Thank you all for joining Squarespace's November 2021 Virtual Investor Day. My name is Christopher Chiou, and I'm the Head of Investor Relations and Corporate Development. Today, you'll be hearing from Anthony Casalena, our Founder and CEO, Marcela Martin, our CFO, and Alfonso Cobo, Head of Unfold, as we discuss several aspects of our strategy, future growth, and long-term targets. In a few minutes, Anthony will provide a brief overview of Squarespace as a refresher for the audience, which will then set the stage to discuss the key growth levers for the business, commerce, international, Circle, and enterprise, and how those will impact customer growth and adoption. This will be followed by a deeper dive into the products that help our customers build a brand and transact online. Alfonso will then share the exciting new developments at Unfold, our social presence product, a product we believe makes us unique versus our competitors. Marcela will discuss our business model, our investment philosophy, provide more clarity on how we calculate customers or unique subscriptions, and classify presence versus commerce and subscription versus non-subscription revenue. We'll conclude the presentations with some of our long-term financial goals. We'll then wrap up the day with a live Q&A. We want to thank you all for joining today. We are excited for this opportunity to provide you greater insight into our business, why we believe we are still in the early stages of the growth opportunity in front of us and some of our long-term targets. On today's call, we'll be referencing both GAAP and non-GAAP financial results and operating metrics. You can find additional information on how we calculate any of the metrics discussed on this call, including a reconciliation of GAAP to non-GAAP measures in today's presentation, which can be found in the Investor Relations section of our website. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. The matters we'll be discussing include 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, outlook for the fourth fiscal quarter and the full fiscal year ending December 31, 2021, the company's market position, potential market opportunities, long-term financial targets and/or goals, projections, product introductions, and the company's marketing strategy. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our documents filed with the SEC. Actual results may differ materially from those contained in our forward-looking statements. Please take a look at our filings with the SEC for a discussion of the factors that could cause the results to differ. Any forward-looking statements that we make on this call are based on assumptions as of today, November 18, 2021, unless stated otherwise, and we undertake no obligation to update these statements as a result of new information or future events. I'll now turn it over to Anthony. Hello, everyone. I want to officially welcome you to our first ever Investor Day as a public company. We're excited to present our progress, and we expect to cover a lot of ground. I know many of you are here to learn more about the direction Squarespace is going and the products and services we are building for the millions of entrepreneurs and businesses we empower. We are also going to ground you with some historical financials so you have a better understanding of our long-term trajectory and our strong position in this growing market. We have many reasons to be excited by the opportunities that lie ahead for us, from the advances we're making with our products and services to our expanded push both internationally and to new audiences. While Squarespace is rapidly growing and evolving to meet the needs of our customers, our mission remains the same. Squarespace exists to help people with creative ideas stand out and succeed. We seek to enable millions to build a brand and transact with their customers across an impactful and beautiful online presence. This is o ur North Star that drives our team every day and informs how much we think about everything we do. Today, we are just under $800 million in annual run rate revenue, approximately 30% of which is commerce-related activity. We have achieved this with just over 4 million unique subscriptions. Our revenue compounded annual growth rate from 2018 through 2020 is 26%. Our operating discipline has allowed us to achieve this scale with an industry-leading 84% gross margin. In the last quarter, we achieved 19% Adjusted EBITDA margin and 24% unlevered free cash flow margin. Our scale, growth, and profitability provides us with the flexibility to invest in our business in different ways to achieve long-term, durable growth. Our product story began over 18 years ago when I evolved the blogging system I was making for myself into an easy-to-use publishing tool that is now used by millions. We've come a very long way. I'm incredibly proud of our achievements over the years, from launching innovative new design systems to the evolution of our e-commerce offerings, to our direct listing, and to the amazing culture we've created as we've grown to a team of almost 1,500 employees across the globe. Squarespace has pushed the web forward for millions at many points during our history, and I'm excited to continue doing so over the next decade as we focus on our commerce offerings. We've been able to capture a meaningful part of our market opportunity, thanks to our relentless focus on our customer needs. Squarespace has always been in the corner of the entrepreneur, and as a result, everyone from businesses just starting out to some of the world's most iconic brands use our website products. Hundreds of thousands of others use our multimodal commerce platform to transact online, and hundreds of thousands more use Unfold to tell their stories. Tock serves as the restaurant management platform to many of the best restaurants and wineries in the world. Why are these brands coming to us and not to our competitors? Our all-in-one platform has incredible depth and breadth. Our platform is beautifully designed, providing consistency everywhere. We take great care in this element of what we do. It is central to our products, our marketing efforts, and even our office space. Lastly, our sell anything orientation captures the many ways in which transactions are occurring online today, whether an appointment, reservation, to-go order, event, or access to paywall content or courses. The barriers for any individual to start and scale a brand to transact anywhere online are the lowest they've ever been. I'll now go into a few key growth levers that we intend to lean on over the next several years. We're also sharing some additional historical metrics to put these levers in context in the appendix. We operate in an incredibly large total addressable market, which we believe to be approximately $350 billion, driven by the hundreds of millions of creators, independent, small, and medium-sized businesses around the world. First, our multi-year commerce investment, which we believe will be the most important long-term growth driver for us, has evolved from just Online Stores in 2013 to the diversified multimodal offering of 2021. We spoke to this in September as part of our new platform vision, Everything to Sell Anything. If you look at when a lot of the components of multimodal became available, it has really been since early 2019, starting with email campaigns, the launch of standalone scheduling in January 2020, and Member Areas November 2020. In 2021, we acquired Tock. It helps power online reservations to-go orders and events for the hospitality industry and beyond. We're going to dive deeper into several of these elements later today. Also, in terms of relative size, commerce website plans and revenue share are currently the biggest contributor to commerce revenue, followed by scheduling subscriptions plus revenue share, and then the remaining products, campaigns, Member Areas, and Tock. We are quite pleased with scheduling's performance. In fact, in the last quarter, it grew from more than 60% year-over-year. If you annualize the year-to-date top line as of Q3 2021, commerce revenue is $220 million. Meanwhile, GMV continued to grow at a rapid pace as Squarespace participated more in the transaction layer of online commerce, reaching an estimated $5+ billion when annualizing the latest quarter of GMV from Q3 2021. One of the great things about our GMV is how diversified it is across goods and services, which provides some insulation from weaknesses in any particular quarter in those areas. This shift in services GMV contribution is a key indicator that our multimodal commerce offering is resonating with customers. We believe this trend is going to continue, while not discounting the importance of physical goods to our overall mix. It's important to note that our take rates also vary depending on the product, whether it be in our various website plans, scheduling, or Tock. Squarespace commerce plans and scheduling both recognize payment-related revenue on a net basis, whereas Tock recognizes payment-related revenue on a gross basis. Further, within Tock, our take rates vary between to-go orders, which have a higher take rate, versus reservations and prepaid deposits, which have a lower take rate. For instance, as dining behavior shifts from to-go ordering to in-person dining, this adversely affects our revenue within Tock, even though customer adoption remains strong and growing. In the last quarter, Tock saw a record number of diners leverage our platform. As a reminder, we have existing revenue share agreements with our payment processors and are in the process of determining if we should make any changes. We are on track to make a decision regarding potential changes to those existing relationships to either capture better economics and/or improve the customer experience by the end of this year. We look forward to updating you on this progress. To summarize, over the last five years, we've been positioning the company and the commerce platform in general to enable our customers to transact in a myriad of ways. We believe that non-physical product commerce revenue will be a significant part of our future. These investments across our commerce platform will be one of the most important growth drivers for Squarespace in the long term. In fact, we believe that in the future, the majority of Squarespace's revenue will be from commerce-related activity. A second key lever for us is around international expansion. Up until around 2018, I would characterize our international efforts mostly due to customer pull resulting from word of mouth reaching non-U.S. markets, or the fact that some of our advertising, such as podcasting, is naturally more global in nature. It was not until the last couple of years that we dedicated a meaningful amount of resources towards these markets. We realized that to be successful in international markets, we need long-term sustained investments. Today, it currently accounts for 30% of our total revenue. We see a significant untapped market opportunity abroad, and we believe we are well-positioned to capture share when considering the absence of large local competitors. Initially, we focused our efforts on English-speaking non-U.S. countries, which represent approximately 70% of our non-U.S. revenue. We've expanded our focus and are now making significant investments to grow in new geographies and areas. Our localization efforts now allow us to support the following. First, our site builder interface is now translated into English, French, German, Italian, Portuguese, and Spanish. Second, for sites built on our platform and viewed by website visitors, we additionally support Dutch and Swedish, and we plan to introduce Norwegian and Danish in the first half of 2022. Third, to purchase a Squarespace subscription, we currently accept four currencies, including U.S. dollar, euro, British pound sterling, and the Australian dollar. Fourth, we're launching SEPA as a payment gateway this quarter, our first non-U.S.-centric payment method for customers to be able to purchase Squarespace products, which we believe will increase our penetration across Europe, and in particular, some parts of the non-English speaking countries in that region. We aim to continue to add payment methods to attract new customers. Finally, via Stripe, our customers can accept payments from their customers in more than 25 currencies. Additionally, in this last quarter, we made improvements to our platform to make it easier to add new languages and expect faster rollout as we introduce additional ones. With the new localization efforts, we are also launching bespoke marketing campaigns that target specific markets. These campaigns are focused on increasing brand awareness as we begin to establish ourselves in these markets. Initial markets included the U.K., Australia, and Germany. While it is still early, we're seeing improved conversion and higher unaided awareness. As a result, our international revenue exceeded our plan in Q3 2021. In the same quarter, 36% of new website subscriptions originated in non-U.S. markets. As previously announced, we're expanding our global footprint with new locations initially to support local marketing efforts. These new locations include London, Amsterdam, and Sydney. These are in addition to our current locations in the U.S., New York, Portland, Chicago, Los Angeles, and internationally, Dublin. For international, our long-term objective is to have 50% of new website subscriptions coming from non-U.S. markets. Circle, initially launched in 2016, is a community of thousands of experts making a living building websites for their customers on Squarespace. Circle generate unique subscriptions, and the related bookings have grown and accounted for a greater share of Squarespace's business each year since the program's launch. We provide Circle members with the tools, education, and resources they need to grow successful website design practices. In the early years of this program, it primarily grew organically from professional designers who had a strong affinity to Squarespace. As of October 2021, Circle members are, for the first time, financially incentivized to create more websites on our platform via our new referral program. We expect this investment to result in a growing Circle community and more subscriptions generated through this channel. To be eligible to be a Circle member, you must have created at least three websites on our platform. Today, there are almost 25,000 active Circle members. Active members are ones that have created at least one new website subscription in the prior year. This number grew 25% year-over-year. In 2020, websites generated by Circle members made up high single digits of our new website subscriptions. Finally, subscriptions from Circle members generally represent introducing a higher value customer to our platform due to a tendency to skew towards commerce-related activity, whether it's our commerce plans, scheduling, or campaigns. Our Circle community has always been an important part of our ecosystem. They provide invaluable detailed feedback when we're testing new products and evolving our platform and help customers get onboarded to Squarespace that might otherwise not have time to learn our tools. Given our continued efforts, we are seeking to double our active Circle member community over the long term. Finally, I'd like to briefly touch on our nascent but promising enterprise business. Like international, we realize this will require a sustained multi-year investment across multiple parts of the company. We formally created our channels and services team in 2019 and launched our first offerings, Volume and Concierge, in early 2020. Our enterprise strategy continues to evolve as we determine the best product market fit across certain customer segments. We are continuing to develop product features that larger customers require around security, employee access and authentication, support, account management, and custom billing. We currently have two enterprise website offerings. The first, Volume, is a solution designed specifically to streamline workflows for businesses managing a large number of sites at once. Enterprise Volume customers are eligible to receive discounts and services that are not available in standard Squarespace plans. The second, Concierge, is designed for businesses that require a higher touch service model with dedicated account management, priority support, and custom billing. Through these offerings, we target a variety of customers, such as larger businesses, teams within larger organizations, and agencies. Also, separate from our offerings within websites, we've been introducing similar enterprise offerings within Squarespace Scheduling. That product has recently seen strength in the healthcare sector, specifically around telehealth. Over the long term, we're aiming for enterprise to represent over 5% of our total bookings. In the last quarter, we signed a contract with a U.S. telehealth company for testing appointments. The company was looking for an easy-to-use solution to accommodate patient scheduling. Another recent enterprise customer is a U.S. real estate company. They purchased over 2,000 websites for their agents to help them build their brand and find more clients while the larger organization can maintain cohesion and centralized control across the sites they manage. We feel we are just at the beginning of tapping the potential for what Squarespace can do for larger organizations, and our initial results in enterprise are encouraging. Over the long term, we're aiming for our enterprise business to represent 5% or more of our total bookings. Executing on these growth levers will lead to both more customers on our platform and more product adoption from new and existing customers. We track these growth levers in a macro way with two metrics, unique subscriptions and average revenue per unique subscription, or ARPU. Unique subscriptions and ARPUs should be viewed in tandem, and overall top-line growth can be achieved with either or both growing. Certain growth levers will likely impact these two metrics differently. For example, international and social would likely affect unique subs more, whereas enterprise and commerce GMV will then impact ARPUs. With the introduction of scheduling and social products as well as impacts from COVID, unique subscriptions saw strong growth from 2018 to 2020. Meanwhile, the ARPUs for a similar period was in low single digits. While we remain focused on growth in both, ARPU's growth is accelerating on a year-over-year basis as cross-selling is a relatively new growth driver for us as we've recently introduced many new products. We also note our 2019 acquisitions provided us with a meaningful increase in unique subscriptions, whereas Tock in 2021 positioned Squarespace further upmarket towards higher value, albeit fewer customers. We also wanted to provide some detail on examples of how we define unique subscriptions. As you can see, this metric includes many different variations of our initial products, such as websites and domains, to which a customer can attach Google Workspace, campaigns, scheduling, or Member Areas. These are Unfold, Tock, and standalone scheduling, which includes legacy Acuity customers. Our growing product lines and the associated payments revenue are part of what is driving the faster growth in ARPUs, along with higher value commerce plans as multimodal selling becomes more and more common. I cannot be more excited about the opportunities ahead for us. Due to our scale, brand recognition, and product suite, Squarespace is uniquely positioned to help the next generation of creatives and entrepreneurs grow and sell online. With that, let's move on to product updates, where I'll go deeper into some recent releases from across our portfolio. You can sell things. Thoughts. Brought to you by Squarespace. Your unexpected musical genius. You can sell your time. You have three days till you die. 15 minutes of nothing. 15 minutes of everything. With 10 minutes for questions. Sell the next you. Even higher waisted jeans. The latest workout thing. Finishing school. What is the opening? For robots. Clocks. The truth about daylight savings. Sir, what are you hiding? Attention to detail. Your theory on reality. Motivation. Believe in believers. The showstopper is the blue whale. Space. The thing no one asked for that everyone's now asking for. Squarespace is everything you need to sell anything. As you can see, Squarespace has a long history of innovation. In particular, we've been able to release new products and features in an accelerated pace in the last few years across both of our presence and commerce-related solutions. First, I'd like to share some quick updates from within our content management system or CMS. Our CMS is our core product and is incredibly vast with a feature base that has been built up and refined for over a decade. Our CMS remains one of our prime differentiators, with many customers choosing us because we help them stand out online and look great. This, of course, translates into their stories being well-received and their potential for sales being much higher. Our content management system seeks to balance usability with expressibility, meaning we are maximizing for both the number of people who can use our product and the kinds of sites that can be built on Squarespace at the same time. This defines our total addressable market. If we create a CMS that is very easy to use but can only address a limited range of sites, it would greatly limit our total addressable market. Similarly, if we create a very complex product that is usable by few, we limit our TAM in a different way. Squarespace strikes an elegant balance between both usability and expressibility that has propelled us to be one of the largest companies in our space. As you can see here, our roadmap represents an investment in both of these areas. To give some examples of recent updates across our platform on the expressibility side, we recently rolled out new features including header effects, image masks, auto layouts, an accordion block, button styles, and background art. This ability to create differentiated sites and our attention to detail is a major factor in the attraction customers have to our platform. Squarespace powers sites for millions, and our block editor, which is the way our users add functionality to their pages, gives us incredible insights into the demand for various types of functionality. We observe our users adding 400,000 blocks to pages every day. The insights from this usage allows us to shape our roadmap according to real-world demand. Further, when we introduce new functionality, such as reservations by Tock, we can direct our customers to Squarespace integrated services while they build their sites. In the last quarter, we launched Squarespace Video Studio, an app to help our customers effortlessly create professional-level videos that can be shared anywhere. Video has become a critical way for brands to communicate with customers, but creating a beautiful video for any business can be daunting. Video Studio helps our customers find the right visuals and fit those to a script, taking the difficulty out of producing these valuable assets. With Squarespace Video Studio, we applied our design ethos to the video realm to help customers gain traffic and sales. Like our premium website templates, our premium video templates are of agency quality, giving our customers a result that could otherwise cost thousands or tens of thousands of dollars per video. To make the video creation process even easier, we allow customers to instantly pull in content from their websites and stores, from their brand identity, colors, fonts, to their product imagery. On-camera talent and voice-over leads to higher converting videos, but not everyone is comfortable with recording their own content. We leverage AI to make crystal clear lifelike voice-overs as easy as typing a text message. To help customers promote themselves across different social channels, our sophisticated template system generates multiple versions of each video to optimize creative asset placement across multiple size formats. While this is a recent release for us, we're encouraged by the early positive feedback we've received. Also, based on initial adoption stats, commerce subscribers who utilize Video Studio were 94% more likely to grow month-over-month sales than those who did not. As an example, a lifestyle blogger utilizes Squarespace Video Studio to expand engagement with her audience. Video Studio has had a positive impact on her brand by increasing traffic and subscriptions to both her blog and shop. Here is her short customer testimonial. My name is Alicia. I am a blogger and podcaster from South Florida. My family is from the Caribbean. I'm a daughter of immigrant parents. First gen. First daughter. I would say some of the challenges as a business owner really is consistency. Life happens, and you're trying to pull yourself in a million different directions. Squarespace Video Studio allows me to create professional video content right on the app. It gives me a little bit more ownership and empowerment of the creative process. Some of the features I really love about the app are the voiceover option. Additionally, I would say the plug-and-play option of just pulling my products from my website onto the app, and it's just already there. Probably a little more hesitant to put content out there. Squarespace has definitely driven in sales. It's driven insane engagement and traffic to the site all around. I think the app has really helped me to feel like more of a professional and like I actually know what I'm doing just because of all the templates and different resources. Moving on to how we help our customers transact online. Our journey towards becoming a commerce platform started almost a decade ago when we launched our first offering, Online Stores. Today, we believe Squarespace is one of the easiest and most powerful ways for anyone to sell physical products from their website. We provide merchants with a fully integrated solution that includes guided setup, product catalog management, merchandising and sales tools, mobile checkout, order management and fulfillment, and advanced tools and integrations for shipping and taxes. Whether customers are coming directly to a website or perhaps discovering the store through Unfold's Bio Sites, our online store solution has incredible breadth and depth. While there are many commerce solutions in the market today, we believe that many of our core differentiators set us apart from the competition. These include a beautifully designed branded store out of the box. Our focus on our design tools means our customers don't have to rely on professional help to get well-styled product pages and fulfillment emails. Our customers also enjoy having everything in a unified platform, which means they get integration with analytics, CRM, and email marketing tools automatically. Here's an example of a New York City-based jewelry designer named Laura Lombardi. Today, she uses Online Stores to sell directly to her 87,000 Instagram followers and fans, while also leveraging our Afterpay integration, our new local pickup features, and our powerful content management system. We will continue to invest heavily in our Online Stores product as selling physical products will always be a major component of a healthy online e-commerce ecosystem. In the past quarter, we introduced better onboarding for our sellers, integrations that help Etsy sellers get started on Squarespace to move beyond their marketplace, and local pickup. Coming before the end of the year are shipping labels, a major milestone for us and one of our sellers' biggest pain points, and native product reviews, so our sellers don't need to rely on plugins for things we might consider basic platform functionality. Now let's talk about Member Areas. This is a new product within our commerce offering that we introduced last year to help our customers sell subscriptions to gated content. There is a growing trend within the creator economy where creators want to turn their passions into businesses and to be funded directly by their audiences. Subscription membership models are a great way to do this, and our Member Areas features are the perfect way for these creators to monetize their content to a global audience. Using Squarespace Member Areas, many of our customers have created private member subscriptions for exclusive content. Some examples include a New York City-based yoga instructor who was forced to close her studio during the pandemic. She pivoted to selling yoga videos online to keep her business going. This new channel resonated well with her students, and even upon reopening, she continues to sell classes. A network of women created a professional female leadership community. Through Member Areas, they're able to offer a member directory, networking opportunities, and resources to connect women, helping them transform their careers. A group of successful traders publishes timely market analysis and trading strategies for the community of subscribers to their Member Area. They offer classes and one-on-one coaching sessions for clients. We remain incredibly excited by the diverse set of use cases that Member Areas unlocks. Nicole Fiore is a great example of this. She's a roller skater who teaches people how to skate with online classes in an on-demand video library, and she's able to showcase videos of various skills, teach live classes, and build a community of students right on Squarespace. She takes advantage of our Online Stores product as well by selling apparel on her site. This is a perfect example of multiple parts of our commerce offering being used together to sell in ways that go beyond just physical products. Over the past year, we've continued to roll out new updates to Member Areas to enhance the tool set creators have to monetize their content. In July, we introduced multiple fee options. Creators can give members flexibility in how they pay, such as monthly versus yearly fees or installments. We've expanded our onboarding tools, helping members create an essential list of tasks to ensure they are set up properly and familiarized with what our tools can do. We've recently launched a restricted memberships feature to support our successful coaches who need to pause new membership enrollment. Squarespace Member Areas is key to our vision for commerce. It creates protected spaces through which our customers can enjoy the benefits of a subscription revenue model while exploring the many ways to sell content. Squarespace Scheduling helps businesses that rely on appointments do more of what they enjoy. Whether they're running a yoga studio, a hair and nail salon, or a life coach, we help our customers run their appointment-based businesses online with ease. Squarespace Scheduling has incredible depth and versatility across many businesses and verticals. We've seen tremendous growth in Scheduling this year. As of Q3 2021, revenue, including our revenue share, grew 60% quarter-over-quarter, while GMV processed through our platform grew almost 80% year-over-year. Scheduling supports in-person or virtual appointments and classes. Users can manage their calendar and clients from one easy-to-use central interface. Everything on our platform is customizable, from the design of the scheduling page to the payment terms for the appointment to the wording of the SMS reminder messages we send out. Squarespace Scheduling also enables our customers to accept payments directly online. As a business grows, our scheduling solutions are set up to scale with our customers. We support multiple team members, multiple locations, multiple appointment types, and the ability to create add-on packages that can be applied at the time of booking. One photographer explained how Scheduling allowed him to manage 400 appointments in one month, enabling him to maximize his time effortlessly. Squarespace's Scheduling tool has, quote, "Improved his business in ways words cannot explain," he said. We believe this value proposition truly drove Scheduling to outperform our expectations in 2021 and provides another revenue stream to create resilient growth in our commerce offering overall. We are incredibly excited about the future of Scheduling. We will continue to invest heavily in our platform while also focusing on deeper integration with Squarespace to enable easier cross-sell and upsell within our ecosystem. As more users look to transact with their customers online, Scheduling can become an even more important part of workflow solutions to run a business digitally. Squarespace joined forces with Tock this past April because their mission and vision aligned so well with ours. Tock is a robust, unified platform for reservations, events, and to-go that allows restaurants, wineries, pop-ups, and other businesses to connect directly with their customers. Unlike its competitors, Tock allows for three unique reservation types to power everything a hospitality business can sell. Ordinary free reservations, deposit reservations to reduce no-shows and food waste, and fully prepaid bookings for those unique and high-demand experiences. Whether it be for a great table on a Saturday night or a special event, Tock has it all covered in one cloud-based, flexible, and easy-to-configure system. Tock also makes it easy for businesses to switch from dated legacy systems without losing any valuable customer history or existing bookings. Tock is also a B2C marketplace with over 21 million unique consumer accounts. Exploretock.com has earned an incredibly unique set of demographics, skewing young, female, and highly engaged. Guests return repeatedly to Explore Tock, not just to book great dinners, but to discover entirely new experiences near their home or when they travel. Tock supports its business clients by marketing on their behalf in 30 major markets to let millions of consumers know what's new in their area. As mentioned earlier, we've highlighted Tock for reservations and events within the Squarespace block editor, which is used over 400,000x per day by Squarespace customers. We have several exciting integration updates on the horizon and look forward to providing more details as they come to fruition. In 2022, we'll be expanding Explore Tock to create a single cart Tock marketplace where wineries and restaurants can introduce and sell goods directly to the ever-growing number of Tock account holders. Imagine engaging with over 1,000 wineries to purchase directly from the winemaker or buying that special cookbook signed by your favorite chef or donating food to underserved communities. All of that will be possible. The businesses on Tock will have an easy opportunity to sell directly without disintermediation that other platforms re ly upon. We have more ideas. Sharing your music playlist with your friends is easy these days, and getting recommendations based on your viewing preferences is intelligent and automatic on video streaming services. We're looking forward to future products within the Tock ecosystem that bring similar interactions to the dining experience. This wraps up the product update portion of Investor Day. Before we take a short break and move on to a deep dive into Unfold, we'd like to share a video we created as part of our Everything to Sell Anything campaign, which we launched in September. We hope you enjoy it. Thank you. Over the past year and a half, we've seen the trends of the last two decades accelerate at a light-speed pace. Many people became entrepreneurs by necessity. Others pivoted their existing businesses and hobbies to adapt to an increasingly digital world. That change is now a constant, and it's the reason why digital retail commerce grew 44% in 2020. Still, e-commerce is only 21% of the retail economy. Here's a prediction. Over the next few years, many of you will experiment with selling your time, ideas, expertise, or a physical product online. We're seeing expansion of classes, online and in-person services, appointments, reservations, and more. This is how businesses and personal brands grow. That's key to our vision and why Squarespace is scaling our offering to provide you with all the tools you need to sell any type of product or service in parallel. Now I'd like to hand it over to the team to show you all the incredible innovations and new features we have in store and how they can help you thrive in the years to come. Squarespace is here to help you sell your products and services, and video is by far the best means of audience engagement. Now, there are hundreds of tools to create video content, but most of them require a steep learning curve to achieve professional results. They're hard to use, difficult to master, and the results look amateur. Until now. Today, I'm thrilled to introduce our newest product in 2021, Squarespace Video Studio. Point at a page, choose a theme, and the video studio will pull your logo, your product, and your color palette automatically. With just a few clicks and zero editing, you'll have a high-impact 30-60-second promo video that looks like you've spent thousands of dollars on a production team and dozens of hours editing. Need a voiceover? No problem. Record your own or, and this is really uncanny, just upload a script and instantly you'll hear a pro-level voice in your own words. No extra pain, no extra cost. Now, with Video Studio, it's incredibly simple to produce beautiful product videos that make your Squarespace e-commerce site a sales machine. Entrepreneurs looking to sell products online today have a lot of options. For many, a marketplace like Etsy is a great place to start. Marketplaces make it easy to get up and running quickly, reach a captive audience of prospective customers, and test new product ideas. As marketplace sellers grow their business, they need creative freedom to express their brands and build direct customer relationships in addition to continuing to drive new audiences through marketplaces. Our platform is the ideal place for them to be able to invest in bulk as our Etsy integrations for product and reviews make it easy for you to have your own website and continue to manage your Etsy store efficiently. With Squarespace, you have complete control over the look and feel of your online store. You can give your customers a consistent brand experience across their favorite marketplaces and your own website with rich product listings, embedded videos, related products, subscriptions, blogs, and more. Order fulfillment is simple and flexible to fit your business too. Easily set up shipping and give customers the option to pick up their orders in person at your storefront or at fairs and markets. After the sale, nurture customer loyalty with email campaigns that will keep them coming back. You can easily introduce new offerings like selling appointments or content to your customer base. You can have the best of both worlds with Squarespace, combining the discoverability of marketplaces with an online store of your own. Whether you're a therapist, stylist, financial planner, or yoga studio, the most valuable thing you sell is your time. There's a finite number of days in the week and hours in the day, so it's important that you get it right. Squarespace Scheduling takes the management out of time management. Hundreds of thousands of businesses use it for creating, se lling, and booking appointments and classes every month. Sellers set their availability, services, and prices, and appointments are published and payments collected via their Squarespace website, social media, text, or email. Last year alone, hundreds of millions of consumers used Squarespace Scheduling to book appointments using their browser or mobile device, as well as review availability, pricing, and differentiated offerings. Customers trusted us with billions of dollars in transactions in just the last year alone, which means that while their business models may vary, they all spent less time managing and more time selling. Great hospitality experiences are our collective treasured memories. Tock was built to enable the hospitality industry to connect directly and transparently with their customers while making it easy to remember their preferences and special occasions, keep them in the know about future events, and create magical moments. Tock is the only fully integrated end-to-end system that empowers reservations, events, and to-go across three reservation types, free ordinary bookings, deposit reservations to minimize no-shows, and prepaid reservations for those high-demand experiences. This means that your business will sell more, minimize waste, and quite simply, make more money. In turn, you can afford to reinvest in the experiences you create for your customers, making them better than ever before. It's a virtuous cycle, and it's made simple by Tock. Tock is more than all of that. It's dynamic and variable pricing for all time-slotted businesses. We've had galleries and museums and distilleries, whole bunch of different businesses use Tock to book and sell their services. Millions of consumers rely on Tock to explore and find new experiences. Tock is an elegant marketing and sales tool, not merely a reservation system. As part of Squarespace, Tock will continue to innovate at scale while forever being mindful that the people who create our culture and memories need our support more than they ever have before. Last year, we launched Member Areas, a new tool designed to help our customers sell access to content through memberships. Cooking lessons, exercise classes, mindful meditation. Whatever community you've built can be engaged at scale by creating private member subscription areas. Thousands of entrepreneurs did just that with huge success. Since then, we've seen many of our customers include videos in their memberships. We're excited to announce the ability to showcase and merchandise your video classes to your members in compelling ways. You can now organize, categorize, and curate your videos to showcase your classes beautifully and customize the presentation to fit your brand. Your audience can browse and find the class that's right for them using categories you define, such as class type or level of difficulty. You choose whether to charge them a one-time fee or offer recurring subscriptions for your membership. Selling access to video classes gives our customers a way to bring in passive income and create more flexibility in their schedules. Creators will be able to begin selling membership access to video classes later this year, and we're building even more ways for creators to monetize video over time. When it comes to marketing your brand and growing your audience, social media continues to be one of the most important channels to engage new and existing customers. It's also a lot of work for entrepreneurs and content creators to keep up across multiple platforms with social media trends constantly evolving and changing. That's why we offer Unfold, the all-in-one platform with everything you need to be successful on social media. Over 1 billion stories have been created with our hundreds of beautifully designed templates, democratizing design by making it easy to create polished and professional social content. With Unfold, you can also edit your photos and videos directly in the app with unique filters and effects. You can go beyond by uploading your own fonts, logos, colors with Brand Kit to ensure that every post aligns perfectly with your brand and your voice. Unfold has been expanding way beyond content creation with tools to help entrepreneurs and social creators start monetizing immediately, grow their audiences, and even plan their content. Coming very soon, you will be able to schedule your posts weeks in advance across multiple Instagram accounts. Now, anyone, no matter their size or skill, can access these sophisticated social media marketing tools. Unfold Bio Sites help you share all your important links in a simple, beautiful page optimized for social. Your link in bio has never been so powerful. Choose from one of our beautiful animated bio site templates and share your website, social networks, embed videos, and start monetizing your audiences directly with your bio site. Today's brands are built on social, and Unfold is everything entrepreneurs need to succeed on those platforms and bring the visitors back to their Squarespace site. When a potential customer lands on your website, it takes them less than a second to decide how credible your business is. The number one factor in their decision is design. If you don't pass that first test, you'll have more trouble selling effectively. That's why our commitment to providing the best web design tools in the industry remains unchanged. We're excited to announce multiple new features to help you customize the design of your website and help your business stand out and thrive. The first new feature to highlight is background art, which enables you to choose from a wide variety of gradients, shapes, and repeating patterns to use as a background for a section, all of which can also be animated. Auto layout is another incredible feature which greatly simplifies managing sets of related content while also providing new layout options. Turn lists of content such as product reviews, customer testimonials, product features, and more into interactive carousels and banner slideshows with a single click. Need to add additional content or rearrange the order? Just drag to reorder and let auto layout eliminate the hassle of moving and rearranging all the individual elements manually. And with our new image masks feature, you'll have a whole new level of creative freedom for how to present your site's photos with a wide variety of shapes to choose from. In the near future, you'll also be able to customize the look and feel of your site's top navigation bar with our new header effects, with the ability to apply gradients, borders, transparency, and background blur effects. Together, these improvements will help you use the power of design to make a strong first impression and build a unique presence that helps your business stand out. To build a successful brand, you need to be consistent. Even the most stunning design choices won't do anything to your business if you don't apply them across every touch point you have with your customers. We're now making it easier for entrepreneurs to simplify this work and save time. As a Squarespace customer, you will be able to automatically apply brand elements from your website, like colors and logos, to both Email Campaigns and Unfold Bio Sites. You'll stand out by being recognizable and authentic wherever a customer encounters your business. In Email Campaigns, the new site styles feature applies your brand elements with a single click to make every email feel like a seamless extension of your site experience. The Unfold app generates your Bio Site automatically, making it the perfect companion to your website, carrying the look and feel of your brand across all your social channels. These new features make it easier to create consistency across channels so you can build brand recognition and be a pro from the start. Today's entrepreneur is anyone with an internet connection, an idea, and the stamina to see it through. Squarespace is designing products for precisely this type of person. With the updates we're announcing today, many of which are already available with others coming soon, we're making huge strides towards helping entrepreneurs make the most of their opportunities. From new ways to sell, to stand out, and new tools to connect with customers, Squarespace is everything to sell anything. While I couldn't be prouder of the work that has gotten us to this point, there is much more to come as we deliver on this vision to help drive forward the new entrepreneurial economy. I'm very excited to be able to talk about Unfold. Not only what we've been building and accomplished in the past four years, but also what's yet to come. My name is Alfonso, founder of Unfold, as well as a designer and a content creator. I come from a background of architecture and design, and through my last years of my master's degree at Parsons School of Design, I looked for an app that would allow me to showcase my work in a simple and beautiful way, and it just didn't exist. I created Unfold to help me solve this problem, so I could share not only my design work, but also my photography with my friends and my family. Exactly during this time, Instagram launched Stories, and I realized that people had the same problem as me. They wanted to stand out from the crowd in an extremely noisy digital space. Unfold enables creators like myself to stand out, grow, and monetize their audiences on social. The more original content a creator produces, and the more authentically they engage with their audience, the more they can grow. New technologies, such as the ability to easily monetize the creator's content or even artificial intelligence, have accelerated this growth in the space. There's also been a shift with brands and large corporations now investing in influencers and content creators over celebrities and traditional marketing campaigns. These companies invest in relationships and communities that have established a more personal connection with their followers, as they drive more engagement and better results. As the industry continues to scale and diversify, and corporate budgets are increasingly being redirected from offline to online, influencers and content creators will capture more marketing dollars. The power of a tailored influencer-driven campaign prioritizes a consumer tribe versus one big brand message made for all. This is all part of the creator economy, and we know it's absolutely massive. Around $100 billion. About 50 million people consider themselves creators, and we know that every small and medium-sized business is also looking to engage on social. However, compared to related spaces such as websites or even domains, the creator economy is just getting started. We can expect a lot more innovation and disruption in the space in the coming months and years. Many tools help creators on their day-to-day, helping them better engage with their audiences they built over the years across different platforms. However, these creators actually have to cobble multiple tools together to actually be successful. To become successful in the social space, one must be a personal brand builder, able to produce continuous streams of eye-catching content across multiple social communities simultaneously. In the market, there are many apps that focus on one simple tool. Using multiple apps creates a disjointed and really difficult experience for the user. If creators, too, are producing and managing content from the mobile, ease of use actually becomes even more important. Similar to SMBs, when starting out, creators usually have limited resources or experience using complex design software, and Unfold comes in and actually solves this problem. We're the only true all-in-one platform for the next generation of entrepreneurs who want to be successful on social. Squarespace and Unfold are solving the same type of user problems, just for a different audience and generation. On Unfold, the creator's digital presence starts on social. Many of the same demands exist here. The necessity of standing out, building an audience, the ability to turn that audience engagement into a business, and monetizing content or other forms of transaction. However, the barrier of entry to starting a powerful brand and presence is much smaller for the creator. The journey just begins by downloading the app. On Unfold, we have beautiful story and post templates that help our users stand out from the crowd. Our advanced design editing tools help people create thumb-stopping professional-level content with absolutely no skills. Also, our content management tools allow our users to plan and schedule their posts in advance. Bio Sites, one of our newest features, helps you establish your social presence through a simple link in bio. These simple websites enable easy sharing of social links, embeddable content or audience monetization capabilities directly from social media profile bios. Unfold meets the needs of creators where they are in their journey. It doesn't matter if you're a creator with a small following or an established business, we have the tools to help you succeed on social. Our target customers span to multiple segments, small businesses, solopreneurs, and all mobile users at large. When we think about our competitive position, we believe that Unfold offers the most comprehensive solution in the market. We provide solutions to enhance the visual impact through templates, photo filters, and advanced video effects. We solve for forward planning and management, helping a user schedule and plan their content easily. We're even more excited about our own bio solution that helps creators establish a social presence and monetize directly from their social. We see a lot of content creators such as Pisco Morgan, who uses Unfold to stand out from the crowd. Pisco needs to create and manage that content, but is also looking at potential ways she could monetize the audience she's been building through social with a Bio Site. The best thing of all, she can manage her whole social presence on the go effortlessly. We also know that today's brands are built on social, and Unfold is everything entrepreneurs need to succeed on those platforms. Rebecca Friedman represents that entrepreneur who already owns a business but wants to build a strong brand presence on social. Rebecca uses Brand Kit to bring her own fonts, logos, and colors to ensure that every post aligns perfectly with her brand and her voice. She also has a Bio Site which she uses to bring her social audience back to her website. There are already over 50 million people like Pisco and Rebecca around the world who have shared over 1.4 billion stories. Our current offering includes Unfold+, which is geared towards creators who want access to our design tools, and also Unfold Pro, which allows for management across multiple social accounts, scheduling, web stories, and even more features. We're working to double our unique subscriptions and believe our new offerings, such as Bio Sites, are a key differentiator to be able to drive more creators to Unfold. We expect that Unfold revenue will grow over 40% this year alone. Unfold is really international. We've been at the top of the charts worldwide ever since we launched, mainly due to our ability to not only identify current trends on social, but Unfold actually creates the next worldwide trends that have the ability to go viral. Our visual-first approach resonates all around the world, and the fact that we live and breathe in this space allows us to continue being at the top. We were the first. We've managed to make a mark in culture and help define the way people share content. From Kim Kardashian to Shakira or even The White House, people have been creating and sharing their content with Unfold. We also have an exclusive offering called Unfold for Enterprise, where we've been very successful working with large corporations to enhance their social presence. We've helped multi-billion-dollar global consumer retail brands, high fashion labels, film studios, and even the top artists worldwide by creating exclusive branded templates on Unfold, allowing these brands, and also their fans, to create easily and shareable branded content that is viewed by millions of people. We've been privileged to being recognized by the industry. Both Apple and Google awarded Unfold Best App of the Year. We've also been honored by our Fast Company Innovation by Design award in the app category. Things are just getting started for us. Even though we are only four years old, we've already have a huge foothold, as well as a really strong competitive advantage being part of Squarespace. Unfold creates another avenue for a next generation of creators, Gen Z, to find and leverage Squarespace's larger platform. This relationship is actually twofold. We are now also able to help Squarespace website customers grow their audiences on social media through Unfold. We have a prime opportunity to reach new businesses starting on social, as well as help our website customers grow their audience through our tools. It's never been easier for Squarespace accounts to share a beautiful, consistent brand vision across both platforms. Unfold nurtures the next generation of entrepreneurs. We will win by being the platform of choice for Gen Z who wants to be successful on social by making it really easy for them to stand out, grow, and monetize their audiences. As I mentioned before, we're actually just getting started. Our 2022 roadmap is filled with extremely exciting new releases, including a redesign of the experience that puts emphasis on discoverability and personalization. We also know that TikTok is now one of the most popular social networks. We want to make our creators have access to the necessary tools and templates to be successful in this medium. This year, we've invested in allowing our creators to plan their content before posting it on Instagram. Our users can write their captions, hashtags, and even schedule their Instagram posts in advance. We'll be extending these capabilities to other platforms, such as TikTok and Reels in the near future. We also want to continue helping our creators monetize their social audiences, but we are going to do it in a way that makes sense for this medium, which is slightly different to how Squarespace thinks of commerce. Locking photo and video content behind a paywall, digital downloads, tipping, and fundraisers are just some examples of the ways creators will be able to monetize through their bio site. NFTs. NFT visibility is starting to hit mainstream audiences through some of the biggest brands and tech companies adopting them for promotions, brand and product ownership verification. The future of Unfold is empowering creators to take control and ownership over their creative platform. Adding the ability to create and manage NFTs will place Unfold into an even more unique position in the market. This product mission speaks to Unfold's ability to remain at the forefront of the next generation trends in the marketplace. We also want creators to own the relationships they've established on social. We'll make it easy for them to capture emails and phone numbers. We see ourselves as an important partner for creators, allowing them to control community engagement, providing them the tools they need to nurture, grow, and monetize that audience. This approach is consistent with Squarespace customer model, one which empowers customers to have direct relationships with their customers, in contrast to other marketplace platforms. Also similar to Squarespace, a key differentiating factor for Unfold is our unique design. We already stand out from our competitors by having beau tiful templates, and we will keep pushing the boundaries of this by redefining how a link in bio website should look like. Just because it's a simple thing to create doesn't mean it has to be boring. Finally, we know that being part of Squarespace is a huge competitive advantage for us. We'll be able to tap into many of these existing services and package them in a way that makes sense for social-first customers. Not only that, Unfold makes the perfect companion to your website, allowing you to carry the look and feel of your brand across all your social channels. Features such as Brand Kit or Bio Sites make it easier to create this consistency across channels, so you can build brand recognition and be a pro from the start. Unfold unlocks the creator market opportunity and nurtures the next generation of entrepreneurs. We're in the middle of a social commerce race between the major social platforms, all offering more tools for creators to drive sales. We've seen a pivot from traditional retail to online, and with this movement, businesses must think more about how they are reaching their audiences in an authentic way. Unfold does not discriminate and acts as the hub between social platforms, putting the necessary tools in the hands of creators to allow them to harness the power of their presence across platforms, and ultimately expanding their influence and earnings potential. We believe creators will be the leaders of the direct consumer space. Unfold is the center of this new market motion audience, and the future is ours to grow and to unfold. Thank you very much. Hello, everyone, and thank you for joining us today on our first-ever Investor Day as a public company. I have just celebrated my one-year anniversary as Chief Financial Officer at Squarespace, and I'm very proud to be part of our innovative team and of the work that we have accomplished in the last year alone. Anthony spoke earlier about the many growth opportunities in front of us today. I'm going to dive deeper into our long-term growth drivers and how they will inform our financial results. I will also speak about our financial profile and provide a framework for thinking about our financials in the future. Our sales business model creates a steady stream of recurring revenue driven by the subscriptions to our services. Our model gives us confidence in our ability to pull growth levers in our business. We have reached over 4 million unique subscriptions, creating a durable base of loyal customers. Though only representing a fraction of the 800 million small and medium-sized businesses, which represents a $350 billion market opportunity, whom we believe will continue to look at Squarespace to adopt a digital presence. It is from this solid base, an incredible opportunity set, that we will be able to drive our future growth. In the last three years, we have achieved 26% revenue growth across our platform. On November 8, we provided guidance that we expect to grow our revenue in 2021 to between $780 million and $783 million, which implies a 26% year-over-year growth rate, an achievement that we are proud of, considering the difficult comparison of 2020. We look at our revenue in two dimensions: subscription-based and non-subscription-based. At the end of Q3 2021, 92% of our revenue was related to subscriptions. There are other components related mostly to revenue share agreements that we have with payment processors and third parties. Related to payments, we have been exploring opportunities to expand our payment capabilities, and we expect to share more about this soon. As customers continue to add incremental features to their subscriptions, like Google Workspace, Campaigns, et cetera, we believe that the average revenue per unique subscription will continue to expand also over time. Another view of our revenue relates to the split between commerce and presence. Commerce includes the subscription revenue related to our basic and advanced plans, the revenue related to subscriptions to our marketing tools, our scheduling tools, Member Areas, the newly acquired Tock revenue, and the revenue share agreements with payment processors that handle the transactions for our customers, which we currently recognize as net, with the exception of Tock, which recognize the payment processing fees for domestic transactions on a gross basis. The revenue share then is calculated on the GMV that flows through our platform. At the end of Q3 2021, our GMV surpassed $1.4 billion, representing 38% year-over-year growth. As our platform continues to expand, we believe that our customers will increase their adoption of our platform tools so that they can engage and transact more with their communities. We are confident in our ability to be top of mind for individuals when they look to create a web presence, but more so, we believe our suite of features enabling users with everything to sell anything will continue to drive new adopters to our platform and will encourage existing customers to adopt additional subscriptions so that they are able to transact in more ways online. We have also yet to truly tap into the potential of our installed base, new markets, and expansion and cross-selling opportunities to drive future growth. We continue to believe the opportunity for small and medium-sized businesses and creators remains huge, and we have reached a point in our life cycle with the necessary scale to unlock future growth through many of the levers. It is from these beliefs that we are working to drive commerce to represent a majority of our revenue over the long term with our everything to sell anything brand vision. Commerce customers attach more subscriptions and have higher average revenue per unique subscription. Already, we managed to expand our revenue base to 30% international. We believe this portion will continue to become bigger as we meaningfully flex marketing spend within international markets, prioritizing countries where we believe our brand will resonate. We expect to generate 50% of new website subscriptions from international markets. When it comes to Circle, we expect to grow our community of experts by 2x, which will drive more higher value subscriptions to our platform. Finally, Enterprise represents an incredible opportunity to serve larger customers, driving higher average revenue per unique subscription with a stronger retention rate. We expect this customer segment to drive 5%+ of total bookings long term. While we finalize our plan for 2022, you should expect us to sustain meaningful levels of growth over the long term. We look to expand margins over time in line with our long-term financial framework. In terms of our long-term model, and provided that we maintain the same net versus gross revenue recognition methodologies, you should expect the following. Looking closer at some of the moving parts across our P&L to our long-term profitability framework, we expect the following according to non-GAAP. Overall, gross margins will remain healthy in the 80s over the long term. As of Q3 2021, we have delivered a gross margin of 84%, which is representative of our strong financial profile. We are actively pursuing opportunities within the payments space, which will benefit revenue growth, but we may have an impact on overall gross margin. Additionally, we are optimizing our customer operations group to achieve higher operating leverage, as well as exploring potential future upsell opportunities for this team. Our customer support team is 100% in-house, and they have received recognition for the exceptional support they provide to our customer base. As a tech company, we see our spending in R&D as an advantage as it ultimately maintains our competitive position and enables innovation. Our long-term goal for R&D as a percentage of revenue is in the mid-20s%. As a percentage of revenue, our sales and marketing spend will be in the high 30s%. As we expand into new markets globally, we are prioritizing brand and marketing spend in these wide spaces where the potential for growth is exponential. We are able to adapt and prioritize depending on where we see the most meaningful markets while maximizing our return on investment. When we think about priorities for the business too, commerce is central to our plan, and we expect to continue to allocate resources accordingly. For G&A, we are near a steady state. We believe that our current staffing and infrastructure supports our trajectory, and we continue to prioritize hiring and investments in areas where we believe headcount will bolster our growth objectives. We believe that in the long run, G&A will remain below 10% of the total revenue. Currently, we are in a strong position with real operating leverage. Based on the targets we just detailed, we expect our long-term unlevered free cash flow margin to be around 20%. At Squarespace, we have been in business for over 18 years, only entering the public markets about six months ago. Since our inception, we have achieved a powerful combination of scale, profitability, and growth, while at the same time being good stewards of capital. Prior to our capital raise in 2021 to help fund the acquisition of Tock, we only raised about $50 million from private ventures funding to scale the business. When we make investment-related decisions for our business, we are always evaluating their ability to help shape our long-term financial profile, not necessarily quarter to quarter, to help us deliver our growth goals and to make us more profitable. For the first 14 years of our journey, we managed the business cash flow break-even while still being able to make meaningful investments in important areas of our business. We believe that our profitability provides us with the flexibility we need to spend opportunistically. We plan to remain faithful to our financial profile of profitability, and we will balance that with continued investment into growth mechanisms now that have achieved this level of scale. Still, strong returns on our spending has always been important, and it is illustrated by robust unlevered free cash flow margins. Unlevered free cash flow is an important metric for our business as we believe it represents the potential we have for future growth. When we report our Q4 2021 results, we will have more specifics to share about our FY 2022 guidance and look forward to providing an update in the new year. Squarespace is a strong, durable business with an exciting future ahead. Welcome to your conference call. After the following tone, you will be connected to the other participants. Thank you all for listening to our team speak this afternoon around our business growth opportunities, product, and long-term targets. We'll now move to the live question and answer portion of the day. Note that if any webcast participants would like to ask a question, please email us at investors@squarespace.com. Operator, can you please take the first question? Thank you very much. Our first question today comes from Aaron Kessler from Raymond James. Aaron, please proceed with your question. Great, thank you, and good presentation today. A couple questions. Maybe just on the kind of vertical sectors that you're focused on from a transaction standpoint, where do you think the biggest opportunities are for the company? Maybe along similar lines, for just international markets as well, which kind of regions are you near-term focused on that you think are the biggest opportunities as well? Thank you. I'll speak first to the type of revenue. You know, as you've seen from the presentation, what we're really focused on is services revenue in addition to physical stores and physical commerce revenue. That's kind of the first lens we look at. When you look at where we're focused, if you want a more exhaustive list, basically for stores and services, if you go to the front slide and you look at the kinds of verticals that we give as customer examples, those are really where the focus is. That changes depending on if we're going after wellness professionals within scheduling or more fashion-oriented things within the physical commerce set. Marcela, did you wanna speak to anything else on that or? No. I mean, thanks, Aaron, for the questions. As you noticed, of course, we are in the hospitality industry, and so that is a very important vertical for us and one that we continue to invest and expand because we believe that the size of the market is particularly large there. But wellness, healthcare, and anything that is professional services, I would say it is of a lot of interest to us. I think that we do have a sweet spot for our service offering. We have a great offering with scheduling, with Tock. You know, we believe that there's a lot of opportunity there, and we are planning to continue to expand in that area. Yeah. Just to slightly build on that, it is referenced before, but within the different revenue lines, so within Tock, you know, they've done a lot more high-end hospitality and are moving down a lot of wineries, a lot of event venues, things like that, so. Yes. You ask the question about international, Aaron, and what regions are the ones that we are investing. As you know, we have expressed that so far we have targeted English speaking markets, but we are trying to expand further. I would say that the regions that are of particular interest to us are, of course, Europe, Latin America and Asia. The reason why I mention that in that order is because of how users use the tool. You know, there is a lot of similarities on Western cultures on how they use the tools versus, you know, perhaps in Asia, where they have a much more mobile-driven approach. We are quite excited. We, you know, we have done our first marketing campaign in Germany, and we have seen early results, very small, but still early and exciting. Yes, we plan to continue to expand in other geographies as well. Got it. Great. That's helpful. Maybe just a quick follow-up. In terms of your high-level question, if you add up like the top three or so web presence companies, there's probably in the range of 10-15 million SMBs that are built on these platforms, including yourself, out of the several hundred million websites out there. Are you expecting kind of newer cohorts to increasingly shift more DIY versus kind of the do it for me from kind of more the outsourcing models? I think that if I were to just kinda generalize it from a multi-year perspective, I think that as the tools get easier and as people get more and more familiar with, you know, the fact that somebody else has been able to publish a site and it's easy to use and it's simple and quick, you know, I think the DIY component remains really strong. I think, you know, we talked about Circle a little bit, which is our, you know, designer community in the presentation. That will always remain a focus for us. There's always gonna be somebody out there that doesn't have the time to use the tools or doesn't wanna use the tool or, you know, wants design help while getting set up. I think DIY is definitely gonna always be a really strong component of the new users. Got it. Great. Thank you. Sure. The next question comes from T revor Young from Barclays. Trevor, please go ahead with your question. Great. Thanks. First, just thinking through some of the levers you have on top line, excuse me. Is there any reason to think that growth over the next few years will be materially different than that 26% two-year CAGR? I know you're not giving explicit 2022 guidance right now, but just trying to kinda level set whether we should expect, you know, somewhat comparable growth or maybe a tad softer or, you know, more like high-teens growth going forward. Then a second one, if you could just touch on capital allocation and appetite for M&A going forward in light of your unlevered free cash flow goals. Is it first gonna be, you know, reduce debt a little bit and then reinvestment? Then overall thoughts around leverage in general. Thank you. Marcela, I'll let you do the first one. Sure. Yeah. Them... Strong long-term growth. Yes. We, as you know, we are giving you long-term goals, and we expect that we are going to give guidance in our Q4 earnings call. Look, I mean, we believe that we are very well positioned to continue to grow in the future. When I look at, you know, how the latest trends have, you know, changed so far, the way that people behave and, you know, how much more, I believe, you know, creators and entrepreneurs are coming to the market, we believe that, you know, we will continue to grow meaningful over the future. In terms of M&A, I will answer the question about the long-term- Okay. Yeah Goals that you have seen here, because we have not. We have built these plans based on the business that we have currently. We have not included anything related to any new acquisition. Maybe you can expand on acquisitions, Anthony, overall on the M&A strategy. Yeah. We're really excited about M&A moving forward. I think, you know, you saw us start to do this a couple years ago. I think we've proven that we're a really good home for founders in a really entrepreneurial environment. You saw what happened with Unfold. Much has happened after the acquisition. We're really, really pleased with getting that kind of entrepreneurial spirit into the company and what they're able to do and how we're able to get in front of trends. I've been a huge fan of it. I think that the thing we need to keep in mind outside of just cost is, you know, how many of these can we really absorb at once? We need to not overburden ourselves operationally as we, you know, continue to acquire. We also need to make sure that after they found a home here, that we can devote the right amount of resources to the integration, because without, you know, finding synergies or finding ways to connect or making the sum of the parts better than the whole, you know, these would just kinda sit there. You know, that's kind of what we're facing. Again, very excited about the potential. I think, you know, a lot of M&A targets, when you think about kind of this framing of everything to sell anything, you know, just the number of ways people can sell, especially in the service-oriented industry, especially with the new wave of creators coming out, there's just so many ideas we have, and so many places we can go. I would you know, we're always looking at things, and I'd expect it to be an important part of the story moving forward. You know, but that being said, a lot of what we have coming out on our roadmap next year is completely organic. We've always been. There's a reason we were so late to M&A. It's 'cause I really like building products, and I think that this company is really set up to do that, and it's set up to create things. I see it kind of as a portfolio approach. Trevor, just to get back to your question about, you know, operating leverage. As you know, as you have seen overall, we are intending. We, you know, we believe that we wanna achieve those goals. We believe that we have been good stewards of capital, and that we have a really good mix between profitability and growth. And that profitability, which we measure in terms of unlevered free cash flow margins, has allowed us to expand on other areas, as Anthony has mentioned, for example, in M&A. We, you know, we want to continue to invest by making educated decisions between, you know, growth and profitability. I think that it's important for us that the opportunity is out there. We have a tremendous huge total addressable market, and that addressable market also can continue to expand depending on how we decide to invest and move forward with regards to other verticals and so on. The way that we are allocating capital, I mean, it's a little bit dictated, not a little bit, it's a lot dictated actually by how we have shown the growth levers, right, and the opportunities. Like, we believe that multimodal commerce is a tremendous opportunity for us, and so we are devoting a significant amount of capital there. International and then enterprise. The order that we have shown and in the presentation is the order that we allocate capital. I'd also just add that, you know, of the we basically have four M&As in our history, and Tock's the largest and the newest of them. If I want to rewind and look at the older ones, I'd just like to point out how, you know, in our view, successful they've been. Scheduling integration's gone great. We've seen that business improve, and it's a strong part of our commerce portfolio. We acquired a company called Videolicious, which was the foundation for the Video Studio app we launched last quarter, and of course, Unfold, which we heard a lot from in this presentation, again, with a lot of the innovation happening post-acquisition, where we were able to help them scale their engineering team and make them part of the Squarespace family. That gives us a lot of confidence that we can do this well. That's really helpful detail. Thanks. Just one quick follow-up, if I may. Sure. Just how are you defining long-term here? Is it kinda 3-5 years, and should we expect periodic updates? Thanks. Yeah. Yes. Up to five years, and yes, we expect you should expect periodic updates from us as we continue to, you know, report on our earnings calls. Yep. Our next question comes from the line of Matthew Pfau from William Blair. Matt, your line is open. Hey, guys. Thanks for taking my questions. Just wanted to ask a couple on the commerce business and specifically your goal of having, you know, 50% of the business coming from commerce. As you think about getting there, you know, maybe it w ould just be helpful if you could provide some additional details. Do you need to add more functionality? Do you need to add more vertical functionality? Then, you know, as you think about the split between services, content, and product, where do you see, you know, the biggest opportunity for Squarespace longer term? The strategy there, and a lot of it's recapped, is we are not just going broad, but also deep. That's why, you know, we pursued M&A with respect to the hospitality industry and also the scheduling product, because those are quite complex to build. We wanted to make sure that we could have sizable businesses on the platform because it, you know, it's pretty easy to kinda just go out there and announce that we've got scheduling or we've got, you know, bookings or we've got, you know, to-go ordering. But to really do those well is hard. We're gonna go very, very deep on these things. One of our biggest engineering investments is also physical stores and physical commerce right now, so we're not slacking on that. That's been a 10-year, nearly 10-year investment for us. You know, within the commerce number, if you kind of start to force rank what currently the biggest is and then what's next and what's next, right now we generate most of our commerce revenue from physical products. Second place is scheduling. Third place is, yeah, hospitality and what's happening in to-go ordering and reservations and events with Tock. That's kind of the breakdown. I don't think any player in this space can really reach meaningful scale with just a super simple solution. You know, merchants will outgrow that. They'll go to specific players to get things done in that case. I think the other strength we have, and, you know, I'm repeating myself a bit, but it is really this multimodal solution where our sellers can start by selling video classes but then also sell apparel. We see a lot of that happening on the platform. I think we're one of the few solutions on the market that really addresses so many commerce use cases in such a well-designed content management system that's easy to use and everything else that has made Squarespace such a huge success. Got it. Just one follow-up on that, as you think about commerce between U.S. and outside the U.S.- Mm-hmm. Is there similar opportunity outside of the U.S. in the way you're positioned? You know, do you need to make any. You mentioned, you know, payments and things of that nature, but anything else that, as you think about expanding your commerce presence outside of the U.S. that you need to address? Yeah, I mean, there's local specific things to address, especially in physical commerce, where you got different tax rates, you've got different shipping vendors, all that. But actually, what's advantageous for us is when we talk about the huge opportunity in services-based commerce, outside of the payment systems, usually those things aren't involving shipping or all the logistics to go into a physical transaction. So I actually think that those are much more easily internationalizable than the physical commerce business. You know, we're gonna focus, of course, on both. We're seeking to be a global company. We are a global company. But yeah, I think that, you know, the way those businesses work with the international focus is a real positive for us. Great. Thanks, guys. Appreciate it. Yeah, sure. Thank you. We'll now take a question that came into our investors@squarespace.com email that relates to competition. Anthony and Marcela, can you help us frame the competition from open source CMS, such as WordPress and Drupal? Yeah, sure. There have been open source alternatives to Squarespace for really since we started. WordPress is about as old as we are, maybe a little bit older, but Squarespace always existed in a world where there are open source alternatives, and frankly, there's people trying to provide things for free. You know, when we think about our main competitive set right now, I am more focused on the hosted players. You know, you're familiar with the public ones, Wix, GoDaddy, Shopify, those sorts of things. The open source stuff especially, I believe Drupal was mentioned in addition to WordPress. That's not something we've really found competitive for a very, very, very long time. That's mostly focused at enterprises right now. It doesn't have a DIY component. Then if you move over to the other open source tools, you know, generally they're gonna fall short, in my opinion, on ease of use, the fact that you have to host them yourself, the fact that you might have to use plug-ins, those plug-ins can be hacked. You know, we've really been frankly very proud of our model, the kind of all-in-one model, and we think it suits our customers really, really well. I think where you see positives for the open source are, of course, around flexibility. People can get into the code, make modifications themselves, but that's why we're so focused on the expressibility in our CMS and what's going on there. We actually have a lot of updates planned for next year to kinda keep pushing the boundaries there, right? I think, you know, people on this call have asked about TAM before, and really the expressibility of the CMS and the usability of the CMS define that TAM. Often, if you can't use a tool like Squarespace because the design's not limited or you can't model your content, then you're forced to go into a more custom world, and we don't want that to happen. Everything we do in the CMS is in the service of making sure that we can make the broadest amount of sites possible and that we've, you know, solved all those infrastructure problems that you're gonna have. Because if you're doing self-hosting, you know, all of a sudden security updates, uptime, CDN, SSL, you know, encryption layer stuff is all gonna be something you have to worry about yourself. Great. Thanks, Anthony. We'll take it back to the operator for the next question, please. Mm-hmm. Thank you very much. Our next question on the phone lines comes from Ken Wong from Guggenheim. Ken, please go ahead. Great. Thank you for taking my question. I wanted to touch on Unfold. I believe Alfonso indicated that you guys hope to kinda double the number of users on Unfold over the long term. Seems like a pretty big funnel. How does Unfold bring in other aspects of the Squarespace ecosystem? Is this something that you guys have seen a good amount of attach on websites, or is it being used more standalone for your customers to engage with social? Thanks, Ken. It's currently being more standalone, but you can start to see the connections appear. I'll say a couple things. One, Bio Sites is a really great thing for us because we can capture that link in bio and, you know, people can set those up in a minute from their phone. It's a really simple CMS that works great on social. I think two things will happen from that touch point. One, there are certain transaction types that are gonna make much more sense to happen, kinda in the context of a Bio Site, things you really wouldn't do on a website like tipping. Beyond that, once we put the Bio Sites in the context of Squarespace, you can imagine us enabling, e-commerce, scheduling, email campaigns, all of that, where the website could be the Bio Sites. We see just a lot of opportunity moving forward with this, and we're really just starting, you know, that dual-pronged approach. One prong being the social native ways to transact, and the other prong being a link into Squarespace services. I wouldn't try and view it as like, we expect all the mobile users to go and just make a big website from their phone or something. That's not what we really think. Got it. Okay, super helpful. For Marcela, just wanted to touch on some of the margin commentary you provided. I guess maybe my math is off here, but when I look at the 20% unlevered free cash flow target and then try to sync that up with kind of the ratios for OpEx, it's, I guess, I come to more of a 10% EBIT margin. I guess, what's the difference between that 10%-20% when you guys don't exactly have a ton of enterprise ELA type activity? I mean, we don't think we will review the number, but I don't think that the EBITDA number, the Adjusted EBITDA number would be that different than the cash flow number. We will take a look into that. Maybe do a follow-up? Okay. I'll Yeah, yeah. I guess I just took the 80% gross margin, and then it was like a 30%. Right. high 30s, mid-20s, and then less than 10. Yeah. No, let us, we'll get back to you. Okay. Fantastic. Thanks a lot. Our next question comes from Brad Erickson from RBC. Brad, your line is open. Thanks. I just had a follow-up there around the long-term margin guidance. I think maybe part of this is we're just not necessarily quite following the methodology, so Marcela would love to hear a bit more about that. You know, often when we get these sorts of things from companies, the idea, I guess, is to maybe give investors a sense of where sort of an end state margin profile of the more mature business might run. In this case. Right. I guess some of these levels that you're talking about are levels you're already running at. Maybe just help us, what do you mean here by a long-term margin target? Seems like there's a lot of aggression built in maybe around sales and marketing and that sort of thing. Maybe just a little more color there would be great. Yeah. Thank you for the question. I think. Look, I mean, we expect that, as we have seen in the next three years, we will continue to make investments, and that we, in the long run, we will continue to, you know, achieve operating leverage. That leverage is going to come from a combination of more, I would say, marketing and R&D. But, you know, the way that we have modeled the business is based on the current existing business that we have and where, you know, we believe that with the offering that we have so far and what we have built, that we will be able to achieve those goals. Got it. Thank you. Great. We'll take a question from the email alias, and I think this one goes for you, Anthony. What are your thoughts on Metaverse and what's going on with digital communities? Gotta have a Metaverse question. First off, I'd say this, I mean, Squarespace doesn't have any near-term plans to do anything in like VR or AR or anything like that. That's just not really our business. Kinda when you get a question. When I think about this question, and you think about the importance of digital identity, that's something we really believe in. Squarespace has been really talking about carving out a home for you online since we started. You know, a lot of what we have talked about with the original core business is that it's like online real estate. You build your house online. We used to use analogies before around Squarespace being, you know, your online clothing, for instance. This is how people are gonna see your story, see your brand, see who you are. I think that, you know, the proliferation of social networks and everything else has really only strengthened our position in terms of the importance of this. You know, people are of course on social networks and, you know, they always have been since Squarespace was started. Really owning a piece of yourself online and being able to tell your story and, you know, frankly, having that in a situation where you paid for it, and we're not monetizing your audience or eyeballs or anything else is just gonna become increasingly important in this world. You know, I sometimes... Frankly, it surprised me a little bit, but you know, when I'm around friends, families or whatever that you know have younger children, you know, sometimes they get introduced, and they go, "Oh, hey, this is Anthony. He starts Squarespace. You know what Squarespace is?" They're like, "Of course." They're like 13, 14, 15 years old. Younger generations are very much familiar with all the ways to represent themselves online, and I think you know, that's just gonna be more and more important over the next decade. Thank you. Great. We'll turn it back over to the operator for the next question, please. Thank you. Our next question comes from Siti Panigrahi from Mizuho. Siti, please go ahead. Thanks for hosting this event. Anthony, Marcela, one of the key questions we keep getting from investors is the long-term, you know, your durable growth. Like- Mm-hmm. Is it like, is it a 20% grower or high teens or 30%? Is it reasonable to think that it could grow above 20% in long term? If so, how or why? We are hoping to provide, you know, guidance on our Q4 earnings call, Siti, but, you know, we appreciate the question. We would like for, you know, Q4 to materialize to be able to provide guidance that is a little bit more, I would say, accurate. The only thing I would add to that is just I don't, you know, without getting into the specifics of, is it 15%, 18%, 22%, 25%, there's nothing structural about the businesses we're in and the size of the opportunity out there that should prevent that, in my view. I think, you know. We keep talking about how large the TAM is. As we keep moving into these different verticals in commerce and have this goal of having a real commerce orientation as a business, you think about the size of what's possible out there in scheduling, in hospitality, in events, in physical commerce, and really all the things we do, it's just really vast. We feel like we're at the beginning of that, and that's why I'm really excited about the future and a lot of what we've laid out on the product roadmap, which is, it's really compelling. I mean, there's a lot of stuff we're working on right now that I can't share with you guys, but- Yeah. Yeah, there's nothing about the TAM or the size of what people are doing or the trends in the world that I think makes this a small business. Frankly, it's a really durable business. A lot of what we get comes from SaaS revenues, and we have cohorts of users that we've acquired over the years that continue to pay us. So much of the revenue in the business is predictable moving year to year because we have a stable churn rate. You know, the fundamentals of the business are strong, and the opportunity out there is really, really big. Look, through M&A and through our own product innovation, you know, we've shown to be really adaptable. I mean, you go look at squarespace.com, and this is a modern company with, you know, modern tools that people are using. I like all those elements, and I think it just speaks to, you know, the durability of the company over the long term, right? 'Cause again, we're talking long term. We're not a startup. We're in year 18. We're kind of in the long term in some ways. Yeah. I know. I mean, look, I have been in the business for a year, right? For me, I tend to look a lot compared to, you know, 2019. There are so many different things that we have versus, you know, what it was the pandemic. I think that for us, I mean, there are many things that commingled together with the pandemic, because if you look at our innovation and roadmap, there's a lot of tools that started to come up together in 2018, 2019. We are incredibly bullish about the opportunity that we have because now with this offering, we are a bit. You know, we are able to upsell, cross-sell. Like, look what happened with our average revenue per unique subscription so far. We have done minimal to none efforts, frankly, to grow on ARPU. Our marketing initiatives, for the most part, have been devoted to bring new customers to the platform, right? You can see how that has, you know, performed for us. With the opportunities that we have in international, with the multimodal offerings we have, I believe that we are very well positioned to continue to grow strongly in the future. I think that that's kind of one of the follow-up. Like, when you look, when you're thinking about the marketing investment, where do you think you talk about $350 billion TAM. So what's the opportunity in terms of growing your, you know, subscribers base? Or even as you're adding more and more features, so where do you think opportunity to drive your average revenue for that subscriber base? Well, the revenue per subscriber is mostly moving up due to well, it's just enhancing the offering, layering on commerce offerings, layering on more things to buy, domains, Google Workspace, you know, helping people get started with our email campaigns products, scheduling. You know, the ecosystem really works all together to create that ARPU growth. Great. Thank you. Thanks, Siti. Sure. Thank you. Our next question comes from Ygal Arounian from Wedbush Securities. Please go ahead. Yeah. Thanks for taking the question. I want to circle back to the competition question and maybe refocus it a little bit. When you talk about the kind of competing, you know, captive CMS platforms, can you give some insight in, you know, how you guys view why an SMB or whoever it is would choose Squarespace over some of the others? Any comments around WordPress and open source platforms. Is that also true for Circle and the kind of professional web builders out there? I would think that WordPress is more of a choice or more often a choice for them. It sounds like you were, you know, maybe saying otherwise. Yeah. I'll definitely clarify that, and I can dive into the developer experience as well. To your first question, just around general competitiveness, you know, a lot of what we show in this deck is sort of focused around showing how we're different, showing how we have a seat at the table in front of millions of creators with Unfold, how we have incredible depth in Online Stores, scheduling, and hospitality. You know, I don't think the same can be said for many other players in our space. In addition, we're one of the easiest to use tools out there with an amazing eye for design. I think of any company, you're going to meet in the tech space, we're gonna be in the top percentile of having great design orientation, and we pass that down throughout all the products and everything we do and to our customers so that they can stand out, and when they stand out, their story's more compelling, and they sell more. All those things kind of come together to you know to help us stand out competitively. That being said, I wanna comment on the comment about WordPress and open source. WordPress's strength is that it has an incredibly strong developer community because it's open source, and you can hack it apart, and you can kind of make it do whatever you need to do. That is definitely a strength. The negative is that those developers then have to hand that site over to a client who then needs to maybe do small updates, who you know needs to manage it, the developer needs to manage the site. Those headaches of hosting and what you do with custom code and what you do when plugins get hacked, you know, that's not going away once the site is handed over to a client. One of our main goals is again with the CMS, is to increase the expressibility so that those developers say, "Hey, look, I can make this thing work on Squarespace. Actually, the design is so good that I'm gonna be, you know, just basically doing tweaks and some really custom updates. I don't have to start from scratch on this thing. You know, when I can get everything done on this platform, I can hand it over to my client, and they can make small updates on their own." Yeah, I think that's kinda how it's oriented. In summary, the Circle members with us like the ability to hand off the site to their client. They like kinda having it almost done from the start, if you will. Of course, all the stuff we're known for in terms of infrastructure, speed, uptime, DDoS protection, CDN automatically there. You know, these are things they would have to deal with in the open source world. Okay. That's really helpful. I had a follow-up on payments. To me, it sounds like you're hinting at your own payments gateway and building that out in a great way and understanding you can't divulge, I guess, exactly what you're working on there. You could talk about your philosophy around payments and the value it brings, building it in-house or owning a bigger piece of it versus partnering. Thanks. Yeah, sure. It's absolutely something that's under consideration right now actively, and we hope to kinda be able to say more there soon. We were really, really early adopters of Stripe almost a decade ago. Because it was such an easy-to-use platform, all of our, not all, but the majority of our, payments volume is flowing through Stripe right now, which is why you're seeing it recognized in net revenue instead of gross. We had a good deal there. For a long time, say five, six years ago, when GMV wasn't as large on the platform, that wasn't the main thing we were trying to solve. We're in a totally different spot right now. We've got so many different ways to sell. We've got meaningful and growing GMV. It's gonna make sense at some point for us to, you know, give our customers a unified experience, just deal with Squarespace and be able to, you know, maybe hopefully get a slightly better deal out there once we're in control of that. Under active consideration, you know, we're in a good position that could be even better. Yeah. That doesn't mean necessarily, Ygal, that we are, you know, gearing towards like just building, right? There's a number of partners out there that, you know, they offer white label solutions that work really well. Yeah. Sometimes, you know, why reinvent the wheel if everything is already solved for you. We are actively looking into that, but in both manners. We already have a, you know, payment processor mechanism to take, but, you know, we believe that Squarespace, I mean, the rest of the Squarespace needs to have perhaps a different solution, at least for the time being. All right. Great. Thank you. That's very helpful. Sure. Thank you. We'll take a question from email regarding international. International momentum has been notable and recently exceeded expectations. Any sense of where you currently stand with respect to new subscription contribution and bridging to the long-term path, representing over 50% of new subs, and what are some of the key unlocks that people should think about around local campaigns, languages, and currencies? Yeah. I'll let Marcela comment on the kind of the path there. From a product standpoint, the things that matter are, one, localizing the site editor. Two, localizing the sites that are made on the platform. As you mentioned, currencies, checkout mechanisms, so SEPA, which we will be launching before the end of the year. Localized campaigns, you saw us get really started with in Q3 with the German campaign, the U.K., the Australian campaigns. So all those are really important. We've been opening more international, excuse me, locations so that we can have a real presence in these markets. Because at the end of the day, it's gotta be a long-term investment because people, when making... You know, if you think about even in the U.S., people don't make that many websites in their lifetime unless they're, of course, a Circle member or developer. We have to be top of mind when they think about, you know, creating a site or going to one of the services that we need. That means a sustained marketing effort, and it needs to build up over time as we've kinda done in the U.S. and are reaping the rewards from here. Right. In terms of where we are, I can tell you that we are on track for achieving our goal. What we expect or what you should expect is that, as I mentioned earlier, I believe, on Trevor's question, that we will continue to update you on how we are performing versus our long-term goals. We are not going to do this on a, probably on a quarterly basis, but we will do it at least once a year to give you a sense of where we are. So far, we believe that we are on track to achieve that. Great. Yes. Sorry. I'll turn it back over to the operator for the next question. Thank you. Our next question comes from the line of Naved Khan from Truist Securities. Naved, please go ahead. Yeah, thanks. I have a marketing-related question. How do you look at the efficiency of the marketing dollar across the branded and performance channels? Is there a target payback period that you have and internally to measure the ROI? Some of your peers kinda talk about other metrics, like I think GoDaddy has LTV to CAC. Rick talks a lot about, I guess, seven to 10 months. How do you look at it? Just talk about that, and then I have a follow-up. Yeah. From a macro standpoint, we have a multi-touch attribution model, and we basically trying to figure out, you know, when we're spending a dollar in a source, and we spend across about 30 different channels, both brand and direct, you know, was that dollar well spent? We're always adjusting that mix and moving that forward. I like to always just kind of frame people and help them understand that, you know, up until the fundraise before we went public, Squarespace is essentially built off of only around $50 million in primary capital. We've always been incredibly sensitive to that marketing spend, is it working, is it contributing to growth, et cetera, et cetera. We've done that for. You know, we've done paid marketing since I launched it, so, you know, basically for 18 years. We take it really seriously. You know, we're looking at a payback period on our dollars spent, and that's what we are primarily tracking. Because people track it in different ways, I mean, we're kinda tracking it against ourselves. Also kinda paying attention to something I mentioned in the international answer, which is, you know, we're benefiting from the $1 billion+ dollars we've spent on marketing in the past in the United States too, and abroad, to put Squarespace in people's minds. It's really, you know, we're trying to be as scientific about it as possible, which is why we're able to grow to where we've gotten off of only, you know, $50 million in primary capital. You know, creating that brand awareness is It pays dividends. A lot of things that are happening for us now are because of actions that we've been doing for, you know, the better part of a decade. In summary, there's a multi-touch attribution model. We look at brand awareness, and we are looking at a payback period on dollars spent, knowing full well that more is happening in the broader ecosystem that is making everything better over time. Right. What we can say also is that, you know, we observe, we do not report LTV, but we do. It's a metric that we follow very closely. Definitely. On that, of course. It has been growing nicely year-over-year. That's a testament, you know, that combined with the average revenue per unique subscription and, you know, the durable growth that we have had so far is a testament of that, the fact that our marketing investments have the effect. Yeah, just one more sentence on that, which is that, you know, we're in a position right now where we can sell somebody so much more than we could from years ago. It justifies, especially in some of the very high-value markets we're in, to pay a little bit more and to get more people into our ecosystem, knowing that there's more we can do with them once they're comfortable with us, and we can help their business grow. Great. The other question I had just on international again. As international growth picks up, it becomes a bigger piece of your overall business, I guess, looking at getting close to 50% or maybe even more than that. Should we just assume that U.S. growth is gonna slow? Or is it that, you know, your subscriber growth pace can actually accelerate just because international is gonna grow faster without the U.S. necessarily slowing down? How should we think about this? I'm so sorry, but do you mind repeating the question again? Like, it was really hard to hear you. If you can be a little bit louder, that would be helpful. Yeah. Yeah. Can you hear me okay now? Yes. Yes. Can you hear me better? Yeah. Okay. Yes. Yes. Yeah, the question is international pickup and how, you know, over time you said it's gonna be 50% or maybe more in terms of the mix. Is it fair to assume your subscriber growth picks up because of that? Or is it also fair to assume that your U.S. growth might slow down because it's a more mature market for you? Look, I think it's just that we see a huge opportunity. It's not about necessarily the U.S. growth slowing or not. It's just that, you know, this we just see a big opportunity internationally, and we're under-penetrated there. Yeah, it's not a commentary necessarily on penetration in the U.S. Although at some point, one might imagine five, 10 years from now, that, you know, people will reach a little bit more of a saturation point in what they can do in the U.S. We're just kinda going towards where we see opportunity versus reacting to something not working right. Makes sense. Thanks. Sure. I think we'll take one more question from the email alias. You talked about a really large TAM regarding the big five, you, Wix, GoDaddy, Shopify, and Automattic capturing less than 10% of that. Can you provide additional detail on why the industry is so far away from that TAM opportunity? Yeah. One thing that's always kinda curious about, you know, the questions is how we're really defining TAM, and people are defining it in different ways. People also can look at, you know, URLs served and trying to figure out where our, you know, our respective others' penetration is. I think a couple things. I think one, you know, there's just so much opportunity out there that, you know, we're just kind of at the beginning of it. Also I would say that these platforms, all the ones listed, and I'm gonna refer back to kind of the CMS equation that I always talk about is, you know, the usability and the expressibility of the platform is going to really define its TAM. Because if you have something that's really easy to use, and so there's millions of people that could possibly use it, but it can only make a certain subset of sites, that's really gonna limit the kinds of sites out there, and it can't make stores, and it can't make blogs, and it can't make nonprofit websites, then, you know, it's limiting its TAM. That's one aspect of it. You really need to keep those two things in balance, and I think that us and the others are somewhere along the spectrum of addressing that. Great. Sorry, we'll take one more question, I guess, to Marcela around just the bridge around the margins to the unlevered free cash flow. Okay. I think it's related to a question that Ken asked earlier. Yes. I do believe. I think that in the future, we don't see a significant expense on CapEx, at least in the way that we see it at the moment. Therefore, we expect that, you know, Adjusted EBITDA margins are going to be similar to unlevered free cash flow margins. Great. I'll let Anthony do some closing remarks, and then we'll wrap it for the day. Yeah, for sure. First, thank you all for the great questions, and it was a pleasure to be able to share the story with everybody. Look, we remain really excited for the future here. All the things that we're talking about on the video today are mostly not things we had three to five years ago. They're new, they're growing. You know, it's just a real pleasure to be able to kind of put these things together and help entrepreneurs the way we're helping them. Yeah, I'm excited to be here, and I will see everyone next time. Thank you. Yes.