And we would have another opportunity to hopefully do a really marginal price increase again. But of course, this has giant implications in ’25 and ’26 because it affects millions and millions and millions of people. And just to remind everyone, we saw a really positive retention dynamics when we did this last time. And so I would like to think that that’ll be the same or better this time around because it’s not the very first price increase. The other thing I would mention is, again, going back to payments and what this can unlock with respect to a broader pricing strategy. Us being able to change the take rate as part of the SaaS tiers and contemplate different platform fees on different ways to transact is a huge change. And we couldn’t do it before because we didn’t have this in market.
And so one of the biggest things that, and I’m sure because you’re all watching the pricing page, you’ll probably find a test on, is plans that are differentiated based on take rate and platform fees. And that will hopefully allow us to introduce commerce to basically everyone using the platform and just differentiate based on take rate. So you’ll be able to use invoices, donations, classes and courses, self-physical products, self-services, book appointments all across Squarespace, and you just get a lower take rate with a higher SaaS fee. So that’s kind of what we’ve got in store for pricing. I mean, in my mind, once every two years doesn’t feel particularly aggressive with respect to a modest increase in price. So, yeah, that’s kind of how we’re addressing it.
And Nathan, none of that is built into guidance except for the cohort of people who are not currently at the previous list price.
Nathan Gooden: Correct. But it is immaterial to the 2024 guide.
Anthony Casalena: Yes, single digit million.
Ygal Arounian: Okay, thanks. Really helpful. A follow-up on the Squarespace Bill Baines experience and some of the work you’re doing there. Talked about being the fourth largest registrar business now. And any more color you could share around what that experience is like, how it’s changed, and are you differentiating as a registrar business to drive more traffic to you guys versus some of the other competitors? Thanks.
Anthony Casalena: Right now, most of our efforts have been on making sure the migration is successful and also improving our interface for people who are interested in having a domain and email and no website or multiple domains or a domain that forwards elsewhere, etc., etc. So, again, I think as early as next week, you may see a new interface starting to roll out, which is just a big upgrade on everything that’s going on. And the majority of the customers moving over from Google will experience that interface. The migration has started, but it’s a small percentage of the actual number of domains that have actually moved over right now. We’re just being really careful.
Nathan Gooden: Any goal? I will say since we closed the transaction in September, we are seeing very good retention of the legacy business that continues to exceed the expectations that we had to close of the deal. So, happy with the overall transaction and where it’s trending.
Ygal Arounian: Great. Thanks so much, guys.
Operator: Thank you. The next question comes from the line of Ken Wong with Oppenheimer. Your line is now open.
Ken Wong: Great. Thanks for taking my question. I wanted to maybe just kind of dive in on the fiscal ’24 revenue guidance again. One way I think we typically think about the growth rate of revenue is that kind of bookings leads revenue. You obviously exited with a really high 23% bookings growth rate. I guess why wouldn’t we think of the ’24 revenue growth rate being closer to that number? Is there something we’re missing in terms of the revenue lag or what might be in bookings versus top line?
Nathan Gooden: Yes, that’s a great question, Ken. So, the 23% year over year bookings in Q4 that we saw, the top driver of that was Google domains flowing through. The second driver being our core business. As that flows through 2024, because we recognized the revenue from Google over 12 months, you don’t see that tick up really until the last half of the year when we lapped the acquisition. And so, the latter part of this year, you will see an improvement on that side.
Anthony Casalena: And also to mention in the core, you are lapping price increases.
Ken Wong: Got it. But at a high level, kind of that bookings leads revenue shouldn’t be too much of a stretch. Granted, there’s maybe some ups and downs depending on quarter. And obviously, you’ve got some acquisition stuff we have to kind of work through?
Nathan Gooden: Correct. That is the essence of our model.
Ken Wong: Okay, perfect. And then maybe just to follow up for you, Anthony, again, on the domain side, now that you guys have kind of harmonized the experience, you guys have taken ownership of it from Google. Are you seeing a similar kind of customer funnel coming in? I realize the retention has been really good, but I’m just wondering in terms of kind of the new lead gen, is that been consistent with expectations when you purchase the asset?
Anthony Casalena: The new lead gen remains greatly elevated over our standalone business from last year. And that elevation has been sustained. I think it and the attach rate on those new customers, you know, we’re monitoring very closely, even though we do not have an optimized experience there. Just to reemphasize this, we have not currently migrated over most Google domains. We’ve migrated a minority over and we have an interface out there that does not prioritize cross-sell and up-sell. You’ll see something appear again within a week or so. It does a much better job at that. So it’s just extremely early days. But, you know, in terms of how we’re positioned, this fits into my mind is that trifecta of things all small businesses need, a website, email, and a domain.
And so we’re going to continue to iterate on that experience. But yeah, the funnel increase of new customers has been really, really encouraging. And it’ll only get better as we solidify the domains offering, get better SEO optimization, you know, refine how we’re packaging and offering it. But it’s just, you know, it’s really, really early days. So I think the revenue and the bookings we’re seeing are great, but I think the best is yet to come.
