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SQSP (Squarespace) Beneish M-Score : -1.32 (As of Mar. 17, 2025)


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What is Squarespace Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.32 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Squarespace's Beneish M-Score or its related term are showing as below:

SQSP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.79   Med: -3.24   Max: -1.32
Current: -1.32

During the past 5 years, the highest Beneish M-Score of Squarespace was -1.32. The lowest was -4.79. And the median was -3.24.


Squarespace Beneish M-Score Historical Data

The historical data trend for Squarespace's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Squarespace Beneish M-Score Chart

Squarespace Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - -3.65 -3.37 -2.97

Squarespace Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.74 -2.89 -2.97 -2.06 -1.32

Competitive Comparison of Squarespace's Beneish M-Score

For the Software - Infrastructure subindustry, Squarespace's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Squarespace's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Squarespace's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Squarespace's Beneish M-Score falls into.



Squarespace Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Squarespace for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 3.2818+0.528 * 1.1085+0.404 * 1.3165+0.892 * 1.1876+0.115 * 0.4847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.947+4.679 * -0.276181-0.327 * 0.8416
=-1.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $50 Mil.
Revenue was 296.769 + 281.148 + 270.718 + 257.061 = $1,106 Mil.
Gross Profit was 213.83 + 200.374 + 201.068 + 205.308 = $821 Mil.
Total Current Assets was $447 Mil.
Total Assets was $1,001 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General, & Admin. Expense(SGA) was $514 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt & Capital Lease Obligation was $560 Mil.
Net Income was 6.133 + 0.144 + 5.256 + -16.499 = $-5 Mil.
Non Operating Income was 4.454 + 4.577 + -4.163 + 6.327 = $11 Mil.
Cash Flow from Operations was 60.629 + 85.219 + 61.09 + 53.325 = $260 Mil.
Total Receivables was $13 Mil.
Revenue was 247.529 + 237.028 + 228.812 + 217.696 = $931 Mil.
Gross Profit was 204.362 + 194.078 + 188.706 + 178.789 = $766 Mil.
Total Current Assets was $372 Mil.
Total Assets was $766 Mil.
Property, Plant and Equipment(Net PPE) was $136 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $457 Mil.
Total Current Liabilities was $486 Mil.
Long-Term Debt & Capital Lease Obligation was $557 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(49.801 / 1105.696) / (12.778 / 931.065)
=0.04504 / 0.013724
=3.2818

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(765.935 / 931.065) / (820.58 / 1105.696)
=0.822644 / 0.742139
=1.1085

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (446.804 + 110.625) / 1000.879) / (1 - (372.359 + 136.121) / 766.412)
=0.443061 / 0.336545
=1.3165

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1105.696 / 931.065
=1.1876

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(30.225 / (30.225 + 136.121)) / (66.335 / (66.335 + 110.625))
=0.1817 / 0.374859
=0.4847

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(514.117 / 1105.696) / (457.145 / 931.065)
=0.464971 / 0.490991
=0.947

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((559.689 + 587.21) / 1000.879) / ((557.25 + 486.241) / 766.412)
=1.145892 / 1.361527
=0.8416

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-4.966 - 11.195 - 260.263) / 1000.879
=-0.276181

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Squarespace has a M-score of -1.32 signals that the company is likely to be a manipulator.


Squarespace Beneish M-Score Related Terms

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Squarespace Business Description

Traded in Other Exchanges
N/A
Address
225 Varick Street, 12th Floor, New York, NY, USA, 10014
Squarespace is a provider of subscription-based website-building software and hosting services primarily servicing entrepreneurs and micro businesses. The company offers a range of add-on and standalone tools, including scheduling functionality, email marketing, member areas for paid content, and design tools for social media and video content. Following the 2021 acquisition of Tock, Squarespace has expanded into servicing hospitality customers with reservation, take-out, and event management software.
Executives
Andrew Braccia director, 10 percent owner 428 UNIVERSITY AVE, PALO ALTO CA 94555
Anthony Casalena director, 10 percent owner, officer: Chief Executive Officer C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Paul Gubbay officer: Chief Product Officer C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
O'connor Courtenay officer: General Counsel and Secretary C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Nathan Gooden officer: Chief Financial Officer C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Jonathan D Klein director C/O GETTY IMAGES, INC., 601 N 34TH ST, SEATTLE WA 98103
General Atlantic (sqrs) Lp director, 10 percent owner 55 EAST 52ND STREET, FLOOR 33, NEW YORK NY 10055
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Index Venture Growth Associates I Ltd 10 percent owner 5TH FLOOR, 44 ESPLANADE, ST HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Ventures Growth I Parallel Entrepreneur Fund (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER, JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Neela Montgomery director C/O LOGITECH INTERNATIONAL S.A., LES CHATAGNIS, APPLES V8 1143
Liza Landsman director 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Anton J Levy director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Index Ventures Growth I (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER, JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
(jersey) Slp Yucca 10 percent owner NO. 1 SEATON PLACE, ST. HELIER Y9 Y9 JE48YJ