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Square (SQ) Q3 Revenues Top Estimates, GPV Soars 31%

Square, Inc. (SQ) just released its third-quarter financial results, posting non-GAAP earnings of $0.07 per share and revenues of $585 million.

Currently, SQ is a Zacks Rank #2 (Buy) and is down 1.66% to $36.10 per share in trading shortly after its earnings report was released.

Square:

Beat earnings estimates. The company posted non-GAAP earnings of $0.07 per diluted share, beating the Zacks Consensus Estimate of $0.06. GAAP net income came in at a loss of $0.04 per diluted share.

Beat revenue estimates. The company saw revenue figures of $585.16 million, beating our consensus estimate $574.28 million.

Quarterly gross payment volume (GPV) reached $17.4 billion, an increase of 31% from the $13.2 billion recorded in the prior-year quarter. About 20% of total GPV came from sellers witnessing over $500,000 in annualized GPV, up from 14% last year.

“In the third quarter, we saw ongoing strength in both transaction-based and subscription and services-based revenue,” the company said. “Our open platform strategy is working: Sellers using business systems that are integrated with Square contributed nearly 20% of third-quarter GPV.”

Management also provided fourth-quarter guidance. Square expects total net revenue in the range of $585 million to $595 million. Adjusted earnings are expected to fall between $0.05 and $0.06 per share. Our current consensus estimates are calling for revenues of $587.65 million and earnings of $0.07 per share.

Here’s a graph that looks at Square’s earnings surprise history:

Square, Inc. Price, Consensus and EPS Surprise

Square, Inc. Price, Consensus and EPS Surprise | Square, Inc. Quote

Square, Inc. offers financial services and marketing services. The Company provides payments and point-of-sale which include hardware and software to accept payments, streamline operations and analyze business information. Its payments and POS services include In-Person Payments, Online Payments, Square Cash, Square Register, Square Analytics, Square Appointments and Square App Marketplace. The Company's financial services include Square Capital and Square Payroll.

Check back later for our full analysis on Square’s latest earnings report!

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