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Squarespace Ends Down in First Day of Trading

Web-hosting service Squarespace, which went public as a direct listing with a $50 reference price, finished sharply lower on its first day.
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The web-hosting service Squarespace  (SQSP) - Get Squarespace Inc. Class A Report, which went public as a direct listing with a $50 reference price, tumbled on its first day.

Squarespace finished down 12.7% to $43.65 on Wednesday.

Recent pricing gives Squarespace a market capitalization of $6.8 billion. At Squarespace’s March funding round, it had an enterprise value of $10 billion, which includes options and other holdings, Bloomberg reported.

The New York company’s backers include General Atlantic, Index Ventures and Accel. Its top competitors include Wix.com  (WIX) - Get Wix.com Ltd. Report and GoDaddy  (GDDY) - Get GoDaddy Inc. Class A Report.

Squarespace said in its prospectus that its revenue totaled $621.1 million in 2020, up 28% from $484.8 million in 2019. Subscription-based revenue soared 94%.

Net income dropped to $30.6 million from $58.2 million. As of Dec. 31, Squarespace had 3.66 million unique subscribers.

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Other technology companies executing direct listings recently include cryptocurrency exchange Coinbase Global  (COIN) - Get Coinbase Global Inc Report and online videogame platform Roblox  (RBLX) - Get Roblox Corporation Class A Report.

Coinbase shares tumbled Wednesday after it priced $1.25 billion of convertible senior notes, which will pay interest of 0.5%. Bitcoin and other cryptocurrencies fell on Wednesday.

The stock of Coinbase recently traded at $223.89, down 6.3%.

Roblox last week reported its first financial results since it went public, posting better-than-expected bookings on a surge in daily users. 

The company said bookings in the first quarter hit $652.3 million, better than the $573 million forecast compiled by FactSet. 

Average daily active users during the quarter were 42.1 million, an increase of 79% year-over-year.

Roblox stock ended at $75.22, up 0.3%.