Squarespace Taps New CFO to Improve Forecasting, Reporting as Company Weighs IPO
October 13 2020 - 5:27PM
Dow Jones News
By Mark Maurer
Software company Squarespace Inc. is bringing in a new finance
chief to help strengthen its financial reporting and forecasting
ahead of a potential listing on the public markets.
The New York-based company, which provides tools for consumers
and businesses to create websites and online stores, on Monday
named Marcela Martin as chief financial officer, effective Nov.
1.
Ms. Martin currently serves as the CFO of e-commerce travel
company Booking.com, which she is expected to leave on Oct. 31
after nearly two years in the role. She previously held CFO
positions at two media companies, National Geographic Partners LLC
and Fox International Channels.
Privately owned Squarespace, which was founded in 2003, is
considering an initial public offering within the next two years,
Chief Executive Anthony Casalena said. He declined to comment on
when the company's management could make a decision on a potential
IPO.
In her new role, Ms. Martin is set to improve the company's
reporting processes in areas such as closing the books and
recognizing revenue, Mr. Casalena said.
Ms. Martin will also expand the company's forecasting and
planning horizon to four or five years ahead, up from currently
about one year. "She's...upleveling the finance function, helping
us look further into the future," Mr. Casalena said. "We want to be
acting like a public company, even if we're private," he said.
The company has raised a total of $278.5 million from investors
so far. It has been profitable since 2016 and this year has already
exceeded its 2019 revenue of about $500 million, Mr. Casalena
said.
Squarespace searched for an executive with several years of
public-company experience to fill its CFO seat, as opposed to
someone with IPO experience only, Mr. Casalena said. "At the end of
the day, the IPO is a single event, and then we have to stay
public," he said.
Nevertheless, the company's move to hire a CFO with
public-company experience can be seen as a first step to going
public, said Ygal Arounian, an analyst at financial services firm
Wedbush Securities Inc.
Squarespace hasn't had a CFO since March, when Nicole Anasenes,
who served as CFO as well as chief operating officer, left after
about four years in the role. A vice president of finance
temporarily led the finance team, Squarespace said.
The company has divided up the tasks of the COO among several
executives and doesn't have immediate plans to hire a new COO, Mr.
Casalena said.
Software-as-a-service companies such as Squarespace have seen a
surge in demand for their services during the coronavirus pandemic
as customers sought tools for working remotely. The industry is
expected to grow to $219.5 billion in market size by 2027, up from
$68.2 billion estimated for 2020, according to market research firm
ReportLinker.
Write to Mark Maurer at mark.maurer@wsj.com
(END) Dow Jones Newswires
October 13, 2020 17:12 ET (21:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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