Digital payments and point of sales processor (POS) Square $SQ reported better than expected third quarter earnings after the close Wednesday. $SQ guided forward slightly lower than expectations.
Digital payments and point of sales processor (POS) Square $SQ reported better than expected third quarter earnings after the close Wednesday. $SQ guided forward slightly lower than expectations. Virtual Terminal was Square’s Fastest Product To Reach 1 Billion Cummulative GPV.
Earnings: EPS of 7 cents beating an expected 6 cents EPS. Revenue was up 33% to $585 million year on year beating an expected $574 million. A year ago Square earned one cent a share on net revenue of $439 million.
Reaction: Square Inc NYSE: $SQ – After-hours $36.19 -0.52 (-1.42%)
- Top-line growth accelerated from the second quarter of 2017: Total net revenue increased 33% year over year, up from 26%, and Adjusted Revenue increased 45% year over year, up from 41%.
- $SQ launched Square Register, our first all-in-one hardware offering, and we brought our contactless and chip reader to Canada and Square Stand to Australia.
- Our open platform strategy is working: Sellers using business systems that are integrated with Square contributed nearly 20% of third-quarter GPV.
- Virtual Terminal, which was built with our E-Commerce API, is our fastest product to reach $1 billion in cumulative GPV.
Virtual Terminal, which was built with our E-Commerce API, is our fastest product to reach $1 billion in cumulative GPV.
Virtual Terminal allows sellers to key in payments from a web browser. This shift in product context away from a mobile device is subtle on the surface, but significant for sellers that run their businesses on a computer where companion tools such as email, customer lists, and scheduling operate alongside Virtual Terminal. Nearly 75% of Virtual Terminal GPV comes from sellers that use the product as their primary way to process payments with Square. Virtual Terminal also continues to attract new sellers: To date, approximately half of the product’s GPV comes from sellers that are new to the Square ecosystem.
For Q4 Square forecast adjusted earnings from 5 cents to 6 cents a share on revenue of $590 million at its midpoint of guidance. Analysts estimates were 7 cent profit and $588 million in revenue.
Source: Square Inc https://squareup.com/about/investors