of AI, how that impacts the web builder space in general? And then what you guys are doing to stay ahead of those changes. And I know some of the key factors, I guess, you could think of the front end, CMS and how it impacts on actual building of the web page. And then the back end and other business tools that you highlighted that you guys kind of layer on, on top of that and how each of those might change and how you approach each with your large language models as well over time.

安東尼。可能你在投資者信中做得很好，談論人工智能及其影響。但也許如果你能多花一點時間思考人工智能的發展，這對整個網絡建設者空間有何影響？然後你們正在做些什麼來保持領先於這些變化。我知道一些關鍵因素，我想，你可能會想到前端、CMS 以及它如何影響網頁的實際構建。然後是您強調的後端和其他業務工具，你們在這上面有點分層，以及每個工具可能如何變化以及隨著時間的推移如何使用大型語言模型來處理每個工具。

Yes, sure. Thanks for the question. No mistake that we devoted a good amount of space in the investor letter to commentary on AI considering where it is in people's minds right now. Our industry is really no stranger to it. There have been AI-based onboarding tools in various forms, affecting different parts of our industry for 8-plus years now. But what I'll focus on is kind of like where we are right now and where we are going and how those tools will fit into that road map. So just kind of where we are right now. I mean, Squarespace's core business is helping people make websites without code, and we've been doing that for 2 decades.

是的，當然。謝謝你的問題。毫無疑問，考慮到人工智能目前在人們心目中的位置，我們在投資者信函中用了大量篇幅對人工智能進行評論。我們這個行業對它真的不陌生。已經有各種形式的基於 AI 的入職工具，影響我們行業的不同部分已有 8 年多了。但我將關注的是我們現在所處的位置以及我們要去的地方以及這些工具將如何適應該路線圖。所以我們現在所處的位置。我的意思是，Squarespace 的核心業務是幫助人們在沒有代碼的情況下製作網站，我們已經這樣做了 2 年。

And another thing I kind of wanted to highlight in the letter is our plan started $16, $18 a month. And you don't just get a thing that makes a website. You get hosting storage, bandwidth, CDN, DDoS protection, customer support teams and infrastructure teams at around 24/7. Domain registration, DNS services, SSL certificates, if you're using our e-mail product, e-mail delivery and monitoring. So there's kind of a lot that's baked into that subscription. It's just outside the onboarding in the top of the code.

我想在信中強調的另一件事是我們的計劃開始時每月 16 美元、18 美元。而且您不只是得到一個可以製作網站的東西。您可以獲得大約 24/7 全天候的託管存儲、帶寬、CDN、DDoS 保護、客戶支持團隊和基礎架構團隊。域註冊、DNS 服務、SSL 證書，如果您使用我們的電子郵件產品、電子郵件發送和監控。所以訂閱中包含了很多東西。它就在代碼頂部的入職之外。

And -- but if you go beyond that, you look into the future, we're super excited about this stuff and have been either playing within various forms in our product and kind of following along as they develop. So I'll focus on 2 of those items verbally. One is large language models in terms of dealing with what we call content not ready. So the main reason why people don't sign up for a website in our self-reported surveys, they don't have their content ready. They don't have their inventory ready. They don't have the text ready. They don't know kind of what to do.

而且 - 但如果你超越這一點，你會展望未來，我們對這些東西非常興奮，並且一直在我們產品的各種形式中發揮作用，並隨著它們的發展而跟進。因此，我將重點關注其中的 2 個項目。一種是大型語言模型，用於處理我們稱之為未準備好的內容。因此，在我們的自我報告調查中，人們不註冊網站的主要原因是他們沒有準備好內容。他們沒有準備好庫存。他們沒有準備好文本。他們不知道該怎麼辦。

So just yesterday, in production, in beta for our Circle members, and this will be available in general release over the next couple of weeks, I don't see any reason why it wouldn't be. It's just integrating the large language model improvements from open AI into just our Open Text fields, right?

所以就在昨天，在生產中，我們的 Circle 成員處於測試階段，這將在接下來的幾週內全面發布，我看不出有任何理由不這樣做。它只是將開放 AI 的大型語言模型改進集成到我們的開放文本字段中，對嗎？

You're sitting there, there's an Open Text field, you don't how to put in it. We've all seen the magic of what ChatGPT can do. And we want to make that accessible to everybody. Of course, it's also worth highlighting that after that text goes into the field, you need to edit it, which is why we have a content management system that's what we have. So it was great to be able to release that yesterday. And it really does provide a magical experience for people. It's just awesome to see where it's going.

你坐在那裡，有一個開放文本字段，你不知道如何輸入它。我們都看到了 ChatGPT 的魔力。我們想讓每個人都能訪問它。當然，還值得強調的是，在該文本進入字段後，您需要對其進行編輯，這就是我們擁有內容管理系統的原因。所以昨天能夠發布它真是太好了。它確實為人們提供了神奇的體驗。看到它的發展方向真是太棒了。

The other thing I would highlight is -- and this is also in the letter and leading to some of the outperformance you see in the quarter is something we're calling Squarespace Blueprint, which is a way for people who don't want the pre-generated template to come on and build a template from pieces visually based on kind of the parts that we provide to them. How this will integrate -- I think there's a great thing to highlight because it integrates very well to large language models in generation in a form that's not maybe obvious initially because what we can do with this is say, let's all right, some people do kind of come to Squarespace and say, hey, I want to look through the store. I need inspiration. I need to know what these things look like. They can't -- from the top of their mind to generate -- they need help in getting set up.

我要強調的另一件事是——這也在信中提到，導致你在本季度看到的一些出色表現是我們稱之為 Squarespace Blueprint 的東西，這是為那些不想要 pre 的人提供的一種方式-生成的模板開始並根據我們提供給他們的零件的種類從視覺上構建模板。這將如何整合——我認為有一件很重要的事情需要強調，因為它以一種最初可能並不明顯的形式很好地集成到生成中的大型語言模型中，因為我們可以用它做的是說，好吧，有些人這樣做有點像來到 Squarespace 說，嘿，我想瀏覽一下商店。我需要靈感。我需要知道這些東西是什麼樣子的。他們不能——從他們的頭腦中產生——他們需要幫助來建立。

Blueprint gives them some flexibility. And what we can do on top of that is not just take large language models with prompts, but do what we're calling , and I think we didn't invent this phrase, but it's essentially prompt engineering and say, "All right, you don't know what's the typing of this box. " Here's some ideas on what they say on fonts. Here's some ideas to say on colors. Here's some -- let's talks about the tone of text you might want to use. And that engineering can go into the large language model and go into a framework like Blueprint and really help people with those starting points.

藍圖給了他們一些靈活性。我們在此之上可以做的不僅僅是採用帶有提示的大型語言模型，而是做我們所說的，我認為我們沒有發明這個短語，但它本質上是提示工程並說，“好吧，你不知道這個盒子的打字是什麼。”這裡有一些關於字體的想法。這裡有一些關於顏色的想法。這裡有一些 - 讓我們談談您可能想要使用的文本語氣。該工程可以進入大型語言模型並進入像 Blueprint 這樣的框架，並真正幫助人們了解這些起點。

So we're super excited about that. Blueprint's already showing improvements in our sign-up process even without that. But I just kind of say in closing, there are a lot of people -- there are a lot of ways people are going to need to get started with this product and receive help -- and I think what we do as a creative partner to give people these ideas of starting points and all that other stuff we do that -- the list I rattled off on the back end, especially at a price point like $18 a month is -- it's great.

所以我們對此感到非常興奮。 Blueprint 已經在我們的註冊過程中展示了改進，即使沒有它。但最後我想說的是，有很多人——人們需要通過很多方式開始使用這個產品並獲得幫助——我認為我們作為創意合作夥伴所做的是給人們這些關於起點的想法以及我們所做的所有其他事情——我在後端喋喋不休地列出的清單，尤其是在每月 18 美元這樣的價格點——這很棒。

So look, we're really excited about these developments. Those are a couple of ways we'll be integrating these. We have some demos coming out later, which I think people will get really excited by. And it's great for us.

所以看，我們對這些發展感到非常興奮。這些是我們整合這些的幾種方式。我們稍後會推出一些演示，我認為人們會非常興奮。這對我們來說很棒。

Anthony. Looking forward to seeing those. That was really helpful. If I could just on a follow-up on the business more near term, just dive into the record trial volume. Could you just expand on that a little bit? I think it's great to see that coming back. And especially impressive that it's higher than it was during the peak of COVID -- really saw pretty major industry tailwinds there. And then that coming at the same time with the improved marketing efficiencies you're spending less year-over-year on marketing and you're driving better record, you're driving record trial volume and can you just talk about how those 2 things are tied together as well.

安東尼。期待看到那些。這真的很有幫助。如果我能在短期內對業務進行跟進，那就深入研究創紀錄的試用量。你能稍微擴展一下嗎？我認為很高興看到它回歸。尤其令人印象深刻的是，它高於 COVID 高峰期的水平——確實看到了相當大的行業順風。然後，隨著營銷效率的提高，您在營銷上的支出逐年減少，並且取得了更好的記錄，您正在推動創紀錄的試用量，您能談談這兩件事嗎也綁在一起。

Sure. Yes, they're all interrelated. Honestly, reporting on the trial number was, it was kind of great to see and is a bit of an interestingly shocking result. I think what you're seeing there is improvements to the attribution model changes, which we were starting to roll out in August and in Q4 and really deploying spend against that in Q1, which is in Q4, Q1, which is, of course, our seasonality.

當然。是的，它們都是相互關聯的。老實說，關於試驗編號的報告是，看到它有點棒，而且是一個有點有趣的令人震驚的結果。我認為你看到的是歸因模型變化的改進，我們在 8 月和第四季度開始推出，並真正根據第一季度的支出進行部署，也就是第四季度，當然，我們的季節性。

A lot of the website business seasonality is focused there. Things like Fluid Engine maturing, Blueprint being released, Mobile Path published in Q4 of last year. All this stuff kind of works together. And you can't point to any one of them and be like, this alone changed it all. But together, it is producing a great results for us. Look, I'm encouraged that the demand in the business remains strong. And I'd also mention that a lot of what we have that we're releasing during the year around service-based sellers in the classes and courses area in workflow products for people who have workflows that are not an e-commerce checkout related to a physical e-commerce checkout, we're going to be able to sell into this base.

許多網站業務的季節性都集中在那裡。 Fluid Engine 日趨成熟，Blueprint 發布，Mobile Path 於去年第四季度發布。所有這些東西一起工作。你不能指著其中任何一個說，僅此一項就改變了這一切。但總的來說，它正在為我們帶來巨大的成果。看，我很高興業務需求仍然強勁。我還要提到的是，我們在這一年中發布了很多關於基於服務的賣家，在工作流產品的課程和課程領域，面向那些擁有與電子商務結賬無關的工作流的人實體電子商務結賬，我們將能夠在這個基地銷售。

And I think that, of course, won't be something that hits in Q3, Q4 necessarily in a big way. But I think absolutely into next year, there's just a huge opportunity here. And I think we have permission to sell into that base because why people are coming to us.

我認為，當然，這不會在第三季度、第四季度產生重大影響。但我認為絕對到明年，這裡就有一個巨大的機會。而且我認為我們有權出售該基地，因為人們來找我們的原因。

I would layer on there. I think the attribution model is really enabling us to invest in the right channels to get the highest performance and the right customers with the highest intent to sell. And that we're seeing that both unlock internationally as we saw strong growth there that we can scale on the right opportunities there, but also the -- in March specifically, we started to see a good acceleration of our core business that led to us increasing obviously the guidance for the year, but we would attribute a lot that we're directing to the right customer.

我會在那里分層。我認為歸因模型確實使我們能夠投資於正確的渠道以獲得最高的績效和最有銷售意願的正確客戶。而且我們看到兩者都在國際上解鎖，因為我們看到那裡有強勁的增長，我們可以在那裡抓住合適的機會，而且 - 特別是在 3 月份，我們開始看到我們的核心業務的良好加速，這導致我們顯然增加了今年的指導，但我們會歸因於我們正在指導正確的客戶。

The next question comes from Trevor Young with Barclays.

下一個問題來自巴克萊銀行的 Trevor Young。

Great. First one for, I guess, Anthony or Nathan. Just on pricing, any updated thoughts on whether you'll push another round of increases on renewal to those customers that are still well below this price or pushing pricing to those non-USD customers given the strong retention trends among the customers that have already seen those increases as well as that strong international growth.

偉大的。第一個，我想，安東尼或內森。就定價而言，鑑於已經看到的客戶的強勁保留趨勢，您是否會向那些仍遠低於此價格的客戶推新一輪續訂增加或將定價推向那些非美元客戶的任何最新想法這些增長以及強勁的國際增長。

And then second question, Nathan, on the unlevered free cash flow guide, it implies some margin compression in the back half versus both the front half of this year as well as the back half of '22.

然後是第二個問題，Nathan，關於無槓桿自由現金流指南，這意味著與今年上半年和 22 年下半年相比，後半部分的利潤率有所壓縮。

Can you help us put that versus your commentary on kind of steady gross margin for the full year, maybe some R&D investments offsetting the marketing efficiencies and then G&A already fairly lean. Just trying to understand whether that's conservatism or if we should assume like a more marked ramp in R&D in the back half?

你能幫我們把它與你對全年穩定毛利率的評論進行比較嗎，也許一些研發投資抵消了營銷效率，然後 G&A 已經相當精簡了。只是想了解這是否是保守主義，或者我們是否應該假設後半部分的研發有更顯著的增長？

I'll start with your first question and let Nathan comment on the second. With regard to further price increases this year on people in the quarter, that was not baked into anything that we have. But for non-USD customers, sorry, let me clarify. For people we've already increased prices on in USD no. We're not planning a further increase yet this year. But for non-USD, because we saw success in USD, we are looking to raise the international currencies to list and all this or sorry, not to list all the time, but just raise them. And that's a nascent model. Nathan, do you want to comment on the free cash?

我將從你的第一個問題開始，讓 Nathan 評論第二個問題。關於今年本季度人們的價格進一步上漲，這並沒有體現在我們所擁有的任何東西中。但對於非美元客戶，抱歉，讓我澄清一下。對於我們已經提高了美元價格的人。今年我們還沒有計劃進一步增加。但對於非美元，因為我們看到了美元的成功，我們正在尋求提高國際貨幣上市，所有這些或抱歉，不是一直上市，而是提高它們。這是一個新生的模型。 Nathan，你想對免費現金發表評論嗎？

Yes. Yes. So Trevor as you saw, we did raise the high end of our range by $9 million for the year of unleveraged free cash flow. This -- the Q1 impact is really driven by 3 things: One, as Anthony said, seasonality of our business. This is the highest renewal quarter for our business. Secondly, we skewed to annual plans. So 75% of our business is annual plans. And with that renewal, that has a high bookings impact in Q1.

是的。是的。因此，正如您所見，Trevor 確實將非槓桿自由現金流年度的上限提高了 900 萬美元。這 - 第一季度的影響實際上是由三件事驅動的：正如安東尼所說，我們業務的季節性。這是我們業務的最高續訂季度。其次，我們傾向於年度計劃。所以我們 75% 的業務是年度計劃。通過續訂，這對第一季度的預訂量產生了很大影響。

And then the last thing I would say is timing of spend, which kind of went to where you were going with the R&D spend as we ramp the investment throughout the year, but also for the advertising and marketing spend, which we see heavier in Q4 and lighter in Q1. So that's why that is reflected that way.

然後我要說的最後一件事是支出的時間安排，隨著我們全年增加投資，以及我們在第四季度看到更多的廣告和營銷支出，哪種方式去了研發支出的地方並且在第一季度更輕。這就是為什麼會以這種方式反映出來的原因。

Our next question comes from Siti Panigrahi with Mizuho.

我們的下一個問題來自瑞穗的 Siti Panigrahi。

Good quarter. Just wanted to ask you on the follow-up on the pricing question. What percentage of your legacy customer already moved to the new pricing. Maybe I'll have a follow-up to that.

好季度。只是想問你關於定價問題的後續行動。您的舊客戶中有多少百分比已經轉向新定價。也許我會對此進行跟進。

It's around 75% and again, that's not necessarily moving the model -- and then it's, of course, waiting for either the annual renewal because a lot of our legacy is based on annuals. And then obviously, if it's monthly, they've already received it. Yes.

它大約是 75%，而且，這不一定會改變模型——然後，當然，它正在等待年度更新，因為我們的很多遺產都是基於年度的。然後很明顯，如果是月刊，他們已經收到了。是的。

Okay, good. And then a question on the unique subscriber growth. I see your sales and marketing is kind of pretty much tied to the unit growth and I see it was down. Are you planning to increase your sales and marketing spend maybe later part of this year?

好的。然後是關於獨特訂戶增長的問題。我看到你們的銷售和營銷與單位增長密切相關，但我看到它下降了。您是否計劃在今年晚些時候增加銷售和營銷支出？

So well, first, let me comment on the unique subs. The unique subs, as you know, is a compilation of all of our subs, both Unfold, which we have spoken in Q3 and Q4 of last year, continue to see the erosion there. So it's not necessarily it's impacting the total unique subs of 4.3 million growing 2.5% year-over-year.

好吧，首先，讓我評論一下獨特的潛艇。如您所知，獨特的潛艇是我們所有潛艇的彙編，我們在去年第三季度和第四季度談到的 Unfold 繼續看到那裡的侵蝕。因此，它不一定會影響 430 萬的獨立用戶總數，同比增長 2.5%。

But our core business is continuing to grow and accelerate in March, and we saw that goodness in April as well. Concerning the marketing -- we are seeing the efficiency, and we're happy with the efficiency that we're seeing that's allowing us to decrease and still get the higher intent and higher trials, which is converting. So we feel good about where our marketing spend is and doesn't necessarily build that we need to increase it, but we are moving it around to the right channels. We have decreased our brand spend as we build that funnel in the United States.

但我們的核心業務在 3 月份繼續增長和加速，我們在 4 月份也看到了這種情況。關於營銷——我們看到了效率，我們對我們看到的效率感到滿意，這使我們能夠減少並仍然獲得更高的意圖和更高的試驗，這正在轉化。因此，我們對我們的營銷支出在哪裡感覺良好，不一定建立我們需要增加它的地方，但我們正在將它轉移到正確的渠道。在美國建立渠道時，我們減少了品牌支出。

And then internationally, we have increased the brand spend as we pour into those markets. And so I think that's the balance that we are doing.

然後在國際上，我們在進入這些市場時增加了品牌支出。所以我認為這就是我們正在做的平衡。

Our next question comes from Matt Pfau with William Blair.

我們的下一個問題來自 Matt Pfau 和 William Blair。

Great. I wanted to ask a follow-up on incorporating AI into a platform. And how do you view it from a monetization perspective, is it more of increasing conversion? Or do you plan to charge for these perhaps in premium tiers?

偉大的。我想詢問有關將 AI 整合到平台中的後續問題。你如何從貨幣化的角度來看待它，它更多的是提高轉化率嗎？或者您是否打算在高級層中對這些收費？

Right now, we are thinking of it as a tool for conversion, not something we are going to be monetizing directly in the other tiers.

現在，我們將其視為一種轉換工具，而不是我們將在其他層級直接貨幣化的東西。

Got it. Okay. And then I wanted to follow up just on the commentary around your GMV and the tough comps there on Acuity Scheduling. So maybe it would just be helpful that you provide some additional commentary around that given you're seeing good subscription additions there, but yet the GMV growth is lagging. So maybe just helpful in terms of what's driving that.

知道了。好的。然後我想跟進有關您的 GMV 的評論以及 Acuity Scheduling 上的艱難補償。因此，鑑於您在那裡看到了良好的訂閱增加，但 GMV 增長滯後，因此您提供一些額外的評論可能會有所幫助。因此，也許只是在推動它的方面有所幫助。

The Q1 2022, we did have a very strong quarter for Scheduling. And so that comp is somewhat skewed for Q1 2023. However, we are seeing strength across the other areas of GMV. Tock had another record quarter in Q1, our core business as we continue to invest in service sellers is moving in the right direction. I mean it was just a comparison to what we saw the strength in early Q1 2022, carrying over from '21 that creates that tough comparison.

2022 年第一季度，我們確實有一個非常強勁的調度季度。因此，該 comp 在 2023 年第一季度有所傾斜。但是，我們看到 GMV 其他領域的實力。 Tock 在第一季度創下了另一個創紀錄的季度，隨著我們繼續投資於服務銷售商，我們的核心業務正朝著正確的方向發展。我的意思是，這只是與我們在 2022 年第一季度初看到的實力進行比較，從 21 年開始進行這種強硬比較。

Our next question comes from Ken Wong with Oppenheimer & Company. Ken, please go ahead.

我們的下一個問題來自 Oppenheimer & Company 的 Ken Wong。肯，請繼續。

Great. The first is just a question about the record customer trials. How much of that do you think is driven by the new attribution model, maybe a rebound in demand -- or is there potentially just heightened seasonality in Q1 that you guys have started to see. Any color on whether or not that could potentially extend through the year? Or does it start to kind of dip back down after a strong Q1?

偉大的。第一個只是關於記錄客戶試用的問題。您認為其中有多少是由新的歸因模型驅動的，也許是需求的反彈——或者你們已經開始看到的第一季度的季節性可能會增強。關於這是否有可能延續到今年的任何顏色？還是在強勁的第一季度之後開始回落？

Yes. It's really a combination of everything. I mean that is partially -- Q1 is seasonally the highest quarter in websites, yes, but we're comparing to other high seasonal quarters -- it's a combination of what we're doing on onboarding, the attribution model changes yield improvements, certain international markets are starting to improve Fluid Engine product getting attention. It's just all those factors in one. It's not like one of them is the reason. It's probably a bit early for me to comment on just pure macro stuff, except that we just continue to see strength into the year and that continues in April.

是的。這真的是一切的結合。我的意思是部分 - 第一季度是網站中季節性最高的季度，是的，但我們正在與其他季節性旺季進行比較 - 這是我們在入職方面所做的工作的組合，歸因模型改變收益改進，某些國際市場開始提高流體發動機產品的關注度。只是所有這些因素合而為一。這不像是其中之一的原因。我現在就純粹的宏觀事物發表評論可能有點早，除了我們只是繼續看到今年的實力，而且這種情況會在 4 月份繼續。

Got it. And then on the international side, right now, international is kind of growing roughly in line with domestic. You guys have highlighted some marketing investments over the past year. Should we start to see that international business start to outpace U.S. sometime this year? Or is that still a bit of a lag before we start to see that flow through.

知道了。然後在國際方面，現在，國際的增長與國內大致一致。你們強調了過去一年的一些營銷投資。我們是否應該在今年某個時候開始看到國際業務開始超過美國？或者在我們開始看到這種流動之前仍然有點滯後。

I think that we're still in the early innings here, Ken. The -- as we continue to localize our product and make a fully localized experience for our entrepreneurs with translation and local currency -- as we make that investment, I think that the years to come, we'll start to see that outpace for 2023. I think that we will stay fairly confident of where we've seen the growth to date. But we are very excited about the key markets where we are seeing double-digit growth in our international markets. I think this is reflective of the investments we made in '22 with brand and product and starting to see that come to fruition.

肯，我認為我們仍處於早期階段。 - 隨著我們繼續本地化我們的產品並通過翻譯和本地貨幣為我們的企業家提供完全本地化的體驗 - 當我們進行這項投資時，我認為未來幾年，我們將開始看到 2023 年的增長. 我認為我們將對迄今為止的增長保持相當的信心。但我們對我們在國際市場上看到兩位數增長的主要市場感到非常興奮。我認為這反映了我們在 22 年對品牌和產品所做的投資，並開始看到這些投資取得成果。

I'd also highlight that certain product releases go to the U.S. first before they go internationally. So Blueprint Mobile Path to publish those things that I was kind of mentioning that are leading to the strength in the core business. We do U.S. first. And then once we've validated that it's -- we think it's going to be a positive test result, then we spend the effort internationalizing it. So it always is going to kind of have that lag.

我還要強調的是，某些產品在走向國際之前首先會在美國發布。所以 Blueprint Mobile Path 發布了我提到的那些導致核心業務實力的東西。我們先做美國。然後，一旦我們確認它是——我們認為這將是一個積極的測試結果，那麼我們就會努力將其國際化。所以它總是會有點滯後。

Our next question comes from Andrew Boone with JMP Securities.

我們的下一個問題來自 JMP Securities 的 Andrew Boone。

I wanted to go back to international as well. Nathan, in the letter, I think your section talked about it being early innings of channel growth for international. Just, Anthony, to the point that you just made, can you talk about where you are in the process of localizing products that may be specific to international? What is not available if you think about the parity set of the U.S. versus international markets? Can you just provide a little bit more details on the international kind of road map. And then we haven't talked much about Squarespace Payments. Can you just update us their thoughts on timing as well as just any broader updates.

我也想回到國際。 Nathan，在信中，我認為你的部分談到了它是國際渠道增長的早期階段。只是，Anthony，就您剛才所說的而言，您能否談談您在本地化可能針對國際的產品的過程中所處的階段？如果您考慮美國市場與國際市場的平價集，有什麼是不可用的？您能否提供更多有關國際路線圖的詳細信息？然後我們還沒有談太多關於 Squarespace Payments 的事情。您能否向我們更新他們對時間安排的想法以及任何更廣泛的更新。

Sure. So if I start to get into a lot of the international (inaudible). There's just going to be a lot of details. I can highlight a couple. Like, for instance, in the past quarter, this will sound like kind of mundane, but like -- we spent a lot of time looking at things like our contact form block and making sure they work in all the countries where we're present. And it's just an immense amount of work getting all the ZIP code types, right; address types, right; phone number formatting, right; all is like currency format -- all the stuff that people are expecting in a local market that maybe -- we've gotten sort of right, sort of wrong checkout method; currency, making sure they can transact in their local currency, making sure our support cues are staffed in those current vendors in those markets.

當然。所以如果我開始進入很多國際（聽不清）。將會有很多細節。我可以強調一對。例如，在過去的一個季度，這聽起來有點平凡，但就像——我們花了很多時間研究我們的聯繫表單塊，並確保它們在我們存在的所有國家/地區都有效.獲取所有郵政編碼類型需要大量工作，對嗎？地址類型，對；電話號碼格式，正確；一切都像貨幣格式——人們在當地市場所期待的所有東西——我們可能有點正確，有點錯誤的結賬方法；貨幣，確保他們可以用當地貨幣進行交易，確保我們的支持線索配備在這些市場的現有供應商中。

Obviously, when you get into commerce like our customers' commerce combined, there's a whole another level of kind of complexity or like local shipping and whatnot, that we may not be fully up to speed on that we are in the U.S. market. So all that's kind of floating around within that number.

顯然，當你像我們客戶的商業組合一樣進入商業領域時，就會出現另一種複雜程度，或者像本地運輸等等，我們可能無法完全跟上我們在美國市場的步伐。所以所有這些都在那個數字中浮動。

I do think that before you jump into payment, just going to layer on, why I said it's early innings. I think that we still have quite a bit of room to go to get to parity in some of the key markets that we're in, that will continue investment this year, that will obviously drive growth. That's why I said early innings. We still -- they were not at parity in all regions that we're in.

我確實認為，在你進入付款之前，只是要分層，為什麼我說這是早期局。我認為我們仍有很大的空間去實現我們所處的一些關鍵市場的平價，今年將繼續投資，這顯然會推動增長。這就是為什麼我說早局。我們仍然 - 他們在我們所在的所有地區都沒有平等。

Yes. payments, all I have is positive commentary. We are on track there. It's not something that's going to appear in the financials for this year, but we expect to have customers in production onboarding to payments by the end of this year in Q4. So -- and maybe some in beta a little before that.

是的。付款，我所擁有的只是積極的評論。我們在那裡走上正軌。這不會出現在今年的財務數據中，但我們預計到今年第四季度末，生產中的客戶將開始接受付款。所以——也許有些人在那之前就處於測試階段。

So we are rolling along quite nicely. And that will be a more exciting thing to talk about over the next couple of calls.

所以我們進展順利。在接下來的幾個電話中談論這將是一件更令人興奮的事情。

Our next question comes from Josh Beck with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Josh Beck。

I apologize for my voice a bit of the weather. But yes, I wanted just to go back to some of your commentary around March, April, it really sounds like as you looked at the monthly cadence that [transaction] improves, which I would say versus maybe some of the broader consumer-oriented spending data points was kind of opposite and certainly a positive standout.

我為我的聲音有點天氣道歉。但是，是的，我只想回到你在 3 月、4 月左右的一些評論，當你查看 [交易] 改善的每月節奏時，這聽起來真的像是與一些更廣泛的面向消費者的支出相比數據點有點相反，當然是一個積極的突出。

So any other color you can share on what maybe changed with respect to the monthly cadence would be great.

因此，您可以分享關於每月節奏可能發生變化的任何其他顏色會很棒。

As I said, it's a little -- yes, we're encouraged by it as well. I think while it's hard for us to comment on anything to macro at this point. We mentioned a number of the changes that were going into the outperformance right now, which is attribution, changing how we're spending Blueprint, Mobile Path to publish, et cetera.

正如我所說，這有點——是的，我們也因此受到鼓舞。我認為，雖然我們目前很難對宏觀的任何事情發表評論。我們提到了一些正在進入表現優異的變化，這是歸因，改變了我們花費藍圖的方式，移動路徑發布等等。

After we get maybe a couple more months behind us, we'll be able to kind of tease out what may be going on from a macro standpoint or not. Yes, Nathan, would you add anything on that?

在我們落後幾個月之後，我們將能夠從宏觀角度梳理出可能發生的事情。是的，內森，你能補充什麼嗎？

No. I think that I agree with you. I think it's a combination of everything that we've seen as we continue to invest in the product, and we're realizing that the investment that we've made in brand spend in early years and that we saw in 2022.

不，我想我同意你的看法。我認為這是我們在繼續投資產品時所看到的一切的結合，我們意識到我們在早年對品牌的投資以及我們在 2022 年看到的投資。

Okay. Great. And then maybe just a follow-up on just how to think about maybe more of the midterm growth algorithm. Obviously, this year, there's a really nice impact related to pricing, you're getting really good. You mentioned record trials. So lots of drivers between subscriptions, [ARPU], you've obviously talked to layering on payments revenue and other initiatives. But just what, I guess, framework would you put around kind of the more midterm growth algorithm as we think about the future years?

好的。偉大的。然後可能只是關於如何考慮更多中期增長算法的後續行動。顯然，今年，與定價相關的影響非常好，你變得非常好。你提到了創紀錄的試驗。訂閱之間有很多驅動因素，[ARPU]，你顯然已經談到了支付收入和其他舉措的分層。但是，我想，當我們考慮未來幾年時，您會採用什麼樣的框架來圍繞更中期的增長算法？

So I think that we would look into the various -- I'm putting like attach between the products side. As you think about the products themselves, improvements in classes and courses, improvements in workflows around people who are selling on the platform that are service-based sellers. Lots of stuff happening within Acuity. We've got sort of the opportunity there, obviously, early stages and very experimental with Bio Sites, and we haven't done any monetization there.

所以我認為我們會研究各種 - 我在產品方面進行了附加。當你考慮產品本身時，課程和課程的改進，圍繞在平台上銷售的基於服務的賣家的工作流程的改進。 Acuity 中發生了很多事情。顯然，我們在那裡有機會，很明顯，在生物網站的早期階段和非常實驗性的階段，我們還沒有在那裡進行任何貨幣化。

You've already mentioned payments that's on track for late Q3, Q4. Yes, I mean, that's a lot of the stuff we're focused on trying to make people more successful on the platform. And then hopefully, over the next 5 years, shift a little bit away from SaaS towards more payment volume. From a macro standpoint, this is, of course, something we have less control over, but we hope it will build up over time.

你已經提到了第三季度末、第四季度的付款。是的，我的意思是，這就是我們專注於讓人們在平台上取得更大成功的很多東西。然後希望在接下來的 5 年裡，從 SaaS 轉向更多的支付量。從宏觀的角度來看，這當然是我們無法控制的事情，但我們希望它會隨著時間的推移而建立起來。

Our next question comes from Clarke Jeffries with Piper Sandler.

我們的下一個問題來自 Clarke Jeffries 和 Piper Sandler。

First one is just a clarifying question. What was constant currency bookings in the quarter?

第一個只是一個澄清問題。本季度的固定貨幣預訂量是多少？

In the quarter was 17% on constant currency for year-over-year growth.

本季度按固定匯率計算同比增長 17%。

And then a follow-up question. How are you thinking about capital allocation? I mean, is there any appetite here to accelerate the paydown of the debt? Or how are you thinking about incremental cash from here?

然後是後續問題。您如何考慮資本配置？我的意思是，這裡有加速償還債務的意願嗎？或者你如何考慮從這裡增加現金？

I'll take a pass and Nathan can give his view. We, of course, want to use the cash on hand for growth, but also our theme is always responsible growth. And so we have over investment in certain areas of R&D, where we feel that the team is light, and we have an ability to outpace on revenue if we invest there. And we've really modulated certain growth in marketing and sales and R&D in targeted ways to kind of get blended away in a big number. But I've said it before in various calls that I think we should just be kind of constantly taking up the free cash flow margin. So just continuing to grow responsibly. We, of course, want to keep something available for opportunistic M&A that comes up. I've also talked about the fact that we want to be -- we're mostly looking at smaller deals there, but we remain open to whatever might come across our desk.

我會通過，Nathan 可以發表他的觀點。當然，我們希望將手頭的現金用於增長，但我們的主題始終是負責任的增長。因此，我們在研發的某些領域進行了過度投資，我們覺得團隊很輕，如果我們在那裡投資，我們有能力超過收入。我們確實以有針對性的方式調整了營銷、銷售和研發的某些增長，以便大量混合。但我之前在各種電話中說過，我認為我們應該不斷地佔用自由現金流保證金。所以只要繼續負責任地成長。當然，我們希望為出現的機會主義併購保留一些可用的東西。我還談到了我們想要成為的事實——我們主要在那裡尋找較小的交易，但我們仍然對我們辦公桌上可能出現的任何事情持開放態度。

Nathan, what would you say?

內森，你會怎麼說？

I think I underline with everything you said. I don't think I would add anything different.

我想我強調了你所說的一切。我不認為我會添加任何不同的東西。

Our next question comes from Brad Erickson with RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Brad Erickson。

Just another generative AI question. ChatGPT is obviously, I guess, the most well-known solution out there. But broadly, what do you expect will kind of be the main drivers as you guys look to select models and output partners you would use? Is it going to be kind of easier, faster to time to market with working with a single all-in vendor? Are you seeing things out there from other vendors, you're testing with at this point that are intriguing.

只是另一個生成式 AI 問題。我想，ChatGPT 顯然是目前最著名的解決方案。但從廣義上講，當你們希望選擇要使用的模型和輸出合作夥伴時，您認為主要驅動因素是什麼？與單一的全包供應商合作是否會更容易、更快地上市？你是否從其他供應商那裡看到了一些有趣的東西，你正在測試這一點。

And then the second part, maybe just a quick comment related to longer-term compute costs related to integrating some of this tech into your stack. And I think you spoke a little bit of this earlier of maybe not embedding it into your price per se, but just talk about the general sort of structural cost to compute associated with putting the tech into your stack?

然後是第二部分，可能只是與將某些技術集成到您的堆棧中相關的長期計算成本的快速評論。而且我認為您早些時候談到了這一點，也許沒有將其本身嵌入您的價格中，而只是談論與將技術納入您的堆棧相關的一般計算結構成本？

Sure. Yes. So we're mostly looking at large language models right now. And what's kind of interesting is, I'm actually glad you brought up the cost. I think that where we see integration of these products, it's really in a very cost-effective way. Because it's not like we're integrating this anything on like a traffic per query basis when everything we're doing is mostly related to setup, right? So if you have trouble with a text box or you're building a website. These things get you started, and then the tool takes you from there.

當然。是的。所以我們現在主要關注大型語言模型。有趣的是，我真的很高興你提出了成本。我認為，在我們看到這些產品的集成的地方，它確實是一種非常具有成本效益的方式。因為當我們所做的一切主要與設置相關時，我們並沒有像每次查詢的流量那樣集成任何東西，對嗎？因此，如果您在使用文本框或正在構建網站時遇到問題。這些東西讓你開始，然後工具帶你從那裡開始。

So we don't have like an API call per hit to your website or anything built in like that, that would be a really detrimental kind of business model impact. On the contrary, I mean, we've been investing in machine learning internal to our company for 8-plus years. So the fact that these are now available in API form is a huge benefit to us. Right? I mean all the stuff that's happening like if open AI wasn't, let's just say, with closed AI instead of open AI, and we had to take those technologies like we've had to do in the past and train them ourselves, build them ourselves. I mean the cost of Chinese models is gigantic.

因此，我們沒有像每次訪問您的網站或任何內置的 API 調用那樣，這將是一種非常有害的商業模式影響。相反，我的意思是，我們已經在公司內部投資機器學習 8 年多了。因此，這些現在以 API 形式提供的事實對我們來說是一個巨大的好處。正確的？我的意思是所有正在發生的事情就像如果開放人工智能不是，讓我們說，封閉人工智能而不是開放人工智能，我們必須像過去那樣採用這些技術並自己訓練它們，構建他們自己。我的意思是中國模特的成本是巨大的。

So it's fantastic that we can get the benefit of this so quickly in the areas of the product where we think it's going to have the most impact. Again, most of what Squarespace does, that huge list of stuff I'd route off, that stuff isn't currently changed by the presence of large language models. So again, mostly setup based costs lower than before, which is positive, time to market faster than before, which is why you're seeing all these like -- any -- the space you look at, but like maybe like 1 million AI start-ups in the past month, something like -- something crazy.

因此，我們能夠在我們認為影響最大的產品領域如此迅速地從中受益，真是太棒了。再說一次，Squarespace 所做的大部分工作，即我要排除的大量內容，這些內容目前並未因大型語言模型的存在而改變。所以再一次，主要是基於設置的成本比以前更低，這是積極的，上市時間比以前更快，這就是為什麼你看到所有這些——任何——你看到的空間，但可能像 100 萬個 AI過去一個月的初創企業，有些瘋狂。

The developing that -- they are not developing that technology themselves which is again why we're focused on what we're good at, the prompt engineering, what can we do on top of these models that would be the real value add. Yes, so that's kind of how we're approaching it.

開發 - 他們自己並沒有開發該技術，這又是為什麼我們專注於我們擅長的東西，及時工程，我們可以在這些模型之上做些什麼，這將是真正的增值。是的，這就是我們處理它的方式。

Our final question today comes from Deepak Mathivanan with Wolfe Research.

我們今天的最後一個問題來自 Wolfe Research 的 Deepak Mathivanan。

One more on the LLM, how do you think it changes the distribution landscape in this space? Your point on kind of the compelling value prop of the Squarespace features that makes a lot of sense. But do you think other large platforms could potentially integrate some of the website building capabilities using these LLM as a part of their products. And curious whether -- curating your thoughts whether it creates some sort of like a distribution and competitive landscape shifts in this space?

還有一個關於法學碩士的，你認為它如何改變這個領域的分佈格局？您關於 Squarespace 功能的引人注目的價值支柱的觀點很有意義。但是您是否認為其他大型平台可能會使用這些 LLM 作為其產品的一部分來集成一些網站構建功能。好奇是否 - 策劃你的想法是否會在這個領域創造某種類似分佈和競爭格局的變化？

And then the second question maybe for Nathan. It seems like the retention trends are very strong, relatively despite the ongoing price increases. What do you think are sort of like the primary reasons for this dynamic for Squarespace?

然後第二個問題可能是給 Nathan 的。儘管價格持續上漲，但相對而言，保留趨勢似乎非常強勁。您認為 Squarespace 出現這種動態的主要原因是什麼？

Yes. Talking to the first part of your question around what disruption this will bring to some of those core fundamental things like hosting storage bandwidth, the CMS, CDNs, all that. I think it's a little [DNS]. It's a little less clear how it is going to immediately impact infrastructure. I think that there's a big open question in the industry around.

是的。談到你問題的第一部分，這將給一些核心基礎事物帶來什麼破壞，比如託管存儲帶寬、CMS、CDN 等等。我認為這有點 [DNS]。尚不清楚它將如何立即影響基礎設施。我認為業界存在一個很大的懸而未決的問題。

Frankly, what our R&D expenses really look like in a couple of years with get up copilot type models that are helping with developer efficiency? Or what is your -- what does your support cost really look like when you have higher and higher and higher deflection rates based on models that you have that are automating some part of support, it's actually worth mentioning that -- we've had -- one of the main things we look at our support group is how much our AI based, not LLM yet, but it will be based -- bots are helping with ticket deflection, all that.

坦率地說，我們的研發費用在幾年後的真實情況是什麼？起床有助於提高開發人員效率的副駕駛類型模型？或者你的 - 當你有越來越高的偏轉率時，你的支持成本真的是什麼樣子的，這些模型是基於你擁有的自動化部分支持的模型，實際上值得一提的是 - 我們已經 - - 我們關注我們的支持小組的主要事情之一是我們的 AI 有多少基於，而不是 LLM，但它將基於 - 機器人正在幫助票務偏轉，所有這些。

So there's some TBDs out there. But for the most part, there's just really excitement about integrating this with the product in the areas I've already mentioned. Nathan?

所以那裡有一些待定。但在大多數情況下，將它與我已經提到的領域中的產品集成真的很令人興奮。內森？

Deepak, thanks for the pricing question. I guess there's 3 things that I would say. One, this is the first time in the history of the company that we've increased pricing for our legacy customers. And we're -- as you've seen the results, continuing to see strong retention. I think that goes to 2 other things. One, they're still far below list. So as we increase them, moving them closer to list, there's still opportunity there that we've seen. And then lastly, I think this goes to really the value that we provide to our customers. We've continued to increase the product offering to them. We launched Fluid Engine last year, we offered 100-plus extra features that we launched last year as well. And we've never increased the price associated with that. So this is just realizing the value that we have already delivered to them.

Deepak，感謝您提出定價問題。我想我會說三件事。第一，這是公司歷史上第一次我們為老客戶提高價格。我們——正如您所看到的結果，繼續保持強勁的保留率。我認為這與另外兩件事有關。一，他們仍然遠遠低於名單。因此，當我們增加它們，將它們移近列表時，我們仍然看到了機會。最後，我認為這真的關係到我們為客戶提供的價值。我們繼續增加向他們提供的產品。我們去年推出了 Fluid Engine，我們還提供了去年推出的 100 多項額外功能。而且我們從未提高與此相關的價格。所以這只是實現我們已經交付給他們的價值。

That was our final question for today. So this concludes today's call. Thank you so much for joining. You may now disconnect your lines.

這是我們今天的最後一個問題。今天的電話會議到此結束。非常感謝您的加入。您現在可以斷開線路。