Square, Inc. Q1 Adj. EBITDA Down 85%

(RTTNews) - Square, Inc. (SQ) reported an adjusted net loss per share of $0.02 for the first quarter of 2020, compared to profit of $0.11, last year. On average, 33 analysts polled by Thomson Reuters expected the company to report profit per share of $0.13, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $9 million, compared to $62 million, a year ago. The company said the decrease in adjusted EBITDA was driven primarily by an increase in reserves for transaction and loan losses and, to a lesser extent, a slowdown in Seller transaction-based gross profit and seller subscription and services-based gross profit in March.

First quarter total net revenue was $1.38 billion, up 44% year over year. Excluding Caviar from the first quarter of 2019, total net revenue was up 51% year over year. Analysts expected revenue of $620.34 million for the quarter. The company processed $25.7 billion in Gross Payment Volume or GPV, in the first quarter of 2020, up 14% year over year. During the last two weeks of the quarter, the company's Seller ecosystem experienced a significant slowdown due to the impacts of COVID-19, with Seller GPV down 35% year over year.

Square also announced that on May 1, 2020 it entered into a new $500 million revolving credit facility, replacing the prior $375 million facility.

Shares of Square, Inc. were down more than 6% after hours.