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Could These New Products Drive Revenue Growth for This Recent Under-the-Radar Tech IPO?

By Jon Quast and Deidre Woollard – Oct 21, 2021 at 7:30AM

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With easy-to-use video tools and a key e-commerce partnership, perhaps Squarespace can keep growing its top line.

Website design company Squarespace (SQSP 0.30%) went public earlier this year and has flown under the radar so far. To illustrate, consider its average trading volume over the past three months is just a little more than 250,000 shares per day, according to Yahoo! Finance. By contrast, more-prominent stocks have millions of shares traded daily. 

If Squarespace's revenue growth accelerates and leads to market-beating stock performance, it's likely it'll land on more investors' radars. And in this video from Motley Fool Backstage Pass, recorded on Oct. 8, Millionacres editor Deidre Woollard explains some new products that could indeed drive revenue growth for the company.

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Deidre Woollard: Let me pull it back to Squarespace because I wanted to talk about a couple of things they've just announced on Sept. 22 that I think are really interesting. One of them is that they have a new video app. The reason this is interesting is that the templates pull in Squarespace, product images, and brands sounds -- everything that you've already built on your website -- can be ported into your brand videos. The videos can also do smart voice-overs powered by AI, or you can record it on your phone and narrate it yourself, and then you can immediately share it everywhere and use that video.

Obviously, it's where the Internet is going. It's why we're doing it today. People are using video more and more for everything. When we were talking about Etsy (ETSY -1.62%) the other day, we were talking about the listing video, the process videos. All of that is so important to creators these days.

Speaking of Etsy, they've created new marketplace tools. They are doing direct integrations into Etsy shops and products and reviews, making it possible for the Etsy users to create their store and have their Squarespace site and their Etsy work together, which is really awesome because if you're running an Etsy shop and you also have your website, you don't want to have to try to figure out how to get those two to match up. I thought that was really interesting.

They're also really working on scheduling, and this is part of that multimodal idea, which is that for events, for classes, for things like that, making it easier for users to share availability and then have it be across social media and email and text, all of that design to serve, still really based on tools for individual creators, more, I would say, than larger businesses.

Jon Quast owns shares of Etsy. The Motley Fool owns shares of and recommends Etsy. The Motley Fool has a disclosure policy.

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