Square, Inc. Q3 Profit Beats Estimates, Revenue Up 44%; Updates Guidance

(RTTNews) - Square, Inc. (SQ) reported adjusted net income per share of $0.25 for the third quarter of 2019, compared to $0.13, prior year. On average, 35 analysts polled by Thomson Reuters expected the company to report profit per share of $0.20, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $131 million in the third quarter of 2019, up 85 percent year over year.

Third quarter total net revenue grew 44 percent year over year to $1.27 billion, and adjusted revenue grew 40 percent year over year to $602 million. Adjusted revenue excluding Caviar increased to $561.27 million from $391.55 million. Analysts expected revenue of $596.38 million, for the quarter. Transaction based revenue was $817 million, up 25 percent. Subscription and services-based revenue was $280 million up 68 percent.

In the third quarter of 2019, the company processed $28.2 billion in GPV, up 25 percent from prior year. GPV from larger sellers grew 34 percent and accounted for 55 percent of total GPV, up from 52 percent of total GPV in the third quarter of 2018.

For fiscal 2019, the company now expects adjusted earnings per share in a range of $0.76 to $0.78, revised from prior guidance range of $0.74 to $0.78. Adjusted revenue is anticipated to be $2.24 billion to $2.25 billion, revised from prior guidance of $2.25 billion to $2.28 billion. Adjusted revenue ex-Caviar is anticipated in a range of $2.095 billion to $2.105 billion, updated from prior guidance range of $2.060 billion to $2.090 billion. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.77, on revenue of $2.27 billion.

For the fourth-quarter, the company expects adjusted EPS in a range of $0.19 to $0.21; adjusted revenue of $585 million to $595 million; and adjusted revenue ex-Caviar in a range of $571 million to $581 million. Analysts expect the company to report profit per share of $0.25, on revenue of $621.24 million.