Square stock rocket after beating earnings


Square’s revenue in the third quarter rose to $ 3.03 billion from $ 1.27 billion a year earlier.

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Shares of Square Inc. posted better after-hours trading after the company reported better-than-expected earnings for the third quarter, saying in-payment volumes for October were up compared to a year earlier.

Class SQ shares,
+ 2.30%
Thursday’s business was up 8%.

The online-payment company reported net income of $ 36.5 million, or 7 cents per share, while it posted net income of $ 29.4 million, or 6 cents per share, a year earlier. On an adjusted basis, Square reported earnings of 34 cents per share, up from 25 cents a year earlier and ahead of FactSet’s consensus, which called for 16 cents.

Square’s revenue for the third quarter climbed from $ 1.27 billion to $ 3.03 billion, while analysts modeled $ 2.04 billion. Excluding bitcoin revenue, the company generated revenue of $ 1.40 billion, up 25% from a year earlier.

Revenue included $ 965 million from the company’s vendor business and $ 2.07 billion from its cash app business. When excluding bitcoin, cash app revenue came in at $ 435 million, 174% from a year earlier.

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The company’s gross payment volume (GPV), or the total dollar amount of card payments processed by vendors using Square, increased from $ 28.2 billion to $ 28.8 billion. The analyst was modeling $ 30 billion. Square revealed that 61% of its volume mix came from vendors making more than $ 125,000 in annual GPVs.

Square revealed that for October, vendor GPV was up 8% from a year earlier, an improvement from relative trends in the third quarter. Vendor GPVs from card-present or in-person transactions increased 1% in October from a year earlier. Online GPV, known in the industry as card-not-present GPV, was up 23%.

Square shares have gained 179% this year as the S&P 500 SPX,
+ 1.94%
An increase of about 8%.

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