Squarespace, Inc. (NYSE:SQSP) reported its Q4 results, with total revenue coming in at $207.4 million, which represents a 20% year-over-year increase, however, 2022 revenue guidance came in worse than the Street expectations. The company’s shares were trading around 7% higher Tuesday afternoon.

According to the analysts at Berenberg Bank, the company is taking the right step by prioritizing cash flows amid the slowdown in the top end of the funnel. On a longer horizon, the analysts see the company as well-positioned to benefit from brick and mortar to omnichannel commerce and physical to digital transactions. While the growth outlook for 2022 was softer, during the call the company highlighted that it expects 2023–24 revenue growth to be in the mid-to-high teens range.

Still, the softer-than-expected revenue outlook drives cuts to the analysts’ estimates, resulting in a price target of $37, down from $42.