5 Interesting Learnings From Squarespace at $1.1 Billion in ARR

So with public SaaS companies continuing to grow, but revenue multiples often at relative lows, it can make sense in some cases to “go private”, invest in more growth for a few years, and try to IPO again down the road.  Qualtrics did it, nCino just did it, and the latest is Squarespace.  They are going private at an almost $7 Billion valuation.

Now that may sound like a lot, and it is a lot, but less so a multiple of revenue and ARR.  Squarespace is at $1.1B+ in ARR, growing almost 20% with strong margins — and even with a 30% premium to take it public, it’s still been acquired for about 6x ARR.

Squarespace hasn’t done everythiing right, but it’s a pretty darn good one.  One I’d hoped would be worth more than 6x ARR.

5 Interesting Learnings:

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