{"id":105902,"date":"2020-11-06T01:50:00","date_gmt":"2020-11-05T22:50:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/square-stock-rockets-after-earnings-beat\/"},"modified":"2020-11-06T01:50:00","modified_gmt":"2020-11-05T22:50:00","slug":"square-stock-rockets-after-earnings-beat","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/square-stock-rockets-after-earnings-beat\/","title":{"rendered":"#\n  Square stock rockets after earnings beat"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a46d1100ef0e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a46d1100ef0e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/square-stock-rockets-after-earnings-beat\/#Company_says_that_25_million_people_have_used_Cash_Apps_stock-trading_feature_less_than_a_year_into_its_launch\" >Company says that 2.5 million people have used Cash App\u2019s stock-trading feature, less than a year into its launch<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/square-stock-rockets-after-earnings-beat\/#Squares_revenue_for_the_third_quarter_climbed_to_303_billion_from_127_billion_a_year_ago\" >Square&#8217;s revenue for the third quarter climbed to $3.03 billion from $1.27 billion a year ago.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/square-stock-rockets-after-earnings-beat\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Square stock rockets after earnings beat<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Company_says_that_25_million_people_have_used_Cash_Apps_stock-trading_feature_less_than_a_year_into_its_launch\"><\/span>\n  Company says that 2.5 million people have used Cash App\u2019s stock-trading feature, less than a year into its launch<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000059161\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:64.84375%;\" data-mobile-ratio=\"64.84375%\" data-layout-ratio=\"64.84375%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-232119?width=140&amp;size=1.5421686746987953 140w,\nhttps:\/\/images.mktw.net\/im-232119?width=540&amp;size=1.5421686746987953 540w,\nhttps:\/\/images.mktw.net\/im-232119?width=620&amp;size=1.5421686746987953 620w,\nhttps:\/\/images.mktw.net\/im-232119?width=700&amp;size=1.5421686746987953 700w,\nhttps:\/\/images.mktw.net\/im-232119?width=860&amp;size=1.5421686746987953 860w,\nhttps:\/\/images.mktw.net\/im-232119?width=1260&amp;size=1.5421686746987953 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-232119?width=620&amp;size=1.5421686746987953\" data-enlarge=\"https:\/\/images.mktw.net\/im-232119?width=1260&amp;size=1.5421686746987953\" alt=\"\" title=\"  Square's revenue for the third quarter climbed to $3.03 billion from $1.27 billion...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Squares_revenue_for_the_third_quarter_climbed_to_303_billion_from_127_billion_a_year_ago\"><\/span>  Square&#8217;s revenue for the third quarter climbed to $3.03 billion from $1.27 billion a year ago.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Square<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Square Inc.\u2019s business showed two very different stories in the early days of the pandemic, as its seller segment came under pressure due to lockdown restrictions while its Cash <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a> consumer segment saw surging usage from people looking to send money in an increasingly digital world. <\/p>\n<div class=\"paywall\">\n       Now the merchant side of the business is starting to come back, while the Cash App business is still displaying momentum, and that\u2019s giving Square shares a lift in extended trading. <\/p>\n<p> The stock was up 5.5% in after-hours trading Thursday after Square posted better-than-expected results for its third quarter and pointed to improving trends over the course of October. <\/p>\n<p>Square\u2019s revenue for the third quarter climbed to $3.03 billion from $1.27 billion, whereas analysts tracked by FactSet had been modeling $2.04 billion. Excluding bitcoin revenue, the company generated $1.40 billion in revenue, up 25% from a year earlier.  <\/p>\n<p>The revenue total included $965 million from the company\u2019s seller business and $2.07 billion from its Cash App business. When excluding bitcoin, Cash App revenue came in at $435 million, up 174% from a year prior.<\/p>\n<p>Square\u2019s bitcoin efforts, which allow Cash App users to buy and sell the cryptocurrency, muddy the company\u2019s financials a bit as the revenue from bitcoin activity is fairly low margin, with Square looking to facilitate these bitcoin purchases for users without generating much profit. <\/p>\n<p><strong>Read: Square says that it\u2019s purchased $50 million in bitcoin<\/strong><\/p>\n<p>The company\u2019s gross profit also topped expectations, coming in at $794 million, up from $500 million a year earlier, excluding the Caviar business which Square has since sold. Analysts were modeling $708 million in gross profit.  <\/p>\n<p>Mizuho analyst Dan Dolev called the results \u201cimpressive\u201d in a note to clients, highlighting that Cash App gross profit was up 212% from a year earlier while seller gross profit had a \u201csharp snap back\u201d to 12% growth, compared with a 9% decline in the second quarter. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>On the consumer side of the business, Square saw the number of average daily transacting active Cash App customers nearly double from a year before over the September quarter. The company also disclosed that since its launch less than a year ago, the stock-trading feature within Cash App has attracted 2.5 million customers who\u2019ve thus far purchased a stock.<\/p>\n<p>Square\u2019s Cash App has often benefited from low customer-acquisition costs because of the strong network effects of peer-to-peer platforms. Since a core focus of the Cash App is sending money to friends, Square has been able to rely on word-of-mouth advertising from customers asking their friends to joint he platform so they can exchange funds. Chief Financial Officer Amrita Ahuja said on a call with reporters that Square also tried some new tactics for the Cash App in the third quarter as it did more with paid marketing. <\/p>\n<p>She sees \u201csignificant room to scale marketing spend on the back of strong [returns on investment\u201d and noted that one focus for Square is \u201cwinback\u201d marketing, or attempts to get lapsed users to return to the platform. <\/p>\n<p>The online-payments company reported third-quarter net income of $36.5 million, or 7 cents a share, whereas it posted net income of $29.4 million, or 6 cents a share, a year prior. On an adjusted basis, Square recorded earnings per share of 34 cents, up from 25 cents a year earlier and ahead of the FactSet consensus, which called for 16 cents. <\/p>\n<p>A number of factors positivity impacted Square\u2019s transaction profit in the period, including a greater portion of online transactions, which Square can charge more for. In addition, Square, like several other payments companies, pointed to a greater portion of transactions made with debit cards rather than credit cards as periods of economic uncertainty drive people toward more conservative ways of paying. That trend benefits Square because the company itself incurs lower interchange fees on debit transactions but doesn\u2019t vary its merchant pricing based on the way customers fund their purchases. <\/p>\n<p><strong>Don\u2019t miss: Visa and Mastercard have a lot in common, but COVID-19 puts one key difference in focus<\/strong><\/p>\n<p>The company\u2019s gross payment volume (GPV), or the total dollar amount of card payments processed by sellers using Square, grew to $28.8 billion from $28.2 billion. Analysts were modeling $30 billion. Square disclosed that 61% of its volume mix came from sellers doing more than $125,000 in annual GPV.<\/p>\n<p>Square called out <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly improving trends for the month of October. In particular, seller GPV from card-present, or in-person, transactions rose 1% from a year prior in October, whereas it had fallen 5% during the third quarter. Overall seller GPV increased by 8%, compared with a 4% increase in the third quarter.<\/p>\n<p>Online GPV, known as card-not-present GPV in the industry, was up 23% in October, compared with 24% growth in the third quarter.<\/p>\n<p>Square shares have rallied 179% so far this year, as the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+1.94%<\/bg-quote><br \/>\n       has gained about 8%. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary?mod=MW_author_byline\">Emily Bary<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-DE719663BD6D%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Square stock rockets after earnings beat &#8221; Company says that 2.5 million people have used Cash App\u2019s stock-trading feature, less than a year into its launch Square&#8217;s revenue for the third quarter climbed to $3.03 billion from $1.27 billion a year ago. Square Square Inc.\u2019s business showed two very different stories in the early&#8230;<\/p>\n","protected":false},"author":1,"featured_media":105903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-105902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=105902"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/105902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/105903"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=105902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=105902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=105902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}