Squarespace Inc (SQSP) 2023 Q3 法說會逐字稿

Good morning, everyone. My name is Seth, and I'll be your conference operator today. At this time, I would like to welcome everyone to Squarespace's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Thank you. I will now hand the call over to your host at Squarespace, Clare Perry. Clare, please go ahead.

大家，早安。我叫賽斯，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Squarespace 2023 年第三季財報電話會議。 （操作員說明）謝謝。我現在將把電話轉交給 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 Third Quarter 2023 Earnings Conference Call. This is Clare Perry, Head of Investor Relations. I'm joined by Anthony Casalena, Squarespace's Founder and CEO; and Nathan Gooden, CFO. After their prepared remarks, we 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.

早安，感謝您參加 Squarespace 2023 年第三季財報電話會議。我是投資者關係主管克萊爾佩里 (Clare Perry)。 Squarespace 的創辦人兼執行長 Anthony Casalena 也加入了我的行列。和財務長內森·古登。在他們準備好發言後，我們將開始電話詢問您的問題。今天早些時候，我們在網站的投資者關係部分發布了新聞稿和股東信。

On today's call, we will be referencing both GAAP and non-GAAP financial results and operating metrics. You can find additional information on how we calculate these metrics, including a reconciliation of GAAP to non-GAAP measures in today's press release and shareholder letter. These measures should not be considered in isolation from nor a substitute for our GAAP reporting.

在今天的電話會議上，我們將參考公認會計準則和非公認會計準則的財務表現和營運指標。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 指標的調整。這些措施不應孤立於我們的公認會計原則報告，也不應取代我們的公認會計原則報告。

We will make forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, but are not limited to, statements related to our future financial performance, our strategy and our ability to integrate new technology into our core platform. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. These results are further defined in our most recent filings with the Securities and Exchange Commission.

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、我們的策略以及我們將新技術整合到市場中的能力相關的陳述。我們的核心平台。這些前瞻性陳述存在風險和不確定性，可能導致我們的實際結果出現重大差異。這些結果在我們最近向美國證券交易委員會提交的文件中得到了進一步定義。

Any forward-looking statements that we make on this call are based on assumptions as of this day, November 7, 2023. We undertake no obligation to update these statements as a result of new information or future events, except where required by law. Please also note that all comparisons are on a year-over-year basis, unless specifically noted otherwise. I will now turn the call over to Anthony.

我們在本次電話會議中所做的任何前瞻性陳述均基於截至 2023 年 11 月 7 日的假設。我們不承擔因新資訊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，所有比較均以同比為基礎。我現在將把電話轉給安東尼。

Good morning, everyone. I'm delighted to review Squarespace's third quarter 2023 results with you today. Our strong financials were driven by the strength of our core business and reflects our ongoing mission to build products that help entrepreneurs stand out and succeed.

大家，早安。我很高興今天與您一起回顧 Squarespace 2023 年第三季的業績。我們強勁的財務狀況是由核心業務的實力推動的，反映了我們不斷致力於打造幫助企業家脫穎而出並取得成功的產品的使命。

In the quarter, we delivered 18% revenue growth, expanded our unlevered free cash flow margin of 21% and have crossed $1 billion in annual run rate revenue for the first time. In September, we closed our acquisition of Google Domains, which further contributed to our bookings growing 18% this quarter.

本季度，我們的營收成長了 18%，無槓桿自由現金流利潤率擴大至 21%，年度運行收入首次突破 10 億美元。 9 月份，我們完成了對 Google Domains 的收購，這進一步推動我們本季的預訂量成長 18%。

On top of our financial performance, we delivered on multiple major releases, which we summarized at Squarespace Refresh in October. These include Squarespace payments, which we are onboarding new customers to now as well as improvements to our classes and courses products, more tools for service sellers, including invoicing and continued major improvements to our domain offering as we prepare for the Google Domains migration.

除了我們的財務表現之外，我們還發布了多個主要版本，我們在 10 月的 Squarespace Refresh 上對此進行了總結。其中包括Squarespace 付款（我們現在正在向新客戶提供這種服務）、對我們的課程和課程產品的改進、為服務賣家提供的更多工具（包括發票）以及在我們為Google Domains 遷移做準備時對我們的域名產品的持續重大改進。

Our ultimate goal is to provide entrepreneurs with a single online hub for all their web-based needs. We are continuing to invest in our portfolio of brands, including Squarespace, Acuity, Tock, Unfold and Bio Sites, that help our customers publish and transact online, no matter where they might start the journey.

我們的最終目標是為企業家提供一個單一的線上中心，滿足他們所有基於網路的需求。我們將繼續投資我們的品牌組合，包括 Squarespace、Acuity、Tock、Unfold 和 Bio Sites，幫助我們的客戶在線上發布和交易，無論他們在哪裡開始旅程。

This quarter, Acuity Scheduling new branding and rollout of enhanced features is an example of our progress in this direction. Available on a stand-alone basis or attached to a website, Acuity exemplifies our efforts to create new entry points for customers, allowing them to adopt our products in line with their needs.

本季度，Acuity 安排新的品牌推廣和增強功能的推出就是我們在這個方向上取得進展的一個例子。 Acuity 可單獨使用或附加在網站上，體現了我們為客戶創建新切入點的努力，使他們能夠根據自己的需求採用我們的產品。

Our commitment to online presence is further strengthened by the relaunch of Squarespace domains, the next evolution of our domains offering. We have transformed Squarespace domain into a product for Domain-first customers, now offering some of the most comprehensive domain registration tools in the industry, all embedded within our integrated platform. This investment follows our acquisition of Google Domains, which we closed in September. Squarespace and Google remained focused on ensuring a seamless migration for our customers.

Squarespace 網域的重新推出進一步加強了我們對線上業務的承諾，這是我們網域產品的下一步發展。我們已將 Squarespace 網域轉變為面向網域優先客戶的產品，現在提供一些業內最全面的網域註冊工具，所有這些工具都嵌入在我們的整合平台中。這項投資是在我們收購 Google Domains 後進行的，該收購已於 9 月完成。 Squarespace 和 Google 仍然致力於確保客戶無縫遷移。

It is still early in terms of the impact to our business, but we remain excited about this transformative deal. We will begin migrating domains from Google shortly that we are already processing all new registrations from customers coming from that platform.

就對我們業務的影響而言，現在還處於早期階段，但我們仍然對這項變革性的交易感到興奮。我們很快就會開始從 Google 遷移域名，因為我們已經在處理來自該平台的客戶的所有新註冊。

On the product release front, we have also started introducing Squarespace payments to new customers in the U.S., and that rollout will continue throughout the end of the year and into 2024. We are thrilled to be able to offer a completely integrated payments platform with Squarespace, and we're looking forward to introducing this functionality across all of our product lines. Squarespace Payments has been a significant investment for us, and it would be great to have our customers using it.

在產品發布方面，我們也開始向美國的新客戶推出 Squarespace 支付，並且該推出將持續到今年年底直至 2024 年。我們很高興能夠提供與 Squarespace 完全整合的支付平台，我們期待在我們所有的產品線中引入此功能。 Squarespace Payments 對我們來說是一項重大投資，如果我們的客戶能夠使用它，那就太好了。

Squarespace Refresh also previewed capabilities of Squarespace AI, a website building experience that is powered end-to-end by generative AI. We've been using machine learning models to support parts of our platform for the better part of the decade and are more than ready to integrate the evolution of these technologies. We are continuing to be thoughtful regarding what we work on and are first focusing on integrations that solve customer pain points and streamline the website building process.

Squarespace Refresh 也預覽了 Squarespace AI 的功能，這是一種由生成式 AI 提供端到端支援的網站建立體驗。在這十年的大部分時間裡，我們一直在使用機器學習模型來支援我們平台的部分內容，並且已經準備好整合這些技術的發展。我們將繼續深思熟慮我們的工作，並首先專注於解決客戶痛點並簡化網站建立流程的整合。

Additionally, we're working to add Squarespace AI to Squarespace Blueprint, focusing on visual elements in addition to text. Squarespace Blueprint is our template free onboarding experience for websites where we guide customers through setup, helping them come online more quickly with a personalized website.

此外，我們正在努力將 Squarespace AI 添加到 Squarespace Blueprint 中，重點關注除文字之外的視覺元素。 Squarespace Blueprint 是我們的網站免費模板入門體驗，我們指導客戶完成設置，幫助他們透過個人化網站更快地上線。

We continue to push the boundaries of our platform by placing more powerful and dynamic tools in the hands of entrepreneurs worldwide. We now offer customers 22 currency options and are working to increase our supported languages as we prepare to onboard Google Domains international customer base.

我們透過為全球企業家提供更強大、更有活力的工具，不斷突破我們平台的界限。我們現在為客戶提供 22 種貨幣選項，並在準備吸引 Google Domains 國際客戶群的過程中努力增加支援的語言。

International expansion remains a key growth opportunity for our business, and we saw positive gains in key markets this quarter. In summary, I'm thrilled with both our in-quarter performance and the opportunities we have in front of us, especially considering the product releases we have just recently put in the market.

國際擴張仍然是我們業務的關鍵成長機會，本季我們在主要市場看到了積極的成長。總而言之，我對我們的季度業績和擺在我們面前的機會感到興奮，特別是考慮到我們最近剛推出市場的產品。

Thank you to our employees for making this possible and our customers for choosing us. We are looking forward to helping you with your entrepreneurial journey no matter how it may start. And with that, I'll turn it over to Nathan to review the financials.

感謝我們的員工使這一切成為可能，並感謝我們的客戶選擇我們。無論您的創業之旅如何開始，我們都期待為您提供協助。有了這個，我會把它交給內森來審查財務狀況。

Thank you, Anthony. Good morning, everyone, and thank you for joining us today. Our solid Q3 2023 results were driven by the strength of our core business. We grew revenue and unlevered free cash flow this quarter. both metrics surpassing the high end of our guidance.

謝謝你，安東尼。大家早安，感謝您今天加入我們。我們 2023 年第三季的穩健業績得益於核心業務的實力。本季我們的營收和無槓桿自由現金流均有所成長。這兩個指標都超過了我們指導的上限。

These strong results allow us to raise our outlook today to over $1 billion in total revenue at an unlevered free cash flow margin of 23% at the midpoint of our 2023 range. We believe this growth, which follows record website trials during the first half of the year demonstrates that our powerful product suite continues to attract and resonate with customers worldwide.

這些強勁的業績使我們今天將總收入預期提高至超過 10 億美元，無槓桿自由現金流利潤率達到 2023 年範圍中點的 23%。我們相信，今年上半年網站試用創紀錄之後的成長表明，我們強大的產品套件繼續吸引全球客戶並引起共鳴。

Total revenue this quarter was $257 million, growing 18% as reported and 16% in constant currency. The fundamental drivers across our business remain strong. Against this backdrop of growth, we remain focused on the bottom line as well, growing our adjusted EBITDA 52% to $66 million at a margin of 26% and representing over 500 basis points of improvement.

本季總營收為 2.57 億美元，按報告成長 18%，以固定匯率計算成長 16%。我們業務的基本驅動力仍然強勁。在這種成長背景下，我們仍然關注利潤，調整後的 EBITDA 成長了 52%，達到 6,600 萬美元，利潤率為 26%，提高了 500 個基點。

On September 7, 2023, we closed our acquisition of Google Domains. Note that all discussion of unique subscriptions and average revenue per unique subscription do not account for single domain subscriptions originally sold by Google as part of the acquisition. We collectively refer to these acquired domains as acquired domain assets.

2023 年 9 月 7 日，我們完成了對 Google Domains 的收購。請注意，所有有關唯一訂閱和每個唯一訂閱的平均收入的討論均未考慮 Google 最初作為收購的一部分出售的單一網域訂閱。我們將這些收購的域名統稱為收購的域名資產。

Q3 2023 revenue contribution from acquired domain assets was immaterial. As a reminder, we recognize subscription revenue ratably over the period and impact will first appear in total bookings.

2023 年第三季收購的域名資產對營收的貢獻並不重要。提醒一下，我們在此期間按比例確認訂閱收入，影響將首先體現在總預訂量中。

During the quarter, we achieved $267 million in total bookings, an increase of $42 million, growing at 18% and 16% in constant currency. Unique subscriptions were the primary driver of growth, both the retention of existing and the addition of new. The acquired domain assets was the second largest driver of bookings growth during the quarter, which we began realizing following the close of our Google Domains acquisition on September 7, representing a period of 23 days. The impact of legacy price increases from our customers to our total bookings weighing during the quarter as we fully lap the 12-month period since we began rolling price increases out last year.

本季度，我們的預訂總額達到 2.67 億美元，增加了 4,200 萬美元，以固定匯率計算分別成長 18% 和 16%。獨特訂閱是成長的主要驅動力，包括現有訂閱的保留和新訂閱的添加。所收購的網域資產是本季預訂量成長的第二大推動力，這一點是在 9 月 7 日 Google Domains 收購結束後（歷時 23 天）開始實現的。自去年開始滾動漲價以來的 12 個月期間，我們的客戶遺留價格上漲對本季總預訂量的影響很大。

Q3 2023 revenue growth of 18% represented an increase of approximately $39 million. The primary driver was the growth of unique subscriptions, both the retention of existing and contributions from new. Unique subscriptions contributed $17.5 million or 44% of the growth this quarter. As a reminder, unique subscriptions and ARPUs do not include our acquired domain assets.

2023 年第三季營收成長 18%，增加約 3,900 萬美元。主要驅動力是獨特訂閱的成長，包括現有訂閱的保留和新訂閱的貢獻。獨特訂閱貢獻了 1750 萬美元，佔本季成長的 44%。提醒一下，唯一訂閱量和 ARPU 不包括我們收購的域名資產。

As of September 30, 2023, we had over 4.4 million unique subscriptions on our platform, an increase of $225,000 or 5% growth. We continue to see strength in our higher-value website plans, helping drive our ARPUs to over $226 this quarter, and representing growth of 10%. The largest drivers of ARPUS in the quarter were price increases across several of our subscription plans and the revenue mix shift toward higher value subscription plans.

截至 2023 年 9 月 30 日，我們平台上的獨立訂閱量超過 440 萬，增加了 225,000 美元，即成長 5%。我們繼續看到高價值網站計劃的優勢，幫助我們本季的 ARPU 達到 226 美元以上，成長了 10%。本季 ARPUS 的最大推動因素是我們的多個訂閱方案的價格上漲以及收入組合轉向更高價值的訂閱方案。

We lapped the 1-year anniversary of our legacy price increases, which we started rolling out in August 2022 to USD customers. The impact of price increases across our subscription offerings was the second largest contributor to our total revenue growth during the quarter and represented approximately $13 million across both presence and commerce website subscriptions and accounted for approximately 32% of the growth in Q3.

我們已於 2022 年 8 月開始向美元客戶推出傳統價格上漲一週年紀念。我們的訂閱服務價格上漲的影響是本季總營收成長的第二大因素，線上狀態和商務網站訂閱的價格上漲約 1,300 萬美元，約佔第三季成長的 32%。

Price increases had an outsized impact on our presence revenue, representing $12 million of growth. At the end of this 12-month period, I am delighted to see strong retention, which demonstrates the stickiness of our products and the value we deliver to our customers. We believe we still have room to bring existing customer prices closer to list price. Both contributions from pricing and the growth of unique subscriptions contributed to strong rates of total cash retention exceeding the same period last year.

價格上漲對我們的營業收入產生了巨大影響，增加了 1,200 萬美元。在這 12 個月結束時，我很高興看到強勁的保留率，這證明了我們產品的黏性以及我們為客戶提供的價值。我們相信，我們仍有空間使現有客戶價格更接近標價。定價和獨特訂閱成長的貢獻導致總現金保留率超過去年同期。

Squarespace benefits from a diversified commerce portfolio, which supports our customers' varied e-commerce needs, including physical goods, service sellers and hospitality customers. Commerce revenue grew to $78 million or 15% as reported and 13% in constant currency during the third quarter, representing 30% of total revenue. The increase in commerce revenue was primarily the result of growth of unique subscriptions, which contributed approximately $7 million to total revenue.

Squarespace 受惠於多元化的商業產品組合，支援客戶的各種電子商務需求，包括實體商品、服務賣家和飯店客戶。第三季商務收入成長至 7,800 萬美元，以固定匯率計算成長 15%，以固定匯率計算成長 13%，佔總營收的 30%。商業收入的成長主要是獨特訂閱量成長的結果，該訂閱量為總收入貢獻了約 700 萬美元。

We saw a second consecutive quarter of accelerating gross merchandise value with growth of 6% to approximately $1.5 billion in GMV. We are excited to see year-over-year GMV growth across all of our commerce products with momentum building in online stores.

我們看到商品總價值連續第二季加速成長，GMV 成長 6%，達到約 15 億美元。我們很高興看到我們所有商務產品的 GMV 逐年增長，線上商店勢頭強勁。

As Anthony mentioned, with Squarespace Refresh, we launched exciting improvement in our commerce tools that aim to help our customers sell more effectively. New features include fulfillment options customized by product; Shop pages optimized for mobile; and improvements in the checkout experience to offer in the customers a consistent brand experience.

正如 Anthony 所提到的，透過 Squarespace Refresh，我們對商務工具進行了令人興奮的改進，旨在幫助我們的客戶更有效地進行銷售。新功能包括按產品定制的履行選項；針對行動裝置最佳化的商店頁面；改善結帳體驗，為客戶提供一致的品牌體驗。

Annual run rate revenue surpassed $1 billion, an increase of over $152 million, growing 18%. Stable subscription retention, continued acquisitions and price increases drove strength in the quarter. We believe that annual run rate revenue exceeding $1 billion is a testament to the strength of our business and the power of our platform. We continue to see growth in international markets, with international revenue at $73 million, growing 21% as reported and 13% in constant currency despite typical seasonal slowness.

年運行率收入超過 10 億美元，成長超過 1.52 億美元，成長 18%。穩定的訂閱保留、持續的收購和價格上漲推動了本季的成長。我們相信，年運行收入超過 10 億美元證明了我們的業務實力和平台的力量。我們繼續看到國際市場的成長，國際收入達到 7,300 萬美元，按報告增長 21%，儘管存在典型的季節性放緩，但以固定匯率計算增長 13%。

Currency was a tailwind for us this quarter, adding $4.5 million as we continue to see support from foreign exchange rates relative to the same period last year. As of quarter end, international revenue represented 28% of total revenue in Q3 2023. Note that our international business is primarily driven from the websites, and we still have opportunity with Acuity Scheduling and Tock, which are still nascent in the international markets.

與去年同期相比，貨幣匯率對我們來說是一個順風車，增加了 450 萬美元，因為我們繼續看到外匯匯率的支持。截至季末，國際收入佔 2023 年第三季總收入的 28%。請注意，我們的國際業務主要由網站驅動，我們仍然有 Acuity Scheduling 和 Tock 的機會，它們在國際市場上仍處於萌芽狀態。

Our marketing attribution model has been efficiently directing the mix of spend to marketing channels, helping us drive customer growth this year. During the third quarter, we continued to lean into direct response channels. We closely monitor the return on investment from our spend to inform our marketing strategy as we look to scale into new markets.

我們的行銷歸因模型一直有效地將支出組合引導至行銷管道，幫助我們推動今年的客戶成長。第三季度，我們繼續傾向於直接回應管道。我們密切關注支出的投資回報，以便在我們尋求拓展新市場時為我們的行銷策略提供資訊。

Turning to our margin profile. Our non-GAAP gross margin was 82% in Q3, a decline of over 200 basis points, increased customer operation costs and domain registration fees associated with our acquired domain assets impacted our margin during the quarter. Note that domain registry fees are expensed Upfront upon sale, not ratably over the period like revenue.

轉向我們的利潤概況。第三季我們的非 GAAP 毛利率為 82%，下降了 200 多個基點，客戶營運成本增加以及與我們收購的網域資產相關的網域名稱註冊費用影響了我們本季的利潤率。請注意，網域註冊費是在出售時預先支出的，而不是像收入那樣在期間內按比例支出的。

Moving to operational expenses, our non-GAAP marketing and sales expense was $72 million in the quarter or 28% of revenue and represents over 350 basis points of improvement. We offset slight increases in advertising expense with savings in head count and organizational structure relative to the same period last year. Non-GAAP R&D expense was $45 million during the quarter and represented 17% of total revenue as we saw savings from increased capitalization of payroll. Additionally, we saw broader savings related to hiring, ensuring we are intentional and disciplined when evaluating headcount.

至於營運費用，本季我們的非 GAAP 行銷和銷售費用為 7,200 萬美元，佔營收的 28%，改善超過 350 個基點。與去年同期相比，我們透過人員數量和組織結構的節省抵消了廣告費用的小幅成長。本季非 GAAP 研發費用為 4,500 萬美元，佔總收入的 17%，因為我們看到薪資資本化增加帶來了節省。此外，我們還看到了與招募相關的更廣泛的節省，確保我們在評估員工人數時有意且遵守紀律。

Finally, non-GAAP G&A expenses were 10% of revenue or $26 million. Our G&A margin improved by approximately 170 basis points as we generally kept expenses flat relative to an increasing revenue base. Overall, I am pleased with the efficiency that we have achieved across each of the operating expense areas.

最後，非 GAAP G&A 費用佔收入的 10%，即 2,600 萬美元。我們的一般管理費用利潤率提高了約 170 個基點，因為我們總體上保持支出與不斷增長的收入基礎持平。總的來說，我對我們在每個營運費用領域所取得的效率感到滿意。

In the third quarter, our adjusted EBITDA increased to $66 million or 26% of total revenue, growing 52%. Our adjusted EBITDA margin improved by nearly 600 basis points when compared to the same period last year. The increase of our total revenue, coupled with our operational discipline, drove efficiencies to our bottom line. We are pleased to see this sustained leverage.

第三季度，我們調整後的 EBITDA 增至 6,600 萬美元，佔總營收的 26%，成長了 52%。與去年同期相比，我們調整後的 EBITDA 利潤率提高了近 600 個基點。我們總收入的增加，加上我們的營運紀律，提高了我們的利潤效率。我們很高興看到這種持續的槓桿作用。

We maintained a healthy balance sheet with cash and cash equivalents of $216 million and approximately $18 million of available borrowing. Total debt was approximately $581 million at the end of the quarter, of which $49 million is current and reflects the upside of our credit facility by $100 million to partially fund our acquisition of Google Domains. We utilized approximately $80 million of cash on hand for the remainder of the purchase. I remain comfortable with our leverage ratios today with net debt to our trailing 12-month adjusted EBITDA at 1.6x as of quarter end.

我們保持健康的資產負債表，擁有 2.16 億美元的現金和現金等價物以及約 1800 萬美元的可用借款。截至本季末，總債務約為 5.81 億美元，其中 4,900 萬美元為流動債務，反映了我們信貸額度的上行空間，即 1 億美元，用於為我們收購 Google Domains 提供部分資金。我們使用了大約 8000 萬美元的手頭現金來支付剩餘的購買費用。我對今天的槓桿率仍然感到滿意，截至季度末，淨債務與過去 12 個月調整後 EBITDA 的比率為 1.6 倍。

Turning now to our cash flow. We delivered strong cash flow in the quarter, surpassing our guidance. Our cash flow from operating activities grew 29% to $53 million for the trailing 3 months ended September 30, 2023, primarily due to the strength in bookings and offset by an increase in cash-based payroll and associated benefits as well as the timing of payments.

現在轉向我們的現金流。我們在本季度實現了強勁的現金流，超出了我們的指導。截至2023 年9 月30 日的過去3 個月，我們的經營活動現金流量增長了29%，達到5,300 萬美元，這主要是由於預訂量強勁，但被現金工資和相關福利以及付款時間的增加所抵消。

Related to payments during the quarter, we prepaid domain registry fees in conjunction with our acquisition of Google Domains. In Q3, our unlevered free cash flow was $54 million, growing 29% and representing a 21% margin. Over 170 basis points of year-over-year improvement, the beauty of this business is that we generate a lot of cash.

與本季付款相關的是，我們在收購 Google Domains 時預付了網域註冊費。第三季度，我們的無槓桿自由現金流為 5,400 萬美元，成長 29%，利潤率為 21%。年比改善超過 170 個基點，這項業務的美妙之處在於我們能產生大量現金。

Our share repurchase program continues to be active. While there are no repurchases in the third quarter, as of quarter end, we still had approximately $54 million available for repurchase under our current authorization. Since initiating the program in May 2022, we have returned approximately $146 million to shareholders.

我們的股票回購計劃持續活躍。雖然第三季沒有回購，但截至季末，根據我們目前的授權，我們仍有約 5,400 萬美元可用於回購。自 2022 年 5 月啟動該計畫以來，我們已向股東返還約 1.46 億美元。

Turning to our guidance for Q4 and full year 2023. In the fourth quarter of 2023, we are targeting total revenue in the range of $261 million to $264 million. The midpoint of the range represents approximately 15% growth. We expect unlevered free cash flow during the fourth quarter to be in the range of $56 million to $60 million, which implies an unlevered free cash flow margin of 22.1% at the midpoint of the range.

談到我們對 2023 年第四季度和全年的指導。2023 年第四季度，我們的目標是總收入在 2.61 億美元至 2.64 億美元之間。該範圍的中點代表大約 15% 的成長。我們預計第四季度的無槓桿自由現金流將在 5,600 萬美元至 6,000 萬美元之間，這意味著無槓桿自由現金流利潤率為該範圍中點的 22.1%。

The strength that we saw in Q3 gives us confidence to raise our full year guidance today. In 2023, we expect total revenue to be in the range of $1.002 to $1.006 billion, representing growth of approximately 16% at the midpoint of the range, up from our previous guidance of $987 million to $995 million.

我們在第三季看到的強勁勢頭讓我們有信心今天提高全年指引。到 2023 年，我們預計總收入將在 1.002 美元至 10.06 億美元之間，即該範圍中位數增長約 16%，高於我們之前 9.87 億美元至 9.95 億美元的指導。

Unlevered free cash flow is expected to reach between $232 million and $236 million and implies a margin of 23.3% at the midpoint of the range. This is up from previous guidance of $217 million to $225 million. I would like to outline some modeling points for Q4 and the remainder of this year. First, these ranges assume minimal contributions from our acquired domain assets. Generally, domain subscriptions are annual paid Upfront, and we recognize associated revenue ratably over the course of 12 months.

無槓桿自由現金流預計將達到 2.32 億美元至 2.36 億美元之間，意味著該範圍中點的利潤率為 23.3%。這高於先前指引的 2.17 億美元至 2.25 億美元。我想概述第四季度和今年剩餘時間的一些建模要點。首先，這些範圍假設我們收購的域資產的貢獻最小。一般來說，網域訂閱是按年預付費用，我們會在 12 個月內按比例確認相關收入。

As legacy Google Domains customers renew their subscriptions, impact will first be seen in total bookings. Keeping in mind the revenue recognition pattern, we anticipate continued impact to our gross profit margin in Q4, though this change will not be representative of our long-term margins once our legacy Google Domains customers complete their renewals on our platform.

隨著舊 Google Domains 客戶續訂訂閱，影響將首先體現在總預訂量上。考慮到收入確認模式，我們預計第四季度的毛利率將繼續受到影響，儘管一旦我們的舊 Google Domains 客戶在我們的平台上完成續訂，這項變更將不能代表我們的長期利潤率。

Domains have been a part of our offering for nearly a decade and even with the addition of millions of customers from our acquired domain assets, we expect our domain business to run in a similar manner. As with our current business, we expect new customers to join and attach websites and other services. Additionally, there is always an element of churn. We are still early to realize the benefits of this transformative acquisition, and we remain incredibly excited about what is to come.

近十年來，網域一直是我們產品的一部分，即使從我們收購的網域資產中增加了數百萬客戶，我們預計我們的網域業務將以類似的方式運作。與我們目前的業務一樣，我們期望新客戶加入並附加網站和其他服務。此外，總是存在流失的因素。我們也處於早期認識到這項變革性收購的好處的階段，並且我們對即將發生的事情仍然感到非常興奮。

As Anthony mentioned, Squarespace Payments is now available to limited customers in the U.S. We expect to recognize this revenue net, and we do not anticipate a material contribution to our revenue in Q4. To summarize, we had a great Q3. We executed well with strong top line growth, profitability and cash flow. Our core business continues to grow with existing and new customers as we make solid progress on our strategic priorities, seeding investments to drive our long-term growth. I am pleased with the traction we are seeing today at Squarespace.

正如安東尼所提到的，Squarespace Payments 目前僅向美國的有限客戶開放。我們預計會確認這筆收入淨額，並且我們預計不會對第四季度的收入做出實質貢獻。總而言之，我們的第三季表現非常出色。我們的業績表現良好，營收成長強勁，獲利能力和現金流強勁。隨著我們在策略重點方面取得紮實進展，我們的核心業務將與現有和新客戶一起持續成長，並進行投資以推動我們的長期成長。我對我們今天在 Squarespace 看到的吸引力感到高興。

Finally, I would like to express my gratitude to our employees for their commitment to our customers' success. With that, Operator, please open the line for the Q&A portion of the call.

最後，我要向我們的員工表示感謝，感謝他們為客戶的成功所做的貢獻。話務員，請打開電話問答部分的線路。

(Operator Instructions) Our first question on today's call comes from Trevor Young at Barclays.

（操作員說明）我們今天電話會議的第一個問題來自巴克萊銀行的特雷弗楊（Trevor Young）。

Great. Now that you've lapped the pricing increase that started last fall, can you just remind us of what proportion of (inaudible) rate card? And is there any specific products where there's like a greater or lesser proportion of customers that are below rate card? And relatedly, do you intend to take price again on renewal for some of those products that are maybe customers are still well below rate card?

偉大的。既然您已經完成了去年秋天開始的價格上漲，您能否提醒我們（聽不清楚）價目表的比例是多少？是否有任何特定產品的顧客比例或多或少低於價目表？與此相關的是，您是否打算在續約時再次對某些可能客戶的價格仍遠低於價目表的產品進行定價？

Sure. You broke up a little bit on the early part of that question, but I think you're asking what portion of our customers are below rate card right now on the primary products. I don't think we have that broken out, it's -- how to characterize this. If you look at the history of the product over the past 10 years, there are currently more people on presence subscriptions than commerce subscriptions overall, even though we get more money from the commerce subscriptions.

當然。您在這個問題的前半部分有點分裂，但我認為您是在問我們的客戶中有哪些部分目前的主要產品價格低於價目表。我不認為我們已經解決了這個問題，而是如何描述這一點。如果你看看過去 10 年該產品的歷史，你會發現，儘管我們從商業訂閱中獲得了更多收入，但目前在線狀態訂閱的人數總體上比商業訂閱的人數還要多。

And so there is a significant portion of below rate card. And what we're planning on doing is after a certain period of time elapses, we didn't want to do it within a year, maybe within 18 months, 24 months, kind of revisit these and start to kick them up again sort of in very similar ways to what we did in the first pricing renewal. So say, "Hey, we'll either raise it by $1 or $2 at the max of 10% or 15% to those customers." So there's still room to move in terms of moving these cohorts up. And I'd say that group is a nontrivial amount.

因此，有很大一部分低於價目表。我們計劃要做的是在一段時間過去後，我們不想在一年內完成，也許在 18 個月、24 個月內，重新審視這些並開始再次啟動它們與我們在第一次定價更新中所做的非常相似。因此，您可以說：“嘿，我們將向這些客戶提高 1 美元或 2 美元，最多 10% 或 15%。”因此，在提升這些群體方面仍有空間。我想說這個群體的數量並不小。

Okay. Great. So it sounds like maybe some time in '24, potentially revisit that?

好的。偉大的。所以聽起來可能是 24 年的某個時候，可能會重新審視這個問題？

That's right.

這是正確的。

Our next question comes from Ygal Arounian from Citi.

我們的下一個問題來自花旗銀行的 Ygal Arounian。

So coming off first half of record trials and maybe just some commentary on what you're seeing in terms of conversion of those trials, how they're flowing through, what that cohort looks like? And understandably, you can't have a record quarter every quarter, but just maybe an update and as the macro seems to be getting a little bit soft to hear what you're seeing from the top of funnel, what you're seeing from your SMB customers. And then I have a follow-up on that.

那麼，結束前半部分的記錄試驗，也許只是對您在這些試驗的轉化方面看到的情況進行一些評論，它們是如何進行的，該隊列是什麼樣的？可以理解的是，你不可能每個季度都有一個創紀錄的季度，但也許只是一次更新，因為宏觀似乎變得有點軟，聽你從漏斗頂部看到的東西，你從漏斗頂部看到的東西您的中小企業客戶。然後我對此進行了跟進。

Sure. In terms of trials in the primary product, it was another record quarter, although by a very -- a little bit. I mean it was -- I would call it more in line even though the number is technically higher than last quarter. So we were pleased to see that. They continue to have strong conversion.

當然。就主要產品的試驗而言，這又是一個創紀錄的季度，儘管幅度非常小。我的意思是，儘管這個數字從技術上講比上季度要高，但我會稱其為一致。所以我們很高興看到這一點。他們的轉換率持續強勁。

Again, our primary product, like the website product and the subscriptions, the trials I'm talking about, is really at the top of its game. I mean if you take a look at the updates from Refresh, which we put online a month ago, I mean the expressability within the Squarespace product, the ease of use, what we're doing with onboarding, the ideas around integrating AI, all of this -- and this is a really formidable product right now. So that, combined with all of the commerce initiatives we have around it, it's the best the product's ever been so it's like the reverse of atrophy. It's amazing.

同樣，我們的主要產品，如網站產品和訂閱，以及我所說的試驗，確實處於其遊戲的頂端。我的意思是，如果你看一下我們一個月前上線的Refresh 的更新，我的意思是Squarespace 產品的可表達性、易用性、我們在入門方面所做的事情、圍繞集成人工智能的想法，所有這是目前非常強大的產品。因此，結合我們圍繞它開展的所有商業計劃，它是有史以來最好的產品，所以它就像萎縮的反面。太奇妙了。

So yes, macro demand very positive for us and the product in a very positive place. Again, I point people to Refresh, it's a great real visual update of a lot of what happened this year. And also a lot in Refresh is stuff that got released in Q3. So it's a very up-to-date view of what's going on.

所以，是的，宏觀需求對我們和產品來說非常積極。我再次向人們指出“刷新”，這是對今年發生的許多事情的一次偉大的真實視覺更新。 Refresh 中的許多內容都是在第三季發布的。所以這是對正在發生的事情的最新看法。

I would add to that, Ygal, both for bookings and revenue, I think that the primary driver being the retention of our existing and the acquisition of new is evidence of the core business acceleration of that top-of-funnel impact that we've seen in the first half of the year. And as Anthony said, another record trial in Q3.

我想補充一點，Ygal，無論是預訂還是收入，我認為主要驅動力是保留現有的和收購新的，這證明了我們已經實現的漏斗頂部影響的核心業務加速。上半年就看到了。正如安東尼所說，第三季度的又一次創紀錄的審判。

Okay. Awesome. That's very helpful. And then just on domains for a little bit, just -- Nathan, you talked about the revenue contribution being immaterial in Q3. Any insights to what the revenue contribution should be in 4Q as we think about what's embedded in guidance? And then Anthony, you also mentioned that Google Domains migration will be starting soon. Can you talk about that a little bit more, expand on what that might look like and how we could think about the impact from that?

好的。驚人的。這非常有幫助。然後就領域而言，內森（Nathan），您談到第三季的收入貢獻並不重要。當我們考慮指南中的內容時，對第四季度的收入貢獻應該有什麼見解？然後安東尼，您還提到 Google Domains 遷移即將開始。您能否再多談談這一點，詳細說明它可能會是什麼樣子以及我們如何考慮由此產生的影響？

Yes. Ygal, I'll address the revenue portion first. So as I said in my opening remarks, the -- where we'll see the initial impact is bookings because as those flow through the revenue impact, it was immaterial in Q3 because it's ratably recognized over the 12 months and Q4 will not be a material impact either. So it will take time for that the revenue contribution to build up where it's a material impact to our total revenue, but very excited.

是的。 Ygal，我將首先解決收入部分。正如我在開場白中所說，我們將看到最初的影響是預訂，因為隨著這些影響對收入的影響，它在第三季度並不重要，因為它在12 個月內得到了廣泛認可，而第四季不會是物質影響。因此，收入貢獻需要一段時間才能對我們的總收入產生重大影響，但我們非常興奮。

I will say the -- from what we had modeled from a retention standpoint, we're continuing to exceed that as the legacy domains renew. So excited about that business, and I'll let Anthony expand more on that.

我想說的是——從我們從保留的角度建模的情況來看，隨著遺留域的更新，我們將繼續超越這一點。我對這項業務感到非常興奮，我會讓安東尼對此進行更多擴展。

Yes. And I remain really excited about domains from two angles. One, that it just represents this notion that we've been working on that you should be able to start with Squarespace even if you don't have a website with us, and it should be a fully featured experience. We have that with Acuity with Bio Sites, with Unfold, with Tock and now with domains where there's just multiple entry points into our ecosystem.

是的。我仍然從兩個角度對領域感到非常興奮。第一，它只是代表了我們一直在努力的理念，即使您沒有我們的網站，您也應該能夠開始使用 Squarespace，它應該是一種功能齊全的體驗。我們透過 Acuity、Bio Sites、Unfold、Tock 實現了這一點，現在我們的生態系統中只有多個入口點。

And I'd also emphasize that we continue to staff and build up the domains group at a really rapid clip, we launched new features and domains all the time, every month, and we have a ton of updates planned there to the interface and to the ability to very lightly cross-sell into our products. So I think I'm encouraged by the early results and things will only get better as we continue to roll out those improvements.

我還要強調，我們繼續以非常快的速度配備人員並建立域組，我們每個月都一直推出新功能和網域，並且我們計劃對介面進行大量更新能夠非常輕鬆地交叉銷售我們的產品。因此，我認為早期結果令我感到鼓舞，隨著我們繼續推出這些改進，事情只會變得更好。

We just hired a general manager of that group. The President of -- General Manager is here. He is kind of new as of this time last year, and it's been very positive in the other areas, and I expect it to be positive in domains.

我們剛聘請了集團的一位總經理。總裁——總經理來了。截至去年這個時候，他還是個新人，在其他領域表現非常積極，我預計在其他領域也會表現積極。

Our next question is from Ken Wong from Oppenheimer.

我們的下一個問題來自奧本海默的 Ken Wong。

Great. Fantastic. I wanted to circle up on payments. You guys just initiated the U.S. rollout. Any early comeback from customers in terms of what you're seeing there? And how we should think about any potential changes to KPIs or financial metrics as you roll this out broader across your business?

偉大的。極好的。我想談談付款。你們剛開始在美國推出。就您在那裡看到的情況而言，客戶是否有提前回覆？當您在整個業務中更廣泛地推廣這一點時，我們應該如何考慮 KPI 或財務指標的任何潛在變化？

Yes. It's really early days there still, although it is an amazing milestone for us to be actually processing, having customers in the wild sign up for it and have a full-fledged experience. Right now, it's single-digit percentage of customers in the United States who has it available, and those are all new, not really existing. And so the in-year impact is going to be very, very limited.

是的。現在還處於早期階段，儘管這對我們來說是一個令人驚嘆的里程碑，能夠真正進行處理，讓客戶在野外註冊並獲得成熟的體驗。目前，美國擁有該功能的客戶比例僅為個位數，而且這些都是新的，並不是真正存在的。因此，年內的影響將非常非常有限。

Reason for that is this is a new area for us, it carries risk with it. We want to monitor things really closely and make sure that experience is positive for people and make sure we've got those other aspects of this business like fraud, et cetera, under control.

原因是這對我們來說是一個新領域，它伴隨著風險。我們希望真正密切地監控事情，確保體驗對人們來說是積極的，並確保我們已經控制了該業務的其他方面，例如欺詐等。

So I'm not -- in terms of changes to KPIs, in the long run, because we're recognizing this is net, it just means a higher take rate on our GPV and so as the GPV continues to climb and we have these multiple ways of cell and people are selling courses and sending invoices using the platform, et cetera, et cetera. The more of that that's flowing through this, the more of that -- it's just going to generate more cash for us.

所以我不會——從長遠來看，就 KPI 的變化而言，因為我們認識到這是淨值，這只是意味著我們的 GPV 的採用率更高，因此隨著 GPV 繼續攀升，我們有這些細胞和人們透過多種方式使用該平台銷售課程和發送發票等等。流經這裡的資金越多，就會為我們帶來更多的現金。

And also, of course, the reason for doing it is, it is a better customer experience. People are in one place as a unified platform, one place for customer support, et cetera, et cetera. So that's the state of payments, but really a big milestone for us to actually have that in the wild and be kind of turning the dial and letting more people into it versus just talking about when that release is coming.

當然，這樣做的原因是為了更好的客戶體驗。人們在一個地方作為一個統一的平台，在一個地方提供客戶支持，等等。這就是支付的狀態，但對我們來說，真正實現這一點確實是一個重要的里程碑，我們要扭轉局面，讓更多的人參與其中，而不是只談論何時發布。

Our next question comes from Matt Pfau from William Blair.

我們的下一個問題來自威廉布萊爾的馬特普福。

Great. Great to see the improvement in GPV growth. And so I just wanted to ask how you're sort of thinking about that longer term. How should we think about GPV growing in relation to overall revenue? Do you think it can get in line with that or perhaps even above, would just be great to hear your perspective on that?

偉大的。很高興看到 GPV 成長有所改善。所以我只是想問你如何看待這個長期目標。我們應該如何看待 GPV 相對於總收入的成長？您認為它可以符合這一點，甚至可能更高，很高興聽到您對此的看法？

Well, it's certainly a major focus for us. And we've got a combination of things that contribute to our GPV, right? Obviously, physical products is a big one and remains important to us, and we continue to work on features for larger sellers to ensure that they can process using Squarespace.

嗯，這當然是我們的主要關注點。我們有多種因素組合來提高我們的 GPV，對吧？顯然，實體產品是一個大產品，對我們來說仍然很重要，我們繼續為大型賣家開發功能，以確保他們可以使用 Squarespace 進行處理。

Services-based commerce is, of course, where we've been focusing a little bit more of our product efforts as of late, we saw Refresh courses and our products for classes and courses is rolling out. Services for project-based sellers starting in the form of invoicing and then Tock and Acuity, both have a GPV component as well, Tock a take rate on the prepaid bookings and then Acuity having a take rate on more stuff related to the appointment booking, and the processing of the payment for the appointment in person or over SMS.

當然，基於服務的商務是我們最近更加關注產品工作的領域，我們看到了刷新課程以及我們的課程產品和課程正在推出。為基於專案的賣家提供的服務以發票形式開始，然後是Tock 和Acuity，兩者也都有GPV 元件，Tock 對預付費預訂收取費率，然後Acuity 對與預約預訂相關的更多內容收取費率，親自或透過簡訊處理預約付款。

And so we have a -- there's just so many things flowing into that GPV number. And we're -- some are very early, right? Like the classes and course, the invoicing stuff. I mean, this is 2 months old, it will take some time before that can actually affect a number like the number we're showing at $1.5 billion in the quarter. So we expect some of that stuff to pick up. Again, we're going to have these macro seasonal events as well that will sometimes be tailwinds to one category, sometimes be headwinds to some categories, and it's a conglomeration of those that remains important. But growing that across these multiple ways to sell and with Squarespace Payments, I think, is a compelling position to be in terms of having a GPV be a positive impact on the business.

所以我們有一個——有太多的因素流入 GPV 數字。我們——有些人非常早，對吧？例如課程和課程，發票之類的東西。我的意思是，這已經是 2 個月前的事了，還需要一些時間才能真正影響我們在本季度顯示的 15 億美元的數字。所以我們預計其中一些東西會回升。同樣，我們也會遇到這些宏觀季節性事件，這些事件有時會推動某個類別的發展，有時會阻礙某些類別的發展，但這些事件的組合仍然很重要。但我認為，透過多種銷售方式以及 Squarespace Payments 的發展，在 GPV 對業務產生積極影響方面具有令人信服的地位。

Which we did see a nice turn this quarter, specifically on Acuity, reverting to double-digit growth this quarter. We have 6% growth this year or this quarter year-over-year is an acceleration from what we've seen in the past quarter. So as Anthony said, I think as these come to fruition the investments that we're making in these areas, I would expect that this continues to tick up.

我們確實在本季度看到了一個不錯的轉變，特別是在 Acuity 方面，本季恢復了兩位數的成長。今年或本季我們的成長率為 6%，較上一季有所加速。正如安東尼所說，我認為隨著我們在這些領域的投資取得成果，我預計這種情況會繼續上升。

Our next question comes from Deepak Mathivanan from Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的迪帕克·馬蒂瓦南。

This is Zach on for Deepak. I just wanted to -- I guess, the first one on the kind of usage-based pricing test. Just hoping you could provide kind of more color on kind of the early learnings from this initial test? And kind of what are the mile markers that you need to see before we can see a kind of more broad test or roll out of this kind of initiative?

這是迪帕克的紮克。我只是想——我想，第一個關於基於使用的定價測試的測試。只是希望您能從這個初步測試中獲得更多的經驗教訓嗎？在我們看到更廣泛的測試或推出此類舉措之前，您需要看到什麼里程標記？

Sorry, what was the beginning of the...

抱歉，事情的開頭是什麼…

Usage-based pricing.

基於使用情況的定價。

Usage-based pricing. Yes. So we really haven't executed on a usage-based pricing test in a way that I kind of want to. We did a minor test trying to bundle some products together but also do kind of -- the way we were doing the usage-based testing was around grouping like it was more like range based instead of like how I would like to scale true usage-based pricing. So I would consider usage-based pricing test not executed at this point.

基於使用情況的定價。是的。所以我們確實還沒有以我想要的方式執行基於使用的定價測試。我們做了一個小測試，試圖將一些產品捆綁在一起，但也做了一些——我們進行基於使用情況的測試的方式是圍繞分組進行的，就像它更像是基於範圍的，而不是像我想要擴展真實使用情況那樣——為基礎的定價。因此，我會考慮此時不執行基於使用情況的定價測試。

But just given our current billing system, we wanted to see if there was something we could squeeze out with some repackaging. And it turns out the form of that test didn't work. But that's fine, I mean we run countless tests, and some don't work and some do. And so you'll continue to see more from us. We have a lot of ideas about more usage-based pricing, especially in products outside the website product like Acuity, where there's a very natural way to scale pricing based on usage that we haven't executed on yet. So lots to come with that in 2024, and I expect some of those to be quite impactful.

但考慮到我們目前的計費系統，我們想看看是否可以透過重新包裝來擠出一些東西。事實證明該測試的形式不起作用。但這沒關係，我的意思是我們進行了無數的測試，有些不起作用，有些起作用。因此，您將繼續從我們這裡看到更多資訊。關於更多基於使用情況的定價，我們有很多想法，特別是在 Acuity 等網站產品以外的產品中，其中有一種非常自然的方法可以根據我們尚未執行的使用情況來調整定價。 2024 年將會有很多事情發生，我預期其中一些會產生相當大的影響。

Great. And then just the second one, just on the kind of marketing strategy. I know you're not kind of guiding to next year formally yet. But kind of with the revamped attribution model, kind of the new product that you've announced in the Refresh international expansion opportunities, do you see kind of opportunities to lean into marketing heading into next year or kind of realizing the efficiencies and this could be a source of leverage kind of going forward?

偉大的。然後是第二個問題，關於行銷策略。我知道你還沒有正式指導明年。但是，透過改進的歸因模型，您在「刷新國際擴張機會」中宣布的新產品，您是否認為明年有機會進行行銷或實現效率，這可能是未來的槓桿來源是什麼？

It's a good question. I think it depends per market for me. I think that we're much more comfortable with some inefficiencies in international markets while they build up. And the U.S. -- look, if the model is returning, we'll keep leaning into it. But otherwise, it's about making the spend appropriate for the returns that we're seeing.

這是一個好問題。我認為這對我來說取決於每個市場。我認為，在國際市場不斷發展的過程中，我們對一些低效率的現象感到更加坦然。而美國——看，如果這種模式回歸，我們將繼續傾向於它。但除此之外，關鍵在於讓支出適合我們所看到的回報。

Our next question comes from Chris Zhang from UBS.

我們的下一個問題來自瑞銀集團的 Chris 張。

So unique subscription saw very strong growth in the third quarter as you added almost 100,000 in the quarter, and that's probably the highest Q-on-Q increase in 9 quarters. And just a couple of things we noticed in the quarter, just the -- there's definitely a couple of new product areas. And from the release, there seems to be a lack of the unfold headwinds that maybe also played a role. And also related, you mentioned having lending to direct response channels and decrease some of the partnership spend in terms of marketing? So maybe can you unpack some of the drivers of the strength in terms of -- the strength in the new subscriptions add in terms of different product areas or channels and maybe how should we think about your revenue and free cash flow guide in the fourth quarter and the (inaudible) of the strong -- in the third quarter?

因此，獨特的訂閱在第三季度出現了非常強勁的增長，該季度增加了近 100,000 個訂閱，這可能是 9 個季度以來最高的環比增幅。我們在本季注意到了幾件事，肯定有幾個新產品領域。從發布來看，似乎缺乏可能也發揮了作用的不利因素。另外，您提到向直接回應管道提供貸款並減少行銷方面的部分合作夥伴支出？因此，也許您可以從不同產品領域或管道方面增加新訂閱的實力來分析一些實力的驅動因素，也許我們應該如何考慮您第四季度的收入和自由現金流指南和強者的（聽不清楚）－在第三季？

So we usually talked about Unfolds and whatnot being the volatile thing within the quarter. I'd say that's a bit steady state right now. Here's an important thing to point out in the third quarter. So after we closed the Google Domains acquisition, what happened on that day is that new registrations at Google Domains were pointed to Squarespace. And so we have a steady state of domains being subscribed with us every month. And that took a significant step up after that registration funnel was pointed to us. That's one of the biggest things you're seeing within that unique subscriptions number that is totally new.

因此，我們通常會談論展開以及本季波動較大的事情。我想說現在的狀態有點穩定。第三季有一件重要的事情需要指出。因此，在我們完成對 Google Domains 的收購之後，當天發生的事情是 Google Domains 的新註冊指向了 Squarespace。因此，每個月都有穩定的網域訂閱量。在註冊管道指向我們之後，這邁出了重要的一步。這是您在全新的獨特訂閱數量中看到的最重要的事情之一。

And so that's awesome, right? I mean that means we're successfully onboarding many, many more people that we can potentially cross-sell and upsell and also manage on Squarespace and introduce to our products and the ecosystem. So that's a seismic change and is a big contributor to that number. I don't think there's much else to call out, but it's not. It's work as usual.

這太棒了，對吧？我的意思是，這意味著我們成功地吸引了更多、更多的人，我們可以進行交叉銷售和追加銷售，也可以在 Squarespace 上進行管理，並向他們介紹我們的產品和生態系統。所以這是一個巨大的變化，也是這個數字的重要貢獻者。我不認為還有什麼好說的，但事實並非如此。一切都像往常一樣工作。

We continue to see strong retention of our existing core and the new acquisition that we talked about earlier on the call, and that continues to be one of the biggest drivers for our unique subs. The softening of unfold is less impactful too.

我們繼續看到我們現有的核心和我們之前在電話會議上討論過的新收購得到了強有力的保留，這仍然是我們獨特潛艇的最大驅動力之一。展開的軟化影響也較小。

Right. And that new registration funnel is substantial.

正確的。新的註冊管道非常龐大。

Our next question comes from Gabriela Borges from Goldman Sachs.

我們的下一個問題來自高盛的加布里埃拉·博爾赫斯。

This is [Truv] on for Gabriela. So maybe just one on international, that remains a key growth opportunity for you in terms of the number of modules and then the broader (inaudible) opportunity. Could you maybe briefly describe where this part of the business fits in your growth strategy? And where do you see the revenue mix maybe trending medium to longer term and key drivers on that front?

這是加布里埃拉的[Truv]。因此，也許只是國際上的一個，就模組數量以及更廣泛的（聽不清楚）機會而言，這仍然是您的關鍵成長機會。您能否簡要描述一下這部分業務在您的成長策略中的位置？您認為中長期收入組合的趨勢以及這方面的關鍵驅動因素在哪裡？

Could you repeat the question?

你能重複一下這個問題嗎？

Right. So just on the international markets, maybe you could describe where you see this fitting into your growth strategy? And the revenue mix trending medium to longer term and drivers on that front?

正確的。那麼就國際市場而言，也許您可以描述一下您認為這與您的成長策略的契合點？中長期收入組合趨勢以及這方面的驅動因素？

Yes. Got it. So the international component has always been a huge part of our growth strategy. I mean, we've been in many markets for the better part of the decade now. I figure how many currencies are we in after Google, 22-ish. And then we keep internationalizing the main product. That became very additionally important to us after Google Domains because that's a more international mix than we're used to.

是的。知道了。因此，國際化一直是我們成長策略的重要組成部分。我的意思是，在這十年的大部分時間裡，我們已經進入了許多市場。我算了一下谷歌之後我們還有多少種貨幣，22 左右。然後我們繼續將主要產品國際化。在 Google Domains 之後，這對我們來說變得非常重要，因為它比我們習慣的更國際化。

But it remains very important, we have outside investment in international growth in those markets. And as I mentioned in the previous question, we're more comfortable with taking some losses and not having as tight -- if you compare our international revenue mix to certain peers, we clearly (technical difficulty) versus domestic U.S. for us versus going in the other direction.

但這仍然非常重要，我們在這些市場的國際成長中擁有外部投資。正如我在上一個問題中提到的，我們更願意承擔一些損失，而不是那麼緊張——如果你將我們的國際收入組合與某些同行進行比較，我們顯然（技術難度）與美國國內相比，與進入美國相比另一個方向。

Concerning your question on longer term, we're not talking about 2024 today. But hopefully, Q3 results and Q4 guidance gives you a good indication of how we're thinking about the business and the progress we're making. I would say, as Anthony laid out earlier, our platform has never been stronger, and with all the goodness from Squarespace Refresh, we're very excited about where we can take this both domestic and international.

關於你的長期問題，我們今天討論的不是 2024 年。但希望第三季的業績和第四季的指導能讓您很好地了解我們如何看待業務以及我們正在取得的進展。我想說，正如 Anthony 之前所說，我們的平台從未如此強大，並且憑藉 Squarespace Refresh 的所有優點，我們對在國內和國際上的發展感到非常興奮。

Our next question is from Siti Panigrahi from Mizuho.

我們的下一個問題來自 Mizuho 的 Siti Panigrahi。

I want to dig a little bit into the gross margin impact. Nathan, you talked about impact from domain cost this time. That's quite a bit sequentially, if you look at almost like 380 bps. So help us understand a little bit, is it for the cost for the new domain that you register? And how does the revenue recognition and the cost usually works for domain? Or is it for the 10 million domain that Google has? And then another quick follow-up on to that is, do you have any sense what percentage of that 10 million domain do you have a customer mix among the overlap with your customer base from that 10 million domain?

我想深入研究一下毛利率的影響。 Nathan，您這次談到了域名成本的影響。如果你看一下幾乎 380 bps 的話，這已經是相當大的順序了。那麼請幫我們了解一下，您註冊的新網域是否需要費用？域名的收入確認和成本通常如何運作？還是為了Google擁有的1000萬個網域？然後另一個快速跟進是，您是否知道您的客戶組合在這 1000 萬個網域中與您的客戶群重疊的百分比是多少？

Yes. Siti, thanks for the question. So we have historically operated on 80-plus percent margins, very healthy margins. We've been in the domains business for over a decade. And so the dip that we see here is not a surprise. We certainly expected it with onboarding new domains, we do recognize the cost of the registry costs Upfront. So that's fully burdened in our cost of goods sold, whereas revenue is recognized ratably over the 12 months.

是的。西蒂，謝謝你的提問。因此，我們歷來的營運利潤率都在 80% 以上，這是非常健康的利潤率。我們從事域名業務已有十多年了。因此，我們在這裡看到的下降並不令人意外。我們當然期望加入新域名，我們確實認識到註冊管理機構的前期成本。因此，這完全計入我們的銷售成本，而收入則在 12 個月內按比例確認。

So because of that discrepancy, you do see a greater impact on gross profit margin. But over the long term, I would say we expect to see the margins normalize. As Anthony talked about earlier on the call as well, the exciting part and transformative part of this deal is that cross-sell opportunity as we bring these customers on opening them up to the ecosystem of Squarespace and attached products. Did you want to say anything more, Anthony?

因此，由於這種差異，您確實會看到對毛利率的影響更大。但從長遠來看，我想說我們預計利潤率會正常化。正如安東尼早些時候在電話會議上談到的那樣，這筆交易的令人興奮和變革的部分是交叉銷售機會，因為我們讓這些客戶向 Squarespace 和附加產品的生態系統開放。安東尼，你還想再說什麼嗎？

No. I mean that covers it for me.

不，我的意思是這對我來說已經涵蓋了。

And how about the overlap between that 10 million?

那麼這 1,000 萬之間的重疊情況又如何呢？

On the overlap, I'm sorry. Yes, I'd say the substantial amount of the 10 million is not overlapped. I mean, if you just looked at the unique subs that we had before and the fact that a lot of the domain attach was from us, a substantial portion or not overlap, even just if you look at just the raw numbers divided our (inaudible) accepted half and said, okay, well, what's the max impact it could be? Max overlap.

關於重疊，我很抱歉。是的，我想說，這 1000 萬的金額很大一部分是沒有重疊的。我的意思是，如果您只查看我們之前擁有的獨特子項，以及許多域附加來自我們的事實，則很大一部分或不重疊，即使您只查看原始數字除以我們的（聽不清） ）接受了一半並說，好吧，那麼它可能產生的最大影響是多少？最大重疊。

Our next question is from Alexei Gogolev from JPMorgan.

我們的下一個問題來自摩根大通的阿列克謝‧戈戈列夫。

Anthony, you said in your prepared remarks that you have introduced the biggest advancements in commerce products and various other releases during the Refresh earlier this year. Could you elaborate how your customers are choosing higher price point packages post those new releases?

安東尼，您在準備好的演講中表示，您在今年早些時候的刷新期間介紹了商業產品和各種其他版本的最大進步。您能否詳細說明您的客戶在這些新版本發布後如何選擇更高價位的套餐？

So yes, so to just emphasize that within the quarter, we have payments being introduced to a single-digit percentage U.S. customer. So we're rolling that out. And then we had improvements to our classes and courses product and our invoicing products as well as multiple improvements to our existing service-based selling products and Acuity. And just all in, it's the most improvements we've ever delivered in a year.

所以是的，所以要強調的是，在本季度內，我們向美國客戶支付了個位數的費用。所以我們正在推出它。然後，我們對課程和課程產品以及發票產品進行了改進，並對我們現有的基於服務的銷售產品和 Acuity 進行了多項改進。總而言之，這是我們一年來實現的最大改進。

I think that we have a lot of ideas about the go-to-market and the packaging and the pricing of those products that have yet to be realized. I think we're a little bit ahead of ourselves in terms of like -- I think we have functionality that's sort of like undiscovered. And so in 2024, there's a lot we want to do with the brands around those products and how we package them that I think will influence the planned choices people are making and simplified this whole experience for people.

我認為我們對這些產品的上市、包裝和定價有很多尚未實現的想法。我認為我們有點超前了——我認為我們擁有一些尚未被發現的功能。因此，到 2024 年，我們希望圍繞這些產品的品牌以及我們如何包裝它們做很多事情，我認為這將影響人們所做的計劃選擇，並簡化人們的整個體驗。

Just due to how we've grown up, there's a lot of different subscriptions inside Squarespace right now. And I think that if we get smarter about repackaging for essentially people personas, if you will. I'll be able to more clearly comment on how they're adopting those specialized, verticalized plans around this functionality.

正是由於我們的成長，Squarespace 中現在有很多不同的訂閱。我認為，如果我們能夠更聰明地重新包裝本質上的人物角色，如果你願意的話。我將能夠更清楚地評論他們如何圍繞此功能採用那些專門的、垂直化的計劃。

Okay. And Nathan, very quick follow-up on your 4Q guidance. What FX impact are you incorporating into those forecasts?

好的。內森（Nathan），非常快速地跟進您的第四季度指導。您將哪些外匯影響納入這些預測中？

Sorry, what was the question?

抱歉，問的是什麼問題？

FX impact.

外匯影響。

FX impact. Our rates for FX are as of the end of September in Q4.

外匯影響。我們的外匯匯率截至第四季 9 月底。

Okay. So roughly 2 percentage points impact. So constant currency wise, the midpoint of your guidance is about 13% in constant currency.

好的。大約有 2 個百分點的影響。因此，以固定匯率計算，您指導的中點約為 13%（以固定匯率計算）。

We don't give constant currency guidance.

我們不提供持續的貨幣指導。

Our next question comes from Andrew Boone at JMP Securities.

我們的下一個問題來自 JMP 證券的安德魯·布恩 (Andrew Boone)。

Anthony, can you talk about the benefits that you're seeing from Squarespace AI in terms of conversion or anything else you want to highlight? And then how do we think about your AI road map as we're moving into 2024?

Anthony，您能談談您從 Squarespace AI 中看到的在轉換方面的好處或您想強調的其他方面嗎？那麼，當我們邁入 2024 年時，我們如何看待你們的 AI 路線圖？

Sure. So we've done the common sense AI integration thus far, generative text inside of text fields, all of that, I mean, kind of the -- I mean to say like the demo you've seen everyone give, we've also incorporated into the product.

當然。到目前為止，我們已經完成了常識性的人工智慧集成，在文本字段內生成文本，所有這些，我的意思是，我的意思是說，就像你看到每個人給出的演示一樣，我們也納入產品中。

I think that what makes surprising people or not surprised people is that it really hasn't had much of an impact on conversion. And why is that? Because everyone has access to ChatGPT already and they know how to copy and paste. And so it's not really that big of a deal that you're on the image field and it adds an image that came from Dolly or that you're in a text field and they paste it in from ChatGPT for you.

我認為，讓人感到驚訝或不感到驚訝的是，它確實對轉換率沒有太大影響。為什麼是這樣？因為每個人都已經可以存取 ChatGPT 並且他們知道如何複製和貼上。因此，您在圖像欄位中添加來自 Dolly 的圖像，或者您在文字欄位中，他們從 ChatGPT 為您貼上它，這並不是什麼大不了的事情。

So it's a convenience, our customers like it. They use it, but it doesn't have any impact on conversion right now. For the road map and thinking about how we think about it in the future, very visual demos that are posted on the Refresh site that we'll do a better job of kind of showing how we see it impacting multiple parts of the product.

所以這很方便，我們的客戶喜歡它。他們使用它，但目前對轉換沒有任何影響。對於路線圖並思考我們未來如何看待它，刷新網站上發布了非常直觀的演示，我們將更好地展示我們如何看待它對產品的多個部分的影響。

Moving forward, and I would definitely encourage people who have questions about the -- what AI might look like for Squarespace to go check those out. There's a couple of minute long video there, and we talked through the different parts of the product and specific where we think it applies and all of that. But most of what we're doing here applies to set up an onboarding the anticipated improving. But just sort of I would keep in mind that a lot of the technologies that are being demoed like -- that are just API calls, all of our (inaudible) competitors have and we're integrating them at low cost and they're just common sense, good things to do.

展望未來，我絕對會鼓勵那些對 Squarespace 的人工智慧可能會是什麼樣子有疑問的人去檢查一下。那裡有一個幾分鐘長的視頻，我們討論了產品的不同部分以及我們認為它適用的具體位置等等。但我們在這裡所做的大部分工作都適用於建立預期的改進。但我要記住的是，許多正在演示的技術都只是 API 調用，我們所有（聽不清楚）的競爭對手都有，我們正在以低成本整合它們，它們只是常識，好事要做。

Our last question comes from Naved Khan from B. Riley.

我們的最後一個問題來自 B. Riley 的 Naved Khan。

Just a couple please. I think last year, you guys had launched localization efforts and added some new markets. Any new effort in that direction, are you adding a few more markets internationally? And then a related question on international is just around advertising. Again, I think you benefited this year from the campaigns you did last year, Anthony. Is there any plan to sort of do another [reset] in terms of international ad campaign?

請來一對。我想去年你們已經啟動了在地化工作並增加了一些新市場。在這個方向上有什麼新的努力嗎？你們是否會增加一些國際市場？國際上的一個相關問題就是廣告。再說一次，我認為今年你從去年所做的活動中受益匪淺，安東尼。是否有計劃在國際廣告活動方面進行另一次[重置]？

Yes. So with the international ad campaigns, we're always looking at which markets we think can grow in adapting our campaigns to those local markets and testing those and figuring out where we needed to adapt one or where actually the same concepts behind the English campaign, we're totally fine.

是的。因此，在國際廣告活動中，我們一直在尋找我們認為可以成長的市場，使我們的活動適應當地市場並進行測試，並找出我們需要在哪裡進行調整，或者在英語活動背後實際上有相同的概念，我們很好。

On the platform right now, during checkout, again, we have like 22 or so odd currencies that you can use to check out. I'm blanking on the number of languages we added within the year. It was like 3 or 4, bringing it to like some...

現在在平台上，結帳時，我們有大約 22 種左右的奇怪貨幣可供您結帳。我對我們在這一年中添加的語言數量一無所知。大概有3或4個，讓牠喜歡一些......

I think we have 11 in total.

我想我們總共有 11 個。

11 total now. I can get a better answer from that. I'm sure it's on the website, I just -- yes, off the top of my head, I can't remember. But yes, we continue that push, and we'll continue to add different geos. We're looking at some Asian geos right now and just trying to methodically go through these, where we see the biggest opportunity and where we think the product is most applicable with the least amount of translation or other effort.

現在總共11個。我可以從中得到更好的答案。我確信它在網站上，我只是——是的，我一時想不起來，我不記得了。但是，是的，我們將繼續努力，我們將繼續添加不同的地理位置。我們現在正在研究一些亞洲地區，並試圖有條不紊地瀏覽這些地區，我們在這些地區看到了最大的機會，我們認為該產品最適合最少的翻譯或其他工作。

This concludes the Q&A session. I will now hand back to the Squarespace team to conclude.

問答環節到此結束。現在我將把結論交給 Squarespace 團隊。

All right, everyone. Thank you for joining the call. A fantastic quarter for us. Just really pleased with all the releases in the quarter, Refresh was the strongest ever. Great round up there, really just proud to be able to report a 400 basis point improvement year-over-year in margin while still delivering strong top line results and also with so many opportunities to grow. I mean we touched on classes and courses, invoices, payments, domains, cross-sell. I mean, there's just so many things we have in market right now. So I'll be excited to move into 2024 and hopefully be reporting back with how that stuff starts to materially change our business. Thank you all.

好吧，大家。感謝您加入通話。對我們來說這是一個美好的季度。對本季度的所有發布感到非常滿意，刷新是有史以來最強大的。很棒的總結，真的很自豪能夠報告利潤率同比提高 400 個基點，同時仍然提供強勁的營收業績，並且還有如此多的成長機會。我的意思是我們談到了課程、發票、付款、域名、交叉銷售。我的意思是，我們現在市場上有很多東西。因此，我將很高興進入 2024 年，並希望能夠報告這些內容如何開始實質地改變我們的業務。謝謝你們。

This concludes today's conference call. Thank you all very much for joining. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝大家的加入。現在您可以斷開線路。