Nathan Gooden: And I would layer on that. It is important as you think about the guide, because we are very focused on the migration that is a successful customer experience becoming a Squarespace customer. That is why we’ve not included the cross-sell impact from these millions of customers coming into the Squarespace ecosystem.
Anthony Casalena: Yeah, the guide has limited cross-sell because we just need to observe it.
Ken Wong: Yeah.
Anthony Casalena: Yeah.
Ken Wong: Okay, perfect. Thank you, guys.
Operator: Thank you. Apologies. The next question comes from Chris Zhang with UBS. Your line is now open.
Chris Zhang: Hi, thanks for taking our question. So I wanted to hear your perspectives on the verticalization in website builders and pretty notably in the POS software industry. And I guess particularly by some of the leading restaurant POS providers offering website builders for, for example, with Clover going to the market with Bento Box, Toast, and Shift 4 having recently introduced website builders for their restaurant customers. And of course, Square has had Weebly and Square online for a while. So those are not their core business, but those are tightly integrated with the POS software those restaurants use to run their business day in and day out. So maybe you can share with us if you have seen an increase in competition from these types of vertical software providers in hospitality and maybe some other verticals, and also can you discuss some of the cross-sell between Tock and your existing website product? Thank you.
Anthony Casalena: Sure. We generally have not observed a large amount of competition when, email marketing companies or other companies, point-of-sale companies want to offer a website with their core offering. In fact, the kind of reverse economics should be true. Like it certainly is in Squarespace. I mean, if the website right now is, $20, $30, $40 a month, the Tock subscription is 100. And the GMV plug to the platform is what’s really important. And frankly, how a lot of these businesses are driving their, their choice of tools, right? It’s kind of inverted from website first and then the rest of the tools. So although we certainly see that. I think what’s interesting is for us as we get kind of more vertical scalable tools in place, like for instance, our email marketing tools and can further integrate those with Tock, that kind of upsell is much more of what I would be looking to do versus having, a couple thousand additional websites from the restaurant customers.
So, I don’t, if a vertical provider shaves up a few thousand websites, it’s really kind of immaterial to us. But, that being said, there was always a giant overlap between Tock and Squarespace, just organically, a ton of Tock restaurants, of course, having their own brand use Squarespace. And so that’s where a lot of that came from originally. But the cross-sell we’re looking for is more higher margin, higher value products, not necessarily, the website SaaS subscription.
Chris Zhang: Got it. It’s super helpful, Anthony. And I guess a follow up would be, maybe just can you talk about the top of the funnel trend in the core website products so far this year, given Q1 is such an important quarter?
Anthony Casalena: Yeah, it’s really strong. Again, I mentioned multiple times that last year we had some of our best quarters ever from new trials created, which is kind of, we’re what, two-thirds through Q1. And it’s been really positive. So we’re on track there.
Chris Zhang: All right. Great to hear. Thank you.
Anthony Casalena: Thank you.
Operator: Thank you. The next question comes from the line of Naved Khan with B. Riley Securities. Your line is now open.
Naved Khan: Yeah, great. Thanks a lot. So two questions, one on your marketing spend as a percentage of revenues, which is elevated versus Q4 of 22. Is that, is it justified that you’re leaning into, into marketing because you see opportunity or is it more of a channel mix? Just wondering what’s going on, or maybe associated with, you push into acuity and some of the products that you have kind of relaunched recently. So that’s, that’s one. The other is just on new markets. Anthony, any thoughts on like maybe going into any new international markets in 2024?
Nathan Gooden: Yeah. So I’ll start with your, on the marketing itself question, specifically on Q4. There are several things rolling through here. The amortization of the additional expense related to the Google acquisition rolled through. There, seasonality, we do Q1 is historically a high demand. So we spend into that in Q4. So that’s not a surprise, but I would encourage you on a, to look at the annual for marketing sales EDR ratios, because there is seasonality within each quarter. But on an annual basis, you’ll see the marked improvement both on GAAP and non-GAAP…
Operator: Please ensure your line is unmuted if there is a follow-up.
Naved Khan: Yeah, I did. I did have a follow-up for Anthony. And it was about any plans to enter a new international market in 2024.
Operator: Apologies, Naved. And participants, please hold as we reconnect our speaker lines. Once again, please hold as we reconnect our speakers. Naved, please restate your question. Our speakers have rejoin the line.
Naved Khan: Our second question was for Anthony about any, if you have any plans to add a new market, new geo in 2024?
Anthony Casalena: Yeah. So I think Nathan’s, Nathan’s comments apply to the spend overall. So I’ll bridge into international and just kind of comment on it quickly. Generally, when you see inefficiencies in our spend, it is because of us trying to grow an international market where we don’t have the same spend dynamics and presence as in the US. And yes, we’re looking at a couple of different Asian markets, one in particular, as we go into 2024. It’s a heavier lift in terms of translation, but should be an exciting one for us.
